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Chapter 14 - Personal Selling…and Direct Marketing Personal selling: Occurs when a company representative interacts directly with a prospect or customer to communicate about a good or service – “Personal touch” helps develop relationships – Salespeople are the eyes and ears of the firm – Selling/sales management jobs provide high mobility, especially for college grads with marketing background 14-1 The Role of Personal Selling Personal selling is more important: – When a firm uses a push strategy – In business-to-business contexts: complex/technical products – With inexperienced consumers who need hands-on assistance – For products bought infrequently (high involvement) – When goods/services are complex or costly Cost per contact is very high 14-2 Technology and Personal Selling Numerous technologies help enhance the selling effort: – Customer relationship management (CRM) software and partner relationship management (PRM) – Teleconferencing, videoconferencing, and improved corporate Web sites – Voice-over Internet protocol – Assorted wireless technologies SALESFORCE.COM 14-3 Types of Sales Jobs Sales positions vary considerably: – Order taker – Technical specialist – Missionary salesperson (stimulate clients to buy) – New-business salesperson and order getter – Team selling and cross-functional teams 14-4 Get the scoop on sales salaries! Visit the Occupational Outlook Handbook! Approaches to Personal Selling Transactional selling: Focuses on making an immediate sale with little or no concern for developing long-term customer relationships – Associated with high-pressure, hard sell tactics Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers – Builds customer loyalty and satisfaction 14-5 Steps in the Creative Selling Process Many sales leads come from a company’s marketing communications efforts, as well as a firm’s Web site. 14-6 Sales Management Process of planning, implementing, and controlling the personal selling function of an organization 14-7 Direct Marketing Direct marketing Any direct communication to a customer (consumer or business) designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product Direct Marketing Association Direct Marketing Educational Foundation (www.directworks.org) 14-8 Direct Marketing Mail order – Catalogs: – Direct mail: A brochure/pamphlet offering a specific good/service at one point in time Telemarketing: – Direct marketing conducted over the telephone – More profitable for business than consumer markets – In 2003, FTC established National Do Not Call Registry Do Not Call Registry 14-9 Direct Marketing Direct-response advertising: Allows consumer to respond by immediately contacting the provider with questions or an order – Direct-response TV (DRTV): short commercials, 30-minute-plus infomercials, and home shopping networks 14-10 Direct Marketing M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices – Short-messaging system marketing (SMS) – Spim: instant-messaging version of spam – Adware: software that tracks Web habits/interests, presenting pop-up ads and resetting home page 14-11