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Chapter 14

Integrated Marketing Communications: Personal Selling and Direct Marketing

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Road Map: Previewing the ConceptsDiscuss 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 SellingMost salespeople are well-educated, well-trained 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 ForceInvolves 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, andbuild long-term personal relationships with key decision makers.

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The Role of the Sales Force

Sales Force Serves as a Critical Link

Between a Company and its Customers Since They:

Represent Customers to

the Company to Produce Customer

Satisfaction

Represent the Company to

Customers to Produce Company Profit

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Major Steps in Sales Force Management (Fig. 14-1)

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Territorial Exclusive Territory to Sell the Company’s Full Product Line

CustomerSales Force Sells Only to Certain

Customers or Industries

ProductSales Force Sells Only a Portion of The Company’s Products or Lines

Designing Sales Force Strategy and Structure

Complex Forms Are a Combination of

Any Types of Sales Force Structures

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Inside SalesForce

Inside SalesForce

Outside Sales Force

Outside Sales Force

Travel to Call on Customers

Travel to Call on Customers

Sells to Major

Accounts

Sells to Major

Accounts

Finds MajorNew

Prospects

Finds MajorNew

Prospects

Conduct Business From Their Offices Via Phone/Buyer VisitsConduct Business From Their Offices Via Phone/Buyer Visits

TechnicalSupportPeople

TechnicalSupportPeople

Tele-Marketer

&Internet

Tele-Marketer

&Internet

Other Sales Force Strategy and Structure Issues

SalesAssistants

SalesAssistants

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Team SellingUse 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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Salespeople from Other Companies

College Students

Search the Web

Classified Ads

Employment Agencies

Current Salespeople

Recommendations for Recruiting Salespeople

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Help Salespeople Know & Identify With the Company

Learn About the Products

Learn About Competitors’and Customers’ Characteristics

Learn How to MakeEffective Presentations

The Average Sales Training Program lasts for Four Months and Has the Following Goals:

Training Salespeople

Understand Field Proceduresand Responsibilities

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Fixed Amount: Usually a

Salary

Fixed Amount: Usually a

Salary

VariableAmount:Usually

CommissionsOr Bonuses

VariableAmount:Usually

CommissionsOr Bonuses

To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several ElementsTo Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements

Expense Allowance:For Job- Related

Expenses

Expense Allowance:For Job- Related

Expenses

Compensating Salespeople

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Supervising Salespeople

Directing Salespeople• Identify Customer Targets

& Call Norms

• Time Spent Prospecting for New Accounts

• Use Sales Time Efficiently

Annual Call Plan

Time-and-Duty Analysis

Sales Force Automation

Motivating Salespeople

• Organizational Climate

• Sales Quotas

• Positive Incentives

Sales Meetings

Sales Contests

Honors and Trips

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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ProspectingProspecting Salesperson Identifies Qualified Potential Customers.

Salesperson Identifies Qualified Potential Customers.

PreapproachPreapproachSalesperson Learns About a Prospective Customer Before

Making a Sales Call.

Salesperson Learns About a Prospective Customer Before

Making a Sales Call.

QualifyingQualifyingProcess of Identifying Good

Prospects and Screening Out Poor Ones.

Process of Identifying Good Prospects and Screening Out

Poor Ones.

Steps in the Selling Process

ApproachApproachSalesperson Meets the Buyer and Gets the Relationship Off

to a Good Start.

Salesperson Meets the Buyer and Gets the Relationship Off

to a Good Start.

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PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Showing

How the Product Solves Problems.

Salesperson Tells the Product “Story” to the Buyer Showing

How the Product Solves Problems.

ClosingClosing Salesperson Asks the Customer for an Order.Salesperson Asks the

Customer for an Order.

Handling ObjectionsHandling

Objections

Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to

Buying.

Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to

Buying.

Steps in the Selling Process

Follow-UpFollow-UpOccurs After the Sale and

Ensures Customer Satisfaction and Repeat Business.

Occurs After the Sale and Ensures Customer Satisfaction

and Repeat Business.

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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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Most Mass Marketing Involves One-Way Communications Aimed At Consumers.

Mass Marketing and Direct Marketing

Direct Marketing Involves Two-Way Interactions With Customers.

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The New Direct Marketing ModelSome 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 BuyersConvenientEasy to usePrivateProduct access and selectionAbundance of informationImmediateInteractive

Benefits to SellersConsumer relationship buildingReduces costsIncreases speed and efficiencyProvides flexibilityGlobal 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 MarketingRepresents 36% of direct marketing sales.Outbound telephone marketing sells directly to customers.Inbound numbers provide a toll-free number to receive orders.

Direct-Mail MarketingRepresents 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 MarketingCatalog 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 MarketingPlacing 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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Irritation to

Consumers

Unfairness,Deception,

orFraud

Invasionof

Privacy

Public Policy and Ethical Issues in Direct Marketing

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Rest Stop: Reviewing the ConceptsDiscuss 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.