Personal Selling and Direct Marketing MGT 252, lecture 11a
Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer r...
Personal Selling <ul><li>The Nature of Personal Selling </li></ul><ul><ul><li>Salesperson covers a wide range of positions...
Personal Selling <ul><li>Salespeople have many names </li></ul><ul><ul><li>Agents </li></ul></ul><ul><ul><li>Sales consult...
Personal Selling <ul><li>The Role of the Sales Force </li></ul><ul><ul><li>Two-way personal communication </li></ul></ul><...
Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer r...
<ul><li>Pharmaceutical companies have extensive sales forces which visit/sell to physicians.  </li></ul><ul><li>What would...
<ul><li>Designing Sales Force Strategy and Structure </li></ul><ul><ul><li>Sales Force Structure </li></ul></ul><ul><ul><u...
Managing the Sales Force <ul><li>Sales Force Strategy and Structure </li></ul><ul><ul><li>Sales Force Size </li></ul></ul>...
Managing the Sales Force <ul><li>Recruiting and Selecting Salespeople </li></ul><ul><ul><li>Careful recruiting can:  </li>...
Managing the Sales Force <ul><li>Training Salespeople </li></ul><ul><ul><li>Training period can be anywhere from a few wee...
Managing the Sales Force <ul><li>Training Salespeople </li></ul><ul><ul><li>Training programs have many goals </li></ul></...
Managing the Sales Force <ul><li>Compensating Salespeople </li></ul><ul><ul><li>Compensation elements: salary, bonuses, co...
Managing the Sales Force <ul><li>Supervising Salespeople </li></ul><ul><ul><li>Supervision is used to direct and motivate ...
Managing the Sales Force <ul><li>Evaluating Salespeople </li></ul><ul><ul><li>Several tools can be used </li></ul></ul><ul...
The Personal Selling Process <ul><li>The goal of the personal selling process is to find new customers and sell them somet...
The Personal Selling Process <ul><li>Prospecting and Qualifying </li></ul><ul><ul><li>Identifying customers that may have ...
The Personal Selling Process <ul><li>Preapproach: </li></ul><ul><ul><li>Learn as much about the prospective customer as po...
The Personal Selling Process <ul><li>Approach: </li></ul><ul><ul><li>Meeting and greeting the customer for the first time ...
The Personal Selling Process <ul><li>Presentation and demonstration: </li></ul><ul><ul><li>What happens during the sales c...
The Personal Selling Process <ul><li>Handling objections: </li></ul><ul><ul><li>The salesperson seeks out, clarifies, and ...
The Personal Selling Process <ul><li>Closing the sale: </li></ul><ul><ul><li>Asking the customer to buy (order) the produc...
The Personal Selling Process <ul><li>Follow-up: </li></ul><ul><ul><li>What takes place after the sale </li></ul></ul><ul><...
Personal Selling and Customer Relationship Management <ul><li>The principals just described are transaction-oriented </li>...
Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer r...
Direct Marketing <ul><li>Direct Marketing consists of direct one-to-one connections with carefully targeted individual con...
Direct Marketing <ul><li>The new Direct Marketing Model </li></ul><ul><ul><li>Direct Marketing is both, a direct marketing...
Forms of Direct Marketing <ul><li>Telephone marketing: outbound and inbound, suffers from consumer burnout, technology to ...
<ul><li>For buyers: </li></ul><ul><ul><li>Convenient </li></ul></ul><ul><ul><li>Easy to use </li></ul></ul><ul><ul><li>Pri...
<ul><li>For Sellers </li></ul><ul><ul><li>Powerful tool for building relationships </li></ul></ul><ul><ul><li>Allows for t...
Customer Databases and Direct Marketing <ul><li>Customer database: organized collection of comprehensive data about indivi...
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Perspnal Selling

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Personal Selling

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Perspnal Selling

  1. 1. Personal Selling and Direct Marketing MGT 252, lecture 11a
  2. 2. Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer relationships </li></ul><ul><li>Identify and explain the six major sales force management steps </li></ul><ul><li>Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing </li></ul><ul><li>Define direct marketing and discuss its benefits to customers and companies </li></ul><ul><li>Identify and discuss the major forms of direct marketing </li></ul>
  3. 3. Personal Selling <ul><li>The Nature of Personal Selling </li></ul><ul><ul><li>Salesperson covers a wide range of positions from order taker to order getter responsible for relationship building </li></ul></ul>
  4. 4. Personal Selling <ul><li>Salespeople have many names </li></ul><ul><ul><li>Agents </li></ul></ul><ul><ul><li>Sales consultants </li></ul></ul><ul><ul><li>Sales Representatives </li></ul></ul><ul><ul><li>Account Executives </li></ul></ul><ul><ul><li>Sales Engineers </li></ul></ul><ul><ul><li>District Managers </li></ul></ul><ul><ul><li>Marketing representatives </li></ul></ul><ul><ul><li>Account Development Representatives </li></ul></ul>
  5. 5. Personal Selling <ul><li>The Role of the Sales Force </li></ul><ul><ul><li>Two-way personal communication </li></ul></ul><ul><ul><li>More effective than advertising in complex selling situations </li></ul></ul><ul><ul><li>The sales force plays a major role in most companies </li></ul></ul><ul><ul><li>The sales force works to represents the company to customers </li></ul></ul><ul><ul><li>They also represent the customers to the company </li></ul></ul>
  6. 6. Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer relationships </li></ul><ul><li>Identify and explain the six major sales force management steps </li></ul><ul><li>Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing </li></ul><ul><li>Define direct marketing and discuss its benefits to customers and companies </li></ul><ul><li>Identify and discuss the major forms of direct marketing </li></ul>
  7. 7. <ul><li>Pharmaceutical companies have extensive sales forces which visit/sell to physicians. </li></ul><ul><li>What would be the challenges in each step of sales force management for the sales force of a pharmaceutical like Viagra? </li></ul>Major Steps in Sales Force Management ?
  8. 8. <ul><li>Designing Sales Force Strategy and Structure </li></ul><ul><ul><li>Sales Force Structure </li></ul></ul><ul><ul><ul><li>Territorial sales force structure </li></ul></ul></ul><ul><ul><ul><li>Product sales force structure </li></ul></ul></ul><ul><ul><ul><li>Customer sales force structure </li></ul></ul></ul><ul><ul><ul><li>Complex sales force structure </li></ul></ul></ul>Managing the Sales Force
  9. 9. Managing the Sales Force <ul><li>Sales Force Strategy and Structure </li></ul><ul><ul><li>Sales Force Size </li></ul></ul><ul><ul><ul><li>Many companies use the workload approach to set sales force size </li></ul></ul></ul><ul><ul><li>Other Issues </li></ul></ul><ul><ul><ul><li>Outside and inside sales forces </li></ul></ul></ul><ul><ul><ul><li>Team selling </li></ul></ul></ul>
  10. 10. Managing the Sales Force <ul><li>Recruiting and Selecting Salespeople </li></ul><ul><ul><li>Careful recruiting can: </li></ul></ul><ul><ul><ul><li>Increase overall sales force performance </li></ul></ul></ul><ul><ul><ul><li>Reduce turnover </li></ul></ul></ul><ul><ul><ul><li>Reduce recruiting and training costs </li></ul></ul></ul><ul><li>Traits of Successful Salespeople </li></ul><ul><ul><li>Intrinsic motivation </li></ul></ul><ul><ul><li>Disciplined work style </li></ul></ul><ul><ul><li>The ability to close a sale </li></ul></ul><ul><ul><li>Ability to build relationships with customers </li></ul></ul>
  11. 11. Managing the Sales Force <ul><li>Training Salespeople </li></ul><ul><ul><li>Training period can be anywhere from a few weeks to a year or more </li></ul></ul><ul><ul><li>Training is expensive, but yields strong returns </li></ul></ul><ul><ul><li>Many companies are adding Web-based sales training programs </li></ul></ul>
  12. 12. Managing the Sales Force <ul><li>Training Salespeople </li></ul><ul><ul><li>Training programs have many goals </li></ul></ul><ul><ul><ul><li>Identify with the company and its products </li></ul></ul></ul><ul><ul><ul><li>Know about customers and competitors </li></ul></ul></ul><ul><ul><ul><li>The basics of the selling process </li></ul></ul></ul>
  13. 13. Managing the Sales Force <ul><li>Compensating Salespeople </li></ul><ul><ul><li>Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits </li></ul></ul><ul><ul><li>Basic compensation plans: </li></ul></ul><ul><ul><ul><li>Straight salary </li></ul></ul></ul><ul><ul><ul><li>Straight commission </li></ul></ul></ul><ul><ul><ul><li>Salary plus bonus </li></ul></ul></ul><ul><ul><ul><li>Salary plus commission </li></ul></ul></ul><ul><ul><li>Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives. </li></ul></ul>
  14. 14. Managing the Sales Force <ul><li>Supervising Salespeople </li></ul><ul><ul><li>Supervision is used to direct and motivate salespeople </li></ul></ul><ul><ul><li>Companies will vary in how closely they supervise their salespeople; will vary depending on the skill level and maturity of the sales force, and type of selling </li></ul></ul><ul><li>Tools used: </li></ul><ul><ul><li>Annual call plans and time-and-duty analysis can help provide direction </li></ul></ul><ul><ul><li>Sales force automation systems assist in creating more efficient sales force operations </li></ul></ul><ul><ul><li>The Internet is the fastest-growing sales technology tool </li></ul></ul>
  15. 15. Managing the Sales Force <ul><li>Evaluating Salespeople </li></ul><ul><ul><li>Several tools can be used </li></ul></ul><ul><ul><ul><li>Sales reports </li></ul></ul></ul><ul><ul><ul><li>Call reports </li></ul></ul></ul><ul><ul><ul><li>Expense reports </li></ul></ul></ul>
  16. 16. The Personal Selling Process <ul><li>The goal of the personal selling process is to find new customers and sell them something </li></ul><ul><li>Most salespeople spend their time maintaining existing accounts and building long-term customer relationships </li></ul><ul><li>Not all steps required in every sale </li></ul>
  17. 17. The Personal Selling Process <ul><li>Prospecting and Qualifying </li></ul><ul><ul><li>Identifying customers that may have a need for the product or service being sold </li></ul></ul><ul><ul><li>Only a small number of prospects become customers </li></ul></ul><ul><ul><li>Prospecting requires effort, time, and commitment </li></ul></ul>
  18. 18. The Personal Selling Process <ul><li>Preapproach: </li></ul><ul><ul><li>Learn as much about the prospective customer as possible, prior to approaching them to ask for a meeting </li></ul></ul><ul><ul><li>Use all resources to learn before meeting </li></ul></ul><ul><ul><li>Setting call objectives is important to being productive and not wasting the customer’s time </li></ul></ul>
  19. 19. The Personal Selling Process <ul><li>Approach: </li></ul><ul><ul><li>Meeting and greeting the customer for the first time </li></ul></ul><ul><ul><li>Involves salesperson’s appearance, opening lines, and the follow-up remarks </li></ul></ul><ul><ul><li>Listening to the customer is crucial </li></ul></ul>
  20. 20. The Personal Selling Process <ul><li>Presentation and demonstration: </li></ul><ul><ul><li>What happens during the sales call </li></ul></ul><ul><ul><li>Purpose is to uncover needs and then attempt to satisfy them </li></ul></ul><ul><ul><li>Questioning and listening skills are important </li></ul></ul><ul><ul><li>Technology can help or get in the way </li></ul></ul><ul><ul><li>Customers value empathy, honesty, punctuality, reliability, thoroughness, and follow through </li></ul></ul>
  21. 21. The Personal Selling Process <ul><li>Handling objections: </li></ul><ul><ul><li>The salesperson seeks out, clarifies, and overcomes customer objections to buying the product or service </li></ul></ul><ul><ul><li>Customers object for different reasons: no need, lack of information, product limitation, or as a negotiating tactic </li></ul></ul><ul><ul><li>Handling objections is important, but preventing them is more effective; need to look at qualifying skills and use of features, advantages, and benefits </li></ul></ul>
  22. 22. The Personal Selling Process <ul><li>Closing the sale: </li></ul><ul><ul><li>Asking the customer to buy (order) the product </li></ul></ul><ul><ul><li>The only step that produces revenue; most important </li></ul></ul><ul><ul><li>Fear of rejection makes this step the most difficult </li></ul></ul><ul><ul><li>Keep it simple, honest, and direct; different types of closing techniques make assumptions that can be dangerous if used improperly </li></ul></ul>
  23. 23. The Personal Selling Process <ul><li>Follow-up: </li></ul><ul><ul><li>What takes place after the sale </li></ul></ul><ul><ul><li>To ensure customer satisfaction </li></ul></ul><ul><ul><li>To keep the door open for repeat business </li></ul></ul><ul><ul><li>Ask for referrals </li></ul></ul>
  24. 24. Personal Selling and Customer Relationship Management <ul><li>The principals just described are transaction-oriented </li></ul><ul><li>Companies want to encourage repeat purchasing because it is more efficient than trying to replace lost customers </li></ul><ul><li>It takes different skills to build relationships with customers </li></ul><ul><li>Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes </li></ul>
  25. 25. Learning Goals <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer relationships </li></ul><ul><li>Identify and explain the six major sales force management steps </li></ul><ul><li>Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing </li></ul><ul><li>Define direct marketing and discuss its benefits to customers and companies </li></ul><ul><li>Identify and discuss the major forms of direct marketing </li></ul>
  26. 26. Direct Marketing <ul><li>Direct Marketing consists of direct one-to-one connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. </li></ul>
  27. 27. Direct Marketing <ul><li>The new Direct Marketing Model </li></ul><ul><ul><li>Direct Marketing is both, a direct marketing channel and an element of the marketing communications mix </li></ul></ul><ul><ul><li>Technology has made of direct marketing a new and complete model for doing business. </li></ul></ul><ul><ul><li>Firms employing this direct-marketing model (such as Dell Computer) use it as the only approach </li></ul></ul>
  28. 28. Forms of Direct Marketing <ul><li>Telephone marketing: outbound and inbound, suffers from consumer burnout, technology to block calls </li></ul><ul><li>Direct mail marketing: flexible, personalized, but suffers from junk mail image </li></ul><ul><li>Catalogue marketing: the big winners in the rise of the Internet; huge cost efficiencies by moving catalogue offering online </li></ul><ul><li>Direct-response television marketing: infomercials work, despite a poor reputation </li></ul><ul><li>Kiosk marketing: going where the customers are </li></ul>
  29. 29. <ul><li>For buyers: </li></ul><ul><ul><li>Convenient </li></ul></ul><ul><ul><li>Easy to use </li></ul></ul><ul><ul><li>Private </li></ul></ul><ul><ul><li>Access to a wealth of information </li></ul></ul><ul><ul><li>Immediate </li></ul></ul><ul><ul><li>Interactive </li></ul></ul>Benefits of Direct Marketing
  30. 30. <ul><li>For Sellers </li></ul><ul><ul><li>Powerful tool for building relationships </li></ul></ul><ul><ul><li>Allows for targeting of small groups or individuals with customized offers in a personalized fashion </li></ul></ul><ul><ul><li>Can be timed to reach prospects at the right time </li></ul></ul><ul><ul><li>Offers access to buyers that couldn’t be reached via other channels </li></ul></ul><ul><ul><li>Low-cost, effective alternative for reaching specific markets </li></ul></ul>Benefits of Direct Marketing
  31. 31. Customer Databases and Direct Marketing <ul><li>Customer database: organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data </li></ul><ul><ul><li>Databases include comprehensive data including geographic, demographic, psychographic and behavioral </li></ul></ul><ul><ul><li>Databases can be used to identify prospects, tailor products, and maintain customer relationships </li></ul></ul><ul><ul><li>Database marketing requires substantial investment in hardware, software, personnel </li></ul></ul><ul><ul><li>Build customer loyalty by tailoring new offers to their specific interests </li></ul></ul>
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