Personal Selling and Direct Marketing

Chapter 17 PowerPoint slides Express version

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Principles of Marketing, Sixth Canadian Edition

Learning Objectives
After studying this chapter, you should be able to:
Discuss the role of a companys salespeople in creating value for customers and building customer relationships Identify and explain the six major sales force management steps Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing Define direct marketing and discuss its benefits to customers and companies Identify and discuss the major forms of direct marketing
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Principles of Marketing, Sixth Canadian Edition

Personal Selling
or more of these activities: Prospecting for new business Communicating with prospective/existing customers Servicing existing customers Information gathering Role of the sales force:

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Salesperson: an individual acting for a company by performing one

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Nature of sales positions will vary:

Order taking Order getting Creative selling Relationship management

Represent the company to customers Represent the customer to the company Produce customer satisfaction and company profit

Principles of Marketing, Sixth Canadian Edition

Sales Force Management

Sales force management: the analysis,
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planning, implementation, and control of sales force activities.

Sales force structure:

Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structure

Other issues:
Outside sales force Inside sales force Team selling

Figure 17.1

Principles of Marketing, Sixth Canadian Edition

Sales Force Management (continued)

Recruiting: finding a pool of qualified applicants from which to
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make a selection decision Sources: internal, competitors, suppliers, educational institutions, employment agencies, classified ads, and websites

Selection: choosing the candidate with the highest probability of

success in the position Methods: intelligence/personality testing, interviews, role play exercises, references, and background checks

Figure 17.1

Principles of Marketing, Sixth Canadian Edition

Sales Force Management (continued)

Training: investing in the human capital of the company, helping
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sales people to become more productive employees Objectives of training can be to learn: Company history and culture Products and their application Selling skills such as prospecting, questioning, closing, and time and territory management

Figure 17.1

Principles of Marketing, Sixth Canadian Edition

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Sales Force Compensation

Compensation is used to direct activities and motivate salespeople Will consist of fixed amount (salary), variable amount (bonus or incentives), expenses, and fringe benefits

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Table 17.1

Gain market share rapidly

Ideal salesperson: Sales focus:
An independent self-starter

Strategic Goal Solidify market leadership

A competitive problem solver

Maximize profitability
A team player A relationship manager

Deal making Sustained high effort

Consultative selling

Account penetration

Compensation role:

To capture accounts To reward high performance

To reward new and existing account sales

To manage the product mix To encourage team selling To reward account management

Principles of Marketing, Sixth Canadian Edition

Supervising Salespeople
Supervision is used to direct and motivate salespeople Companies will vary in how closely they supervise their salespeople Tools used: Call reports and plans Time-and-duty analysis Sales force automation systems

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Figure 17.2

Motivating salespeople:
Organizational climate Sales quotas Sales meetings Reward systems Principles of Marketing, Sixth Canadian Edition

Evaluating Salespeople
Measuring performance and providing feedback Information collected and used for evaluation purposes: Sales reports Expense reports Call reports Territory reviews may be conducted to discuss performance Standards of performance need to be clearly articulated to salespeople Focus on behaviour

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Principles of Marketing, Sixth Canadian Edition

The Personal Selling Process

The goal of the personal selling process is to find new customers and sell them something Most salespeople spend their time maintaining existing accounts and building long-term customer relationships Not all steps required in every sale

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Figure 17.3

Principles of Marketing, Sixth Canadian Edition

Customer Relationship Management

Most personal selling is transaction-oriented Companies want to encourage repeat purchasing because it is more efficient Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes

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Figure 17.3

Principles of Marketing, Sixth Canadian Edition

Direct Marketing
Direct marketing: direct communications with carefully
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targeted individual consumers to obtain an immediate response Can be a primary approach or as a supplement to other approaches

Benefits to consumers:
Convenient, easy to use, and private Ready access to wealth of products Immediate and interactive

Benefits to sellers:
Powerful tool to build customer relationships One-to-one marketing Low-cost, efficient alternative for reaching target markets

Principles of Marketing, Sixth Canadian Edition

Direct Marketing (continued)

Customer database: organized collection of
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comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data Used to identify prospects and generate sales leads Profile customers based on previous purchasing or response to offers Build customer loyalty by tailoring new offers to their specific interests

Principles of Marketing, Sixth Canadian Edition

Forms of Direct Marketing (continued)

Telephone marketing Direct mail marketing Catalogue marketing Direct-response television marketing Kiosk marketing Integrated direct marketing:
Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits

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Paid ad with a response channel

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Direct mail

Figure 17.5

Outbound telemarketing

Face-to-face sales call

Continuing communication

Principles of Marketing, Sixth Canadian Edition

Public Policy and Ethical Issues

Irritation, unfairness, deception, and fraud Invasion of privacy

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Personal Information Protection and Electronic Documents Act (2001):

Consumer consent Limitations Accuracy Right to access

Principles of Marketing, Sixth Canadian Edition

In Conclusion
The learning objectives for this chapter were:
Discuss the role of a companys salespeople in creating value for customers and building customer relationships Identify and explain the six major sales force management steps Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing Define direct marketing and discuss its benefits to customers and companies Identify and discuss the major forms of direct marketing
Copyright 2005 Pearson Education Inc.

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Principles of Marketing, Sixth Canadian Edition