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Marketing: An Introduction Integrated Marketing Communications: Personal Selling and Direct Marketing •Chapter Fourteen •Lecture Slides –Express Version •Course •Professor •Date Marketing: An Introduction Looking Ahead • 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 experience, distinguishing between transaction oriented marketing and relationship marketing • Define direct marketing and discuss its benefits for customers and companies • Identify and discuss the major forms of direct marketing 14-2 ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction The Nature of Personal Selling • Interpersonal part of the promotion mix • Purpose is to communicate • Characterized by: – – – – Direct contact with buyer Two way communication Flexible message content Immediate feedback • Position may go by different names • Stereotype of a sales person 14-3 ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction The Role of the Sales Force • Functions performed will vary: – Order taker versus order getter (creative selling) – Represent the company to customers • Find and develop customers • Communicate what the company has to offer • Problem solving as a way to create value – Represent customers to the company • Managing the buyer-seller relationship • Acting on the customer’s behalf – Produce sales, customer satisfaction, and company profit 14-4 ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction Sales Management Decisions Designing sales force strategy and structure Recruiting and selecting salespeople Training sales people Evaluating salespeople Supervising salespeople Compensating salespeople 14-5 ©Copyright 2004, Pearson Education Canada Inc. Figure 14-1 Marketing: An Introduction Sales Force Structure • • • • • • 14-6 Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structures Outside and inside sales forces Team selling ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction Great Sales People Skills • • • • • 14-7 Intrinsic motivation Disciplined work style Ability to close a sale Ability to solve problems Ability to build relationships ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction Marketing Strategy & Compensation Strategic Goal Ideal Salesperson Sales Focus Rapidly Gain Market share Market Leadership An independent self-starter Competitive problem-solver Deal making Sustained high effort Compensation To capture Role accounts To reward high performance Consultative selling To reward new and existing account sales Maximize Profitability A team player A relationship manager Account penetration Manage the product Team selling Reward account management Source: Adapted from Sam T. Johnson 14-8 ©Copyright 2004, Pearson Education Canada Inc. Table 14-1 Marketing: An Introduction Major Steps in Effective Selling Initial Training Prospecting Qualifying Pre-approach Preparation Approach Follow-up Closing the Sale Handling Objections Presentation Demonstration 14-9 ©Copyright 2004, Pearson Education Canada Inc. Figure 14-3 Marketing: An Introduction Direct Marketing • Direct Marketing – Direct connections with carefully targeted individual consumers – Want an immediate response – Cultivate lasting customer relationships – Immediate and interactive – Database marketing allows precise targeting of small groups – Can be used as a supplement to existing channels or stand-alone – Fastest growing form of marketing – Low-cost and efficient 14-10 ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction Major Forms of Direct Marketing • • • • • • • 14-11 Telephone marketing Personal selling Direct-mail marketing Catalogue marketing Direct-response television marketing Kiosk marketing Online marketing ©Copyright 2004, Pearson Education Canada Inc. Marketing: An Introduction Looking Back • Role of the sales person • Sales management decisions • The personal selling process • Direct marketing benefits • Direct marketing forms 14-12 ©Copyright 2004, Pearson Education Canada Inc.