Personal Selling and Direct Marketing

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Copyright © 2005 Pearson Education Inc.

Personal Selling and Direct Marketing



Chapter 17


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Date

Principles of Marketing,

Sixth Canadian Edition

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
2

Learning Objectives


After studying this chapter, you should be able to:


Discuss the role of a company’s salespeople in creating value
for customers and building customer relationships


Identify and explain the six major sales force management steps


Discuss the personal selling
process, distinguishing between
transaction
-
oriented marketing
and relationship marketing


Define direct marketing and
discuss its benefits to customers
and companies


Identify and discuss the major
forms of direct marketing

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
3

Personal Selling


Salesperson:

an individual acting for a company by performing one
or more of these activities:


Prospecting

for new business


Communicating

with prospective/existing customers


Servicing
existing customers


Information gathering



Nature of sales
positions will vary:


Order taking


Order getting


Creative selling


Relationship management


Role of the sales force:


Represent the company to
customers


Represent the customer to
the company


Produce customer
satisfaction and company
profit

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
4

Sales Force Management


Sales force management:

the analysis,
planning, implementation, and control of sales
force activities.


Sales force structure:


Territorial sales force structure


Product sales force structure


Customer sales force structure


Complex sales force structure


Other issues:


Outside sales force


Inside sales force


Team selling

Figure 17.1

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
5

Sales Force Management
(continued)


Recruiting:

finding a pool of qualified applicants from which to
make a selection decision


Sources:

internal, competitors, suppliers, educational
institutions, employment agencies, classified ads, and websites


Selection:
choosing the candidate with the highest probability of
success in the position


Methods:

intelligence/personality testing, interviews, role play
exercises, references, and background checks

Figure 17.1

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
6

Sales Force Management
(continued)


Training:

investing in the human capital of the company, helping
sales people to become more productive employees


Objectives of training can be to learn:


Company history and culture


Products and their application


Selling skills such as prospecting, questioning, closing, and
time and territory management

Figure 17.1

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
7

Sales Force Compensation


Compensation is used to direct activities and motivate salespeople


Will consist of fixed amount (salary), variable amount (bonus or
incentives), expenses, and fringe benefits

Table 17.1

Strategic Goal
Gain market
Solidify market
Maximize
share rapidly
leadership
profitability
Ideal
An independent self-starter
A competitive problem solver
A team player
salesperson:
A relationship manager
Sales focus:
Deal making
Consultative selling
Account penetration
Sustained high effort
Compensation
To capture accounts
To reward new and existing
To manage the product mix
role:
To reward high performance
account sales
To encourage team selling
To reward account management
Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
8

Supervising Salespeople


Supervision is used to direct and motivate salespeople


Companies will vary in how closely they supervise their
salespeople


Tools used:


Call reports and plans


Time
-
and
-
duty analysis


Sales force automation
systems


Motivating salespeople:


Organizational climate


Sales quotas


Sales meetings


Reward systems

Figure 17.2

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
9

Evaluating Salespeople


Measuring performance and providing feedback


Information collected and used for evaluation purposes:


Sales reports


Expense reports


Call reports


Territory reviews may be conducted to
discuss performance


Standards of performance need to be
clearly articulated to salespeople


Focus on behaviour

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
10

The Personal Selling Process


The goal of the personal selling process is to find new customers and
sell them something


Most salespeople spend their time maintaining existing accounts and
building long
-
term customer relationships


Not all steps required in every sale

Figure 17.3

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
11

Customer Relationship Management


Most personal selling is transaction
-
oriented


Companies want to encourage repeat purchasing because it is
more efficient


Mutually profitable relationships are built on creating value,
offering packaged solutions to problems, and improving products
and processes


Figure 17.3

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
12

Direct Marketing


Direct marketing:

direct communications with carefully
targeted individual consumers to obtain an immediate response


Can be a primary approach or as a supplement to other
approaches


Benefits to consumers:


Convenient, easy to use,
and private


Ready access to wealth of
products


Immediate and interactive


Benefits to sellers:


Powerful tool to build
customer relationships


One
-
to
-
one marketing


Low
-
cost, efficient
alternative for reaching
target markets

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
13

Direct Marketing
(continued)


Customer database:

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


Used to identify prospects and generate sales leads


Profile customers based on
previous purchasing or response
to offers


Build customer loyalty by
tailoring new offers to their
specific interests

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
14

Forms of Direct Marketing
(continued)


Telephone marketing


Direct mail marketing


Catalogue marketing


Direct
-
response
television marketing


Kiosk marketing


Integrated direct marketing:


Direct marketing campaigns that use
multiple vehicles and multiple stages to
improve response rates and profits

Continuing

communication

Paid ad with a

response channel

Direct

mail

Outbound

telemarketing

Face
-
to
-
face

sales call

Figure 17.5

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
15

Public Policy and Ethical Issues


Irritation, unfairness,
deception, and fraud


Invasion of privacy


Personal Information Protection and
Electronic Documents Act (2001):


Consumer consent


Limitations


Accuracy


Right to access

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
16

In Conclusion…


The learning objectives for this chapter were:


Discuss the role of a company’s salespeople in creating value for
customers and building customer relationships


Identify and explain the six major sales force management steps


Discuss the personal selling
process, distinguishing between
transaction
-
oriented marketing
and relationship marketing


Define direct marketing and
discuss its benefits to customers
and companies


Identify and discuss the major
forms of direct marketing