one to one trade promotion, direct marketing, and personal selling chapter fourteen

One to OneOne to One Trade Promotion, Direct Trade Promotion, Direct

Marketing, and Personal SellingMarketing, and Personal Selling

Chapter FourteenChapter Fourteen

14-2© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Chapter ObjectivesChapter Objectives

Identify the sales promotion elements for Identify the sales promotion elements for B2BB2B

Understand the elements of direct marketingUnderstand the elements of direct marketing Appreciate the important role of personal Appreciate the important role of personal

selling and how it fits into the promotion mixselling and how it fits into the promotion mix Identify the different types of sales jobsIdentify the different types of sales jobs List the steps in the creative selling processList the steps in the creative selling process Explain the role of sales managementExplain the role of sales management


Real People, Real Choices: Real People, Real Choices: Decision Time at WoodtronicsDecision Time at Woodtronics

Which strategy should Jeffrey pursue? Which strategy should Jeffrey pursue?

• Option 1:Option 1: Push the original solution, even Push the original solution, even though it is not the best thing for the clientthough it is not the best thing for the client

• Option 2:Option 2: Convince the client of Evolution’s Convince the client of Evolution’s price and functionality superiority price and functionality superiority

• Option 3:Option 3: Attempt to raise the architect’s Attempt to raise the architect’s comfort level with Evolution and hope he will comfort level with Evolution and hope he will recommend it to the clientrecommend it to the client


Figure 14.1Figure 14.1Trade Sales PromotionsTrade Sales Promotions


Table 14.1Table 14.1Characteristics of Characteristics of Trade Sales Trade Sales

Promotion ApproachesPromotion Approaches


Trade Sales Promotion: Trade Sales Promotion: Targeting the B2B CustomerTargeting the B2B Customer

TSNN: Trade show news network Trade show news network

Trade-show-advisor.com Trade-show-advisor.com tips for success

POPAI: The global association for The global association for marketing at retail. marketing at retail.

PPAI: Promotional products Promotional products association association international international


Direct MarketingDirect Marketing

Direct marketingDirect marketingAny direct communication to a Any direct communication to a consumer or business recipient consumer or business recipient designed to generate a response in the designed to generate a response in the form of an order, a request for further form of an order, a request for further information, and/or a visit to a store or information, and/or a visit to a store or other place of business for purchase of other place of business for purchase of a producta product


Figure 14.2Figure 14.2Key Forms of Direct MarketingKey Forms of Direct Marketing



Mail orderMail order

• Catalogs: Catalogs: Collection of products offered for sale Collection of products offered for sale and described in book form, usually and described in book form, usually consisting of product descriptions and consisting of product descriptions and photos photos

Catalog Choice



Mail orderMail order

• Direct mail: Direct mail: A brochure/pamphlet offering a specific A brochure/pamphlet offering a specific good/service at one point in timegood/service at one point in time

DMA Choice



Telemarketing: Telemarketing: Direct marketing conducted over the Direct marketing conducted over the telephonetelephone

Do Not Call Registry



Direct-response advertising: Direct-response advertising: Allows consumer to respond by Allows consumer to respond by immediately contacting the provider immediately contacting the provider with questions or an orderwith questions or an order• Direct-response TV (DRTV) Direct-response TV (DRTV)

• InfomercialsInfomercials

OxyClean (2000)



M-Commerce: M-Commerce: Promotional and other e-commerce Promotional and other e-commerce activities transmitted over mobile activities transmitted over mobile phones/devicesphones/devices

• Short-messaging system marketing Short-messaging system marketing (SMS) (SMS)


Personal Selling: Adding the Personal Selling: Adding the Personal Touch to the Promotion Personal Touch to the Promotion

MixMix Personal selling:Personal selling:

Occurs when a company Occurs when a company representative interacts representative interacts directly with a prospect directly with a prospect or customer to or customer to communicate about a communicate about a good or servicegood or service

Get the scoop on sales salaries! Visit the Occupational Outlook Handbook!


Figure 14.3Figure 14.3Factors That Influence a Firm’s Factors That Influence a Firm’s Emphasis on Personal SellingEmphasis on Personal Selling


Personal Selling is Not Personal Selling is Not Appropriate in All SituationsAppropriate in All Situations


Numerous technologies help enhance Numerous technologies help enhance the selling effort:the selling effort:• Specialized softwareSpecialized software

• Partner relationship management (PRM) Partner relationship management (PRM)

• Teleconferencing, videoconferencing, Teleconferencing, videoconferencing, and improved corporate Web sitesand improved corporate Web sites

• Voice-over Internet protocol (VoIP)Voice-over Internet protocol (VoIP)

• Assorted wireless technologies Assorted wireless technologies

Technology and Personal Technology and Personal SellingSelling

Salesforce.com


Figure 14.4Figure 14.4Types of Sales JobsTypes of Sales Jobs


Two Approaches to Personal Two Approaches to Personal SellingSelling

Transactional selling: Transactional selling: A form of personal selling that focuses A form of personal selling that focuses on making an immediate sale with little on making an immediate sale with little or no concern for developing long-term or no concern for developing long-term customer relationshipscustomer relationships

Relationship sellingRelationship sellingProcess of building long-term Process of building long-term customers by developing mutually customers by developing mutually satisfying, win-win relationships with satisfying, win-win relationships with customerscustomers


Figure 14.5Figure 14.5Steps in the Creative Selling Steps in the Creative Selling

ProcessProcess


The Creative Selling The Creative Selling ProcessProcess

Step 1: Prospect and qualifyStep 1: Prospect and qualify

• Prospecting: Prospecting: Developing a list of potential customersDeveloping a list of potential customersCold callingCold callingReferralsReferrals

• Qualifying:Qualifying: Determining how likely potential Determining how likely potential customers are to become customerscustomers are to become customers

Inc. Sales Resources SalesResources.com



Step 2: The preapproachStep 2: The preapproachCompiling background information Compiling background information about prospective customers and about prospective customers and planning the sales interviewplanning the sales interview• Information is gathered from many Information is gathered from many

sourcessources



Step 3: The approachStep 3: The approachContacting the Contacting the prospectprospect• ““You never get a You never get a

second chance to second chance to make a good first make a good first impression” impression”



Step 4: The sales presentationStep 4: The sales presentationLaying out the benefits and added Laying out the benefits and added value of a firm’s product/service and its value of a firm’s product/service and its advantages over the competitionadvantages over the competition

• Invite customer involvement Invite customer involvement

• Listening skills are criticalListening skills are critical



Step 5: Handle objectionsStep 5: Handle objectionsAnticipating why a prospect is reluctant Anticipating why a prospect is reluctant to make a commitment and responding to make a commitment and responding with additional information or with additional information or persuasive argumentspersuasive arguments

•Welcome objectionsWelcome objections

• Objections must be successfully dealt Objections must be successfully dealt with to move prospect to decision stagewith to move prospect to decision stage



Step 6: Close the saleStep 6: Close the saleGaining the customer’s commitment in the Gaining the customer’s commitment in the decision stage using a variety of decision stage using a variety of approaches:approaches:

• Last-objection close Last-objection close

• Assumptive or minor-points close Assumptive or minor-points close

• Standing-room-only or buy-now close Standing-room-only or buy-now close

Step 7: The follow-upStep 7: The follow-upArranging for delivery, payment, and Arranging for delivery, payment, and purchase termspurchase terms


Figure 14.6Figure 14.6The Salesforce Management The Salesforce Management

ProcessProcess


Sales Management Process Sales Management Process

Setting sales force objectivesSetting sales force objectives• Objectives state what the sales force is Objectives state what the sales force is

expected to accomplish and by whenexpected to accomplish and by when

• Many take many formsMany take many forms

• Individual objectives may be:Individual objectives may be:Performance objectives Performance objectives Behavioral objectivesBehavioral objectives


Sales Management ProcessSales Management Process

Creating a sales force strategyCreating a sales force strategyEstablishing structure and size of a Establishing structure and size of a firm’s sales forcefirm’s sales force

• Setting sales territories is a major Setting sales territories is a major responsibility; several forms existresponsibility; several forms existGeographic sales force structureGeographic sales force structureProduct-class sales territoriesProduct-class sales territoriesIndustry specializationIndustry specializationKey/major accountsKey/major accounts



Recruiting the right peopleRecruiting the right people• Candidates are screened for several Candidates are screened for several

skillsskills

• Pencil-and-paper test determine other Pencil-and-paper test determine other competenciescompetencies

Sales training: Sales training: • Teaches salespeople about firm, its Teaches salespeople about firm, its

products, how to develop skills, products, how to develop skills, knowledge, and attitudes to succeedknowledge, and attitudes to succeed

Professional development is ongoingProfessional development is ongoing


It’s DebatableIt’s DebatableClass Discussion QuestionClass Discussion Question

Put yourself in the position of a sales Put yourself in the position of a sales manager for a moment. Sales recruits come manager for a moment. Sales recruits come from a variety of educational backgrounds, from a variety of educational backgrounds, and often have a wide range of experience. and often have a wide range of experience. Will sales training and developmental needs Will sales training and developmental needs vary based on how long salespeople have vary based on how long salespeople have been in the business? Is it possible (and been in the business? Is it possible (and feasible) to offer different training programs feasible) to offer different training programs for salespeople at different career stages?for salespeople at different career stages? Where do you stand?Where do you stand?



Rewarding sales peopleRewarding sales people• Paying salespeople well to motivate Paying salespeople well to motivate

themthemStraight commission plan Straight commission plan Commission-with-draw plan Commission-with-draw plan Straight salary plan Straight salary plan Quota-bonus planQuota-bonus plan

• Sales contests can boost salesSales contests can boost sales

• Call reports aid supervisorsCall reports aid supervisors



Evaluating the sales forceEvaluating the sales force

• Is the sales force meeting its objectives?Is the sales force meeting its objectives?

• What are possible causes of failure?What are possible causes of failure?

• Individual performance is measured against Individual performance is measured against quotas or other quantitative factorsquotas or other quantitative factors

• Qualitative factors may also be usedQualitative factors may also be used

• Expense accounts for entertainment and Expense accounts for entertainment and travel may also be monitoredtravel may also be monitored


It’s DebatableIt’s DebatableClass Discussion QuestionClass Discussion Question

Are these legitimate business expenses or Are these legitimate business expenses or do would you question their submission if do would you question their submission if you were a sales manager? Where do you you were a sales manager? Where do you stand?stand?

$ 1,000 paid for gambling chips divided $ 1,000 paid for gambling chips divided among four clients who are being among four clients who are being entertained at a casino.entertained at a casino.

Cover charges and drinks for a local strip Cover charges and drinks for a local strip club.club.


Real People, Real Choices: Real People, Real Choices: Decision Made at WoodtronicsDecision Made at Woodtronics

Jeffrey chose option 2Jeffrey chose option 2

•Why do you think that Jeffery went Why do you think that Jeffery went directly to the client with a mock-up of directly to the client with a mock-up of the Evolution platform and involved the the Evolution platform and involved the architect only after the client was architect only after the client was satisfied with product?satisfied with product?


Meet Heather Mayo, Vice President of Meet Heather Mayo, Vice President of Merchandising for Sam’s Club Merchandising for Sam’s Club

Milk is difficult to supply economically Milk is difficult to supply economically and competitor’s are treating milk as a and competitor’s are treating milk as a loss leader to entice consumers to their loss leader to entice consumers to their storesstores

The decision to be made: The decision to be made: What steps should Sam’s take to trim What steps should Sam’s take to trim costs in the supply chain and make costs in the supply chain and make shipping milk more efficient? shipping milk more efficient?

Keeping It Real:Keeping It Real: Fast-Forward to Fast-Forward to Next Class Decision Time at Sam’s ClubNext Class Decision Time at Sam’s Club


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one to one trade promotion, direct marketing, and personal selling chapter fourteen

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direct marketingtelemarketing

trade promotion

sales promotion elements

key forms of direct

trade sales promotions

role of sales management