Personal Selling & Direct Marketing
Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
The Role of the Sales Force
• The critical link between a company and its customers.
Salespeople: – represent the company to the customers. – represent the customers to the company. – strive to achieve customer satisfaction and company profit simultaneously.
Sale Force Organization
• Territorial
– Sales force organized by geographic area
• Product
– Salespeople assigned to sell only certain product lines
• Customer
– Sales force organized by customer or industry
• Complex
– Combination of several types of structures
Team Selling
• Used to service large, complex corporate accounts • Main advantages:
– Can find problems, solutions, and sales opportunities that no single salesperson could – Cross-functional expertise – Goes beyond simple selling of product – More about finding customer solutions to complex issues
• Used primarily by “deep-pocket” companies • Also called “Consultative Selling”
Major Steps in the Selling Process
The Personal Selling Process
• Prospecting
– Identifying qualified potential customers (prospecting)
– Learning as much as possible about a prospect before making the sales call – Meeting the customer for the first time – Telling the “product story” to the buyer
• Pre-approach
• Approach
• Presentation
The Personal Selling Process
• Handling Objections
– Eliciting, clarifying and overcoming customer objections to buying
• Closing
– Asking the customer for an order
• Follow-up
– Following up after the sale to ensure customer satisfaction & repeat business
• Transaction orientation vs. relationship orientation
Personal Selling - Movie
Direct Marketing
• Definition
– One-on-one communication in which offers are tailored to the needs of narrowly defined segments. – Seeks a direct, immediate, and measurable consumer response. – Can take many different forms.
Forms of Direct Marketing
Advantages of Direct Marketing
• Powerful tool for building customer long-term customer relationships • Enables “true micromarketing” efforts
• Can reach prospects at just the right moment
• Provides access to buyers unreachable through other channels • Minimizes “wasted reach” • Effectiveness is easily measured
Customer Databases
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
Telemarketing
• Used in both consumer and B2B markets • Outbound or Inbound • Inbound consumer telemarketing and outbound business-to-business telemarketing remain strong despite DNC legislations
Telemarketing – the end of an industry?
• Do-Not-Call legislation forbids most telemarketers to contact phone numbers registered on its Web site • $11,000+ fine per DNC violation • DNC legislation effectively prohibits cell phones telemarketing (cannot call cellphones using auto-dialers)
Direct-Mail Marketing
• Involves sending a marketing offer to a pre-qualified prospect’s address • Addresses obtained from customer lists • List sources
– Companies develop their own databases (i.e. Williams Sonoma) – Buy a list from a list broker – Internet accounts and warranty or product registrations
• Higher cost per prospect reached, but yields higher quality prospects than mass media • Easy to measure results • The “junk-mail” problem
Catalog Marketing
• Originally a way to reach rural and “off-the-beatenpath” prospects. • Nowadays most paper catalogs have gone digital (i.e. online) • Expected catalog sales in 2008: $200 billion. • Advantages and disadvantages
– Paper vs. Online
Direct Response TV Marketing
• Direct-Response Advertising:
– TV spots that are 60 or 120 seconds long.
• Infomercials:
– A 30-minute or longer advertising program for a single product.
• Home Shopping Channels:
– Entire cable channels dedicated to selling multiple brands, items, and services.
Copyright 2007, Prentice-Hall Inc. 13-18
Direct Response TV
HSN – The Home Shopping Network – is a direct response marketer’s dream. Products shown on the channel can be ordered via a 1-800 number or over the Internet from the HSN Web site.
www.hsn.com
Copyright 2007, Prentice-Hall Inc. 13-19
Kiosk Marketing
• Ordering machines generally found in stores, airports, and other locations
doc_450670488.ppt
Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
The Role of the Sales Force
• The critical link between a company and its customers.
Salespeople: – represent the company to the customers. – represent the customers to the company. – strive to achieve customer satisfaction and company profit simultaneously.
Sale Force Organization
• Territorial
– Sales force organized by geographic area
• Product
– Salespeople assigned to sell only certain product lines
• Customer
– Sales force organized by customer or industry
• Complex
– Combination of several types of structures
Team Selling
• Used to service large, complex corporate accounts • Main advantages:
– Can find problems, solutions, and sales opportunities that no single salesperson could – Cross-functional expertise – Goes beyond simple selling of product – More about finding customer solutions to complex issues
• Used primarily by “deep-pocket” companies • Also called “Consultative Selling”
Major Steps in the Selling Process
The Personal Selling Process
• Prospecting
– Identifying qualified potential customers (prospecting)
– Learning as much as possible about a prospect before making the sales call – Meeting the customer for the first time – Telling the “product story” to the buyer
• Pre-approach
• Approach
• Presentation
The Personal Selling Process
• Handling Objections
– Eliciting, clarifying and overcoming customer objections to buying
• Closing
– Asking the customer for an order
• Follow-up
– Following up after the sale to ensure customer satisfaction & repeat business
• Transaction orientation vs. relationship orientation
Personal Selling - Movie
Direct Marketing
• Definition
– One-on-one communication in which offers are tailored to the needs of narrowly defined segments. – Seeks a direct, immediate, and measurable consumer response. – Can take many different forms.
Forms of Direct Marketing
Advantages of Direct Marketing
• Powerful tool for building customer long-term customer relationships • Enables “true micromarketing” efforts
• Can reach prospects at just the right moment
• Provides access to buyers unreachable through other channels • Minimizes “wasted reach” • Effectiveness is easily measured
Customer Databases
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
Telemarketing
• Used in both consumer and B2B markets • Outbound or Inbound • Inbound consumer telemarketing and outbound business-to-business telemarketing remain strong despite DNC legislations
Telemarketing – the end of an industry?
• Do-Not-Call legislation forbids most telemarketers to contact phone numbers registered on its Web site • $11,000+ fine per DNC violation • DNC legislation effectively prohibits cell phones telemarketing (cannot call cellphones using auto-dialers)
Direct-Mail Marketing
• Involves sending a marketing offer to a pre-qualified prospect’s address • Addresses obtained from customer lists • List sources
– Companies develop their own databases (i.e. Williams Sonoma) – Buy a list from a list broker – Internet accounts and warranty or product registrations
• Higher cost per prospect reached, but yields higher quality prospects than mass media • Easy to measure results • The “junk-mail” problem
Catalog Marketing
• Originally a way to reach rural and “off-the-beatenpath” prospects. • Nowadays most paper catalogs have gone digital (i.e. online) • Expected catalog sales in 2008: $200 billion. • Advantages and disadvantages
– Paper vs. Online
Direct Response TV Marketing
• Direct-Response Advertising:
– TV spots that are 60 or 120 seconds long.
• Infomercials:
– A 30-minute or longer advertising program for a single product.
• Home Shopping Channels:
– Entire cable channels dedicated to selling multiple brands, items, and services.
Copyright 2007, Prentice-Hall Inc. 13-18
Direct Response TV
HSN – The Home Shopping Network – is a direct response marketer’s dream. Products shown on the channel can be ordered via a 1-800 number or over the Internet from the HSN Web site.
www.hsn.com
Copyright 2007, Prentice-Hall Inc. 13-19
Kiosk Marketing
• Ordering machines generally found in stores, airports, and other locations
doc_450670488.ppt