Download - Personal Selling & Direct Marketing
-
8/7/2019 Personal Selling & Direct Marketing
1/31
Personal Selling and DirectPersonal Selling and Direct
MarketingMarketing
-
8/7/2019 Personal Selling & Direct Marketing
2/31
MEANINGMEANING
Personal selling refers to the presentation of goods before the potential buyers and persuadingthem to purchase it. It involves face-to-faceinteraction and physical verification of the goods
to be purchased. The person who sells goods in this way is called a
salesman and the technique of selling is knownas personal selling or salesmanship.
The objective is not only just to sell the productto a person but also to make him/her apermanent customer.
-
8/7/2019 Personal Selling & Direct Marketing
3/31
PERSONAL SELLING AS AN ASPECT OFPERSONAL SELLING AS AN ASPECT OF
PROMOTION MIXPROMOTION MIX
TheThe marketingmarketing planplan willwill bebe executedexecuted byby usingusing thethe tacticaltactical elementselements ofof thetheMarketingMarketing Communications,Communications, oror PromotionsPromotions MixMix.. TheThe elementselements ofof thethemarketingmarketing communicationscommunications mixmix
-
8/7/2019 Personal Selling & Direct Marketing
4/31
A FEW BASIC DEFINITIONSA FEW BASIC DEFINITIONS
DefinitionsDefinitions::AdvertisingAdvertising -- AnyAny paidpaid formform ofof nonpersonalnonpersonal presentationpresentationandand promotionpromotion ofof ideas,ideas, goods,goods, oror servicesservices byby anan identifiedidentified
sponsorsponsor..PersonalPersonal sellingselling -- PersonalPersonal presentationpresentation byby thethe firmsfirms
salessales forceforce forfor thethe purposepurpose ofof makingmaking salessales andand buildingbuildingcustomercustomer relationshipsrelationships..SalesSales promotionpromotion -- ShortShort--termterm incentivesincentives toto encourageencourage thethepurchasepurchase oror salesale of of aa productproduct oror serviceservice..PublicPublic relationsrelations -- BuildingBuilding goodgood relationshipsrelationships withwith thethecompanyscompanys variousvarious publicspublics byby obtainingobtaining favorablefavorable publicity,publicity,buildingbuilding upup aa goodgood "corporate"corporate image",image", andand handlinghandling oror
headingheading offoff unfavorableunfavorable rumors,rumors, stories,stories, andand eventsevents..DirectDirect marketingmarketing -- DirectDirect communicationscommunications withwith carefullycarefullytargetedtargeted individualindividual consumersconsumers toto obtainobtain anan immediateimmediateresponseresponse andand cultivatecultivate lastinglasting customercustomer relationshipsrelationships..
-
8/7/2019 Personal Selling & Direct Marketing
5/31
-
8/7/2019 Personal Selling & Direct Marketing
6/31
-
8/7/2019 Personal Selling & Direct Marketing
7/31
16-7
Personal SellingPersonal Selling
Salespeople have many names
AgentsAgents
Sales consultantsSales consultants
Sales RepresentativesSales Representatives AccountAccount
ExecutivesExecutives
Sales EngineersSales Engineers
District ManagersDistrict Managers
MarketingMarketingrepresentativesrepresentatives
Account DevelopmentAccount DevelopmentRepresentativesRepresentatives
-
8/7/2019 Personal Selling & Direct Marketing
8/31
SALES PROCESSSALES PROCESS
FOUNDATIONKNOWLEDGE,
SKILLS ÐICS
STRATEGYBUILDING,
MONITORING &CONTROLINGSALES FORCE
RELATIONSHIPSPLAN
APPROACHPROSPECTPRESENTINITIATEDEVELOPCONVERTCOMMIT
-
8/7/2019 Personal Selling & Direct Marketing
9/31
16-9
Designing Sales Force Strategy andDesigning Sales Force Strategy andStructureStructure
Sales Force StructureSales Force Structure Territorial sales force structureTerritorial sales force structure
Product sales force structureProduct sales force structure
Customer sales force structureCustomer sales force structure
Complex sales force structureComplex sales force structure
Managing the Sales ForceManaging the Sales Force
-
8/7/2019 Personal Selling & Direct Marketing
10/31
16-10
Managing the Sales ForceManaging the Sales Force
Sales Force Strategy and StructureSales Force Strategy and Structure
Sales Force SizeSales Force Size
Many companies use the workloadMany companies use the workloadapproach to set sales force sizeapproach to set sales force size
Other IssuesOther Issues
Outside and inside sales forcesOutside and inside sales forces
Team sellingTeam selling
-
8/7/2019 Personal Selling & Direct Marketing
11/31
16-11
Managing the Sales ForceManaging the Sales Force
Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople Careful recruiting can:Careful recruiting can:
Increase overall sales force performanceIncrease overall sales force performance
Reduce turnoverReduce turnover
Reduce recruiting and training costsReduce recruiting and training costs
Traits of Successful SalespeopleTraits of Successful Salespeople Intrinsic motivationIntrinsic motivation
Disciplined work styleDisciplined work style
The ability to close a saleThe ability to close a sale
Ability to build relationships with customersAbility to build relationships with customers
-
8/7/2019 Personal Selling & Direct Marketing
12/31
16-12
Managing the Sales ForceManaging the Sales Force
Training SalespeopleTraining Salespeople
Training period can be anywhere from aTraining period can be anywhere from afew weeks to a year or morefew weeks to a year or more
Training is expensive, but yields strongTraining is expensive, but yields strongreturnsreturns
Many companies are adding WebMany companies are adding Web--basedbased
sales training programssales training programs
-
8/7/2019 Personal Selling & Direct Marketing
13/31
16-13
Managing the Sales ForceManaging the Sales Force
Training SalespeopleTraining Salespeople
Training programs have many goalsTraining programs have many goals
Identify with the company and its productsIdentify with the company and its products
Know about customers and competitorsKnow about customers and competitors
The basics of the selling processThe basics of the selling process
-
8/7/2019 Personal Selling & Direct Marketing
14/31
16-14
Managing the Sales ForceManaging the Sales Force
Compensating SalespeopleCompensating Salespeople Compensation elements: salary, bonuses,Compensation elements: salary, bonuses,
commissions, expenses, and fringe benefitscommissions, expenses, and fringe benefits
Basic compensation plans:Basic compensation plans: Straight salaryStraight salary
Straight commissionStraight commission
Salary plus bonusSalary plus bonus
Salary plus commissionSalary plus commission
Compensation plans should direct the salesCompensation plans should direct the salesforce toward activities that are consistent withforce toward activities that are consistent withoverall marketing objectives.overall marketing objectives.
-
8/7/2019 Personal Selling & Direct Marketing
15/31
16-15
Managing the Sales ForceManaging the Sales Force
Supervising SalespeopleSupervising Salespeople Supervision is used to direct and motivate salespeopleSupervision is used to direct and motivate salespeople
Companies will vary in how closely they supervise theirCompanies will vary in how closely they supervise theirsalespeople; will vary depending on the skill level andsalespeople; will vary depending on the skill level and
maturity of the sales force, and type of sellingmaturity of the sales force, and type of selling Tools used:Tools used:
Annual call plans and timeAnnual call plans and time--andand--duty analysis can helpduty analysis can helpprovide directionprovide direction
Sales force automation systems assist in creating moreSales force automation systems assist in creating more
efficient sales force operationsefficient sales force operations The Internet is the fastestThe Internet is the fastest--growing sales technology toolgrowing sales technology tool
-
8/7/2019 Personal Selling & Direct Marketing
16/31
16-16
Managing the Sales ForceManaging the Sales Force
Evaluating SalespeopleEvaluating Salespeople
Several tools can be usedSeveral tools can be used
Sales reportsSales reports
Call reportsCall reports
Expense reportsExpense reports
-
8/7/2019 Personal Selling & Direct Marketing
17/31
16-17
The Personal Selling ProcessThe Personal Selling Process
The goal of the personal sellingThe goal of the personal sellingprocess is to find new customers andprocess is to find new customers andsell them somethingsell them something
Most salespeople spend their timeMost salespeople spend their timemaintaining existing accounts andmaintaining existing accounts andbuilding longbuilding long--term customerterm customer
relationshipsrelationships
Not all steps required in every saleNot all steps required in every sale
-
8/7/2019 Personal Selling & Direct Marketing
18/31
16-18
The Personal Selling ProcessThe Personal Selling Process
Prospecting and QualifyingProspecting and Qualifying
Identifying customers that may have a needIdentifying customers that may have a needfor the product or service being soldfor the product or service being sold
Only a small number of prospects becomeOnly a small number of prospects becomecustomerscustomers
Prospecting requires effort, time, andProspecting requires effort, time, andcommitmentcommitment
-
8/7/2019 Personal Selling & Direct Marketing
19/31
16-19
The Personal Selling ProcessThe Personal Selling Process
Preapproach:Preapproach:
Learn as much about the prospective customerLearn as much about the prospective customeras possible, prior to approaching them to askas possible, prior to approaching them to ask
for a meetingfor a meeting Use all resources to learn before meetingUse all resources to learn before meeting
Setting call objectives is important to beingSetting call objectives is important to beingproductive and not wasting the customersproductive and not wasting the customers
timetime
-
8/7/2019 Personal Selling & Direct Marketing
20/31
16-20
The Personal Selling ProcessThe Personal Selling Process
Approach:Approach:
Meeting and greeting the customer for the firstMeeting and greeting the customer for the firsttimetime
Involves salespersons appearance, openingInvolves salespersons appearance, openinglines, and the followlines, and the follow--up remarksup remarks
Listening to the customer is crucialListening to the customer is crucial
-
8/7/2019 Personal Selling & Direct Marketing
21/31
16-21
The Personal Selling ProcessThe Personal Selling Process
Presentation and demonstration:Presentation and demonstration: What happens during the sales callWhat happens during the sales call
Purpose is to uncover needs and then attempt to satisfyPurpose is to uncover needs and then attempt to satisfythemthem
Questioning and listening skills are importantQuestioning and listening skills are important Technology can help or get in the wayTechnology can help or get in the way
Customers value empathy, honesty, punctuality,Customers value empathy, honesty, punctuality,reliability, thoroughness, and follow throughreliability, thoroughness, and follow through
-
8/7/2019 Personal Selling & Direct Marketing
22/31
16-22
The Personal Selling ProcessThe Personal Selling Process
Handling objections:Handling objections: The salesperson seeks out, clarifies, andThe salesperson seeks out, clarifies, and
overcomes customer objections to buying theovercomes customer objections to buying theproduct or serviceproduct or service
Customers object for different reasons: noCustomers object for different reasons: noneed, lack of information, product limitation,need, lack of information, product limitation,or as a negotiating tacticor as a negotiating tactic
Handling objections is important, butHandling objections is important, butpreventing them is more effective; need topreventing them is more effective; need to
look at qualifying skills and use of features,look at qualifying skills and use of features,advantages, and benefitsadvantages, and benefits
-
8/7/2019 Personal Selling & Direct Marketing
23/31
16-23
The Personal Selling ProcessThe Personal Selling Process
Closing the sale:Closing the sale: Asking the customer to buy (order) the productAsking the customer to buy (order) the product
The only step that produces revenue; most importantThe only step that produces revenue; most important
Fear of rejection makes this step the most difficultFear of rejection makes this step the most difficult
Keep it simple, honest, and direct; different types ofKeep it simple, honest, and direct; different types ofclosing techniques make assumptions that can beclosing techniques make assumptions that can bedangerous if used improperlydangerous if used improperly
-
8/7/2019 Personal Selling & Direct Marketing
24/31
16-24
The Personal Selling ProcessThe Personal Selling Process
FollowFollow--up:up:
What takes place after the saleWhat takes place after the sale
To ensure customer satisfactionTo ensure customer satisfaction
To keep the door open for repeat businessTo keep the door open for repeat business
Ask for referralsAsk for referrals
-
8/7/2019 Personal Selling & Direct Marketing
25/31
16-25
Personal Selling and CustomerPersonal Selling and Customer
Relationship ManagementRelationship Management
The principals just described areThe principals just described aretransactiontransaction--orientedoriented
Companies want to encourage repeatCompanies want to encourage repeatpurchasing because it is more efficientpurchasing because it is more efficientthan trying to replace lost customersthan trying to replace lost customers
It takes different skills to buildIt takes different skills to buildrelationships with customersrelationships with customers
Mutually profitable relationships are builtMutually profitable relationships are built
on creating value, offering packagedon creating value, offering packagedsolutions to problems, and improvingsolutions to problems, and improvingproducts and processesproducts and processes
-
8/7/2019 Personal Selling & Direct Marketing
26/31
16-26
Direct MarketingDirect Marketing
Direct Marketing consists of directDirect Marketing consists of directoneone--toto--one connections withone connections withcarefully targeted individualcarefully targeted individualconsumers to both obtain anconsumers to both obtain animmediate response and cultivateimmediate response and cultivatelasting customer relationships.lasting customer relationships.
-
8/7/2019 Personal Selling & Direct Marketing
27/31
16-27
Direct MarketingDirect Marketing
The new Direct Marketing ModelThe new Direct Marketing Model
Direct Marketing is both, a directDirect Marketing is both, a directmarketing channel and an element ofmarketing channel and an element ofthe marketing communications mixthe marketing communications mix
Technology has made of directTechnology has made of directmarketing a new and complete modelmarketing a new and complete model
for doing business.for doing business.Firms employing this directFirms employing this direct--marketingmarketing
model (such as Dell Computer) use it asmodel (such as Dell Computer) use it asthe only approachthe only approach
-
8/7/2019 Personal Selling & Direct Marketing
28/31
16-28
Forms of Direct MarketingForms of Direct Marketing
Telephone marketing: outbound and inbound,Telephone marketing: outbound and inbound,suffers from consumer burnout, technology tosuffers from consumer burnout, technology toblock callsblock calls
Direct mail marketing: flexible, personalized, butDirect mail marketing: flexible, personalized, butsuffers from junk mail imagesuffers from junk mail image
Catalogue marketing: the big winners in the riseCatalogue marketing: the big winners in the riseof the Internet; huge cost efficiencies by movingof the Internet; huge cost efficiencies by movingcatalogue offering onlinecatalogue offering online
DirectDirect--response television marketing:response television marketing:infomercials work, despite a poor reputationinfomercials work, despite a poor reputation
Kiosk marketing: going where the customers areKiosk marketing: going where the customers are
-
8/7/2019 Personal Selling & Direct Marketing
29/31
-
8/7/2019 Personal Selling & Direct Marketing
30/31
16-30
For SellersFor Sellers Powerful tool for building relationshipsPowerful tool for building relationships
Allows for targeting of small groups orAllows for targeting of small groups or
individuals with customized offers in aindividuals with customized offers in apersonalized fashionpersonalized fashion
Can be timed to reach prospects at the rightCan be timed to reach prospects at the righttimetime
Offers access to buyers that couldnt beOffers access to buyers that couldnt be
reached via other channelsreached via other channels LowLow--cost, effective alternative for reachingcost, effective alternative for reaching
specific marketsspecific markets
Benefits of Direct MarketingBenefits of Direct Marketing
-
8/7/2019 Personal Selling & Direct Marketing
31/31
16-31
Customer Databases andCustomer Databases and
Direct MarketingDirect Marketing
Customer database: organized collection ofCustomer database: organized collection ofcomprehensive data about individual customerscomprehensive data about individual customersor prospects, including geographic, demographic,or prospects, including geographic, demographic,psychographic, and behavioral datapsychographic, and behavioral data
Databases include comprehensive data includingDatabases include comprehensive data includinggeographic, demographic, psychographic and behavioralgeographic, demographic, psychographic and behavioral
Databases can be used to identify prospects, tailorDatabases can be used to identify prospects, tailorproducts, and maintain customer relationshipsproducts, and maintain customer relationships
Database marketing requires substantial investment inDatabase marketing requires substantial investment inhardware, software, personnelhardware, software, personnel
Build customer loyalty by tailoring new offers to theirBuild customer loyalty by tailoring new offers to theirspecific interestsspecific interests