14-1 chapter 14 integrated marketing communications: personal selling and direct marketing

Download 14-1 Chapter 14 Integrated Marketing Communications: Personal Selling and Direct Marketing

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  • Chapter 14Integrated Marketing Communications: Personal Selling and Direct Marketing

  • Road Map: Previewing the ConceptsDiscuss the role of a companys 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.

  • The Nature of Personal SellingMost salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.The term salesperson covers a wide spectrum of positions from:Order taker (department store salesperson)Order getter (someone engaged in creative selling i.e Lear Corporation)

  • What did Robert Louis Stevenson mean when he said everyone lives by selling something?

  • The Role of the Sales ForceInvolves two-way, personal communication between salespeople and individual customers.Personal selling is effective because salespeople can:probe customers to learn more about their problems,adjust the marketing offer to fit the special needs of each customer,negotiate terms of sale, andbuild long-term personal relationships with key decision makers.

  • The Role of the Sales Force

    Sales Force Serves as a Critical Link Between a Company and its Customers Since They:

    Represent Customers to the Company to Produce Customer Satisfaction

    Represent the Company to Customers to Produce Company Profit

  • Major Steps in Sales Force Management (Fig. 14-1)

  • Designing Sales Force Strategy and Structure

    Territorial Exclusive Territory to Sell the Companys Full Product Line

    CustomerSales Force Sells Only to CertainCustomers or Industries

    ProductSales Force Sells Only a Portion of The Companys Products or Lines

  • Inside SalesForceOutside Sales ForceTravel to Call on CustomersSells to MajorAccounts

    Finds MajorNew Prospects

    Conduct Business From Their Offices Via Phone/Buyer VisitsTechnicalSupportPeople

    Tele-Marketer&Internet

    Other Sales Force Strategy and Structure IssuesSalesAssistants

  • Team SellingUse team selling to service large, complex accounts.Team finds problems, solutions, and sales opportunities.Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance.

  • Some Traits of Good Salespeople

  • Recommendations for Recruiting Salespeople

  • Training SalespeopleHelp Salespeople Know & Identify With the Company Learn About the ProductsLearn About Competitorsand Customers Characteristics Learn How to MakeEffective PresentationsThe Average Sales Training Program lasts for Four Months and Has the Following Goals:

    Understand Field Proceduresand Responsibilities

  • Compensating Salespeople

    Fixed Amount: Usually a Salary

    VariableAmount:UsuallyCommissionsOr Bonuses

    To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several ElementsExpense Allowance:For Job- Related Expenses

  • Supervising Salespeople Directing SalespeopleIdentify Customer Targets & Call NormsTime Spent Prospecting for New AccountsUse Sales Time EfficientlyAnnual Call PlanTime-and-Duty AnalysisSales Force Automation

    Motivating SalespeopleOrganizational Climate Sales Quotas Positive Incentives Sales Meetings Sales Contests Honors and Trips Merchandise/Cash

  • How Salespeople Spend Their Time (Fig. 14-2)

  • Major Steps in Effective Selling (Fig. 14-3)

  • Steps in the Selling ProcessProspectingSalesperson Identifies Qualified Potential Customers.PreapproachSalesperson Learns About a Prospective Customer Before Making a Sales Call.QualifyingProcess of Identifying Good Prospects and Screening Out Poor Ones.ApproachSalesperson Meets the Buyer and Gets the Relationship Off to a Good Start.

  • Steps in the Selling ProcessPresentationSalesperson Tells the Product Story to the Buyer Showing How the Product Solves Problems.ClosingSalesperson Asks the Customer for an Order.Handling ObjectionsSalesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying.

    Follow-Up

    Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.

  • What is Relationship Marketing? Relationship Marketing Emphasizes Maintaining Profitable Long-Term Relationships with Customers by Creating Superior Customer Value and Satisfaction.

  • Form students into groups of three to five. Each group should answer the following questions:Explain the meaning of relationship marketing. Describe how relationship marketing might be used in selling a new car.

  • Mass Marketing and Direct Marketing

  • The New Direct Marketing ModelSome firms use direct marketing as a supplemental medium.For many companies, direct marketing especially Internet and e-commerce companies constitutes a new and complete model for doing business.Some firms use the new direct model as their only approach.New marketing model of the next millennium.

  • Benefits and Growth of Direct MarketingBenefits to BuyersConvenientEasy to usePrivateProduct access and selectionAbundance of informationImmediateInteractiveBenefits to SellersConsumer relationship buildingReduces costsIncreases speed and efficiencyProvides flexibilityGlobal medium

  • Customer Databases and MarketingCustomer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects. Allows companies to offer fine-tuned marketing offers and communications to customers.

  • Forms of Direct Marketing(Fig. 14-4)

  • Forms of Direct MarketingTelephone MarketingRepresents 36% of direct marketing sales.Outbound telephone marketing sells directly to customers.Inbound numbers provide a toll-free number to receive orders.

    Direct-Mail MarketingRepresents 31% of direct marketing sales.High target-market selectivity.Personalized & flexible.Allows easy measurement of results.Fax mail, e-mail, voice mail are now popular

  • Forms of Direct MarketingCatalog MarketingSales expected to exceed $94 billion by 2002.Printed, selling multiple products, offering direct ordering mechanism.Printed catalogs remain the primary medium, but many are now electronic.Direct-Response TV MarketingDirect-response advertising marketers air TV spots or infomercials.Home shopping channels entire programs or channels dedicated to selling goods and services.Kiosk MarketingPlacing information and ordering machines at various locations.

  • George Foremans Lean Mean Fat-Reducing Grilling MachineCurrent infomercial champ George Foreman!Selling for 3 easy payments of $19.95 (plus shipping & handling).Totaled almost $400 million in sales last year.

  • An Integrated Direct-Marketing Campaign (Fig. 14-5)

  • Public Policy and Ethical Issues in Direct Marketing

    Irritation toConsumers

    Unfairness,Deception,orFraudInvasionofPrivacy

  • Rest Stop: Reviewing the ConceptsDiscuss the role of a companys 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.

    Each student will probably have his or her own opinion about this question. The answers make an interesting in-class discussion. The intent of the question is to get the student to examine the selling function in a different way than the traditional viewpoint (i.e., selling a product or service). As an example, each person in an organization (no matter their role) sells the organization to the public. Each time a receptionist answers the phone or greets a person from the outside, he or she is representing (and therefore selling) the organization. Each time a service person works on a product or serves a customer they are representing (and therefore selling) the organization. It has been said that the most important salespeople that an organization has are the silent majority of employees that act as support staff. Relationship marketing emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. Companies are realizing that when operating in maturing markets and facing stiffer competition, it costs more to get new customers from competition than to keep current customers. Relationship marketing is based on the premise that important accounts need focused and continuous attention. As it refers to selling a new car--few consumers buy a new car with only one visit. Instead, trust of the salesperson is essential (the consumer can always buy the same basic model from another dealership).