Instructor: Amir Ekhlassi (8) Integrated Marketing Communication: Personal Selling and Direct Marketing

Instructor: Amir Ekhlassi

(8)Integrated Marketing Communication: Personal

Selling and Direct Marketing

The Nature of Personal Selling Most salespeople are well-educated,

well-trained professionals who work to build and maintain long-term customer relationships.

The term salesperson covers a wide range of positions:

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

different environments (industrial equipment, airplanes, insurance, consulting services)

©Compiled by: Amir Ekhlassi

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

promotion. Involves two-way personal

communication between salespeople and individual customers.

Salespeople: Probe customers to learn about

problems Adjust marketing offers to fit special

needs Negotiate terms of sales Build long-term personal relationships


The Role of the Sales Force Sales Force serves as critical link

between company and its customers. They represent the company to the

customers They represent the customers to the

company Goal = customer satisfaction and

company profit


Sale Force Structure Territorial: Salesperson assigned to

exclusive area and sells full line of products.

Product: Sales force sells only certain product lines.

Customer: Sales force organizes along customer or industry lines.

Complex: Combination of several types of structures.


Inside Sales Force Conduct business from their offices

via telephone or visits from perspective buyers.

Includes: Technical support people Sales assistants Telemarketers


Team Selling Used to service large, complex accounts. Can include experts from different areas

of selling firm. Pitfalls:

Can confuse or overwhelm customers Some people have trouble working in

teams Hard to evaluate individual

contributions (sticky compensation issues)


Recruiting and Selecting Salespeople Key talents of salespeople:

Excellent listeners Intrinsic motivation Disciplined work style Ability to close a sale Ability to build relationships with customers

Costly turnover: 50000$ – 75000$: education cots + lost sales + …


Recruiting Salespeople Recommendations from current sales force Employment agencies Classified ads Web searches College students Recruit from other companies

Recruiting test: Sales aptitude Analytical & Organizational skills Personality traits

Gillette : tests deuces 45% turnover


Sales Force Training Goals Learn about and identify with the

company. Learn about the company’s products. Learn customers’ and competitors’

characteristics. Learn how to make effective

presentations. Learn field procedures and

responsibilities. Average training: 4 months


Compensating Salespeople Fixed amount:

Salary Variable amount:

Commissions or bonuses Expenses:

Repays for job-related expenditures Fringe benefits:

Vacations, sick leave, pension, etc.


Supervising Salespeople Directing Salespeople

Help them identify customers and set call norms. Specify time to be spent prospecting

Annual call plan Time-and-duty analysis (traveling, waiting, eating,

taking breaks,…) Sales force automation systems

More efficient order entry transaction Improved customer service Better salesperson decision – making support EX: Owen – corning : FSA (generic tools,

product info. , customer info.)


Supervising Salespeople Motivating Salespeople

Organizational climate Sales quotas Positive incentives:

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


The Personal Selling Process Prospecting: The salesperson identifies

qualified potential customers.(customer referral)

Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call. (set call objective)

Approach: The salesperson meets the customer for the first time.(listening)

Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits.


The Personal Selling Process Handling Objections: The salesperson

seeks out, clarifies, and overcomes customer objections to buying. (logical, psychological)

Closing: The salesperson asks the customer for an order.(signals: physical actions, comments, questions)

Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business.


Note

Good Seller Bad Seller

EmpathyGood listeningHonestyDependabilityFollow through

PushyLateDeceitful Unprepared Disorganized


Direct Marketing

Direct marketing consists of direct connections with carefully targeted

individual consumers to both obtain an immediate response and cultivate lasting

customer relationships.


The New Direct-Marketing Model Some firms use direct marketing as a

supplemental medium. (Lexus) For many companies, direct marketing

constitutes a new and complete model for doing business.

Some firms employ the direct model as their only approach. (Dell, Amazon.com, eBay)

Some see this as the new marketing model of the next millennium. (Cisco systems, IBM)


Benefits of Direct Marketing Benefits to Buyers:

Convenient Easy to use Private Ready access to products and

information Immediate and interactive


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 not reach

through other channels Offers a low-cost, efficient way to reach

markets


Customer Databases An organized collection of comprehensive data

about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

Past volumes & Prices Key contacts (ages, birthdays, hobbies,

favorites) Competitive supplier Status of current contracts (Ritz-Carlton Hotel: 500,000 customer

preferences; Pizza Hut: track 50M customer purchases)


Telemarketing Accounts for more than 36% of all

direct-marketing sales. Used in both consumer and B2B

markets. Can be outbound or inbound (toll –

free 800)calls.


Direct-Mail Marketing Involves sending an offer,

announcement, reminder, or other item 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.


Catalog Marketing

With the Internet, more and more catalogs going electronic.

Print catalogs still the primary medium. Harder to attract new customers with

Internet catalogs.


Direct Response TV Marketing

Direct-response advertising

Infomercials

Home shopping channels


Kiosk Marketing

Information and ordering machines generally found in stores, airports, and other locations.


Public Policy and Ethical Issues in Direct Marketing

Irritation to Consumers Taking unfair advantage of impulsive

or less sophisticated buyers Targeting TV-addicted shoppers Deception, Fraud Invasion of Privacy


Thank you for Your Patience & Attention

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Instructor: Amir Ekhlassi (8) Integrated Marketing Communication: Personal Selling and Direct Marketing