Title: Personal Selling and Direct Marketing
1Personal Selling and Direct Marketing
2Learning Goals
- Understand the role of a companys salespeople in
creating value. - Know the six major sales force management steps.
- Understand the personal selling process, and how
to distinguish between transaction-oriented
marketing and relationship marketing. - Learn about direct marketing and its benefits to
customers and companies. - Know the major forms of direct marketing.
3Case StudyCDW Corporation
- Nations largest reseller of technology products
and services to small and mid-size businesses - Sales up 21 and profits up 17 annually
- Highly devoted to customer with Circle of
Service philosophy
- Clicks and people direct marketing strategy
combines personal selling with strong Web
presence - Salespeople are highly knowledgeable
- Training is extensive
4Personal Selling
- The Nature of Personal Selling
- Salesperson covers a wide range of positions from
order taker to order getter responsible for
relationship building
Goal 1 Understand the role of the salespeople
in creating value
5Personal Selling
Salespeople Have Many Names
- Agents
- Sales Consultants
- Sales Representatives
- Account Executives
- Sales Engineers
- District Managers
- Marketing Representatives
- Account Development Representatives
Goal 1 Understand the role of the salespeople
in creating value
6Personal Selling
- The Role of the Sales Force
- Two-way personal communication
- More effective than advertising in complex
selling situations - The sales force plays a major role in most
companies - The sales force represents the company to
customers - They also represent the customers to the company
Goal 1 Understand the role of the salespeople
in creating value
7Definition
- Sales Force Management
- The analysis, planning, implementation, and
control of sales force activities
Goal 2 Know the six major sales force
management steps
8Managing the Sales Force
- Sales Force Strategy and Structure
- Sales Force Structure
- Territorial sales force structure
- Product sales force structure
- Customer sales force structure
- Complex sales force structure
Goal 2 Know the six major sales force
management steps
9Managing the Sales Force
- Sales Force Strategy and Structure
- Sales Force Size
- Many companies use the workload approach to
set sales force size - Other Issues
- Outside and inside sales forces
- Team selling
Goal 2 Know the six major sales force
management steps
10Managing the Sales Force
- Recruiting and Selecting Salespeople
- Careful recruiting can
- Increase overall sales force performance
- Reduce turnover
- Reduce recruiting and training costs
Goal 2 Know the six major sales force
management steps
11Managing the Sales Force
Traits of Successful Salespeople
- Intrinsic motivation
- Disciplined work style
- The ability to close a sale
- Ability to build relationships with customers
Goal 2 Know the six major sales force
management steps
12Managing the Sales Force
- Training Salespeople
- Training period can be anywhere from a few weeks
to a year or more - Training is expensive, but yields strong returns
- Training programs have many goals
- Many companies are adding Web-based sales
training programs
Goal 2 Know the six major sales force
management steps
13Managing the Sales Force
- Compensating Salespeople
- Compensation elements salary, bonuses,
commissions, expenses, and fringe benefits - Basic compensation plans
- Straight salary
- Straight commission
- Salary plus bonus
- Salary plus commission
- Compensation plans should direct the sales force
toward activities that are consistent with
overall marketing objectives.
Goal 2 Know the six major sales force
management steps
14Managing the Sales Force
- Supervising Salespeople
- Effective supervisors provide direction to the
sales force - Annual call plans and time-and-duty analysis can
help provide direction - Sales force automation systems assist in creating
more efficient sales force operations - The Internet is the fastest-growing sales
technology tool
Goal 2 Know the six major sales force
management steps
15Managing the Sales Force
- Supervising Salespeople
- Effective supervisors also motivate the sales
force - Organizational climate
- Sales quotas
- Positive incentives
- Sales meetings, sales contests, honors, etc.
Goal 2 Know the six major sales force
management steps
16Managing the Sales Force
- Evaluating Salespeople
- Several tools can be used
- Sales reports
- Call reports
- Expense reports
Goal 2 Know the six major sales force
management steps
17The Personal Selling Process
- Prospecting and Qualifying
- Prospecting identifying potential customers
- Qualifying Screening leads
- Preapproach
- Learning as much as possible about a prospective
customer prior to making a sales call - Approach
- Stage where the salesperson meets the customer
for the first time
Goal 3 Understand the personal selling process
18The Personal Selling Process
- Presentation and Demonstration
- Benefits of the product are presented/demonstrated
- Understanding prospect needs is key
- Handling Objections and Closing
- Asking for the order
- Follow-up
- Helps ensure customer satisfaction
Goal 3 Understand the personal selling process
19Definition
- Direct Marketing
- Consists of direct one-to-one connections with
carefully targeted individual consumers to both
obtain an immediate response and cultivate
lasting customer relationships.
Goal 4 Learn about direct marketing and its
benefits
20Benefits of Direct Marketing
- For Buyers
- Convenient
- Easy to use
- Private
- Access to a wealth of information
- Immediate
- Interactive
Goal 4 Learn about direct marketing and its
benefits
21Benefits of Direct Marketing
- For Sellers
- Powerful tool for building relationships
- Allows for targeting of small groups or
individuals with customized offers in a
personalized fashion - Can be timed to reach prospects at the right time
- Offers access to buyers that couldnt be reached
via other channels - Low-cost, effective alternative for reaching
specific markets
Goal 4 Learn about direct marketing and its
benefits
22Direct Marketing
- Customer Databases Direct Marketing
- Databases include comprehensive data including
geographic, demographic, psychographic and
behavioral - Databases can be used to identify prospects,
tailor products, and maintain customer
relationships - Database marketing requires substantial
investment in hardware, software, personnel
Goal 5 Know the major forms of direct marketing
23Direct Marketing
- Integrated Direct Marketing
- Public Policy and Ethical Issues
- Irritation, Unfairness, Deception, and Fraud
- Invasion of Privacy
Goal 5 Know the major forms of direct marketing