• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Perspnal Selling
 

Perspnal Selling

on

  • 5,759 views

Personal Selling

Personal Selling

Statistics

Views

Total Views
5,759
Views on SlideShare
5,756
Embed Views
3

Actions

Likes
7
Downloads
351
Comments
0

1 Embed 3

http://www.slideshare.net 3

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

Perspnal Selling Perspnal Selling Presentation Transcript

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