personal selling and direct marketing

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  • 1. Personal Selling and Direct and Online Marketing: Building Direct Customer Relationships 16 &17
  • 2.
    • 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
  • 3.
    • Personal Selling
    • The Personal Selling Process
    16-3
  • 4.
    • 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
  • 5.
    • 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
  • 6.
    • 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
  • 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
  • 8.
    • 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
  • 9.
    • 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
  • 10.
    • 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
  • 11.
    • 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
  • 12.
    • 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
  • 13.
    • 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
  • 14.
    • 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
  • 15.
    • Evaluating Salespeople and Sales Force Performance
    • Sales reports
    • Call reports
    • Expense reports
    16-32
  • 16.
    • The goal of the personal selling process is to get new customers and obtain orders from them
    16-33
  • 17.
    • Steps in the Personal Selling Process
    • Prospecting and qualifying
    • Pre-approach
    • Approach
    • Presentation and demonstration
    • Handling objections
    • Closing
    • Follow-up
    16-34
  • 18.
    • Steps in the Personal Selling Process
    • Step 1
    • Prospecting identifies qualified potential customers through referrals from:
    • Customers
    • Suppliers
    • Dealers
    • Internet
    16-35
  • 19.
    • 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
  • 20.
    • 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
  • 21.
    • 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
  • 22.
    • 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
  • 23.
    • 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
  • 24.
    • 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
  • 25.
    • 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
  • 26.
    • Steps in the Personal Selling Process
    • Step 6
    • Follow up is necessary if the salesperson wants to ensure customer satisfaction and repeat business
  • 27.
    • 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
  • 28.
    • 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
  • 29.
    • 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
  • 30.
    • 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
  • 31.
    • Benefits to Buyers
    • Convenience
    • Ready access to many products
    • Access to comparative information about companies, products, and competitors
    • Interactive and immediate
    17-5
  • 32.
    • 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
  • 33.
    • 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
  • 34.
    • 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
  • 35.
    • 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
  • 36.
    • 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
  • 37.
    • 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
  • 38.
    • 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
  • 39.
    • 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
  • 40.
    • Kiosk marketing involves placing information and ordering machines in stores, airports, trade shows, and other locations
    17-15
  • 41.
    • Digital direct marketing technologies
    • Mobile phone marketing
    • Podcasts
    • Vodcasts
    • Interactive TV
    17-16
  • 42.
    • Mobile phone marketing includes:
    • Ring-tone giveaways
    • Mobile games
    • Ad-supported content
    • Contests and sweepstakes
    17-17
  • 43.
    • 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
  • 44.
    • 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
  • 45.
    • 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
  • 46.
    • 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
  • 47.
    • 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
  • 48.
    • 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
  • 49.
    • Setting Up an Online Presence
    • Types of sites
    • Corporate Web site
    • Marketing Web site
    17-32
  • 50.
    • 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
  • 51.
    • 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
  • 52.
    • 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
  • 53.
    • 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
  • 54.
    • Designing Effective Web Sites
    • The eighth C
    • To keep customers coming back, the site needs to constantly change
    17-39
  • 55.
    • Placing Ads and Promotions Online
    • Forms of online advertising
    • Display ads
    • Search-related ads
    • Online classifieds
    17-40
  • 56.
    • 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
  • 57.
    • 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
  • 58.
    • 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
  • 59.
    • 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
  • 60.
    • 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
  • 61.
    • 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
  • 62.
    • Integrated direct marketing involves the use of carefully coordinated multiple-media, multiple-stage campaigns
    17-48
  • 63.
    • Customer irritation, unfairness, deception, and fraud
    • Privacy
    • Security
    17-49
  • 64.
    • 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