personal selling & direct marketing

8/7/2019 Personal Selling & Direct Marketing

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Personal Selling and DirectPersonal Selling and Direct

MarketingMarketing


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MEANINGMEANING

Personal selling refers to the presentation of goods before the potential buyers and persuadingthem to purchase it. It involves face-to-faceinteraction and physical verification of the goods

to be purchased. The person who sells goods in this way is called a

salesman and the technique of selling is knownas personal selling or salesmanship.

The objective is not only just to sell the productto a person but also to make him/her apermanent customer.


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PERSONAL SELLING AS AN ASPECT OFPERSONAL SELLING AS AN ASPECT OF

PROMOTION MIXPROMOTION MIX

TheThe marketingmarketing planplan willwill bebe executedexecuted byby usingusing thethe tacticaltactical elementselements ofof thetheMarketingMarketing Communications,Communications, oror PromotionsPromotions MixMix.. TheThe elementselements ofof thethemarketingmarketing communicationscommunications mixmix


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A FEW BASIC DEFINITIONSA FEW BASIC DEFINITIONS

DefinitionsDefinitions::AdvertisingAdvertising -- AnyAny paidpaid formform ofof nonpersonalnonpersonal presentationpresentationandand promotionpromotion ofof ideas,ideas, goods,goods, oror servicesservices byby anan identifiedidentified

sponsorsponsor..PersonalPersonal sellingselling -- PersonalPersonal presentationpresentation byby thethe firmsfirms

salessales forceforce forfor thethe purposepurpose ofof makingmaking salessales andand buildingbuildingcustomercustomer relationshipsrelationships..SalesSales promotionpromotion -- ShortShort--termterm incentivesincentives toto encourageencourage thethepurchasepurchase oror salesale of of aa productproduct oror serviceservice..PublicPublic relationsrelations -- BuildingBuilding goodgood relationshipsrelationships withwith thethecompanyscompanys variousvarious publicspublics byby obtainingobtaining favorablefavorable publicity,publicity,buildingbuilding upup aa goodgood "corporate"corporate image",image", andand handlinghandling oror

headingheading offoff unfavorableunfavorable rumors,rumors, stories,stories, andand eventsevents..DirectDirect marketingmarketing -- DirectDirect communicationscommunications withwith carefullycarefullytargetedtargeted individualindividual consumersconsumers toto obtainobtain anan immediateimmediateresponseresponse andand cultivatecultivate lastinglasting customercustomer relationshipsrelationships..


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Personal SellingPersonal Selling

Salespeople have many names

AgentsAgents

Sales consultantsSales consultants

Sales RepresentativesSales Representatives AccountAccount

ExecutivesExecutives

Sales EngineersSales Engineers

District ManagersDistrict Managers

MarketingMarketingrepresentativesrepresentatives

Account DevelopmentAccount DevelopmentRepresentativesRepresentatives


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SALES PROCESSSALES PROCESS

FOUNDATIONKNOWLEDGE,

SKILLS &ETHICS

STRATEGYBUILDING,

MONITORING &CONTROLINGSALES FORCE

RELATIONSHIPSPLAN

APPROACHPROSPECTPRESENTINITIATEDEVELOPCONVERTCOMMIT


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Designing Sales Force Strategy andDesigning Sales Force Strategy andStructureStructure

Sales Force StructureSales Force Structure Territorial sales force structureTerritorial sales force structure

Product sales force structureProduct sales force structure

Customer sales force structureCustomer sales force structure

Complex sales force structureComplex sales force structure

Managing the Sales ForceManaging the Sales Force


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Sales Force Strategy and StructureSales Force Strategy and Structure

Sales Force SizeSales Force Size

Many companies use the workloadMany companies use the workloadapproach to set sales force sizeapproach to set sales force size

Other IssuesOther Issues

Outside and inside sales forcesOutside and inside sales forces

Team sellingTeam selling


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Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople Careful recruiting can:Careful recruiting can:

Increase overall sales force performanceIncrease overall sales force performance

Reduce turnoverReduce turnover

Reduce recruiting and training costsReduce recruiting and training costs

Traits of Successful SalespeopleTraits of Successful Salespeople Intrinsic motivationIntrinsic motivation

Disciplined work styleDisciplined work style

The ability to close a saleThe ability to close a sale

Ability to build relationships with customersAbility to build relationships with customers


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Training SalespeopleTraining Salespeople

Training period can be anywhere from aTraining period can be anywhere from afew weeks to a year or morefew weeks to a year or more

Training is expensive, but yields strongTraining is expensive, but yields strongreturnsreturns

Many companies are adding WebMany companies are adding Web--basedbased

sales training programssales training programs


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Training SalespeopleTraining Salespeople

Training programs have many goalsTraining programs have many goals

Identify with the company and its productsIdentify with the company and its products

Know about customers and competitorsKnow about customers and competitors

The basics of the selling processThe basics of the selling process


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Compensating SalespeopleCompensating Salespeople Compensation elements: salary, bonuses,Compensation elements: salary, bonuses,

commissions, expenses, and fringe benefitscommissions, expenses, and fringe benefits

Basic compensation plans:Basic compensation plans: Straight salaryStraight salary

Straight commissionStraight commission

Salary plus bonusSalary plus bonus

Salary plus commissionSalary plus commission

Compensation plans should direct the salesCompensation plans should direct the salesforce toward activities that are consistent withforce toward activities that are consistent withoverall marketing objectives.overall marketing objectives.


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Supervising SalespeopleSupervising Salespeople Supervision is used to direct and motivate salespeopleSupervision is used to direct and motivate salespeople

Companies will vary in how closely they supervise theirCompanies will vary in how closely they supervise theirsalespeople; will vary depending on the skill level andsalespeople; will vary depending on the skill level and

maturity of the sales force, and type of sellingmaturity of the sales force, and type of selling Tools used:Tools used:

Annual call plans and timeAnnual call plans and time--andand--duty analysis can helpduty analysis can helpprovide directionprovide direction

Sales force automation systems assist in creating moreSales force automation systems assist in creating more

efficient sales force operationsefficient sales force operations The Internet is the fastestThe Internet is the fastest--growing sales technology toolgrowing sales technology tool


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Evaluating SalespeopleEvaluating Salespeople

Several tools can be usedSeveral tools can be used

Sales reportsSales reports

Call reportsCall reports

Expense reportsExpense reports


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The Personal Selling ProcessThe Personal Selling Process

The goal of the personal sellingThe goal of the personal sellingprocess is to find new customers andprocess is to find new customers andsell them somethingsell them something

Most salespeople spend their timeMost salespeople spend their timemaintaining existing accounts andmaintaining existing accounts andbuilding longbuilding long--term customerterm customer

relationshipsrelationships

Not all steps required in every saleNot all steps required in every sale


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Prospecting and QualifyingProspecting and Qualifying

Identifying customers that may have a needIdentifying customers that may have a needfor the product or service being soldfor the product or service being sold

Only a small number of prospects becomeOnly a small number of prospects becomecustomerscustomers

Prospecting requires effort, time, andProspecting requires effort, time, andcommitmentcommitment


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Preapproach:Preapproach:

Learn as much about the prospective customerLearn as much about the prospective customeras possible, prior to approaching them to askas possible, prior to approaching them to ask

for a meetingfor a meeting Use all resources to learn before meetingUse all resources to learn before meeting

Setting call objectives is important to beingSetting call objectives is important to beingproductive and not wasting the customersproductive and not wasting the customers

timetime


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Approach:Approach:

Meeting and greeting the customer for the firstMeeting and greeting the customer for the firsttimetime

Involves salespersons appearance, openingInvolves salespersons appearance, openinglines, and the followlines, and the follow--up remarksup remarks

Listening to the customer is crucialListening to the customer is crucial


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Presentation and demonstration:Presentation and demonstration: What happens during the sales callWhat happens during the sales call

Purpose is to uncover needs and then attempt to satisfyPurpose is to uncover needs and then attempt to satisfythemthem

Questioning and listening skills are importantQuestioning and listening skills are important Technology can help or get in the wayTechnology can help or get in the way

Customers value empathy, honesty, punctuality,Customers value empathy, honesty, punctuality,reliability, thoroughness, and follow throughreliability, thoroughness, and follow through


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Handling objections:Handling objections: The salesperson seeks out, clarifies, andThe salesperson seeks out, clarifies, and

overcomes customer objections to buying theovercomes customer objections to buying theproduct or serviceproduct or service

Customers object for different reasons: noCustomers object for different reasons: noneed, lack of information, product limitation,need, lack of information, product limitation,or as a negotiating tacticor as a negotiating tactic

Handling objections is important, butHandling objections is important, butpreventing them is more effective; need topreventing them is more effective; need to

look at qualifying skills and use of features,look at qualifying skills and use of features,advantages, and benefitsadvantages, and benefits


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Closing the sale:Closing the sale: Asking the customer to buy (order) the productAsking the customer to buy (order) the product

The only step that produces revenue; most importantThe only step that produces revenue; most important

Fear of rejection makes this step the most difficultFear of rejection makes this step the most difficult

Keep it simple, honest, and direct; different types ofKeep it simple, honest, and direct; different types ofclosing techniques make assumptions that can beclosing techniques make assumptions that can bedangerous if used improperlydangerous if used improperly


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FollowFollow--up:up:

What takes place after the saleWhat takes place after the sale

To ensure customer satisfactionTo ensure customer satisfaction

To keep the door open for repeat businessTo keep the door open for repeat business

Ask for referralsAsk for referrals


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Personal Selling and CustomerPersonal Selling and Customer

Relationship ManagementRelationship Management

The principals just described areThe principals just described aretransactiontransaction--orientedoriented

Companies want to encourage repeatCompanies want to encourage repeatpurchasing because it is more efficientpurchasing because it is more efficientthan trying to replace lost customersthan trying to replace lost customers

It takes different skills to buildIt takes different skills to buildrelationships with customersrelationships with customers

Mutually profitable relationships are builtMutually profitable relationships are built

on creating value, offering packagedon creating value, offering packagedsolutions to problems, and improvingsolutions to problems, and improvingproducts and processesproducts and processes


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Direct MarketingDirect Marketing

Direct Marketing consists of directDirect Marketing consists of directoneone--toto--one connections withone connections withcarefully targeted individualcarefully targeted individualconsumers to both obtain anconsumers to both obtain animmediate response and cultivateimmediate response and cultivatelasting customer relationships.lasting customer relationships.


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The new Direct Marketing ModelThe new Direct Marketing Model

Direct Marketing is both, a directDirect Marketing is both, a directmarketing channel and an element ofmarketing channel and an element ofthe marketing communications mixthe marketing communications mix

Technology has made of directTechnology has made of directmarketing a new and complete modelmarketing a new and complete model

for doing business.for doing business.Firms employing this directFirms employing this direct--marketingmarketing

model (such as Dell Computer) use it asmodel (such as Dell Computer) use it asthe only approachthe only approach


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Forms of Direct MarketingForms of Direct Marketing

Telephone marketing: outbound and inbound,Telephone marketing: outbound and inbound,suffers from consumer burnout, technology tosuffers from consumer burnout, technology toblock callsblock calls

Direct mail marketing: flexible, personalized, butDirect mail marketing: flexible, personalized, butsuffers from junk mail imagesuffers from junk mail image

Catalogue marketing: the big winners in the riseCatalogue marketing: the big winners in the riseof the Internet; huge cost efficiencies by movingof the Internet; huge cost efficiencies by movingcatalogue offering onlinecatalogue offering online

DirectDirect--response television marketing:response television marketing:infomercials work, despite a poor reputationinfomercials work, despite a poor reputation

Kiosk marketing: going where the customers areKiosk marketing: going where the customers are


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For SellersFor Sellers Powerful tool for building relationshipsPowerful tool for building relationships

Allows for targeting of small groups orAllows for targeting of small groups or

individuals with customized offers in aindividuals with customized offers in apersonalized fashionpersonalized fashion

Can be timed to reach prospects at the rightCan be timed to reach prospects at the righttimetime

Offers access to buyers that couldnt beOffers access to buyers that couldnt be

reached via other channelsreached via other channels LowLow--cost, effective alternative for reachingcost, effective alternative for reaching

specific marketsspecific markets

Benefits of Direct MarketingBenefits of Direct Marketing


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Customer Databases andCustomer Databases and


Customer database: organized collection ofCustomer database: organized collection ofcomprehensive data about individual customerscomprehensive data about individual customersor prospects, including geographic, demographic,or prospects, including geographic, demographic,psychographic, and behavioral datapsychographic, and behavioral data

Databases include comprehensive data includingDatabases include comprehensive data includinggeographic, demographic, psychographic and behavioralgeographic, demographic, psychographic and behavioral

Databases can be used to identify prospects, tailorDatabases can be used to identify prospects, tailorproducts, and maintain customer relationshipsproducts, and maintain customer relationships

Database marketing requires substantial investment inDatabase marketing requires substantial investment inhardware, software, personnelhardware, software, personnel

Build customer loyalty by tailoring new offers to theirBuild customer loyalty by tailoring new offers to theirspecific interestsspecific interests

personal selling & direct marketing

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