17-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...
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17-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Chapter 17
Personal selling
1-1
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17-2Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Learning objectives
1. To examine the role of personal selling in the integrated marketing communication program.
2. To describe the advantages and disadvantages of personal selling as part of an IMC program.
3. To propose how personal selling might be combined with other elements in an IMC program.
4. To explain how to determine the effectiveness of the personal selling effort.
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17-3Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Role
Evaluation
LimitationsAdvantages
Personal selling
Public relations
Part of IMC
AdvertisingSales
promotionDirect
marketingInternet
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17-4Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling
Personal selling involves selling through a person-to-person
communication process.
Personal selling involves selling through a person-to-person
communication process.
The communication process is known as dyadic communications.
The communication process is known as dyadic communications.
Direct Direct
PersonalPersonal
Real timeReal time
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17-5Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Determining the role of personal selling
How cost effective is each alternative?How cost effective is each alternative?
How effective is each alternative in carrying out the needed exchange?
How effective is each alternative in carrying out the needed exchange?
What are the alternative ways to carry out these communications objectives?
What are the alternative ways to carry out these communications objectives?
What information must be exchanged between firm and potential customer?
What information must be exchanged between firm and potential customer?
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17-6Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
When the sales force is a major part of IMC
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17-7Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Evolution of the seven steps of selling
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17-8Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Evolved sales process
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17-9Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
New roles for sales people
Database knowledge & management
Database knowledge & management
Problem diagnosis & problem-solvingProblem diagnosis & problem-solving
Nurturing & maintaining relationships
Nurturing & maintaining relationships
Value creators, value adders
Value creators, value adders
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17-10Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Desired qualities for sales people
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17-11Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Relationship marketing
Relationship marketing defined:
The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.
Relationship marketing defined:
The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.
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17-12Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Factors important in customer retention
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17-13Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Types of sales jobs
This is essentially a support roleThis is essentially a support role
Requires the most skill and preparationRequires the most skill and preparation
Must assess situation, determine needsMust assess situation, determine needs
This role is much more casualThis role is much more casual
Often involves straight rebuyingOften involves straight rebuying
May not actually take the orderMay not actually take the order
Creative selling
Creative selling
Order takingOrder taking
Missionary sales
Missionary sales
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17-14Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Company 360—a great way to identify prospects
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17-15Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Six steps of selling
1. Prospecting and qualifying leads1. Prospecting and qualifying leads
2. Determining customer’s needs and wants.2. Determining customer’s needs and wants.
3. Recommending a way to satisfy customer needs3. Recommending a way to satisfy customer needs
4. Demonstrating the capabilities of the company and its products
4. Demonstrating the capabilities of the company and its products
5. Closing the sale5. Closing the sale
6. Following up the service account6. Following up the service account
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17-16Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
10 traits of effective salespeople
1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.
2. Sense of urgency: wanting to get it done now.
3. Ego drive: a combination of competitiveness and self-esteem.
4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently.
5. Risk-taking: willing to innovate and take a chance.
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17-17Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
10 traits of effective salespeople (cont.)
6. Sociable: outgoing, friendly, talkative and interested in others.
7. Abstract reasoning: ability to understand concepts and ideas.
8. Scepticism: a slight lack of trust and suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in someone else’s shoes.
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17-18Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Traits buyers consider helpful and unhelpful
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17-19Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling advantages and disadvantages
Poor reachPoor reach
Tailoring the messageTailoring the message
Two-way interaction with prospect
Two-way interaction with prospect
Prospect is not likely to be distracted
Prospect is not likely to be distracted
High cost High cost
Potential for management/ sales force conflict
Potential for management/ sales force conflict
Inconsistent messagesInconsistent messages
Seller involved in purchase decision
Seller involved in purchase decision
Source of research information
Source of research information
Potential ethical problemsPotential ethical problems
AdvantagesAdvantages DisadvantagesDisadvantages
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17-20Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Role
Evaluation
LimitationsAdvantages
Personal selling
Public relations
Part of IMC
AdvertisingSales
promotionDirect
marketingInternet
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17-21Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling combines with other IMC tools
AdvertisingAdvertising
Public relationsPublic relations
Direct marketingDirect marketing
Sales promotionSales promotion
The internetThe internet
Personal selling
Personal selling
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17-22Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling and advertising work together
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17-23Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Combining personal selling and advertising
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17-24Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Combining personal selling and public relations
Sales staff directly perform PR functions
Sales staff directly perform PR functions
Encourage sales staff to undertake ‘pro bono’ work
Encourage sales staff to undertake ‘pro bono’ work
Encourage sales staff to support NFP and philanthropic organisations
or causes
Encourage sales staff to support NFP and philanthropic organisations
or causes
StrategiesStrategies
Provide incentives for sales staff to join clubs and community groups
Provide incentives for sales staff to join clubs and community groups
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17-25Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
The Body Shop
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17-26Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling and direct marketing
Screen leads and qualify prospectsScreen leads and qualify prospects
Supporting sales staffSupporting sales staff
PR dimensionPR dimension
Customer service & follow-upCustomer service & follow-up
Can be combined with direct mail, email and other DM methodsCan be combined with direct mail, email and other DM methods
TelemarketingTelemarketing
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17-27Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Growth of telemarketing
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17-28Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Incentives targeted at the sales force
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17-29Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Combining personal selling and the internet
Provide product informationProvide product information
Screen prospectsScreen prospects
Build and market from databasesBuild and market from databases
Generate leadsGenerate leads
Fulfil ordersFulfil orders
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17-30Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Personal selling and the internet
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17-31Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Evaluating the personal selling effort
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17-32Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Role
Evaluation
LimitationsAdvantages
Personal selling
Public relations
Part of IMC
AdvertisingSales
promotionDirect
marketingInternet
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17-33Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Evaluating the sales force
Sales resultsSales results
Sales effortsSales efforts
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17-34Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Quantitative measures of sales force
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17-35Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Characteristics affecting sales force performance
The courage to changeThe courage to change
Consistent training that leads to consistent executionConsistent training that leads to consistent execution
Rigorous management processes that drive performanceRigorous management processes that drive performance
A clear link between company culture and value to sales strategies
A clear link between company culture and value to sales strategies
The strength of the field managerThe strength of the field manager
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17-36Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Criteria for evaluating personal selling's contribution
Are communications objectives attained?Are communications objectives attained?
Are IMC programs being implemented?Are IMC programs being implemented?
Are follow-up activities conducted well?Are follow-up activities conducted well?
Provide good marketing intelligence?Provide good marketing intelligence?
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17-37Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Summary and conclusions The role of personal selling is evolving into a customer
relationship model.
Within companies, the role of personal selling varies, depending on the nature of the industry, competition and market conditions.
In large industrial environments personal selling may be the dominant form of communications whereas in consumer non-durables, it may play a minor role.
Although personal selling can be expensive, the real-time nature of communications has many advantages.
One of personal selling’s limitations is the non-standardised nature of the message.
Evaluation of personal selling is the responsibility of the sales department.