Transcript Personal Selling Personal selling

Chapter 14
Personal Selling,
Sales Management and
Direct Marketing
Chapter Objectives
1. Understand the important role of personal
selling and how it fits into the promotion mix
2. Discuss what professional selling is all about
3. Describe two approaches to personal selling
4. List the steps in the personal selling process
(PSP)
5. Explain the role of sales management
6. Understand the elements of
Direct Marketing
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PERSONAL SELLING
Your Exposure to Salespeople
Q. What positive and negative opinions do you
have about salespeople?
Q. How did you form your opinion of
salespeople?
Personal Selling
 Personal selling: When a company
representative interacts directly with a
prospect or customer to communicate about
a good or service
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Approaches to Personal Selling
 Transactional selling:
A form of personal selling that focuses
on making an immediate sale with little
or no concern for developing long-term
customer relationships
– Associated with high-pressure, hard sell
tactics (old school!)
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Approaches to Personal Selling
 Relationship selling
Process of building long-term
customers by developing mutually
satisfying, win-win relationships with
customers
– Builds customer loyalty and satisfaction
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Professional Personal Selling Today
 2/3 of all sales are repeat orders from loyal customers
 Professionalism is required
 Trust must be earned
 Customers are more demanding: Better, faster,
cheaper, more unique, more attention, more responsive
 Customers have more alternatives: Overseas, Internet
 Since selling hinges upon building relationships,
everyone in a company is engaged in selling
 Relationships, even friendships, are established
between seller and buyer – tricky stuff!
The Extent of Personal Selling
Example: A customer purchases an ugly yellow Izod polo
shirt at Belk:
 The sale at Belk to the customer
 The sale from Izod to Belk
 The sale from a shirt wholesaler in the U.S. to Izod
 The sale from a shirt wholesaler in China to a shirt
wholesaler in the U.S.
 The sale from a shirt manufacturer in China to a shirt
wholesaler in China
 The sale of fabric from a textile mill in China to a shirt
manufacturer in China.
What Does a Salesperson Do?
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Creates new customers
Sells more to current customers
Builds long-term relationships
Provides solutions to customer’s problems
Provides service to customers
Helps customers resell products to their
customers
 Helps customers use products after purchase
 Builds goodwill with customers
 Provides company with market information
Salespeople Need to Have Personal
Characteristics That Allow Them To:
Care for their customers
Take joy in their work
Find harmony in the sales relationship
Have patience in closing the sale
Have high moral ethics
Are faithful to one’s word
Are fair in selling
Are self-controlled in emotions
Benefits Of Professional
Personal Selling As A Career
 Financial rewards – $’s can be huge; bonuses
and commissions = true pay for performance
 Perks – entertainment, meals, cars, unique
opportunities, contest winnings
 Visibility – top salespeople are known
throughout an organization
 Mobility – skills are transferable within and
across industries and job types
Benefits Of Professional
Personal Selling As A Career
 Job security – less vulnerable to down-sizing than
most other professions
 Job freedom and independence – self-managed,
flexible schedules, own style, not routine
 Job satisfaction – Feels great to “solve problems”
all day
 Contribution to society – help people learn about
and satisfy their needs and wants; expose people
to new products; demonstrate ethical conduct
Everybody Sells!
 Each of us develops communication
techniques for trying to get our way in life
 You are involved in selling when you want
someone to do something and attempt to
persuade them
• Getting candy
• Getting a job
• Getting a date
The Personal Selling Process
Personal Selling Process (PSP)—the
seven interacting, overlapping stages
that every professional salesperson,
no matter what the product or service
being sold, must carry out.
The
Personal
Selling
Process
(PSP)
PSP Continued
1. Prospecting and Qualifying
Leads: the name and address or telephone number
of a person or organization that may have a need
for the company's product or service.
Qualifying – determining if a lead has
(1) Need or want
(2) Authority to buy
(3) Money to buy
(4) Eligibility to buy
If a lead meets all 4 requirements, they become a
prospect (= a potential new customer)
PSP Continued
2. Planning the Sales Call (Pre-approach)
• Salesperson obtains detailed information
about the prospective buyer and the buying
situation, then develops a strategy for
ensuring a favorable reception
3. Approaching the Prospect
• The salesperson makes the first face-toface contact and the vital first impression
PSP Continued
4. Making the Sales Presentation &
Demonstration
• The sales presentation is given combined with a
convincing product demonstration tailored to the
prospect to favorably influence the outcome of
the sales call
5. Negotiating Sales Resistance or Objections
• Objections or resistance should be viewed as
requests for more information so that the
prospect can make a purchase decision
PSP Continued
6. Closing the Sale
• Reaching agreement verbally on contractually
on what the terms of sale are. Trial close - any
well-placed attempt to close the sale
7. Follow-up and Servicing the Account
• Working with the customer after the sale, with
the primary goal of advancing the "partnership"
or long-term relationship with the customer
Sales Management
Sales management - Process of planning,
implementing, and controlling the
personal selling function of an
organization
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Figure 14.2
The Sales Management Process
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Sales Management Process
1. Setting sales force objectives
– Objectives state what the sales force is
expected to accomplish and when
– May be stated in terms of sales, revenues,
customer satisfaction, loyalty,
retention/turnover, or even community
involvement
– Individual objectives may be performance- or
behavior-based
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Sales Management Process
2. Creating a sales force strategy
– Setting sales territories is a major
responsibility; may be broken down by
• Geography
• Product lines
• Key/major accounts
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Sales Management Process
3. Recruiting, Training, and Rewarding
– Recruit people with good listening and followup skills, who are adaptable, tenacious, and
organized
– Sales training: Teaches salespeople about
firm, its products, how to develop skills,
knowledge, and attitudes to succeed
– Reward using ideal combination of salary,
commission, bonus, contests, and perks
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Sales Management Process
4. Evaluating the sales force
– Is the sales force meeting its objectives?
– What are possible causes of failure?
– Individual performance is measured against
quotas and/or peers
– Expense accounts for entertainment and
travel may also be monitored
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Direct Marketing
Direct Marketing (DM) is an interactive
system of marketing that uses one or
more advertising media to effect a
measurable customer response to
readers/listeners/viewers and stores
information about that response in a
database.
Contemporary Direct Marketing - Chapter 01
DM is an interactive system of marketing that uses one
or more advertising media to effect a measurable
customer response to readers/listeners/viewers and
stores information about that response in a database.
1. System of Marketing – see next slide
2. Uses one or more advertising media – such as direct
mail, catalogs, e-mail, ads, or websites
3. Effect a customer response – order, inquiry, or store
traffic
4. To readers/listeners/viewers – aka “mailing lists”
5. Stores info in a database – which in turn is used to
segment, target, and promote to individual customers
6. Interactive – communication with customer 
response  info stored  additional communication
with customer 
Contemporary Direct Marketing - Chapter 01
The Direct Marketing Cycle
Database
Marketer
Direct Response
Communication
Response
and/or
Transaction
Target
Customer
Customer Service/
Fulfillment
Characteristics of Direct Marketing
 Customer/prospect databases that make targeting
possible
 Ongoing relationships with customers
 Data-based market segmentation
 Measurement of results and accountability for costs
 Interactivity
 Multi-media promotion
 Multi-channel distribution
 Viewing customers as assets with lifetime value
(LTV)
Comparison Between Direct & Traditional Marketing
Direct Marketing
Traditional Marketing
Direct selling to individuals with customers
identifiable by name, address and purchase
behavior
Mass selling with buyers identified as broad
groups sharing common demographic and
psychographic characteristics
Products have the added value of distribution
direct to the customer, an important benefit
Product benefits do not typically include
distribution to the customer’s door
The medium (website, ad, mailer) is the
marketplace
The marketer controls the product all the way
through delivery
The retail outlet is the marketplace
Advertising is used to generate an immediate
response… an inquiry, a store visit or an order
Advertising is used for cumulative effect over
time for building image, awareness, loyalty and
benefit recall in addition to purchasing.
Repetition of offers, promotional messages, tollfree numbers and web addresses are used within
the advertisement
Repetition of offers and promotional messages
are used over a period of time
Customer feels a high perceived risk – product
bought unseen, recourse is distant
Customer feels less risk – has direct contact with
the product and direct recourse
The marketer typically loses control as the
product enters the distribution channel
Types of Direct Marketing
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Catalogs
Direct Mail
E-mail (“blasts”)
Telemarketing
Broadcast media including Infomercials
M-Commerce: Promotional and other ecommerce activities transmitted over mobile
phones/devices
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