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    personal selling and direct marketing personal selling and direct marketing Presentation Transcript

    • Personal Selling and Direct and Online Marketing: Building Direct Customer Relationships 16 &17
      • After studying this chapter, you should be able to:
      • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
      • Identify and explain the six major force management steps
      • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
      16-2
      • Personal Selling
      • The Personal Selling Process
      16-3
      • The Nature of Personal Selling
      • Examples of people who do the selling include:
      • Salespeople
      • Sales representatives
      • District managers
      • Account executives
      • Sales engineers
      • Agents
      • Account development reps
      16-4
      • The Nature of Personal Selling
      • Salespeople can include an order taker such as someone standing behind the counter or an order getter whose position demands more creative selling and relationship building
      • Personal selling is the interpersonal part of the promotion mix and can include:
      • Face-to-face communication
      • Telephone communication
      • Video or Web conferencing
      16-5
      • The Role of the Sales Force
      • Salespeople can be more effective than advertising
      • Learn about customer problems and adjust the marketing offer and presentation accordingly to meet the special needs of each customer
      • Representing the company to customers
      • Representing customers to the company
      16-7
      • Managing the Sales Force
      • Sales force management is the analysis, planning, implementation, and control of sales force activities and includes:
      • Designing the sales force strategy and structure
      • Recruiting
      • Selecting
      • Training
      • Compensating
      • Supervising
      • Evaluating
      16-9
      • Managing the Sales Force
      • Sales Force Structure
      • Territorial sales force structure
        • refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory
      • Product sales force structure
        • refers to a structure where each salesperson sells along product lines
      • Customer sales force structure
        • refers to a structure where each salesperson sells along customer or industry lines
      • Complex sales force structure
        • refers to a structure where a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures
      16-10
      • Managing the Sales Force
      • Sales Force Size
      • Salespeople are one of the company’s most productive and expensive assets
      • Increases in sales force size can increase sales and costs
      16-15
      • Managing the Sales Force
      • Other Sales Force Strategy and Structure Issues
      • Outside salespeople call on customers in the field
      • Inside salespeople conduct business from their offices
      • Technical sales support people
      • Sales assistants
      16-18
      • Managing the Sales Force
      • Other Sales Force Strategy and Structure Issues
      • Team selling is used to service large complex accounts and can include experts from:
      • Sales, Marketing, Technical , R&D, Engineering, Operations and Finance
      • Some challenges of team selling
      • Customers used to working with one salesperson may become confused or overwhelmed
      • Salespeople used to working alone can have difficulties working with and trusting teams
      • Evaluating individual contributions can lead to compensation issues
      16-20
      • Recruiting and Selecting Salespeople
      • Issues in recruiting and selecting include:
      • Careful selection
      • Increases sales performance
      • Poor selection
      • Increases recruiting and training costs
        • Lost sales
        • Disrupts customer relationships
      16-22
      • Compensating Salespeople
      • Compensation is made up of:
      • Fixed amounts - a salary, give the salesperson some stable income
      • Variable amounts - commission or bonus based on sales performance; rewards the salesperson for greater effort and success
      • Expenses
      • Fringe benefits
      16-23
      • Supervising and Motivating Salespeople
      • The goal of supervision is to help salespeople work smart by doing the right things in the right ways
      • The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals
      • Sales morale and performance can be increased through:
      • Organizational climate - feelings
      • Sales quotas
      • Positive incentives – sales contest, sales meeting
      16-26
      • Evaluating Salespeople and Sales Force Performance
      • Sales reports
      • Call reports
      • Expense reports
      16-32
      • The goal of the personal selling process is to get new customers and obtain orders from them
      16-33
      • Steps in the Personal Selling Process
      • Prospecting and qualifying
      • Pre-approach
      • Approach
      • Presentation and demonstration
      • Handling objections
      • Closing
      • Follow-up
      16-34
      • Steps in the Personal Selling Process
      • Step 1
      • Prospecting identifies qualified potential customers through referrals from:
      • Customers
      • Suppliers
      • Dealers
      • Internet
      16-35
      • Steps in the Personal Selling Process
      • Step 1
      • Qualifying is identifying good customers and screening out poor ones by looking at:
      • Financial ability
      • Volume of business
      • Needs
      • Location
      • Growth potential
      16-36
      • Steps in the Personal Selling Process
      • Step 2
      • Pre-approach is the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers
      16-37
      • Objectives
      • Qualify the prospect
      • Gather information
      • Make an immediate sale
      • Approaches
      • Personal visit
      • Phone call
      • Letter
      16-38 Steps in the Personal Selling Process Step 2 In the pre-approach stage, the salesperson sets call objectives and the best approach
      • Steps in the Personal Selling Process
      • Step 3
      • Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start, and involves the salesperson’s :
      • Appearance
      • Opening lines
      • Follow-up remarks
      • Salesperson must listen to customers
      • Presentation, need satisfaction approach
      16-39
      • Steps in the Personal Selling Process
      • Step 4
      • Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken
      • When handling objections from buyers, salespeople should:
      • Be positive
      • Seek out hidden objections
      • Ask the buyers to clarify any objections
      • Take objections as opportunities to provide more information
      • Turn objections into reasons for buying
      16-44
      • Steps in the Personal Selling Process
      • Step 5
      • Closing is the process where salespeople should recognize signals from the buyer, including physical actions, comments, and questions to close the sale
      16-45
      • Steps in the Personal Selling Process
      • Step 5
      • Closing techniques can include:
      • Asking for the order
      • Reviewing points of agreement
      • Offering to help write up the order
      • Asking if the buyer wants this model or another one
      • Making note that the buyer will lose out if the order is not placed now
      • Offering incentives to buy, including lower price or additional quantity
      16-46
      • Steps in the Personal Selling Process
      • Step 6
      • Follow up is necessary if the salesperson wants to ensure customer satisfaction and repeat business
      • Personal Selling and Customer Relationship Management
      • Personal selling is a transaction-oriented approach to close a specific sale with a specific customer, with the long-term goal to develop a mutually profitable relationship
      16-47
      • After studying this chapter, you should be able to:
      • Define direct marketing and discuss its benefits to customers and companies
      • Identify and discuss the major forms of direct marketing
      • Explain how companies have responded to the Internet and other powerful new technologies with online marketing strategies
      • Discuss how companies go about conducting online marketing to profitably deliver more value to customers
      • Overview the public policy and ethical issues presented by direct marketing
      17-2
      • The New Direct-Marketing Model
      • Growth and Benefits of Direct Marketing
      • Customer Databases and Direct Marketing
      • Forms of Direct Marketing
      • Online Marketing
      • Integrated Direct Marketing
      • Public Policy Issues in Direct Marketing
      17-3
      • Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
      • No intermediaries
      • An element of the promotion mix
      • Fastest-growing form of marketing
      17-4
      • Benefits to Buyers
      • Convenience
      • Ready access to many products
      • Access to comparative information about companies, products, and competitors
      • Interactive and immediate
      17-5
      • Benefits to Sellers
      • Tool to build customer relationships
      • Low-cost, efficient, fast alternative to reach markets
      • Flexible
      • Access to buyers not reachable through other channels
      17-6
      • Customer Database
      • Customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
      • Uses:
      • Locate good and potential customers
      • Generate sales leads
      • Learn about customers
      • Develop strong long-term relationships
      17-7
      • Personal selling direct marketing
      • Direct-mail direct marketing
      • Catalog direct marketing
      • Telephone marketing
      • Direct-response television marketing
      • Kiosk marketing
      • Digital direct marketing
      • Online marketing
      17-9
      • Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address
      • Personalized
      • Easy-to-measure results
      • Costs more than mass media
      • Provides better results than mass media
      17-10
      • Benefits of Web-based catalogs
      • Lower cost than printed catalogs
      • Unlimited amount of merchandise
      • Real-time merchandising
      • Interactive content
      • Promotional features
      • Challenges of Web-based catalogs
      • Require marketing
      • Difficulties in attracting new customers
      17-11 Catalog direct marketing involves printed and Web-based catalogs
      • Telephone direct marketing involves using the telephone to sell directly to consumers and business customers
      • Outbound telephone marketing sells directly to consumers and businesses
      • Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs
      17-12
      • Benefits of telephone direct marketing
      • Purchasing convenience
      • Increased product service and information
      • Challenges of Web-based catalogs
      • Unsolicited outbound telephone marketing
      • Do-Not-Call Registry
      17-13
      • Direct-response television (DRTV) marketing involves 60- to 120-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home shopping channels
      • Less expensive than other forms of promotion
      • Easier to track results
      17-14
      • Kiosk marketing involves placing information and ordering machines in stores, airports, trade shows, and other locations
      17-15
      • Digital direct marketing technologies
      • Mobile phone marketing
      • Podcasts
      • Vodcasts
      • Interactive TV
      17-16
      • Mobile phone marketing includes:
      • Ring-tone giveaways
      • Mobile games
      • Ad-supported content
      • Contests and sweepstakes
      17-17
      • Podcasts and Vodcasts involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience
      17-18
      • Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences
      17-19
      • Marketing and the Internet
      • Internet is a vast public web of computer networks that connects users of all types around the world to each other and to a large information repository
      17-20
      • Online Marketing Domains
      • Business to consumer (B2C)
        • involves selling goods and services online to final consumers
      • Business to business (B2B)
        • involves selling goods and services, providing information online to businesses, and building customer relationships
      • Consumer to consumer (C2C)
        • occurs on the Web between interested parties over a wide range of products and subjects, blogs
      • Consumer to business (C2B)
        • involves consumers communicating with companies to send suggestions and questions via company Web sites
      17-21
      • Types of Online Marketers
      • Click-only marketers
        • Operate only online without any brick and mortar presence
        • E-tailers (Amazon), search engines and portals, shopping or price comparison sites, Internet service providers (ISP)
      • Click-and-mortar marketers
        • Companies are brick-and-mortar companies with an online presence
        • Advantages of click and mortar companies include known and trusted brand names, strong financial resources, large customer bases, industry knowledge, reputation etc
      17-25
      • Setting Up an Online Presence
      • Creating a Web site requires designing an attractive site and developing ways to get consumers to visit the site, remain on the site, and return to the site
      17-31
      • Setting Up an Online Presence
      • Types of sites
      • Corporate Web site
      • Marketing Web site
      17-32
      • Setting up an Online Presence
      • Corporate Web site is designed to build customer goodwill and to supplement other channels, rather than to sell the company’s products directly to:
      • Provide information
      • Create excitement
      • Build relationships
      17-33
      • Setting Up an Online Presence
      • Marketing Web site is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome
      17-34
      • Designing Effective Web Sites
      • To attract visitors, companies must:
      • Promote in offline promotion and online links
      • Create value and excitement
      • Constantly update the site
      • Make the site useful
      17-35
      • Designing Effective Web Sites
      • The seven Cs of effective Web site design
      • Context - is the site’s layout
      • Content - is the site’s pictures, sound, and video
      • Community - is the site’s means to enable user-to-user communication
      • Customization - is the site’s ability to tailor itself to different users or to allow users to personalize the site
      • Communication - is the way the site enables user-to-user, user-to-site, or two-way communication
      • Connection - is the degree that the site is lined to other sites
      • Commerce - is the site’s capabilities to enable commercial transactions
      17-36
      • Designing Effective Web Sites
      • The eighth C
      • To keep customers coming back, the site needs to constantly change
      17-39
      • Placing Ads and Promotions Online
      • Forms of online advertising
      • Display ads
      • Search-related ads
      • Online classifieds
      17-40
      • Placing Ads and Promotions Online
      • Display ads
      • Banners are banner-shaped ads found on a Web site
      • Interstitials are ads that appear between screen changes
      • Pop-ups are ads that suddenly appear in a new window in front of the window being viewed
      • Rich media ads incorporate animation, video, sound, and interactivity
      17-41
      • Placing Ads and Promotions Online
      • Search-related ads are ads in which text-based ads and links appear alongside search engine results on sites such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion
      17-42
      • Placing Ads and Promotions Online
      • Other forms of online promotion include
      • Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information
      • Alliances and affiliate programs are relationships where online companies promote each other
      • Viral marketing is the Internet version of word-of-mouth marketing and involves the creation of a Web site, an e-mail message, or another marketing event that customers pass along to friends
      17-44
      • The Future of Online Advertising
      • Online advertising provides a useful purpose as a supplement to other marketing efforts and is playing an increasingly important role in the marketing mix
      17-45
      • Creating or Participating in Web Communities
      • Web communities allow members to congregate online and exchange views on issues of common interest
      • iVillage.com
      • MyFamily.com
      17-46
      • Using E-mail
      • Marketers are developing enriched messages that include animation, interactivity, and personal messages with streaming audio and video to compete with the cluttered e-mail environment
      17-47
      • Integrated direct marketing involves the use of carefully coordinated multiple-media, multiple-stage campaigns
      17-48
      • Customer irritation, unfairness, deception, and fraud
      • Privacy
      • Security
      17-49
      • Irritation, Unfairness, Deception, and Fraud
      • Irritation includes annoying and offending customers
      • Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers
      • Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers
      • Internet fraud includes identity theft and financial scams
      17-50