Transcript Personal Selling and Direct Marketing

Copyright © 2005 Pearson Education Inc.
Personal Selling and Direct Marketing
•Chapter 17
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Principles of Marketing, Sixth Canadian Edition
Learning Objectives
17.2
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• After studying this chapter, you should be able to:
– Discuss the role of a company’s salespeople in creating value
for customers and building customer relationships
– Identify and explain the six major sales force management steps
– Discuss the personal selling
process, distinguishing between
transaction-oriented marketing
and relationship marketing
– Define direct marketing and
discuss its benefits to customers
and companies
– Identify and discuss the major
forms of direct marketing
Principles of Marketing, Sixth Canadian Edition
Personal Selling
17.3
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• Salesperson: an individual acting for a company by performing one
or more of these activities:
– Prospecting for new business
– Communicating with prospective/existing customers
– Servicing existing customers
– Information gathering
• Role of the sales force:
• Nature of sales
positions will vary:
–
–
–
–
Order taking
Order getting
Creative selling
Relationship management
– Represent the company to
customers
– Represent the customer to
the company
– Produce customer
satisfaction and company
profit
Principles of Marketing, Sixth Canadian Edition
17.4
Sales Force Management
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• Sales force management: the analysis,
planning, implementation, and control of sales
force activities.
• Sales force structure:
–
–
–
–
• Other issues:
Territorial sales force structure
Product sales force structure
Customer sales force structure
Complex sales force structure
– Outside sales force
– Inside sales force
– Team selling
Figure 17.1
Principles of Marketing, Sixth Canadian Edition
Sales Force Management (continued)
17.5
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• Recruiting: finding a pool of qualified applicants from which to
make a selection decision
– Sources: internal, competitors, suppliers, educational
institutions, employment agencies, classified ads, and websites
• Selection: choosing the candidate with the highest probability of
success in the position
– Methods: intelligence/personality testing, interviews, role play
exercises, references, and background checks
Figure 17.1
Principles of Marketing, Sixth Canadian Edition
Sales Force Management (continued)
17.6
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• Training: investing in the human capital of the company, helping
sales people to become more productive employees
– Objectives of training can be to learn:
• Company history and culture
• Products and their application
• Selling skills such as prospecting, questioning, closing, and
time and territory management
Figure 17.1
Principles of Marketing, Sixth Canadian Edition
17.7
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Sales Force Compensation
• Compensation is used to direct activities and motivate salespeople
• Will consist of fixed amount (salary), variable amount (bonus or
incentives), expenses, and fringe benefits
Table 17.1
Gain market
share rapidly
Strategic Goal
Solidify market
leadership
Maximize
profitability
Ideal
salesperson:
An independent self-starter
A competitive problem solver
A team player
Sales focus:
Deal making
A relationship manager
Consultative selling
Account penetration
To capture accounts
To reward new and existing
To manage the product mix
To reward high performance
account sales
To encourage team selling
Sustained high effort
Compensation
role:
To reward account management
Principles of Marketing, Sixth Canadian Edition
Copyright © 2005 Pearson Education Inc.
Supervising Salespeople
• Supervision is used to direct and motivate salespeople
• Companies will vary in how closely they supervise their
salespeople
• Tools used:
– Call reports and plans
– Time-and-duty analysis
– Sales force automation
systems
17.8
Figure 17.2
• Motivating salespeople:
–
–
–
–
Organizational climate
Sales quotas
Sales meetings
Reward systems
Principles of Marketing, Sixth Canadian Edition
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Evaluating Salespeople
17.9
• Measuring performance and providing feedback
• Information collected and used for evaluation purposes:
– Sales reports
– Expense reports
– Call reports
• Territory reviews may be conducted to
discuss performance
• Standards of performance need to be
clearly articulated to salespeople
• Focus on behaviour
Principles of Marketing, Sixth Canadian Edition
17.10
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The Personal Selling Process
• The goal of the personal selling process is to find new customers and
sell them something
• Most salespeople spend their time maintaining existing accounts and
building long-term customer relationships
• Not all steps required in every sale
Figure 17.3
Principles of Marketing, Sixth Canadian Edition
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Customer Relationship Management
17.11
• Most personal selling is transaction-oriented
• Companies want to encourage repeat purchasing because it is
more efficient
• Mutually profitable relationships are built on creating value,
offering packaged solutions to problems, and improving products
and processes
Figure 17.3
Principles of Marketing, Sixth Canadian Edition
Direct Marketing
17.12
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• Direct marketing: direct communications with carefully
targeted individual consumers to obtain an immediate response
– Can be a primary approach or as a supplement to other
approaches
• Benefits to consumers:
– Convenient, easy to use,
and private
– Ready access to wealth of
products
– Immediate and interactive
• Benefits to sellers:
– Powerful tool to build
customer relationships
– One-to-one marketing
– Low-cost, efficient
alternative for reaching
target markets
Principles of Marketing, Sixth Canadian Edition
Direct Marketing (continued)
17.13
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• Customer database: organized collection of
comprehensive data about individual customers or prospects,
including geographic, demographic, psychographic, and
behavioral data
– Used to identify prospects and generate sales leads
– Profile customers based on
previous purchasing or response
to offers
– Build customer loyalty by
tailoring new offers to their
specific interests
Principles of Marketing, Sixth Canadian Edition
Copyright © 2005 Pearson Education Inc.
Forms of Direct Marketing (continued)
Paid ad with a
response channel
•
•
•
•
Telephone marketing
Direct mail marketing
Catalogue marketing
Direct-response
television marketing
• Kiosk marketing
17.14
Direct
mail
Figure 17.5
• Integrated direct marketing:
– Direct marketing campaigns that use
multiple vehicles and multiple stages to
improve response rates and profits
Outbound
telemarketing
Face-to-face
sales call
Continuing
communication
Principles of Marketing, Sixth Canadian Edition
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Public Policy and Ethical Issues
17.15
• Irritation, unfairness,
deception, and fraud
• Invasion of privacy
• Personal Information Protection and
Electronic Documents Act (2001):
–
–
–
–
Consumer consent
Limitations
Accuracy
Right to access
Principles of Marketing, Sixth Canadian Edition
In Conclusion…
17.16
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• The learning objectives for this chapter were:
– Discuss the role of a company’s salespeople in creating value for
customers and building customer relationships
– Identify and explain the six major sales force management steps
– Discuss the personal selling
process, distinguishing between
transaction-oriented marketing
and relationship marketing
– Define direct marketing and
discuss its benefits to customers
and companies
– Identify and discuss the major
forms of direct marketing
Principles of Marketing, Sixth Canadian Edition