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Personal selling – part of communication marketing mix Bibliography: Lector univ. dr. Nicoleta Racolta-Paina E-mail: [email protected] Kotler, P., Armstrong, G., Wong V., Saunders, J. (2008), Principles of Marketing, 5th European Edition, Pearson Education Limited, p. 6, 780 – 786. Zoltners, A. A., Sinha, P., Lorimer, S. E. (2009) Building a Winning Sales Force: Powerful Strategies for Driving High Performance, AMACOM a Division of American Management Association, p. 1- Course V, Marketing Communication Personal selling = “personal presentation by the firms’ sales force for the purpose of making sales and building customer relationships” (Kotler et. al, 2009:6). Personal selling =“two-way personal communication between salespeople and individual customers – whether face to face, by telephone, through Video or Web conferences or by other means” (Kotler et. al, 2009:780). Sales force works directly with customers (the case of business products and services) work with wholesalers and retailers to gain their support and to help them to be more effective in selling the company’s products (the case of consumer product companies) The sales force serves as the crucial link between a company and its customers. Sales people Serve both the sellers and the buyer! They represent the company to customers They find and develop new customers They communicate information about the company’s products and services They sell products by approaching customers They provide customer service and carry out market research and intelligence work They represent customers to the company They relay customer concerns about company’s products and actions back inside to those who can handle them They learn about customers needs and work with people from company to develop greater customer value Customer value Customer delivered value = “the difference between total customer value and total customer cost” (Kotler et. al, 2009:373). total customer value > total customer cost Old view: sales force Current view: sales force sales profit sales + customer value profit Market orientation – a “must” of contemporary companies Sale forces – more market focused and customer oriented! The 5 categories of sales effectiveness drivers and their impacts (Zoltners et. A 2009:9) Definer Drivers: Shaper Drivers: Enlightener Drivers: Exciter drivers Sales force size Sales force structure and role Territory design Recruiting Learning and development Culture Sales management team Coaching Leadership Compensation and incentives Leveraging information Customer research and targeting Data and tools CRM Compensation and incentives Motivation programs Meaningful work Culture leadership Define sales force structure and role Shape skills, capabilities and values of sales people Provide customer knowledge and know-how for success Motivate and inspire sales people to succeed Controller Drivers Performance management Goal setting and forescating Culture Sales mg team Compensation and incetives Coordination and communication Direct and control sales force effort Sales Force Automation ??????????????????????? ???????????????????????? ?????????????????????????/ Marketing communication Company Internal Marketing External Communications Personnel (staff) Consumers Interactive Marketing People – part of service marketing mix Front-line positions (front-line people) Mainly operational tasks It requires: speed, efficiency politeness, good manners, “to be helpful” in relation with customers They mostly work in teams A source of service excellence and competitive advantages There are differences between “high-contact” services and “low-contact” services Attending staff They are part of the evaluation process of services A good way to differentiate a company to the others Can develop a competitive advantage They have important role in retaining the loyalty of the customers. Front-line people: They can be identified with the company They can be identified with the company’s brand