Transcript Principles of Marketing - Lecture 10

Lecture 10
Principles of Marketing
Theocharis Katranis
Spring Semester 2013
Principles of Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Today’s Lecture
1. We will discuss the role of a company’s salespeople in creating value for
customers and building customer relationships.
2. We will identify and explain the six major sales force management steps.
3. We will discuss the personal selling process, distinguishing between
transaction-oriented marketing and relationship marketing.
4. We will explain how sales promotion campaigns are developed and
implemented.
5. We will define direct marketing and discuss its benefits to customers and
companies.
6. We will identify and discuss the major forms of direct marketing
7. We will discuss online Marketing.
8. We will overview the public policy and ethical issues presented by direct
marketing.
Principles of Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Definition:
It is the personal presentation by the firm’s sales
force for the purpose of making sales and building
customer relationships.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Salesperson - Definition
It is An Individual representing a company to
customers by performing one or more of the
following activities: Prospecting, communicating,
selling, servicing, information gathering, and
relationship building.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Salespeople Characteristics
Nowadays, most salespeople are well-educated,
well-trained professionals who add value for
customers and maintain long-term customer
relationships. They listen to their customers,
assess customer needs, and organize the
company’s efforts to solve customer problems.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
The Role of the Sales Force
Salespeople represent the company to customers.
Salespeople find and develop new customers.
Salespeople sell products by approaching
customers, presenting their products, answering
objections, negotiating prices and terms, and
closing sales.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Managing the Sales Force
It is the analysis, planning, implementation, and
control of sales force activities. It includes designing
sales force strategy and structure and recruiting,
selecting, training, supervising, compensating, and
evaluating the firm’s salespeople.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Designing Sales Force Strategy and Structure
1. Territorial Sales Force Structure
2. Product Sales Force Structure
3. Customer Sales Force Structure
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Designing Sales Force Strategy and Structure
1. Territorial Sales Force Structure
It is a Sales Force organization that assigns
each salesperson to an exclusive geographic
territory in which that salesperson sells the
company’s full line.
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Theocharis Katranis, MBA,
Spring Semester 2013
Lecture 10
Personal Selling
Designing Sales Force Strategy and Structure
2. Product Sales Force Structure
It is a Sales Force organization under which
salespeople specialize in selling only a portion
of the company’s products or lines.
Principles of Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Designing Sales Force Strategy and Structure
3. Customer Sales Force Structure
It is a Sales Force organization under which
salespeople specialize in selling only to certain
customers or industries.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Outside and Inside Sales Force People
Outside Sales Force are salespeople who travel
to call on customers in the field.
Inside Sales Force are salespeople who conduct
business from their offices via telephone, the
internet, or visits from prospective buyers.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Recruiting and Selecting Salespeople
The four key salespeople talents:
1. Intrinsic Motivation
2. Disciplined Work Style
3. The ability to close a sale
4. The ability to build relationships with the customers
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Training Sales People
Companies Train their sales people via
seminars, sales meetings, and Web elearning.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Compensating Salespeople
Companies can compensate good salespeople
with salary increase, commissions, or bonuses
based on sales performance.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Supervising and Motivating Salespeople
Supervision is to help salespeople to do the
right thing in the right way.
Motivation is to encourage salespeople to work
hard and energetically towards sales force goals.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Personal Selling
Evaluating Salespeople and Sales-Force Performance
Companies Evaluate their Salespeople via:
1. Sales Reports – Weekly/ Monthly
2. Call Reports
3. Expenses Report
4. Comments from customers
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
1. Prospecting and Qualifying
It is the step in the selling process in which the
salesperson or company identifies qualified
potential customers.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
2. Preapproach
It is the step in the selling process in which the
salesperson learns as much as possible about a
prospective customer before making a sales call.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
3. Approach
It is the selling process in which the salesperson
meets the customer for the first time.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
4. Presentation
It is the step in the selling process in which the
salesperson tells the “value story” to the buyer,
showing how the company’s offer solves the
customer’s problems.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
5. Handling Objections
It is the step in the selling process in which the
salesperson seeks out, clarifies, and overcomes
customer objections to buying.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
6. Closing
It is the step in the selling process in which the
salesperson asks the customer for an order.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
The Personal Selling Process
7. Follow-up
It is the last step in the selling process in which
the salesperson follows up after the sale to ensure
customer satisfaction and repeat business.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Definition:
Sales Promotion are short-term incentives to
encourage the purchase or sale of a product or
service.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Objectives:
1. To urge short-term customer buying
2. To reinforce the product’s position.
3. To build long-term customer relationships.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Major Sales Promotion Tools for Consumers
1. Samples
2. Coupons
3. Refunds
4. Premiums
Sales Promotion tools are used to boost short-term
customer buying and involvement or to enhance
long-term customer relationships.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Major Sales Promotion Tools for Trade
1. Price-offs
2. Allowances
3. Buy-back guarantees
4. Free Goods
Sales Promotion tools used to persuade resellers to
carry a brand, give it shelf space, promote it in
advertising, and push it to consumers.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Major Sales Promotion Tools for Business
1. Conventions and Trade Shows
2. Sales Contests
Business Sales Promotion Tools are used to
generate business leads, stimulate purchases,
reward customers, and motivate salespeople.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Developing the Sales Promotion Program
Marketers must decide:
1. On the size of the incentive i.e big or small incentive
2. Conditions for participation i.e to everybody
3. How to promote and distribute the promotion program
itself i.e. a $2-off coupon could be given out in a package,
at the store, via internet, or in an advertisement.
4. On the length of the incentive i.e. for a Long or short
period of time
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Sales Promotion
Developing the Sales Promotion Program
Marketers should work to measure the returns
on their sales promotion investments.
A Marketer must define the sales promotion
objectives, select the best tools, design the sales
promotion program, implement the program, and
evaluate the results.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Direct and Online Marketing:
Building Direct Customer
Relationships
Direct Marketing – Definition:
It is the action of connecting directly with
carefully targeted individual consumers to both
obtain an immediate response and cultivate
lasting customer relationships.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Direct and Online Marketing:
Benefits to Customers
1. It is Convenient / Easy / Private.
2. Direct Information for products, companies and
competitors.
3. It is interactive (Buyers can interact with sellers) and
immediate.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Direct and Online Marketing:
Benefits to Companies
1. It is a powerful tool to build customer relationship
2. It is a low-cost, efficient and speedy alternative for
reaching their markets I.e. Telemarketing, Direct Mail,
Company Web site.
3. It helps in order processing, inventory handling and
delivery.
4. It helps marketers to make ongoing adjustments to their
prices and other offers.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Direct and Online Marketing:
Forms of
Direct
Marketing
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Direct and Online Marketing:
Direct-mail marketing is the direct marketing by sending an
offer, announcement, reminder, or other item to a person at a
particular physical or virtual address.
Catalog marketing is the direct marketing through print,
video, or digital catalogs that are mailed to select customers,
made available in stores, or presented online.
Telephone marketing is the use of the telephone to sell
directly to customers.
Direct-response television marketing is direct marketing via
television, including direct-response television advertising
(or infomercials) and home shopping channels.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Online Marketing
Definition:
Online marketing is the Company’s efforts to market
products and services and build customer relationships
over the internet.
Internet – Definition:
Internet is a vast public web of computers networks that
connects users of all types all around the world to each
other and to an amazingly large “Information Repository”.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Online Marketing
Nowadays, companies realized the importance of internet
and almost have their own web sites.
Companies may use a lot of online search engines to find
the information they need.
Many companies set their own online sales and
communication channels.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Online Marketing Domains
E-mails, Web sites, Catalogs
Exchange Info
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Public Policy Issues in
Direct Marketing
1. Irritation, Unfairness, Deception and Fraud i.e. TV
commercials too long, too insistent / our mailboxes fill
up with unwanted junk mail.
2.
Invasion of Privacy i.e. companies record
consumers info and characteristics and marketers use
them later on for their selling efforts.
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Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Summary - Lecture 10
1. We discussed the role of a company’s salespeople in creating value for
customers and building customer relationships.
2. We identified and explained the six major sales force management steps.
3. We discussed the personal selling process, distinguishing between
transaction-oriented marketing and relationship marketing.
4. We explained how sales promotion campaigns are developed and
implemented.
5. We defined direct marketing and discuss its benefits to customers and
companies.
6. We identified and discuss the major forms of direct marketing
7. We discuss online Marketing.
8. We overviewed the public policy and ethical issues presented by direct
marketing.
Principles of Marketing
42
Theocharis Katranis, MBA
Spring Semester 2013
Lecture 10
Chapters 16 and 17
END of Lecture 10
Thank you for your attention
Principles of Marketing
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Theocharis Katranis, MBA
Spring Semester 2013