Lecture11 - Personal Selling and Direct Marketing
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HungaryBudapesti Corvinus EgyetemGazdálkodástudományi KarNemzetközi gazdálkodás (angol nyelven)MarketingLecture11 - Personal Selling and Direct Marketing
2008.04.28 20:27:13
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11
Objectives
· Understand the role of a company's salespeople in creating value for customers and building customers relationships. · Know the six major sales force management steps.
Principles of Marketing
Personal Selling and Direct Marketing
Marketing Principles
Spring Term 2007/2008
Objectives
Definition
· Salesperson
· An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering.
· Understand the personal selling process, and how to distinguish between transactionoriented marketing and relationship marketing. · Learn about direct marketing and its benefits to customers and companies. · Know the major forms of direct marketing.
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
1
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 · Major role in most companies · Works to produce customer satisfaction and company profit
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Definition
· Sales Force Management
· The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm's salespeople.
Major Steps in Sales Force Management
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
2
Managing the Sales Force
· 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
· Sales Force Strategy and Structure
· Sales Force Size
· Many companies use the workload approach to set sales force size
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Managing the Sales Force
· Sales Force Strategy and Structure
· 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
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
3
Managing the Sales Force Traits of Successful Salespeople
· · · · · · Enthusiasm Patience Initiative Self-Confidence Job Commitment Customer Orientation · Independent · Self-Motivated · Excellent Listeners · Friendly · Persistent · Attentive · Honest · Internally Motivated · Relationship Oriented · Disciplined · Hardworking · Team Players
Effect of Appearance · Simplicity · Appropriateness
· Formal · Business casual
· Quality · Visual integrity
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Managing the Sales Force Managing the Sales Force
· Recruiting & Selecting Salespeople
· Recruiting involves:
· Soliciting applications · Screening candidates
· · · Interviews Sales aptitude, personality, analytical and/or organizational tests References, work history, etc.
· Training Salespeople
· Average training period is 4 months · Training is expensive, but yields strong returns · Training programs have many goals · Many companies are adding Webbased sales training programs
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
4
Managing the Sales Force 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
· Compensating Salespeople
· Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives.
· Gain market share · Solidify market leadership · Maximize profitability
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Managing the Sales Force
· Supervising Salespeople
· Effective supervisors provide direction to the sales force
· 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
How Salespeople Spend Their Time
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
5
Managing the Sales Force
· Supervising Salespeople
· Effective supervisors also motivate the sales force
· Organizational climate · Sales quotas · Positive incentives
· Sales meetings, sales contests, honors, etc.
Managing the Sales Force
· Evaluating Salespeople
· Sales reports · Call reports · Expense reports
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
The Personal Selling Process
The Personal Selling Process
· Prospecting and Qualifying
· Prospecting: identifying potential customers · Qualifying: Screening leads
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
6
Discussion Question
"Cold calling" by salespeople visiting calling" offices or calling via telephone without an appointment is one method of identifying potential prospects. Discuss the pros and cons of cold calling. Is it more appropriate for certain industries or product types than others?
The Personal Selling Process
· Preapproach
· Learning as much as possible about a prospective customer prior to making a sales call
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
The Personal Selling Process
· Approach
· Stage of the selling process where the salesperson meets the customer for the first time
The Personal Selling Process
· Presentation & Demonstration
· Benefits of the product are presented or demonstrated · Understanding prospect needs is key
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
7
The Personal Selling Process
· Handling Objections · Closing
· Asking for the order
Nonverbal Messages · Silent messages communicated through facial expressions, voice tone, gestures, appearance, posture, and other nonverbal means · Nonverbal messages have greater impact than verbal messages · Make sure verbal and nonverbal messages are consistent
· Follow-up
· Helps ensure customer satisfaction
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Entrance and Carriage · Believe and project that you have a reason to be there and something important to offer the client · Communicate confidence with:
· Strong stride · Good posture · Friendly smile
Marketing Principles
Spring Term 2007/2008
Shaking Hands · · · · · Proper greeting, symbolizes respect Make eye contact Use firm, deep grip Duration and dryness State your name when you extend your hand
Marketing Principles
Spring Term 2007/2008
8
Facial Expressions
Eye Contact · Good eye contact says "I'm listening." · Prolonged eye contact can send the wrong message
· Facial expressions convey inner feelings · People tend to trust a smiling face · Reading facial expressions fairly universal across cultures
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Direct Marketing
· Direct Marketing Benefits: Buyers
· · · · Convenient Easy to use Private Access to a wealth of information · Immediate · Interactive
Direct Marketing
· Direct Marketing Benefits: Sellers
· Powerful tool for building relationships · Allows for targeting of small groups or individuals with customized offers in a personalized fashion · Offers access to buyers that couldn't be reached via other channels · Low-cost, effective alternative for reaching specific markets
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
9
Direct Marketing
· Customer Databases & Direct Marketing
· Databases include customer profile, purchase history, and other detailed information · Databases can be used to identify prospects, profile customers, and select customers to receive offers, and to build relationships
Direct Marketing
· Customer Databases & Direct Marketing
· Database marketing requires substantial investment in hardware, software, and personnel
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Discussion Question
Suppose that you work for a casino that has recently decided to develop a database in order to better target promotional offers to its clientele. What types of information would you collect or track in this database? List as many database fields as you feel are appropriate.
Marketing Principles
Spring Term 2007/2008
Forms of Direct Marketing
Marketing Principles
Spring Term 2007/2008
10
Direct Marketing Direct Marketing
· Direct-Mail Marketing
· New trends include fax, mail, e-mail, and voice mail
· Telephone Marketing
· Inbound toll-free green numbers are used to receive orders from print or TV ads · New legislation and technological advances threaten the future of telemarketing
· Catalog Marketing
· Many cataloguers have migrated to the web
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
Direct Marketing
· Direct-Response Television Marketing
· Direct-response advertising · Infomercials · Home shopping channels
An Integrated Direct-Marketing Campaign
· Kiosk Marketing
Marketing Principles
Spring Term 2007/2008
Marketing Principles
Spring Term 2007/2008
11
Direct Marketing
· Integrated Direct Marketing · Public Policy and Ethical Issues
· Irritation, Unfairness, Deception, and Fraud · Invasion of Privacy
Marketing Principles
Spring Term 2007/2008
12
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