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Chapter 14
Integrated Marketing
Communications: Personal Selling
and Direct Marketing
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Road Map: Previewing the Concepts
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.
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The Nature of Personal Selling
Most salespeople are well-educated, welltrained 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)
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What did Robert Louis Stevenson mean
when he said “everyone lives by selling
something?”
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The Role of the Sales Force
Involves 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, and
build long-term personal relationships with key decision
makers.
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The Role of the Sales Force
Represent the Company
to Customers to Produce
Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce
Customer Satisfaction
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Major Steps in Sales Force
Management (Fig. 14-1)
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Designing Sales Force Strategy and
Structure
Territorial
Exclusive Territory to Sell the
Company’s Full Product Line
Complex Forms Are a
Combination of Any
Types of Sales Force
Structures
Product
Sales Force Sells Only a Portion of
The Company’s Products or Lines
Customer
Sales Force Sells Only to Certain
Customers or Industries
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Other Sales Force Strategy and
Structure Issues
Outside Sales
Force
Travel to Call on
Customers
Sells to
Major
Accounts
Finds Major
New
Prospects
Inside Sales
Force
Conduct Business From Their
Offices Via Phone/Buyer Visits
TeleTechnical
Marketer
Sales
Support
&
Assistants
People
Internet
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Team Selling
Use 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.
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Some Traits of Good Salespeople
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Recommendations for Recruiting
Salespeople
Current Salespeople
Employment Agencies
Classified Ads
Search the Web
College Students
Salespeople from Other Companies
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Training Salespeople
The Average Sales Training Program lasts for Four Months
and Has the Following Goals:
Help Salespeople Know &
Identify With the Company
Learn About the Products
Learn About Competitors’
and Customers’ Characteristics
Learn How to Make
Effective Presentations
Understand Field Procedures
and Responsibilities
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Compensating Salespeople
To Attract Salespeople, a Company Must Have
an Attractive Plan Made Up of Several Elements
Fixed
Amount:
Usually a
Salary
Variable
Amount:
Usually
Commissions
Or Bonuses
Expense
Allowance:
For JobRelated
Expenses
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Supervising Salespeople
Directing Salespeople
Motivating Salespeople
• Identify Customer Targets
& Call Norms
• Organizational Climate
• Time Spent Prospecting for
New Accounts
•
Sales Quotas
•
Positive Incentives
• Use Sales Time Efficiently
 Sales Meetings
 Annual Call Plan
 Sales Contests
 Time-and-Duty Analysis
 Honors and Trips
 Sales Force Automation
 Merchandise/Cash
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How Salespeople Spend Their
Time (Fig. 14-2)
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Major Steps in Effective Selling
(Fig. 14-3)
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Steps in the Selling Process
Prospecting
Qualifying
Preapproach
Approach
Salesperson Identifies Qualified
Potential Customers.
Process of Identifying Good
Prospects and Screening Out Poor
Ones.
Salesperson Learns About a
Prospective Customer Before
Making a Sales Call.
Salesperson Meets the Buyer and
Gets the Relationship Off to a
Good Start.
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Steps in the Selling Process
Handling
Objections
Salesperson Tells the Product
“Story” to the Buyer Showing How
the Product Solves Problems.
Salesperson Seeks Out, Clarifies,
and Overcomes Customer
Objections to Buying.
Closing
Salesperson Asks the Customer for
an Order.
Follow-Up
Occurs After the Sale and Ensures
Customer Satisfaction and Repeat
Business.
Presentation
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What is Relationship Marketing?
Relationship Marketing Emphasizes
Maintaining Profitable Long-Term
Relationships with Customers by
Creating Superior Customer Value
and Satisfaction.
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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.
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Mass Marketing and Direct
Marketing
Most Mass Marketing
Involves One-Way
Communications
Aimed At Consumers.
Direct Marketing
Involves Two-Way
Interactions With
Customers.
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The New Direct Marketing Model
Some 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.
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Benefits and Growth of Direct
Marketing
Benefits to Buyers
Convenient
Easy to use
Private
Product access and
selection
Abundance of
information
Immediate
Interactive
Benefits to Sellers
Consumer
relationship building
Reduces costs
Increases speed and
efficiency
Provides flexibility
Global medium
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Customer Databases and
Marketing
Customer 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.
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Forms of Direct Marketing
(Fig. 14-4)
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Forms of Direct Marketing
Telephone Marketing
Represents 36% of
direct marketing sales.
Outbound telephone
marketing sells directly
to customers.
Inbound numbers
provide a toll-free
number to receive
orders.
Direct-Mail Marketing
Represents 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
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Forms of Direct Marketing
Catalog Marketing
Sales 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
Marketing
Direct-response advertising –
marketers air TV spots or
infomercials.
Home shopping channels –
entire programs or channels
dedicated to selling goods and
services.
Kiosk Marketing
Placing information and
ordering machines at various
locations.
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George Foreman’s Lean Mean
Fat-Reducing Grilling Machine
Current infomercial
champ – George
Foreman!
Selling for 3 easy
payments of $19.95
(plus shipping &
handling).
Totaled almost $400
million in sales last
year.
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An Integrated Direct-Marketing
Campaign (Fig. 14-5)
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Public Policy and Ethical Issues
in Direct Marketing
Unfairness,
Deception,
or
Fraud
Irritation
to
Consumers
Invasion
of
Privacy
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Rest Stop: Reviewing the Concepts
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.
14-32