Transcript Ch 14

One to One
Trade Promotion, Direct Marketing,
and Personal Selling
Chapter Fourteen
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
Chapter Objectives
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Identify the sales promotion elements for
B2B
Understand the elements of direct marketing
Appreciate the important role of personal
selling and how it fits into the promotion mix
Identify the different types of sales jobs
List the steps in the creative selling process
Explain the role of sales management
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Real People, Real Choices:
Decision Time at Woodtronics
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Which strategy should Jeffrey pursue?
• Option 1: Push the original solution, even
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though it is not the best thing for the client
Option 2: Convince the client of Evolution’s
price and functionality superiority
Option 3: Attempt to raise the architect’s
comfort level with Evolution and hope he will
recommend it to the client
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Trade Sales Promotion:
Targeting the B2B Customer
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Discount promotions:
• Allowances, discounts, and deals
 Merchandising
allowances
 Case allowances
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• Co-op advertising
Promotions that increase industry visibility:
• Trade shows
• Promotional products
• Point-of-purchase (POP) displays
• Incentive programs
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Direct Marketing
 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
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Direct Marketing
 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
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Direct Marketing
 Telemarketing:
Direct marketing conducted over the
telephone
 Direct-response advertising:
Allows consumer to respond by
immediately contacting the provider
with questions or an order
• Direct-response TV (DRTV)
• Infomercials
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Direct Marketing
 M-Commerce:
Promotional and other e-commerce
activities transmitted over mobile
phones/devices
• Short-messaging system marketing
(SMS)
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Personal Selling: Adding the Personal
Touch to the Promotion Mix
 Personal selling:
Occurs when a company representative
interacts directly with a prospect or
customer to communicate about a
good or service
• “Personal touch” helps develop
relationships
• Sales jobs provide high mobility,
especially for college grads with
marketing backgrounds
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The Role of Personal Selling in the
Marketing Mix
 Personal selling is:
• Often essential in landing commitments
• More important than other mix elements
in several situations
• Not appropriate for all products and
services
Drawbacks
limit the use of personal
selling
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Technology and Personal Selling
 Numerous technologies help enhance
the selling effort:
• Account management software
• Customer relationship management
(CRM) software
• Partner relationship management (PRM)
• Teleconferencing, videoconferencing,
and improved corporate Web sites
• Voice-over Internet protocol (VoIP)
• Assorted wireless technologies
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Landscape of Modern
Personal Selling
 Types of sales jobs:
• Order taker
• Technical specialist
• Missionary salesperson
• New-business salesperson
• Order getter
• Team selling and cross-functional
teams
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Two 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
 Relationship selling
Process of building long-term
customers by developing mutually
satisfying, win-win relationships with
customers
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The Creative Selling Process
 Step 1: Prospect and qualify:
• Prospecting:
Developing a list of potential customers
Cold
calling
Referrals
• Qualifying:
Determining how likely potential
customers are to become customers
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The Creative Selling Process
 Step 2: The preapproach:
Compiling background information
about prospective customers and
planning the sales interview
• Information is gathered from many
sources
 Step 3: The approach:
Contacting the prospect
• “You never get a second chance to
make a good first impression”
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The Creative Selling Process
 Step 4: The sales presentation:
Laying out the benefits and added
value of a firm’s product/service and its
advantages over the competition
• Invite customer involvement
• Listening skills are critical
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The Creative Selling Process
 Step 5: Handle objections:
Anticipating why a prospect is reluctant
to make a commitment and responding
with additional information or
persuasive arguments
• Welcome objections
• Objections must be successfully dealt
with to move prospect to decision stage
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The Creative Selling Process
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Step 6: Close the sale:
Gaining the customer’s commitment in the
decision stage using a variety of
approaches:
• Last-objection close
• Assumptive or minor-points close
• Standing-room-only or buy-now close
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Step 7: The follow-up:
Arranging for delivery, payment, and
purchase terms
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Sales Management
 Sales management:
Process of planning, implementing, and
controlling the personal selling
function of an organization
• Setting sales force objectives
• Creating a sales force strategy
• Recruiting, training, rewarding the sales
force
• Evaluating the sales force
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Sales Management Process
 Setting sales force objectives:
• Objectives state what the sales force is
expected to accomplish and by when
• Many take many forms
• Individual objectives can include:
Performance
objectives
Behavioral objectives
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Sales Management Process
 Creating a sales force strategy
Establishing structure and size of a
firm’s sales force
• Setting sales territories is a major
responsibility and several forms exist:
Geographic
sales force structure
Product-class sales territories
Industry specialization
Key/major accounts
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Sales Management Process
 Recruiting the right people:
• Candidates are screened for several
skills
• Pencil-and-paper test determine other
competencies
 Sales training:
• Teaches salespeople about firm, its
products, how to develop skills,
knowledge, and attitudes to succeed
 Professional development is ongoing
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Sales Management Process
 Rewarding sales people:
• Paying salespeople well to motivate
them
Straight
commission plan
Commission-with-draw plan
Straight salary plan
Quota-bonus plan
• Sales contests can boost sales
• Call reports aid supervisors
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Sales Management Process
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Evaluating the sales force
• Is the sales force meeting its objectives?
• What are possible causes of failure?
• Individual performance is measured against
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quotas or other quantitative factors
Qualitative factors may also be used
Expense accounts for entertainment and
travel may also be monitored
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Real People, Real Choices:
Decision Made at Woodtronics
 Jeffrey chose option 2
• Why do you think that Jeffery went
directly to the client with a mock-up of
the Evolution platform and involved the
architect only after the client was
satisfied with product?
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Keeping It Real:
Fast-Forward to
Next Class Decision Time at Sam’s Club
 Meet Heather Mayo, Vice President of
Merchandising for Sam’s Club
 Milk is difficult to supply economically
and competitor’s are treating milk as a
loss leader to entice consumers to their
stores
 The decision to be made:
What steps should Sam’s take to trim
costs in the supply chain and make
shipping milk more efficient?
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