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Personal Selling and Direct and Online Marketing: Building Direct Customer Relationships
After studying this chapter, you should be able to: 1. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
Identify and explain the six major force management steps Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
Personal Selling The Personal Selling Process
The Nature of Personal Selling Examples of people who do the selling include: • Salespeople • Sales representatives • District managers • Account executives • Sales engineers • Agents • Account development reps 16-4 .
The Nature of Personal Selling Salespeople can include an order taker such as someone standing behind the counter or an order getter whose position demands more creative selling and relationship building Personal selling is the interpersonal part of the promotion mix and can include: • Face-to-face communication • Telephone communication • Video or Web conferencing 16-5 .
The Role of the Sales Force Salespeople can be more effective than advertising • • • Learn about customer problems and adjust the marketing offer and presentation accordingly to meet the special needs of each customer Representing the company to customers Representing customers to the company 16-7 .
Managing the Sales Force Sales force management is the analysis. and control of sales force activities and includes: • Designing the sales force strategy and structure • Recruiting • Selecting • Training • Compensating • Supervising • Evaluating 16-9 . implementation. planning.
Managing the Sales Force
Sales Force Structure
Territorial sales force structure Product sales force structure
refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory refers to a structure where each salesperson sells along product lines refers to a structure where each salesperson sells along customer or industry lines refers to a structure where a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures
Customer sales force structure Complex sales force structure
Managing the Sales Force
Sales Force Size
Salespeople are one of the company’s most productive and expensive assets Increases in sales force size can increase sales and costs
Managing the Sales Force
Other Sales Force Strategy and Structure Issues
Outside salespeople call on customers in the field Inside salespeople conduct business from their offices • Technical sales support people • Sales assistants
Engineering. R&D. Operations and Finance Some challenges of team selling • Customers used to working with one salesperson may become confused or overwhelmed • Salespeople used to working alone can have difficulties working with and trusting teams • Evaluating individual contributions can lead to compensation issues 16-20 . Technical . Marketing.Other Sales Force Strategy and Structure Issues Team selling is used to service large complex accounts and can include experts from: • Managing the Sales Force Sales.
Recruiting and Selecting Salespeople Issues in recruiting and selecting include: Careful selection • Increases sales performance Poor selection • Increases recruiting and training costs • • Lost sales Disrupts customer relationships 16-22 .
rewards the salesperson for greater effort and success Expenses Fringe benefits 16-23 • • . give the salesperson some stable income • Variable amounts .Compensating Salespeople Compensation is made up of: • Fixed amounts .a salary.commission or bonus based on sales performance.
feelings • Sales quotas • Positive incentives – sales contest.Supervising and Motivating Salespeople The goal of supervision is to help salespeople work smart by doing the right things in the right ways The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals Sales morale and performance can be increased through: • Organizational climate . sales meeting 16-26 .
Evaluating Salespeople and Sales Force Performance • • • Sales reports Call reports Expense reports 16-32 .
The goal of the personal selling process is to get new customers and obtain orders from them 16-33 .
7. Prospecting and qualifying Pre-approach Approach Presentation and demonstration Handling objections Closing Follow-up 16-34 . 4. 5.Steps in the Personal Selling Process 1. 2. 6. 3.
Steps in the Personal Selling Process Step 1 Prospecting identifies qualified potential customers through referrals from: • • • • Customers Suppliers Dealers Internet 16-35 .
Steps in the Personal Selling Process Step 1 Qualifying is identifying good customers and screening out poor ones by looking at: • • • • • Financial ability Volume of business Needs Location Growth potential 16-36 .
including needs. and the characteristics and styles of the buyers 16-37 .Steps in the Personal Selling Process Step 2 Pre-approach is the process of learning as much as possible about a prospect. who is involved in the buying.
the salesperson sets call objectives and the best approach Objectives Qualify the prospect Gather information Make an immediate sale • • • • • • Approaches Personal visit Phone call Letter 16-38 .Steps in the Personal Selling Process Step 2 In the pre-approach stage.
and involves the salesperson’s: • • • Appearance Opening lines Follow-up remarks Salesperson must listen to customers Presentation.Steps in the Personal Selling Process Step 3 Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start. need satisfaction approach 16-39 .
or unspoken When handling objections from buyers. salespeople should: • Be positive • Seek out hidden objections • Ask the buyers to clarify any objections • Take objections as opportunities to provide more information • Turn objections into reasons for buying 16-44 . psychological.Steps in the Personal Selling Process Step 4 Handling objections is the process where salespeople resolve problems that are logical.
including physical actions.Steps in the Personal Selling Process Step 5 Closing is the process where salespeople should recognize signals from the buyer. comments. and questions to close the sale 16-45 .
including lower price or additional quantity 16-46 .Steps in the Personal Selling Process Step 5 Closing techniques can include: • Asking for the order • Reviewing points of agreement • Offering to help write up the order • Asking if the buyer wants this model or another one • Making note that the buyer will lose out if the order is not placed now • Offering incentives to buy.
Steps in the Personal Selling Process Step 6 Follow up is necessary if the salesperson wants to ensure customer satisfaction and repeat business .
with the longterm goal to develop a mutually profitable relationship 16-47 .Personal Selling and Customer Relationship Management Personal selling is a transaction-oriented approach to close a specific sale with a specific customer.
. 5. 4. Define direct marketing and discuss its benefits to customers and companies Identify and discuss the major forms of direct marketing Explain how companies have responded to the Internet and other powerful new technologies with online marketing strategies Discuss how companies go about conducting online marketing to profitably deliver more value to customers Overview the public policy and ethical issues presented by direct marketing 17-2 2. you should be able to: 1.After studying this chapter. 3.
3. 5.1. 2. 7. 4. The New Direct-Marketing Model Growth and Benefits of Direct Marketing Customer Databases and Direct Marketing Forms of Direct Marketing Online Marketing Integrated Direct Marketing Public Policy Issues in Direct Marketing 17-3 . 6.
Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships • • • No intermediaries An element of the promotion mix Fastest-growing form of marketing 17-4 .
and competitors Interactive and immediate 17-5 .Benefits to Buyers • • • • Convenience Ready access to many products Access to comparative information about companies. products.
efficient. fast alternative to reach markets Flexible Access to buyers not reachable through other channels 17-6 .Benefits to Sellers • • • • Tool to build customer relationships Low-cost.
psychographic. demographic. including geographic.Customer Database Customer database is an organized collection of comprehensive data about individual customers or prospects. and behavioral data Uses: • Locate good and potential customers • Generate sales leads • Learn about customers • Develop strong long-term relationships 17-7 .
• • • • • • • • Personal selling direct marketing Direct-mail direct marketing Catalog direct marketing Telephone marketing Direct-response television marketing Kiosk marketing Digital direct marketing Online marketing 17-9 .
announcement. or other item to a person at a particular address • • • • Personalized Easy-to-measure results Costs more than mass media Provides better results than mass media 17-10 .Direct-mail marketing involves an offer. reminder.
Catalog direct marketing involves printed and Web-based catalogs Benefits of Web-based catalogs • Lower cost than printed catalogs • Unlimited amount of merchandise • Real-time merchandising • Interactive content • Promotional features Challenges of Web-based catalogs • Require marketing • Difficulties in attracting new customers 17-11 .
Telephone direct marketing involves using the telephone to sell directly to consumers and business customers • • Outbound telephone marketing sells directly to consumers and businesses Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads. and catalogs 17-12 . direct mail.
Benefits of telephone direct marketing • Purchasing convenience • Increased product service and information Challenges of Webbased catalogs • Unsolicited outbound telephone marketing • Do-Not-Call Registry 17-13 .
Direct-response television (DRTV) marketing involves 60.to 120-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home shopping channels • Less expensive than other forms of promotion • Easier to track results 17-14 .
trade shows. and other locations 17-15 . airports.Kiosk marketing involves placing information and ordering machines in stores.
Digital direct marketing technologies • Mobile phone marketing • Podcasts • Vodcasts • Interactive TV 17-16 .
Mobile phone marketing includes: • Ring-tone giveaways • Mobile games • Ad-supported content • Contests and sweepstakes 17-17 .
Podcasts and Vodcasts involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience 17-18 .
Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences 17-19 .
Marketing and the Internet Internet is a vast public web of computer networks that connects users of all types around the world to each other and to a large information repository 17-20 .
Online Marketing Domains • • Business to consumer (B2C) Business to business (B2B) • involves selling goods and services online to final consumers involves selling goods and services. providing information online to businesses. and building customer relationships occurs on the Web between interested parties over a wide range of products and subjects. blogs involves consumers communicating with companies to send suggestions and questions via company Web sites 17-21 • • • Consumer to consumer (C2C) Consumer to business (C2B) • • .
shopping or price comparison sites. industry knowledge.Types of Online Marketers • • Click-only marketers • Operate only online without any brick and mortar presence E-tailers (Amazon). large customer bases. reputation etc 17-25 . Internet service providers (ISP) • • Click-and-mortar marketers • Companies are brick-and-mortar companies with an online presence Advantages of click and mortar companies include known and trusted brand names. strong financial resources. search engines and portals.
Setting Up an Online Presence Creating a Web site requires designing an attractive site and developing ways to get consumers to visit the site. and return to the site 17-31 . remain on the site.
Setting Up an Online Presence Types of sites • Corporate Web site • Marketing Web site 17-32 .
Setting up an Online Presence Corporate Web site is designed to build customer goodwill and to supplement other channels. rather than to sell the company’s products directly to: • Provide information • Create excitement • Build relationships 17-33 .
Setting Up an Online Presence Marketing Web site is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome 17-34 .
companies must: • Promote in offline promotion and online links • Create value and excitement • Constantly update the site • Make the site useful 17-35 .Designing Effective Web Sites To attract visitors.
is the way the site enables user-touser.is the site’s pictures.is the degree that the site is lined to other sites 7. sound. Communication .is the site’s capabilities to enable commercial transactions 17-36 .Designing Effective Web Sites The seven Cs of effective Web site design 1. Connection . Context . Commerce . Community . Customization . and video 3.is the site’s layout 2. Content . user-to-site.is the site’s means to enable user-touser communication 4. or two-way communication 6.is the site’s ability to tailor itself to different users or to allow users to personalize the site 5.
Designing Effective Web Sites The eighth C To keep customers coming back. the site needs to constantly change 17-39 .
Placing Ads and Promotions Online Forms of online advertising • Display ads • Search-related ads • Online classifieds 17-40 .
sound.Placing Ads and Promotions Online Display ads • Banners are banner-shaped ads found on a Web site • Interstitials are ads that appear between screen changes • Pop-ups are ads that suddenly appear in a new window in front of the window being viewed • Rich media ads incorporate animation. and interactivity 17-41 . video.
Placing Ads and Promotions Online Search-related ads are ads in which textbased ads and links appear alongside search engine results on sites such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion 17-42 .
an e-mail message. or another marketing event that customers pass along to friends 17-44 .Placing Ads and Promotions Online Other forms of online promotion include Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information Alliances and affiliate programs are relationships where online companies promote each other Viral marketing is the Internet version of word-ofmouth marketing and involves the creation of a Web site.
The Future of Online Advertising Online advertising provides a useful purpose as a supplement to other marketing efforts and is playing an increasingly important role in the marketing mix 17-45 .
com 17-46 .Creating or Participating in Web Communities Web communities allow members to congregate online and exchange views on issues of common interest • iVillage.com • MyFamily.
and personal messages with streaming audio and video to compete with the cluttered e-mail environment 17-47 . interactivity.Using E-mail Marketers are developing enriched messages that include animation.
multiple-stage campaigns 17-48 .Integrated direct marketing involves the use of carefully coordinated multiplemedia.
unfairness. deception.• • • Customer irritation. and fraud Privacy Security 17-49 .
and Fraud Irritation includes annoying and offending customers Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers Internet fraud includes identity theft and financial scams 17-50 . Deception. Unfairness.Irritation.