Good Integrated Marketing Communication Personal Selling And888

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    Integrated Marketing

    Communication:

    Personal Selling and

    Direct Marketing

    Chapter 13

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    Road Map: Previewing the

    Concepts

    Discuss the role of a companyssalespeople in creating value for

    customers and building customerrelationships. Identify and explain the six major sales

    force management steps.

    Discuss the personal selling process,distinguishing between transaction-oriented marketing and relationship

    marketing.

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    Define direct marketing and discuss itsbenefits to customers and companies.

    Identify and discuss the major forms ofdirect marketing.

    Road Map: Previewing the

    Concepts

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    The Nature of Personal

    Selling Most salespeople are well-educated,

    well-trained professionals who work to

    build and maintain long-term customerrelationships.

    The term salesperson covers a widerange of positions:

    Order taker: Department store clerk Order getter: Creative selling in different

    environments

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    The Role of the Sales Force Personal selling is a paid, personal form of

    promotion.

    Involves two-way personal communication

    between salespeople and individualcustomers.

    Salespeople: Probe customers to learn about problems

    Adjust marketing offers to fit special needs Negotiate terms of sales Build long-term personal relationships

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    The Role of the Sales Force

    Sales Force serves as critical linkbetween company and its

    customers. They represent the company to the

    customers They represent the customers to the

    company Goal = customer satisfaction and

    company profit

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    Sale Force Structure

    Territorial: Salesperson assigned toexclusive area and sells full line of

    products. Product: Sales force sells only certainproduct lines.

    Customer: Sales force organizes alongcustomer or industry lines.

    Complex: Combination of severaltypes of structures.

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    Inside Sales Force

    Conduct business from theiroffices via telephone or visits from

    perspective buyers. Includes: Technical support people

    Sales assistants

    Telemarketers

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    Selling Team

    Used to service large, complexaccounts.

    Can include experts from differentareas of selling firm.

    Pitfalls: Can confuse or overwhelm customers Some people have trouble working in

    teams Hard to evaluate individual contributions

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    Recruiting and Selecting

    Salespeople Key talents of salespeople:

    Intrinsic motivation

    Disciplined work style

    Ability to close a sale

    Ability to build relationships withcustomers

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    Recruiting Salespeople

    Recommendationsfrom current sales

    force Employment

    agencies

    Classified ads

    Web searches

    College students

    Recruit fromother companies

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    Sales Force Training Goals

    Learn about and identify with thecompany.

    Learn about the companysproducts.

    Learn customers andcompetitors characteristics.

    Learn how to make effectivepresentations. Learn field procedures and

    responsibilities.

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    Compensating Salespeople

    Fixed amount: Salary

    Variable amount: Commissions or bonuses

    Expenses: Repays for job-related expenditures

    Fringe benefits: Vacations, sick leave, pension, etc.

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    Supervising Salespeople

    Directing Salespeople

    Help them identify customers andset call norms.

    Specify time to be spent prospecting

    Annual call plan

    Time-and-duty analysis

    Sales force automation systems

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    Supervising Salespeople

    Motivating Salespeople Organizational climate

    Sales quotas Positive incentives: Sales meetings

    Sales contests Recognition and honors Cash awards, trips, profit sharing

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    The Personal Selling Process

    Prospecting: The salesperson identifiesqualified potential customers.

    Preapproach: The salesperson learns asmuch as possible about a prospectivecustomer before making a sales call.

    Approach: The salesperson meets thecustomer for the first time.

    Presentation: The salesperson tells theproduct story to the buyer,highlighting customer benefits.

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    The Personal Selling Process

    Handling Objections: The salespersonseeks out, clarifies, and overcomescustomer objections to buying.

    Closing: The salesperson asks thecustomer for an order.

    Follow-up: The salesperson follows upafter the sale to ensure customersatisfaction and repeat business.

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    Direct Marketing

    Direct marketing consists of directconnections with carefullytargeted individual consumers toboth obtain an immediateresponse and cultivate lastingcustomer relationships.

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    The New Direct-Marketing

    Model Some firms use direct marketing as a

    supplemental medium.

    For many companies, direct marketingconstitutes a new and complete model fordoing business.

    Some firms employ the direct model astheironlyapproach.

    Some see this as the new marketing modelof the next millennium.

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    Benefits of Direct

    Marketing Benefits to Buyers: Convenient

    Easy to use

    Private

    Ready access to products and

    information Immediate and interactive

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    Benefits of Direct Marketing

    Benefits to Sellers: Powerful tool for building customer

    relationships

    Can target small groups or individuals Can tailor offers to individual needs Can be timed to reach prospects at just

    the right moment

    Gives access to buyers they could notreach through other channels Offers a low-cost, efficient way to reach

    markets

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    Customer Databases

    An organized collection ofcomprehensive data aboutindividual customers or prospects,including geographic,demographic, psychographic, andbehavioral data.

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    Telemarketing

    Accounts for more than 36% ofall direct-marketing sales.

    Used in both consumer and B2Bmarkets.

    Can be outbound orinbound calls.

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    Direct-Mail Marketing Involves sending an offer,

    announcement, reminder, or otheritem to a person at a particular

    address. Accounts for more than 31% of

    direct-marketing sales.

    Permits high target-market selectivity. Personal and flexible.

    Easy to measure results.

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    Catalog Marketing

    With the Internet, more and morecatalogs going electronic.

    Print catalogs still the primarymedium.

    Expected sales in 2008 = $176

    billion. Harder to attract new customers with

    Internet catalogs.

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    Direct Response TV

    Marketing Direct-response advertising

    Infomercials

    Home shopping channels

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    Kiosk Marketing

    Information and ordering

    machines generally found instores, airports, and otherlocations.

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    Public Policy and Ethical

    Issues in Direct Marketing Irritation to Consumers Taking unfair advantage of

    impulsive or less sophisticatedbuyers

    Targeting TV-addicted shoppers Deception, Fraud Invasion of Privacy

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    Rest Stop: Reviewing the Concepts

    1. Discuss the role of a companyssalespeople in creating value forcustomers and building customer

    relationships.2. Identify and explain the six major

    sales force management steps.

    3. Discuss the personal selling process,distinguishing between transaction-oriented marketing and relationshipmarketing.

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    Rest Stop: Reviewing the Concepts

    4. Define direct marketing and

    discuss its benefits to customersand companies.

    5. Identify and discuss the major

    forms of direct marketing.