Personal Selling and Direct Marketing

Copyright © 2005 Pearson Education Inc.

Personal Selling and Direct Marketing


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Chapter 17

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PowerPoint slides

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Express version



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Instructor name

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Course name

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School name

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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

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After studying this chapter, you should be able to:

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

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Identify and explain the six major sales force management steps

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

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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

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Salesperson:

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

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Prospecting

for new business

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Communicating

with prospective/existing customers

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Servicing
existing customers

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Information gathering


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Nature of sales
positions will vary:

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Order taking

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Order getting

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Creative selling

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Relationship management

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Role of the sales force:

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Represent the company to
customers

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Represent the customer to
the company

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Produce customer
satisfaction and company
profit

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
4

Sales Force Management

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Sales force management:

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

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Sales force structure:

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Territorial sales force structure

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Product sales force structure

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Customer sales force structure

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Complex sales force structure

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Other issues:

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Outside sales force

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Inside sales force

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Team selling

Figure 17.1

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
5

Sales Force Management
(continued)

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Recruiting:

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

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Sources:

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

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

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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)

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Training:

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

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Objectives of training can be to learn:

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Company history and culture

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Products and their application

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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

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Compensation is used to direct activities and motivate salespeople

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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

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Supervision is used to direct and motivate salespeople

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Companies will vary in how closely they supervise their
salespeople

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Tools used:

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Call reports and plans

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Time
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and
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duty analysis

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Sales force automation
systems

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Motivating salespeople:

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Organizational climate

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Sales quotas

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Sales meetings

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Reward systems

Figure 17.2

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
9

Evaluating Salespeople

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Measuring performance and providing feedback

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Information collected and used for evaluation purposes:

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Sales reports

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Expense reports

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Call reports

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Territory reviews may be conducted to
discuss performance

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Standards of performance need to be
clearly articulated to salespeople

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Focus on behaviour

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
10

The Personal Selling Process

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

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

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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

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Most personal selling is transaction
-
oriented

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Companies want to encourage repeat purchasing because it is
more efficient

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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

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Direct marketing:

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

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

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Benefits to consumers:

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Convenient, easy to use,
and private

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Ready access to wealth of
products

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Immediate and interactive

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Benefits to sellers:

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Powerful tool to build
customer relationships

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One
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to
-
one marketing

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Low
-
cost, efficient
alternative for reaching
target markets

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
13

Direct Marketing
(continued)

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Customer database:

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

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Used to identify prospects and generate sales leads

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Profile customers based on
previous purchasing or response
to offers

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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)

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Telephone marketing

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Direct mail marketing

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Catalogue marketing

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Direct
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response
television marketing

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Kiosk marketing

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Integrated direct marketing:

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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

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Irritation, unfairness,
deception, and fraud

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Invasion of privacy

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Personal Information Protection and
Electronic Documents Act (2001):

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Consumer consent

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Limitations

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Accuracy

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Right to access

Copyright © 2005 Pearson Education Inc.

Principles of Marketing,

Sixth Canadian Edition

17.
16

In Conclusion…

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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