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Integrated Marketing
Communication:
Personal Selling and
Direct Marketing
Chapter 13
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13 - 2
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.