Consumers Rule

1
Personal Selling, Sales Management, and Direct
Marketing
2
Chapter Objectives

• Understand the important role of personal selling
  within the context of the promotion mix
• List the steps in the personal selling process
• Explain the role of the sales manager
• Understand direct marketing

3
Real People, Real Choices

• IBM (Esther Ferre)
• IBM must prioritize investment of resources to
  achieve revenue and profit targets.
• Option 1 reduce sales and support resources for
  a specific customer or business segment.
• Option 2 maintain current level
• of resources.
• Option 3 evaluate lower-cost
• ways to provide sales and
• support resources.

4
Personal Selling

• Occurs when a company representative interacts
  directly with a (prospective) customer to
  communicate about a good or service
• Personal touch is more effective than
  mass-media appeal.
• Selling/sales management
• jobs provide high mobility,
• especially for college grads
• with marketing background.

5
The Role of Personal Selling

• Personal selling is more important
• --when firm uses push strategy.
• --in B2B contexts.
• --with inexperienced consumers who need hands-on
  assistance.
• --for products bought infrequently (houses, cars,
  computers).
• Cost per contact is very high.

6
Technology and Personal Selling

• Customer relationship management (CRM) software
  and partner relationship management (PRM)
• Teleconferencing, videoconferencing, and improved
  corporate Web sites
• Voice-over Internet protocol
• Assorted wireless technologies

7
Types of Sales Jobs

• Order taker
• Technical specialist
• Missionary salesperson (stimulate clients to buy)
• New-business salesperson and order getter
• Team selling and cross-functional team

8
Approaches to Personal Selling

• Transactional selling Putting on the hard sell
• High-pressure process that focuses on making an
  immediate sale with no concern for developing
  long-term customer relationship

9
Approaches to Personal Selling (contd)

• Relationship selling
• Process of building long-term customers by
  developing mutually satisfying, win-win
  relationships with customers

10
The Creative Selling Process

• Step 1 Prospecting and qualifying
• --Prospecting developing a list of potential
  customers
• --Qualifying determining how likely potential
  customers are to become customers

11
Step 2 Preapproach

• Compiling background information about
  prospective customers and planning the sales
  interview
• --Purchase history, current needs, customers
  interests
• --From informal sources, CRM system, customers
  Web sites, and/or business publications

12
Step 3 Approach

• Contacting the prospect
• Learning even more about prospects needs, create
  a good impression, and build rapport
• --You never get a second
• chance to make a good
• first impression.

13
Step 4 Sales Presentation

• Laying out benefits and added value of
  product/firm and its advantages over the
  competition
• Inviting customer involvement in conversation

14
Step 5 Handling Objections

• Anticipating why prospect is reluctant to make a
  commitment
• Welcoming objections
• Handling objections successfully to move prospect
  to decision stage

15
Step 6 Closing the Sale

• Gaining the customers commitment in the decision
  stage
• --Last-objection close
• --Assumptive or minor-points close
• --Standing-room-only or buy-now close

16
Step 7 Follow-Up

• Arranging for delivery, payment, and purchase
  terms
• Making sure customer received delivery and is
  satisfied
• Bridging to next purchase

17
Sales Management

• Setting sales force objectives
• What sales force is expected to accomplish and
  when
• Customer satisfaction, loyalty,
  retention/turnover, new-customer development,
  new-product suggestions, training, reporting on
  competitive activity, community involvement

18
Creating a Sales Force Strategy

• Establishing structure and size of a firms sales
  force
• Sales territory a set group of customers
• Geographic sales force structure
• Product-class sales territories
• Industry specialization and
• key/major accounts

19
Recruiting, Training, and Rewarding the Sales
Force

• Recruiting the right people
• Good listening and follow-up skills
• Ability to adapt style from situation to
  situation
• Tenacity
• High level of personal organization
• Sales training teaches salespeople about firm,
  its products, how to develop skills, knowledge,
  and attitudes to succeed

20
Recruiting, Training, and Rewarding the Sales
Force (contd)

• Paying salespeople well to motivate them
• Straight commission plan
• Commission-with-draw plan
• Straight salary plan
• Running sales contests for short-term sales boost
• Call reports which customers were called on and
  how call went

21
Evaluating the Sales Force

• Is sales force meeting its objectives?
• What are possible causes of failure?
• Measuring individual salesperson performance
• Monitoring salespersons expense account for
  travel and entertainment

22
Direct Marketing

• Any direct communication to a consumer or
  business recipient designed to generate a
  response in the form of an order, a request for
  further information, and/or a visit to a store or
  other place of business for purchase of a product

23
Direct Marketing (contd)

• Mail order
• Catalogs collection of products offered for sale
  and described in book form, usually consisting of
  product descriptions and photos
• Direct mail a brochure/pamphlet offering a
  specific good/service at one point in time

24
Direct Marketing (contd)

• Telemarketing direct marketing conducted over
  the telephone
• More profitable for business than consumer
  markets
• In 2003, FTC established National Do Not Call
  registry

25
Direct Marketing (contd)

• Direct-response advertising allows consumer to
  respond by contacting the provider with questions
  or an order
• Direct-response TV (DRTV) short commercials,
  30-minute-plus infomercials, and home shopping
  networks

26
Direct Marketing (contd)

• M-Commerce promotional and other e-commerce
  activities transmitted over mobile phones/devices
• Short-messaging system marketing (SMS)
• Spim instant-messaging version of spam
• Adware software that tracks Web
  habits/interests, presenting pop-up ads and
  resetting home page

27
Real People, Real Choices

• IBM (Esther Ferre)
• Esther chose option 3 evaluate lower-cost ways
  to provide sales and support resources.
• Minimized impact to customer and improved cost
  structure of sales team.
• Maintained customer satisfaction with lower cost.
  
• Resulted in increased revenue over time.

28
Marketing in Action CaseYou Make the Call

• What is the decision facing Eli Lilly?
• What factors are important in understanding this
  decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
  recommendation?

29
Keeping It Real Fast-Forward to Next Class,
Decision Time at Darden Restaurants

• Meet Jim Lawrence, Vice President, Supply
  Management Purchasing.
• Volatility in the supply chain threatened food
  supplies to restaurants.
• The decision A new model for supply chain
  management?