Integrated Marketing Communication:
Personal Selling and Direct Marketing
Chapter 13Chapter 13
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Road Map: Previewing the Concepts
• Discuss the role of a company’s Discuss the role of a company’s salespeople in creating value for salespeople in creating value for customers and building customer customers and building customer relationships.relationships.
• Identify and explain the six major sales Identify and explain the six major sales force management steps.force management steps.
• Discuss the personal selling process, Discuss the personal selling process, distinguishing between transaction-distinguishing between transaction-oriented marketing and relationship oriented marketing and relationship marketing.marketing.
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• Define direct marketing and Define direct marketing and discuss its benefits to customers discuss its benefits to customers and companies.and companies.
• Identify and discuss the major Identify and discuss the major forms of direct marketing.forms of direct marketing.
Road Map: Previewing the Concepts
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The Nature of Personal Selling
• Most salespeople are well-Most salespeople are well-educated, well-trained educated, well-trained professionals who work to build professionals who work to build and maintain long-term customer and maintain long-term customer relationships.relationships.
• The term salesperson covers a The term salesperson covers a wide range of positions:wide range of positions:
Order taker: Department store clerkOrder taker: Department store clerk Order getter: Creative selling in Order getter: Creative selling in
different environmentsdifferent environments
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The Role of the Sales Force
• Personal selling is a paid, personal Personal selling is a paid, personal form of promotion.form of promotion.
• Involves two-way personal Involves two-way personal communication between salespeople communication between salespeople and individual customers.and individual customers.
• Salespeople:Salespeople: Probe customers to learn about problemsProbe customers to learn about problems Adjust marketing offers to fit special Adjust marketing offers to fit special
needsneeds Negotiate terms of salesNegotiate terms of sales Build long-term personal relationshipsBuild long-term personal relationships
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The Role of the Sales Force
• Sales Force serves as critical link between company and its customers.
They represent the company to the customers
They represent the customers to the company
Goal = customer satisfaction and company profit
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Sale Force Structure• Territorial: Salesperson
assigned to exclusive area and sells full line of products.
• Product: Sales force sells only certain product lines.
• Customer: Sales force organizes along customer or industry lines.
• Complex: Combination of several types of structures.
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Inside Sales Force
• Conduct business from their Conduct business from their offices via telephone or visits offices via telephone or visits from perspective buyers.from perspective buyers.
• Includes:Includes: Technical support peopleTechnical support people Sales assistantsSales assistants TelemarketersTelemarketers
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Selling Team• Used to service large, complex Used to service large, complex
accounts.accounts.• Can include experts from different Can include experts from different
areas of selling firm.areas of selling firm.• Pitfalls:Pitfalls:
Can confuse or overwhelm customersCan confuse or overwhelm customers Some people have trouble working in Some people have trouble working in
teamsteams Hard to evaluate individual Hard to evaluate individual
contributionscontributions
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Recruiting and Selecting Salespeople
• Key talents of salespeople:Key talents of salespeople: Intrinsic motivationIntrinsic motivation Disciplined work styleDisciplined work style Ability to close a saleAbility to close a sale Ability to build relationships Ability to build relationships
with customerswith customers
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Recruiting Salespeople
• RecommendatiRecommendations from ons from current sales current sales forceforce
• Employment Employment agenciesagencies
• Classified adsClassified ads
• Web searchesWeb searches
• College College studentsstudents
• Recruit from Recruit from other other companiescompanies
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Sales Force Training Goals
• Learn about and identify with the company.
• Learn about the company’s products.
• Learn customers’ and competitors’ characteristics.
• Learn how to make effective presentations.
• Learn field procedures and responsibilities.
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Compensating Salespeople
• Fixed amount: Fixed amount: Salary Salary
• Variable amount:Variable amount: Commissions or bonusesCommissions or bonuses
• Expenses:Expenses: Repays for job-related Repays for job-related
expendituresexpenditures• Fringe benefits:Fringe benefits:
Vacations, sick leave, pension, etc.Vacations, sick leave, pension, etc.
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Supervising Salespeople
• Directing SalespeopleDirecting Salespeople Help them identify customers Help them identify customers
and set call norms.and set call norms. Specify time to be spent Specify time to be spent
prospectingprospecting Annual call planAnnual call plan Time-and-duty analysisTime-and-duty analysis Sales force automation systemsSales force automation systems
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Supervising Salespeople
• Motivating SalespeopleMotivating Salespeople Organizational climateOrganizational climate Sales quotasSales quotas Positive incentives:Positive incentives:
Sales meetingsSales meetings Sales contestsSales contests Recognition and honorsRecognition and honors Cash awards, trips, profit sharingCash awards, trips, profit sharing
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The Personal Selling Process
• Prospecting: The salesperson identifies qualified potential customers.
• Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call.
• Approach: The salesperson meets the customer for the first time.
• Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits.
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The Personal Selling Process
• Handling Objections: The salesperson seeks out, clarifies, and overcomes customer objections to buying.
• Closing: The salesperson asks the customer for an order.
• Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business.
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Direct Marketing
• Direct marketing consists of Direct marketing consists of direct connections with direct connections with carefully targeted individual carefully targeted individual consumers to both obtain an consumers to both obtain an immediate response and immediate response and cultivate lasting customer cultivate lasting customer relationships.relationships.
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The New Direct-Marketing Model
• Some firms use direct marketing as a Some firms use direct marketing as a supplemental medium.supplemental medium.
• For many companies, direct For many companies, direct marketing constitutes a new and marketing constitutes a new and complete model for doing business.complete model for doing business.
• Some firms employ the direct model Some firms employ the direct model as their as their onlyonly approach. approach.
• Some see this as the new marketing Some see this as the new marketing model of the next millennium.model of the next millennium.
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Benefits of Direct Marketing
• Benefits to Buyers:Benefits to Buyers: ConvenientConvenient Easy to useEasy to use PrivatePrivate Ready access to products and Ready access to products and
informationinformation Immediate and interactiveImmediate and interactive
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Benefits of Direct Marketing
• Benefits to Sellers:Benefits to Sellers: Powerful tool for building customer Powerful tool for building customer
relationshipsrelationships Can target small groups or Can target small groups or
individualsindividuals Can tailor offers to individual needsCan tailor offers to individual needs Can be timed to reach prospects at Can be timed to reach prospects at
just the right momentjust the right moment Gives access to buyers they could Gives access to buyers they could
not reach through other channelsnot reach through other channels Offers a low-cost, efficient way to Offers a low-cost, efficient way to
reach marketsreach markets
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Customer Databases
• An organized collection of An organized collection of comprehensive data about comprehensive data about individual customers or individual customers or prospects, including prospects, including geographic, demographic, geographic, demographic, psychographic, and psychographic, and behavioral data.behavioral data.
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Telemarketing
• Accounts for more than 36% Accounts for more than 36% of all direct-marketing sales.of all direct-marketing sales.
• Used in both consumer and Used in both consumer and B2B markets.B2B markets.
• Can be Can be outboundoutbound or or inboundinbound calls. calls.
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Direct-Mail Marketing• Involves sending an offer, Involves sending an offer,
announcement, reminder, or announcement, reminder, or other item to a person at a other item to a person at a particular address.particular address.
• Accounts for more than 31% of Accounts for more than 31% of direct-marketing sales.direct-marketing sales.
• Permits high target-market Permits high target-market selectivity.selectivity.
• Personal and flexible.Personal and flexible.• Easy to measure results.Easy to measure results.
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Catalog Marketing• With the Internet, more and With the Internet, more and
more catalogs going electronic.more catalogs going electronic.• Print catalogs still the primary Print catalogs still the primary
medium.medium.• Expected sales in 2008 = $176 Expected sales in 2008 = $176
billion.billion.• Harder to attract new customers Harder to attract new customers
with Internet catalogs.with Internet catalogs.
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Direct Response TV Marketing
• Direct-response advertisingDirect-response advertising
• InfomercialsInfomercials
• Home shopping channelsHome shopping channels
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Kiosk Marketing
• Information and Information and ordering machines ordering machines generally found in generally found in stores, airports, and stores, airports, and other locations.other locations.
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Public Policy and Ethical Issues in Direct
Marketing• Irritation to Consumers• Taking unfair advantage of
impulsive or less sophisticated buyers
• Targeting TV-addicted shoppers
• Deception, Fraud• Invasion of Privacy
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Rest Stop: Reviewing the Concepts
1.1. Discuss the role of a company’s Discuss the role of a company’s salespeople in creating value salespeople in creating value for customers and building for customers and building customer relationships.customer relationships.
2.2. Identify and explain the six Identify and explain the six major sales force management major sales force management steps.steps.
3.3. Discuss the personal selling Discuss the personal selling process, distinguishing between process, distinguishing between transaction-oriented marketing transaction-oriented marketing and relationship marketing.and relationship marketing.
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Rest Stop: Reviewing the Concepts
4.4. Define direct marketing Define direct marketing and discuss its benefits to and discuss its benefits to customers and companies.customers and companies.
5.5. Identify and discuss the Identify and discuss the major forms of direct major forms of direct marketing.marketing.