Direct MarketingDirect marketing is a form of personal selling that creates and

establishes an intimate relationship between a seller and an individual consumer.

Personal selling is a one-on-one or one-on-small group personal presentation designed to gain commitment from individuals/agencies to be consumers.

Personal selling Interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer.

Direct Marketing Options for Agencies

• Sales presentations, tours and meetings• Seminars, workshops or training programs• Door-to-door distribution• Telemarketing• Direct sales letters• Network or multi-level marketing consumer support

centers• Lead referral programs• Sales blitzes• Trade shows

Direct Sales ProcessStrategic Sales Cycle• 8 steps process• Skills are developed not innate• Practice• Teach others

Strategic Sales Cycle – First 3 Steps

Prospecting

Planning

Preparing

Strategic Sales Cycle – Last 5 Steps

Rapport Development Probe

Support

Summarize

Close

THE FOUR SALES CHANNELS

• Channels all include both business-to-business and direct-to-customer selling.

• Over-the-counter selling Personal selling conducted in retail and some wholesale locations in which customers come to the seller’s place of business.

• Field selling Sales presentations made at prospective customers’ locations on a face-to-face basis.

• Telemarketing Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders.

• Inside selling Selling by phone, mail, and electronic commerce.

• Firms generally blend sales channels in their sales organization.

TRENDS IN PERSONAL SELLING• Companies rely on three major personal selling approaches to meet customer needs.

• Relationship selling Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship.

• Consultative selling Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale.

• Team selling Selling situation in which several sales associates or other members of the organization are recruited to help the lead sales representative reach all those who influence the purchase decision.

SALES TASKS • Ensuring that buyer’s purchases are in his or her best interest aids the development of long-term relationships.

• Selling involves three basic tasks:

• Order processing Selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.

• Creative selling Personal selling that involves situations in which a considerable degree of analytical decision making on the buyer’s part results in the need for skillful proposals of solutions for the customer’s needs.

• Missionary selling Indirect type of selling in which specialized salespeople promote the firm’s goodwill among indirect customers, often by helping customers use products.

CREATIVE SELLING

• Creative selling Personal selling that involves situations in which a considerable degree of analytical decision making on the buyer’s part results in the need for skillful proposals of solutions for the customer’s needs.

• Generally used to develop new business with either new customers of new products for existing customers.MISSIONARY SELLING

• Missionary selling Indirect type of selling in which specialized salespeople promote the firm’s goodwill among indirect customers, often by helping customers use products.

• Example: Pharmaceutical companies that use free samples, educational seminars to court doctors.

• May involve both field selling and telemarketing.

THE SALES PROCESS• Steps follow the AIDA concept.

Attention

Interest

Desire

Action

PROSPECTING AND QUALIFYING

•  Prospecting—identifying potential customers.

• Qualifying—determining that the prospect really is a potential customer.APPROACH

• Initial contact with prospective customer.

• Use precall planning research to identify how your products might best meet customer’s needs.PRESENTATION

• Conveying marketing message to the customer.

• Features-benefits framework focuses on the good or service in terms that are meaningful to the buyer.

DEMONSTRATION

• Buyer has a chance to try a product or see how it works.HANDLING OBJECTIONS

• Expressions of resistance, such as stalling or indecision, by the prospect are an opportunity to reassure the buyer or offer suitable alternatives.CLOSING

• Point at which salesperson asks the prospect for an order.

• Let buyer know you are ready to be of service in the future.FOLLOW-UP

• Successful sales people turn today’s customers into tomorrow’s by reinforcing the purchase decision.

• Ensure that customer service needs are met.

SUPERVISION

• Span of control—number of sales representatives who report to first-level sales managers.MOTIVATION

• Tools include information sharing, recognition, bonuses, and benefits.

• Expectancy theory—motivation depends on the expectations an individual has of his or her ability to perform the job and on how performance relates to attaining rewards that the individual values.COMPENSATION

• Commission—compensation tied directly to the sales or profits the salesperson achieves.

• Salary—fixed payment made periodically to an employee.

• Many firms combine the features of both commission and salary in their compensation programs.

EVALUATION AND CONTROL

• Managers must set standards and choose the best methods for measuring sales performance.

• Sales quotas—specified sales or profit targets that the firm expects salespeople to achieve.

• Other measures include customer satisfaction, profit contribution, share of product-category sales, and customer retention.

• Evaluations should motivate improved performance.

ETHICAL ISSUES IN SALES• Long-term success requires strong code of ethics.

• Honesty and ethical behavior is encouraged when:

• Employees understand what is expected of them.

• Open communication is encouraged.

• Managers lead by example.

Personal Selling

Personal Selling is more important if...

Customers are concentrated.

Product is technically complex.

There are few customers.

Product is custom made.

Product has a high value.

Customers are geographically dispersed.

Product is simple to understand.

There are many customers.

Product is standardized.

Product has a low value.

Advertising & Sales Promotion are more important if...

Why Personal Selling is Effective

Detailed explanation or demonstration Variable sales message Directed to qualified prospects Controllable adjustable selling costs More effective than other promotion in

obtaining sale and gaining customer satisfaction

PersonalSelling

Advantages

Relationship Selling

A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

Relationship(Consultative)

Selling

Traditional Selling and Relationship Selling

TraditionalPersonal Selling

LO5

Sell advice, assistance, counsel Sell products

Focus on closing sales

Limited sales planning

Discuss product

Assess “product-specific” needs

“Lone wolf” approach

Pricing/product focus

Short-term sales follow-up

Focus on customer’s bottom line

Sales planning is top priority

Build problem-solving environment

Conduct discovery in scope of operations

Team approach

Profit impact and strategic benefit focus

Long-term sales follow-up

Relationship Selling

Relationship Selling vs. Traditional Selling

InitialSales

RepeatSales

SuccessiveSales

Traditional Sales

Relationship Sales

SalesIncreasesResultFromCreatingValue

Steps in the Selling Process

Generate Leads

Qualify Leads

Probe Customer Needs

Develop Solutions

Handle Objections

Close the Sale

Follow Up

Generating Leads

Advertising Publicity Direct Mail/Telemarketing

Cold Calling Internet Web Site Referrals

Trade Shows/ConventionsNetworking Company

Records

Cold Calling

A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.

Cold Calling

Qualifying Leads

Receptivity andaccessibility

Buying power

Recognized need

Needs Assessment

A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.

NeedsAssessment

The Consultative Salesperson

Product or service

Customers

Competition

Industry

Salesperson must knoweverything

about...

Developing and Proposing Solutions

Sales Proposal

Sales Presentation

Powerful PresentationsBe well prepared

Use eye contactAsk open-ended questionsBe poisedUse hand gestures and voice inflectionFocus on the customer needsIncorporate visual elements Know how to operate the A/V equipmentMake sure the equipment worksPRACTICE, PRACTICE, PRACTICE!

Handling Objections

View objections as requests for information Anticipate specific objections Investigate the objection with the customer Be aware of competitors’ products Stay calm Use the objection to close the sale

Closing the Sale

Negotiate

Keep an open mind

Look for customer signals

Tailor to each market

The Impact of Technology on Personal Selling

Cell phones

Laptops

Pagers

E-Mail

Electronic organizers

Internet

Steps in the Selling Process