Integrated Marketing Integrated Marketing Communication: Personal Communication: Personal Selling and Direct MarketingSelling and Direct Marketing

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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.

• Define direct marketing and discuss its Define direct marketing and discuss its benefits to customers and companies.benefits to customers and companies.

• Identify and discuss the major forms of Identify and discuss the major forms of direct marketing.direct marketing.

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The Nature of Personal Selling

• Most salespeople are well-educated, Most salespeople are well-educated, well-trained professionals who work well-trained professionals who work to build and maintain long-term to build and maintain long-term customer relationships.customer relationships.

• The term salesperson covers a wide The term salesperson covers a wide range of positions:range of positions:– Order taker: Department store clerkOrder taker: Department store clerk– Order getter: Creative selling in different Order getter: Creative selling in different

environmentsenvironments

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The Role of the Sales Force

• Personal selling is a paid, personal form of Personal selling is a paid, personal form of promotion.promotion.

• Involves two-way personal communication Involves two-way personal communication between salespeople and individual between salespeople and individual customers.customers.

• Salespeople:Salespeople:– Probe customers to learn about problemsProbe customers to learn about problems– Adjust marketing offers to fit special needsAdjust marketing offers to fit special needs– 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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Major Steps in Sales Force Management

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Sales 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 offices Conduct business from their offices via telephone or visits from via telephone or visits from perspective buyers.perspective buyers.

• Includes:Includes:– Technical support peopleTechnical support people– Sales assistantsSales assistants– Telemarketers Telemarketers

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•For what types of products or For what types of products or product categories do you think product categories do you think inside selling might be more inside selling might be more effective than outside selling?effective than outside selling?

Discussion Question

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Inside Sales Force

Experienced telemarketers sell complex chemical products by telephone at DuPont’s Customer Telecontact Center.

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Team Selling

• Used to service large, Used to service large, complex accounts.complex accounts.

• Can include experts from Can include experts from different areas of selling different areas of selling firm.firm.

• Pitfalls:Pitfalls:– Can confuse or overwhelm Can confuse or overwhelm

customerscustomers– Some people have trouble Some people have trouble

working in teamsworking in teams– 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 with Ability to build relationships with

customerscustomers

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Recruiting Salespeople

• RecommendatioRecommendations from current ns from current sales forcesales force

• 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 expendituresRepays for job-related expenditures

• 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 and set Help them identify customers and set

call norms.call norms.– Specify time to be spent prospectingSpecify time to be spent prospecting

•Annual call planAnnual call plan

•Time-and-duty analysisTime-and-duty analysis

•Sales force automation systemsSales force automation systems

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How Salespeople Spend Their Time

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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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Sales Force Incentives

Many companies offer cash, trips, or merchandise as incentives. Marriott suggests that companies reward outstanding sales performers by letting them “spread their wings and reenergize” at fabulous Marriott resorts worldwide.

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Major Steps in Effective Selling

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The Personal Selling ProcessProspecting

The salesperson identifies qualified potential customers

PreapproachThe salesperson learns as much as possible

about a prospective customer before making a sales call

ApproachThe salesperson meets the customer for the first

time

PresentationThe salesperson tells the “product story” to the

buyer, highlighting customer benefits

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The Personal Selling Process

Handling ObjectionsThe salesperson seeks out, clarifies, and

overcomes customer objections to buying

ClosingThe salesperson asks the customer for an order

Follow-upThe salesperson follows up after the sale to

ensure customer satisfaction and repeat business

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Owens-Corning Field Sales Advantage system gives salespeople a constant supply of information about their company and the people with whom they are dealing.

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Direct Marketing

• Direct marketing consists of direct Direct marketing consists of direct connections with carefully targeted connections with carefully targeted individual consumers to both obtain individual consumers to both obtain an immediate response and cultivate an immediate response and cultivate lasting customer relationships. lasting customer relationships.

• Click Here to Visit the Direct MarketinClick Here to Visit the Direct Marketing Association's Websiteg Association's Website

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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 individualsCan target small groups or individuals– Can tailor offers to individual needsCan tailor offers to individual needs– Can be timed to reach prospects at just Can be timed to reach prospects at just

the right momentthe right moment– Gives access to buyers they could not Gives access to buyers they could not

reach through other channelsreach through other channels– Offers a low-cost, efficient way to reach Offers a low-cost, efficient way to reach

marketsmarkets

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Customer Databases

• An organized An organized collection of collection of comprehensive data comprehensive data about individual about individual customers or customers or prospects, including prospects, including geographic, geographic, demographic, demographic, psychographic, and psychographic, and behavioral data. behavioral data.

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Forms of Direct Marketing

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Telephone Marketing

• Accounts for more Accounts for more than 36% of all than 36% of all direct-marketing direct-marketing sales.sales.

• Used in both Used in both consumer and B2B consumer and B2B markets.markets.

• Can be Can be outboundoutbound or or inboundinbound calls. calls.

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Inbound Telephone Marketing

The Carolina Cookie Company urges, “Don’t wait another day! Call now to place an order or request a catalog.”

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Direct-Mail Marketing

• Involves sending an offer, Involves sending an offer, announcement, reminder, or other item announcement, reminder, or other item to a person at a particular address.to a person at a particular address.

• Accounts for more than 31% of direct-Accounts for more than 31% of direct-marketing sales.marketing sales.

• Permits high target-market selectivity.Permits high target-market 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 more With the Internet, more and more catalogs going electronic.catalogs going electronic.

• Print catalogs still the primary Print catalogs still the primary medium.medium.

• Expected sales in 2008 = $176 billion.Expected sales in 2008 = $176 billion.

• Harder to attract new customers with Harder to attract new customers with Internet catalogs.Internet catalogs.

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Direct-Response TV Marketing

Direct-Response Advertising

Infomercials

Home Shopping Channels

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Infomercial

Ronco and Ron Popeil, with his Veg-o-Matics, food dehydrators, and electric egg scramblers, paved the way for a host of mainstream marketers who now use direct-response ads.

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Kiosk Marketing

• Information Information and ordering and ordering machines machines generally found generally found in stores, in stores, airports, and airports, and other locations.other locations.

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•Choose a partner and discuss some Choose a partner and discuss some of the products each of you has of the products each of you has purchased as a result of direct purchased as a result of direct marketing. What were the marketing. What were the advantages for you when making advantages for you when making your purchases in this manner?your purchases in this manner?

Interactive Student Assignment

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Integrated Direct-Marketing

• The use of The use of carefully carefully coordinated coordinated multiple-media, multiple-media, multiple-stage multiple-stage campaigns.campaigns.

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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 for customers salespeople in creating value for customers and building customer relationships.and building customer relationships.

2.2. Identify and explain the six major sales Identify and explain the six major sales force management steps.force management steps.

3.3. 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.

4.4. Define direct marketing and discuss its Define direct marketing and discuss its benefits to customers and companies.benefits to customers and companies.

5.5. Identify and discuss the major forms of Identify and discuss the major forms of direct marketing.direct marketing.