Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Chapter 14 Personal Selling, Sales Management and Direct Marketing Chapter Objectives 1. Understand the important role of personal selling and how it fits into the promotion mix 2. Discuss what professional selling is all about 3. Describe two approaches to personal selling 4. List the steps in the personal selling process (PSP) 5. Explain the role of sales management 6. Understand the elements of Direct Marketing 14-2 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall PERSONAL SELLING Your Exposure to Salespeople Q. What positive and negative opinions do you have about salespeople? Q. How did you form your opinion of salespeople? Personal Selling Personal selling: When a company representative interacts directly with a prospect or customer to communicate about a good or service 14-4 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Approaches to Personal Selling Transactional selling: A form of personal selling that focuses on making an immediate sale with little or no concern for developing long-term customer relationships – Associated with high-pressure, hard sell tactics (old school!) 14-5 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Approaches to Personal Selling Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers – Builds customer loyalty and satisfaction 14-6 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Professional Personal Selling Today 2/3 of all sales are repeat orders from loyal customers Professionalism is required Trust must be earned Customers are more demanding: Better, faster, cheaper, more unique, more attention, more responsive Customers have more alternatives: Overseas, Internet Since selling hinges upon building relationships, everyone in a company is engaged in selling Relationships, even friendships, are established between seller and buyer – tricky stuff! The Extent of Personal Selling Example: A customer purchases an ugly yellow Izod polo shirt at Belk: The sale at Belk to the customer The sale from Izod to Belk The sale from a shirt wholesaler in the U.S. to Izod The sale from a shirt wholesaler in China to a shirt wholesaler in the U.S. The sale from a shirt manufacturer in China to a shirt wholesaler in China The sale of fabric from a textile mill in China to a shirt manufacturer in China. What Does a Salesperson Do? Creates new customers Sells more to current customers Builds long-term relationships Provides solutions to customer’s problems Provides service to customers Helps customers resell products to their customers Helps customers use products after purchase Builds goodwill with customers Provides company with market information Salespeople Need to Have Personal Characteristics That Allow Them To: Care for their customers Take joy in their work Find harmony in the sales relationship Have patience in closing the sale Have high moral ethics Are faithful to one’s word Are fair in selling Are self-controlled in emotions Benefits Of Professional Personal Selling As A Career Financial rewards – $’s can be huge; bonuses and commissions = true pay for performance Perks – entertainment, meals, cars, unique opportunities, contest winnings Visibility – top salespeople are known throughout an organization Mobility – skills are transferable within and across industries and job types Benefits Of Professional Personal Selling As A Career Job security – less vulnerable to down-sizing than most other professions Job freedom and independence – self-managed, flexible schedules, own style, not routine Job satisfaction – Feels great to “solve problems” all day Contribution to society – help people learn about and satisfy their needs and wants; expose people to new products; demonstrate ethical conduct Everybody Sells! Each of us develops communication techniques for trying to get our way in life You are involved in selling when you want someone to do something and attempt to persuade them • Getting candy • Getting a job • Getting a date The Personal Selling Process Personal Selling Process (PSP)—the seven interacting, overlapping stages that every professional salesperson, no matter what the product or service being sold, must carry out. The Personal Selling Process (PSP) PSP Continued 1. Prospecting and Qualifying Leads: the name and address or telephone number of a person or organization that may have a need for the company's product or service. Qualifying – determining if a lead has (1) Need or want (2) Authority to buy (3) Money to buy (4) Eligibility to buy If a lead meets all 4 requirements, they become a prospect (= a potential new customer) PSP Continued 2. Planning the Sales Call (Pre-approach) • Salesperson obtains detailed information about the prospective buyer and the buying situation, then develops a strategy for ensuring a favorable reception 3. Approaching the Prospect • The salesperson makes the first face-toface contact and the vital first impression PSP Continued 4. Making the Sales Presentation & Demonstration • The sales presentation is given combined with a convincing product demonstration tailored to the prospect to favorably influence the outcome of the sales call 5. Negotiating Sales Resistance or Objections • Objections or resistance should be viewed as requests for more information so that the prospect can make a purchase decision PSP Continued 6. Closing the Sale • Reaching agreement verbally on contractually on what the terms of sale are. Trial close - any well-placed attempt to close the sale 7. Follow-up and Servicing the Account • Working with the customer after the sale, with the primary goal of advancing the "partnership" or long-term relationship with the customer Sales Management Sales management - Process of planning, implementing, and controlling the personal selling function of an organization 14-20 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 14.2 The Sales Management Process 14-21 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Sales Management Process 1. Setting sales force objectives – Objectives state what the sales force is expected to accomplish and when – May be stated in terms of sales, revenues, customer satisfaction, loyalty, retention/turnover, or even community involvement – Individual objectives may be performance- or behavior-based 14-22 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Sales Management Process 2. Creating a sales force strategy – Setting sales territories is a major responsibility; may be broken down by • Geography • Product lines • Key/major accounts 14-23 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Sales Management Process 3. Recruiting, Training, and Rewarding – Recruit people with good listening and followup skills, who are adaptable, tenacious, and organized – Sales training: Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed – Reward using ideal combination of salary, commission, bonus, contests, and perks 14-24 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Sales Management Process 4. Evaluating the sales force – Is the sales force meeting its objectives? – What are possible causes of failure? – Individual performance is measured against quotas and/or peers – Expense accounts for entertainment and travel may also be monitored 14-25 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Direct Marketing Direct Marketing (DM) is an interactive system of marketing that uses one or more advertising media to effect a measurable customer response to readers/listeners/viewers and stores information about that response in a database. Contemporary Direct Marketing - Chapter 01 DM is an interactive system of marketing that uses one or more advertising media to effect a measurable customer response to readers/listeners/viewers and stores information about that response in a database. 1. System of Marketing – see next slide 2. Uses one or more advertising media – such as direct mail, catalogs, e-mail, ads, or websites 3. Effect a customer response – order, inquiry, or store traffic 4. To readers/listeners/viewers – aka “mailing lists” 5. Stores info in a database – which in turn is used to segment, target, and promote to individual customers 6. Interactive – communication with customer response info stored additional communication with customer Contemporary Direct Marketing - Chapter 01 The Direct Marketing Cycle Database Marketer Direct Response Communication Response and/or Transaction Target Customer Customer Service/ Fulfillment Characteristics of Direct Marketing Customer/prospect databases that make targeting possible Ongoing relationships with customers Data-based market segmentation Measurement of results and accountability for costs Interactivity Multi-media promotion Multi-channel distribution Viewing customers as assets with lifetime value (LTV) Comparison Between Direct & Traditional Marketing Direct Marketing Traditional Marketing Direct selling to individuals with customers identifiable by name, address and purchase behavior Mass selling with buyers identified as broad groups sharing common demographic and psychographic characteristics Products have the added value of distribution direct to the customer, an important benefit Product benefits do not typically include distribution to the customer’s door The medium (website, ad, mailer) is the marketplace The marketer controls the product all the way through delivery The retail outlet is the marketplace Advertising is used to generate an immediate response… an inquiry, a store visit or an order Advertising is used for cumulative effect over time for building image, awareness, loyalty and benefit recall in addition to purchasing. Repetition of offers, promotional messages, tollfree numbers and web addresses are used within the advertisement Repetition of offers and promotional messages are used over a period of time Customer feels a high perceived risk – product bought unseen, recourse is distant Customer feels less risk – has direct contact with the product and direct recourse The marketer typically loses control as the product enters the distribution channel Types of Direct Marketing Catalogs Direct Mail E-mail (“blasts”) Telemarketing Broadcast media including Infomercials M-Commerce: Promotional and other ecommerce activities transmitted over mobile phones/devices 14-31 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall