&17
Personal Selling
and
16-2
1. Personal Selling
2. The Personal Selling Process
16-3
The Nature of Personal Selling
16-4
The Nature of Personal Selling
16-5
The Role of the Sales Force
16-7
Managing the Sales Force
16-9
Managing the Sales Force
Sales Force Structure
16-10
Managing the Sales Force
Sales Force Size
16-15
Managing the Sales Force
Other Sales Force Strategy and Structure Issues
16-18
Managing the Sales Force
Other Sales Force Strategy and Structure Issues
Team selling is used to service large complex
accounts and can include experts from:
• Sales, Marketing, Technical , R&D, Engineering,
Operations and Finance
16-20
Recruiting and Selecting Salespeople
16-22
Compensating Salespeople
Compensation is made up of:
• Fixed amounts - a salary, give the
salesperson some stable income
• Expenses
• Fringe benefits
16-23
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 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
Steps in the Personal Selling Process
1. Prospecting and qualifying
2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Handling objections
6. Closing
7. Follow-up
16-34
Steps in the Personal Selling Process
Step 1
16-35
Steps in the Personal Selling Process
Step 1
16-36
Steps in the Personal Selling Process
Step 2
16-37
Steps in the Personal Selling Process
Step 2
Objectives Approaches
• Qualify the prospect • Personal visit
• Gather information • Phone call
• Make an immediate • Letter
sale
16-38
Steps in the Personal Selling Process
Step 3
16-39
Steps in the Personal Selling Process
Step 4
16-44
Steps in the Personal Selling Process
Step 5
16-45
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, including
lower price or additional quantity
16-46
Steps in the Personal Selling Process
Step 6
16-47
After studying this chapter, you should be able to:
1. Define direct marketing and discuss its benefits to
customers and companies
2. Identify and discuss the major forms of direct
marketing
3. Explain how companies have responded to the
Internet and other powerful new technologies
with online marketing strategies
4. Discuss how companies go about conducting
online marketing to profitably deliver more value
to customers
5. Overview the public policy and ethical issues
presented by direct marketing
17-2
1. The New Direct-Marketing Model
2. Growth and Benefits of Direct Marketing
3. Customer Databases and Direct Marketing
4. Forms of Direct Marketing
5. Online Marketing
6. Integrated Direct Marketing
7. Public Policy Issues in Direct Marketing
17-3
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
Benefits to Buyers
• Convenience
• Ready access to many products
• Access to comparative information about
companies, products, and competitors
• Interactive and immediate
17-5
Benefits to Sellers
17-6
Customer Database
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
Direct-mail marketing involves an offer,
announcement, reminder, 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
Catalog direct marketing involves
printed and Web-based catalogs
17-11
Telephone direct marketing involves using the
telephone to sell directly to consumers and
business customers
17-12
Benefits of telephone Challenges of Web-
direct marketing based catalogs
• Unsolicited outbound
• Purchasing
convenience telephone marketing
• Do-Not-Call Registry
• Increased product
service and
information
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
Kiosk marketing involves placing
information and ordering machines in
stores, airports, trade shows, and other
locations
17-15
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
17-20
Online Marketing Domains
17-21
Types of Online Marketers
• Click-only marketers
• Operate only online without any brick and mortar
presence
• E-tailers (Amazon), search engines and portals,
shopping or price comparison sites, 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,
large customer bases, industry knowledge, reputation etc
17-25
Setting Up an Online Presence
17-31
Setting Up an Online Presence
Types of sites
• Corporate Web site
• Marketing Web site
17-32
Setting up an Online Presence
17-33
Setting Up an Online Presence
17-34
Designing Effective Web Sites
17-35
Designing Effective Web Sites
The seven Cs of effective Web site design
1. Context - is the site’s layout
2. Content - is the site’s pictures, sound, and video
3. Community - is the site’s means to enable user-to-
user communication
4. Customization - is the site’s ability to tailor itself to
different users or to allow users to personalize the
site
5. Communication - is the way the site enables user-to-
user, user-to-site, or two-way communication
6. Connection - is the degree that the site is lined to
other sites
7. Commerce - is the site’s capabilities to enable
commercial transactions
17-36
Designing Effective Web Sites
The eighth C
17-39
Placing Ads and Promotions Online
17-40
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, video,
sound, and interactivity
17-41
Placing Ads and Promotions Online
17-42
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-of-
mouth marketing and involves the creation of a
Web site, an e-mail message, or another
marketing event that customers pass along to
friends
17-44
The Future of Online Advertising
17-45
Creating or Participating in Web Communities
17-46
Using E-mail
17-47
Integrated direct marketing involves the
use of carefully coordinated multiple-
media, multiple-stage campaigns
17-48
• Customer irritation, unfairness,
deception, and fraud
• Privacy
• Security
17-49
Irritation, Unfairness, Deception, and Fraud
17-50