m

1. 12-1
Personal Selling,
Database Marketing,
And Customer Relationship
Management12
•Personal selling
–Retail sales
–Business-to-business sales
•Database marketing
•Direct marketing
•Permission marketing
•Frequency programs
•Customer relationship management
Chapter Overview
Prof. (Dr.) Kao Kveng Hong, PhD, D.Litt

2. 12-2
Retail Sales
1. How much influence does
a retail sales clerk have on
your purchase decision?
2. What products do sales
people have the most
influence?
3. What type of sales
approach works the best?
Discussion Slide
12

3. 12-3
The Manufacturer’s Dilemma
• Retail sales personnel can influence
purchase decision.
• To enhance manufacturer brand
within retail stores, manufacturers
• Provide training for retail salespeople
• Advertise extensively
• Offer contests and incentives at retail level
• Missionary salespeople

4. 12-4
Business-to-Business Personal Selling
• Field sales
• In-house sales
• Telemarketing sales
• Internet sales

5. 12-5
Four Attributes of Great Salespeople
Jack Carroll
• Integrity – being honest with
customers.
• Diligence – working hard.
• Resiliency – ability to bounce back
and not take “no” personally.
• Intelligence
Source: Jack Carroll, “The Four Attributes of Great Salespeople,” SalesLinks
Bulletin, Mentor Associates Sales Training.
(Http://www.saleslinks.com/sideline/sep-dec98/102698.htm)

6. 12-6
Types of Selling Relationships
F I G U R E 1 2 . 2

7. 12-7
How to Build Trust in a Strategic
Partnership
- Thomas Wood-Young
• Communicate frequently.
• Return all phone calls immediately.
• Handle complaints promptly with empathy and
honesty.
• Offer great customer service.
• Understand your customer.
• Become a valuable resource.
• Create solutions that add value for your
customers.
• Partner with customers.
• Create a customer, not a sale!
Source: Thomas Wood-Young, “Building Trust Results in Customer Loyalty,” Sales Doctors Magazine
(Http://www.salesdoctors.com/diagnosis/3trust2.htm)

8. 12-8
• Identifying prospects
• Qualifying prospects
• Knowledge acquisition
• Sales approaches
• Sales presentation
• Follow-up
Personal Selling Process
F I G U R E 1 2 . 4

9. 12-9
• Determine objectives.
• Collect data.
• Build a data warehouse.
• Mine data for information.
• Develop marketing programs.
• Evaluate marketing programs and
data warehouse.
Steps in Developing a Database
F I G U R E 1 2 . 1 1

10. 12-10
• Internal customer data.
• Survey data of customers.
• Channel members.
• Commercial data sources.
• Government data sources.
Sources of Data
F I G U R E 1 2 . 1 2

11. 12-11
• Where are the customer located?
• What have they purchased?
• How often have they purchased?
• How did they initially make contact?
• How do they order or purchase? (in person, Web, mail,
phone, etc.)
• What is known about their families, occupations, payment
histories, interests, attitudes, etc.?
• If B-to-B, who are the influencers, users, deciders and
purchasers?
• If B-to-B, is it a corporate office or branch offices?
Internal Data Information
F I G U R E 1 2 . 1 3

12. 12-12
The Data Warehouse
• Internal data
• External data
• Geocoding information
• Data put into warehouse must be
relevant to objectives.

13. 12-13
INTEGRATED LEARNING EXPERIENCESTOP
• Sagent Technology
• http://www.qmsoft.com
Building a data warehouse – Professional firm.

14. 12-14
Mining Data for Information
• Building profiles of customer groups
• Preparing models that predict future
purchase behavior

15. 12-15
INTEGRATED LEARNING EXPERIENCESTOP
• Geo-marketing services.
• Http://www.db-marketing.com/geo
• Data mining services
• Http://www.database-marketing.com
Firms offering data mining services

16. 12-16
Executives from
Unica, a maker of
marketing automation
software, discuss the
importance and use of
data mining and
management.
Click picture to view video.

17. 12-17
Developing Marketing Programs
• Data can be used:
• to develop advertising, sales promotion
and other marketing materials.
• for sales support.
• for direct marketing efforts.
• to target specific customers.
• by service support staff.

18. 12-18
• Mail
• Catalogs
• Telemarketing
• Mass media
• Alternative media
• Internet
• E-mail
Methods of Direct Marketing
F I G U R E 1 2 . 1 4

19. 12-19
Cysive
B-to-B Direct
Marketing Plan
Http://www.cysive.com

20. 12-20
Direct Mail
• High usage in B-to-B markets.
• Success depends on quality of
database.
• Message must appeal to target
group.
• Digital direct-to-press.
• Major problem is large volume of
direct mail received by both
consumers and businesses.

21. 12-21
Catalogs
• Viewed as low-pressure sales tactics.
• Catalogs saved for a longer period of
time.
• Catalogs often passed along to others
or viewed by others.
• Key is the use of enhanced database
and targeting of catalogs.

22. 12-22
Number of Catalogs Received per Month
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
None One Two Three Four-Five Six-Ten Eleven
plus
Number of Catalogs
Catalog Purchasers Catalog Non-Purchasers
Source: Direct Marketing Association (Http://www.the-dma.org)

23. 12-23
Total Annual Expenditures from Catalogs
Source: Direct Marketing Association (Http://www.the-dma.org)
0%
5%
10%
15%
20%
25%
$100 or less $101-$299 $300-$499 $500-$999 $1,000 plus
Mean = $637 Median = $300

24. 12-24
Steps in Developing a
Permissions Marketing Program
Obtain permission from the customer.
Reinforce the incentive to continue the
relationship.
Increase the level of permission.
Leverage the permission to benefit both
parties.
Source: Seth Godin, “Permission Marketing: The Way to Make Advertising Work
Again, Direct Marketing, (May 1999), Vol. 62, No. 1, pp. 41-43.

25. 12-25
Frequent Shopper Programs
Source: A.C. Nielson, Santella & Associate
 70% of U.S. households participate in a frequent-
shopper program.
 59% of participating households belong to two or
more programs.
 82% use their frequent shopper card each time they
shop.
 Primary reason for joining is to receive discounts.
 60% say the reason they shop at a particular
grocery store is because the store has a frequent
shopper program.

26. 12-26
• Maintain sales, margins or profits.
• Increase loyalty of existing customers.
• Induce cross-selling to existing customers.
• Differentiate a parity brand.
• Preempt the entry of a new brand.
• Preempt or match a competitor’s frequency
program.
Source: Grahame R. Dowling and Mark Uncles, “Do Customer Loyalty Programs
Really Work?” Sloan Management Review, (Summer 1997), Vol. 38, No. 4, pp. 71-82.
Frequency Program Objectives
F I G U R E 1 2 . 1 5

27. 12-27
Reasons Retailers Develop
Loyalty Programs
Source: A.C. Nielson, Santella & Associate
Promotes consumer loyalty 90%
Increases “best shopper” sales 65%
Gain consumer information 65%
Maintain market share 42%
Enhance image 29%
Respond to competition 10%
Reason for program Indication %

28. 12-28
Customer Relationship Management
Steps to Develop
• Identify the company’s customers.
• Differentiate customers in terms of their
needs and their value to the selling
company.
• Interact with customers in ways that
improve cost efficiency and the
effectiveness of your interaction.
• Customize some aspects of the goods or
services being offered to the customer.

29. 12-29
Customer Relationship Management
Foundation
• Database Technology
• Interactivity through websites, call centers,
and other means of contacting customers.
• Mass customization technology

30. 12-30
Customer Relationship Management
Reasons for Failure
• Implemented before a solid customer
strategy is created.
• Rolling out a CRM program before
changing the organization to match the
CRM program.
• Becoming technology driven rather than
customer driven.
• Customers feel like they are being stalked
instead of being wooed.

31. 12-31
• Develop the role of personal selling in the IMC
Plan.
• Decide what type of database will be needed
and how it will be used by your company.
• Will you have a direct marketing program
• Will there be a permissions marketing
program?
• Will you have a frequency marketing
program?
• Decide what type of CRM program will be
developed.
Building Your IMC Campaign