Presentation on :

MANAGING PERSONAL COMMUNICATIONS: DIRECT MARKETING & PERSONAL SELLING.

Group Members:

Digesh ShahKartik PatelParesh Sidhdhapura

To Start with…

The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records. The term junk mail, referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954.

DIRECT MARKETING

It’s the use of consumer-direct channels to reach & deliver goods & services to customers without using

marketing middlemen. Kiosk

Benefits of Direct Marketing

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

Direct Marketing Channels:

Direct mailCatalogTelemarketingWeb sitesEmail marketingMobile devices Interactive TV

Direct mail :

Establish objectives

Select target prospects

Develop offer elements

Test elements

Execute

Measure success

Objectives

Producing prospect leadsStrengthening customer

relationships Informing and educating customersReminding customers of offers

Selecting Target Prospects

RFM Formula for Selecting Prospects

Recency-”how much times has passed since their last purchase”

Frequency-”how many times they have purchased”

Monetary value-”how much they have spent since becoming a customer”

Develop Offer Element

Components of the MailingOutside envelopeSales letterCircularReply formReply envelope

Testing Elements

To derive a more comprehensive estimate of the promotion’s impact, companies are measuring the impact of direct marketing on awareness, intention to buy and word of mouth.

Measuring Campaign Success

By adding up the planned campaign costs, the direct marketer can figure out in advance the needed break-even response rate.

The direct marketer needs to analyze main causes of returned merchandise (late shipment, damage in transit, incorrect order fulfilment,etc)

A customer’s ultimate value is not revealed by a purchase response to a particular mailing, rather it is the expected profit made on all future purchases.

Catalog Marketing:

Send full-line merchandise catalogs, consumer catalog, business catalog.

Success depends on managing customer lists carefully to avoid duplication, controlling inventory, offering quality merchandise & projecting a distinctive image.

Types of Telemarketing

TelesalesTelecoverageTeleprospectingCustomer service and technical

support

Other Media for Direct Response

TelevisionDirect Response AdvertisingAt home shopping channelsVideotext

Kiosks

E Marketing

Permission Marketing Levels of Permission Marketing

▪ No permission level▪ Low permission level▪ Medium permission level▪ High permission level▪ Transaction level

E Marketing Guidelines Give the customer a reason to respond Personalize the content of your e-mails Offer something the customer could not get via

direct mail Make it easy for the customer to “unsubscribe”

Interactive Marketing

Designing an Attractive Web SiteContextContentCommunityCustomizationCommunicationConnectionCommerce

Door-to-Door Leaflet Selling:Leaflet Distribution services are used

extensively by the fast food industries, and many other business focusing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area and costs a fraction of the amount of a mail shot due to not having, to purchase stamps, envelopes or having to buy address lists and the names of home occupants.

Designing the Sales Force :

McMurry has distinguished these six types of sales representatives

1. Deliverer: A salesperson whose major task is the delivery of a product (milk, bread, or fuel).

2. Order taker: A salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager).

3. Missionary: A salesperson whose major task is to build goodwill or to educate the actual or potential user, rather than to sell (the medical “detailer” representing an ethical pharmaceutical firm).

Contd….

4. Technician: A salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to client companies).

5. Demand creator: A salesperson who relies on creative methods for selling tangible products (vacuum cleaners or siding) or intangibles (insurance or education).

6. Solution vendor: A salesperson whose expertise lies in solving a customer’s problem, often with a system of the firm’s goods and services (such as computer and communications systems).

Contd….

In general, salespeople perform one or more of the following tasks:

➤ Prospecting: Searching for prospects, or leads, ➤ Targeting: Deciding how to allocate their time among

prospects and customers, ➤ Communicating: Communicating information about the

company’s products and services, ➤ Selling: Approaching, presenting, answering objections,

and closing sales, ➤ Servicing: Providing various services to customers—

consulting on problems, rendering technical assistance, arranging financing, expediting delivery,

➤ Information gathering: Conducting market research and doing intelligence work, and

➤ Allocating: Deciding which customers will get scarce products during shortages.

Managing the Salesforce

Designing Salesforce Strategy and StructureDesigning Salesforce Strategy and Structure

Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople

Training SalespeopleTraining Salespeople

Compensating SalespeopleCompensating Salespeople

Supervising SalespeopleSupervising Salespeople

Evaluating SalespeopleEvaluating Salespeople

Designing Sales Force Strategy and Structure

Types of Sales Force StructureTypes of Sales Force Structure

ComplexCombination of Above Types of Sales Force Structures

ComplexCombination of Above Types of Sales Force Structures

TerritorialExclusive Territory toSell the Company’sFull Product Line

TerritorialExclusive Territory toSell the Company’sFull Product Line Product

Sales Force Sells AlongProduct Lines

ProductSales Force Sells Along

Product Lines CustomerSales Force Sells Along

Customer/ Industry Lines

CustomerSales Force Sells Along

Customer/ Industry Lines

How Will Sales and Sales SupportPeople Work Together?

Team Selling

How Will Sales and Sales SupportPeople Work Together?

Team Selling

Designing Sales Force Strategy and StructureDesigning Sales Force Strategy and Structure

Sales Force SizeSales Force Size

Who Will Be Involved in the Selling Effort?

Outside Sales ForceInside Sales Force

Who Will Be Involved in the Selling Effort?

Outside Sales ForceInside Sales Force

Other Sales Force Strategy and Structure IssuesOther Sales Force Strategy and Structure Issues

Vs.

Some Characteristicsof Salespeople

Some Characteristicsof Salespeople

Recruiting ProceduresRecruiting Procedures

Salesperson Selection Process

Salesperson Selection Process

•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment

•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment

Recruiting and Selecting Salespeople

Recruiting and Selecting Salespeople

•Current Salespeople•Employment Agencies•Classified Ads•College Campuses

•Current Salespeople•Employment Agencies•Classified Ads•College Campuses

•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics

•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics

Training SalespeopleTraining Salespeople

Help Salespeople Know & IdentifyWith the Company

Help Salespeople Know & IdentifyWith the Company

Learn How the Products WorkLearn How the Products Work

Learn About Competitors’and Customers’ Characteristics

Learn About Competitors’and Customers’ Characteristics

Learn How to MakeEffective Presentations

Learn How to MakeEffective Presentations

Understand Field Proceduresand Responsibilities

Understand Field Proceduresand Responsibilities

The Average Sales Training Program lasts for Four Months and Has the Following Goals:

Compensating Salespeople

Componentsof

Compensation

PAYCHECK

Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.

Benefits

Bonus

Salary

Commission

Supervising Salespeople

Directing Salespeople Motivating Salespeople

• Identify Customer Targets & Set Call Norms

• Develop Prospect Targets

• Use Sales Time Efficiently– Annual Call Schedule– Time-and-Duty Analysis– Sales Force Automation

• Organizational Climate

• Sales Quotas

• Positive Incentives

– Honors

– Awards

– Merchandise/ Cash

– Trips

Motivating the Sales Force

Ceremonies Vacations

Merchandise Pay raises

Cash bonuses Stock options

Tuition assistance Product discounts

Rewards and incentives include:

How Salespeople Spend Their Time

Administrative Tasks17%

TelephoneSelling

21%

Waiting/ Traveling

20%

Service Calls12%

Face-to-Face Selling

30%

Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.

Source : Wall Street Journal, February 23, 2006, B1.

Evaluating Salespeople

AnnualTerritory

Marketing Plan

AnnualTerritory

Marketing Plan

CallReports

CallReports

ExpenseReports

ExpenseReports

WorkPlan

WorkPlan

SalesReportSales

Report

Sourcesof

Information

Sourcesof

Information

Character of Top Sales Performers

Strong, healthy self esteem Can bounce back from rejection

Sense of urgency and competitiveness Persuasive

Self-confident Sociable

Willing to take risks Understand complex concepts

Creative in developing solutions Possess empathy

Women in Car Sales

SOURCE: Jennifer Saranow, “Car Dealers Recruit Saleswomen at the Mall,”

Wall Street Journal, April 12, 2006, B1.

For its Florida and Texas dealerships, Asbury Automotive Group is actively recruiting saleswomen– at shopping malls.

11% of the automotive sales force is female. In contrast, 50% of retail-industry employees are women.

Women influence 81% of new auto purchases, and women may even be better at selling cars than men.

Personal Selling

Personal Selling is more important if...

Customers are concentrated.

Customers are concentrated.

Product is technically complex.

Product is technically complex.

There are few customers.There are few customers.

Product is custom made.Product is custom made.

Product has a high value.Product has a high value.

Customers are geographically dispersed.

Customers are geographically dispersed.

Product is simple to understand.

Product is simple to understand.

There are many customers.There are many customers.

Product is standardized.Product is standardized.

Product has a low value.Product has a low value.

Advertising & Sales Promotion are more important if...

Personal Selling Advantages

Detailed explanation or demonstration

Variable sales message

Directed to qualified prospects

Controllable adjustable selling costs

More effective than other promotion in obtaining sale and gaining customer satisfaction

PersonalSelling

Advantages

PersonalSelling

Advantages

Personal Selling Process

Prospecting Pre-approach ApproachMaking the

Presentation

FollowingUp

Closing the Sale

OvercomingObjections

Step 1. Prospecting and Qualifying Step 1. Prospecting and Qualifying

Step 2. Preapproach Step 2. Preapproach

Steps in the Selling ProcessSteps in the Selling Process

Finding and Analyzing Information About Prospects

Developing Lists of Potential Customers

Step 3. Approach Step 3. Approach

Step 4. Presentation/ Demonstration Step 4. Presentation/ Demonstration

THIS DEALS WITH HOW WE MAKE THE

INITIAL CONTACT WITH APOTENTIAL CUSTOMER

Attract and Hold Attention, Plus Stimulate Interest and Desire

Step 5. Handling Objections Step 5. Handling Objections

Step 6. Closing Step 6. Closing

IF HE HADN’T TOLDME WHAT HIS OBJECTION

WAS, I NEVER WOULDHAVE BEEN

ABLE TO HELP!

Asking the Prospect to Buy

Step 7. Follow-Up and maintenance Step 7. Follow-Up and maintenance

Long-term Customer Satisfaction

Negotiation

Negotiation is an act performed by both the parties in order to reach an agreement on any issue which is concerned about the business deal between both the parties.

For e.g. A seller might have price X in his mind but the buyer expects price Y as a result of this, both buyer and seller will have to negotiate in order ton arrive at one price.

21-43

Negotiation

When to negotiate▪ When factors bear not only on price,

but also on quality of service▪ When business risk cannot be

accurately predetermined▪ When a long period of time is required

to produce the items purchased▪ When production is interrupted

frequently because of numerous change orders

Relationship(Consultative)

Selling

Relationship(Consultative)

Selling

Relationship Selling

A sales practice that involves building, maintaining, and

enhancing interactions with customers in order

to develop long-term satisfaction through mutually beneficial

partnerships.

Traditional Selling and Relationship Selling

Sell advice, assistance, counsel Sell products

TraditionalPersonal Selling

Focus on closing sales

Limited sales planning

Discuss product

Assess “product-specific” needs

“Lone wolf” approach

Pricing/product focus

Short-term sales follow-up

Focus on customer’s bottom line

Sales planning is top priority

Build problem-solving environment

Conduct discovery in scope of operations

Team approach

Profit impact and strategic benefit focus

Long-term sales follow-up

Relationship Selling