Chapter 14 Personal Selling Sales Management and Direct

Chapter 14 Personal Selling, Sales Management and Direct Marketing Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Objectives § Understand the important role of personal § § § 2 selling and how it fits into the promotion mix Explain how technology enhances the personal selling effort Identify the different types of sales jobs Describe two approaches to personal selling List the steps in the creative selling process Explain the role of sales management Understand the elements of direct marketing Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real People, Real Choices: Decision Time at Woodtronics § Which strategy should Jeffrey pursue? – Option 1: Push the original solution, even 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 3 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Personal Selling § 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 – Salespeople are the eyes and ears of the firm – Selling/sales management jobs provide high mobility, especially for college grads with marketing background 4 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Role of Personal Selling § Personal selling is more important: – When a firm uses a push strategy – In business-to-business contexts – With inexperienced consumers who need hands-on assistance – For products bought infrequently – When goods/services are complex or costly § Cost per contact is very high 5 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Technology and Personal Selling § Numerous technologies help enhance the selling effort: – Customer relationship management (CRM) software and partner relationship management (PRM) – Teleconferencing, videoconferencing, and improved corporate Web sites – Voice-over Internet protocol – Assorted wireless technologies 6 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

CRM Systems CRM systems such as Gold. Mine are very popular because they help the sales force organize and utilize information about their customers, thus making salespeople better prepared to make a sales presentation Gold. Mine 7 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Sales Jobs § Sales positions vary considerably: – Order taker – Technical specialist – Missionary salesperson (stimulate clients to buy) – New-business salesperson and order getter – Team selling and cross-functional teams 8 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 9 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 10 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 14. 1 Steps in the Creative Selling Process 11 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 1: Prospecting and qualifying – Prospecting: Developing a list of potential customers – Qualifying: Determining how likely potential customers are to become customers Inc. Sales Resources Sales. Resources. com 12 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Lead Response Programs Many leads come from visits to a firm’s Web site. Companies like Accela Communications work with sales organizations to put in place Web response programs that can effectively develop these leads and hopefully turn them into customers 13 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 2: The preapproach Compiling background information about prospective customers and planning the sales interview – Purchase history, current needs, customer’s interests – Information is gathered from informal sources, CRM system, customers’ Web sites, and/or business publications 14 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 3: The approach Contacting the prospect – Learning even more about the prospect’s needs, creating a good impression, and building rapport – “You never get a second chance to make a good first impression” 15 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 in conversation by encouraging questions and feedback – Listening skills are critical for salespeople 16 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Presentation Software Preparing demonstrations and video presentations for use in sales calls has been made more user-friendly by new software such as Visual Communicator, produced by Serious Magic 17 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 5: Handling 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 18 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 6: Closing 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 19 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process § Step 7: The follow-up Arranging for delivery, payment, and purchase terms – Making sure customer received delivery and is satisfied – Bridging to next purchase 20 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Management § Sales management Process of planning, implementing, and controlling the personal selling function of an organization 21 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 14. 2 The Sales Management Process 22 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Management Process § Setting sales force objectives – Objectives state what the sales force is expected to accomplish and when – May be stated in terms of customer satisfaction, loyalty, retention/turnover, newcustomer development, new-product suggestions, training, reporting on competitive activity, community involvement – Individual objectives may be performance- or behavior-based 23 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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; several forms exist • • 24 Geographic sales force structure Product-class sales territories Industry specialization Key/major accounts Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Management Process § Recruiting the right people – Good listening and follow-up skills – Ability to adapt style from situation to situation – Tenacity – High level of personal organization § Sales training: – Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed 25 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

It’s Debatable Class Discussion Question Put yourself in the position of a sales manager for a moment. Sales recruits come from a variety of educational backgrounds, and often have a wide range of experience. Will sales training and developmental needs vary based on how long salespeople have been in the business? Is it possible (and feasible) to offer different training programs for salespeople at different career stages? Where do you stand? 26 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Management Process § Rewarding sales people – Paying salespeople well to motivate them • Straight commission plan • Commission-with-draw plan • Straight salary plan – Running sales contests for short-term sales boost – Call reports aid supervisors 27 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Get the scoop on sales salaries! Visit the Occupational Outlook Handbook!

Sales Management Process § Evaluating the sales force – Is the sales force meeting its objectives? – What are possible causes of failure? – Individual performance is measured against quotas or other quantitative factors – Qualitative factors may also be used – Expense accounts for entertainment and travel may also be monitored 28 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Evaluating Sales Programs Improving sales force performance is a common goal among many organizations Synergy boasts a 173% ROI for clients that invest in its services and software 29 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 Direct Marketing Association 30 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 31 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Direct Marketing § Telemarketing: Direct marketing conducted over the telephone – More profitable for business than consumer markets – In 2003, FTC established National Do Not Call Registry 32 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Direct Marketing § Direct-response advertising: Allows consumer to respond by immediately contacting the provider with questions or an order – Direct-response TV (DRTV): short commercials, 30 -minute-plus infomercials, and home shopping networks 33 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Infomercials Justin Leonard’s Fitness Infomercial Review invites consumers to post reviews of the infomercials they see on TV and their experiences with the products they buy 34 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Direct Marketing § M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices – Short-messaging system marketing (SMS) – Spim: instant-messaging version of spam – Adware: software that tracks Web habits/interests, presenting pop-up ads and resetting home page 35 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

It’s Debatable Class Discussion Question With marketers becomingly increasingly reliant on personalized methods of communications, Microsoft is attempting a new level of extreme personalization that will use credit card transaction data, physical location (via cell phone tracking), and TV viewing habits to determine which customized ad would be sent to a specific consumer’s cell phone. Although location-based advertising (sending ads for localized businesses in area of consumer’s cell phone signal) already exist, how do you feel about this new level of personalization? Invasion of privacy? Smart marketing? Where do you stand? 36 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real People, Real Choices: Decision Made at Woodtronics § Jeffrey chose option 2 – Jeffrey felt that his job as a sales representative was to uncover customer needs and provide the correct solutions – Implementation: Showed client a mock-up of the Evolution platform; told architect only when client was satisfied with product. Client purchased the product – Measuring success: Sales 37 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Keeping It Real: Fast-Forward to Next Class Decision Time at Darden § Meet Jim Lawrence, Sr. VP Supply Management and Purchasing § Darden Restaurants is the world’s largest casual dining operator § The decision to be made: What steps should be taken to ensure that Darden restaurants have access to the volume and quality of food needed? 38 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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