Chapter 14

Integrated Marketing Communications: Personal Selling and Direct Marketing

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Road Map: Previewing the Concepts

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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The Nature of Personal Selling

Most salespeople are well-educated, welltrained professionals who work to build and maintain long-term relationships with customers. The term salesperson covers a wide spectrum of positions from:
Order taker (department store salesperson) Order getter (someone engaged in creative selling i.e Lear Corporation)
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What did Robert Louis Stevenson mean when he said everyone lives by selling something?

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The Role of the Sales Force

Involves two-way, personal communication between salespeople and individual customers. Personal selling is effective because salespeople can:
probe customers to learn more about their problems, adjust the marketing offer to fit the special needs of each customer, negotiate terms of sale, and build long-term personal relationships with key decision makers.
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The Role of the Sales Force

Represent the Company to Customers to Produce

Company Profit

Sales Force Serves as a Critical Link Between a Company and its Customers Since They:

Represent Customers to the Company to Produce

Customer Satisfaction

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Major Steps in Sales Force Management (Fig. 14-1)

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Designing Sales Force Strategy and Structure

Territorial Exclusive Territory to Sell the Companys Full Product Line

Complex Forms Are a Combination of Any Types of Sales Force Structures

Product Sales Force Sells Only a Portion of The Companys Products or Lines
Customer Sales Force Sells Only to Certain Customers or Industries
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Other Sales Force Strategy and Structure Issues

Outside Sales Force Travel to Call on Customers Sells to Major Accounts Finds Major New Prospects Inside Sales Force Conduct Business From Their Offices Via Phone/Buyer Visits
TeleTechnical Marketer Sales Support & Assistants People Internet
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Team Selling
Use team selling to service large, complex accounts. Team finds problems, solutions, and sales opportunities. Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance.
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Some Traits of Good Salespeople

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Recommendations for Recruiting Salespeople

Current Salespeople Employment Agencies Classified Ads

Search the Web College Students

Salespeople from Other Companies
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Training Salespeople
The Average Sales Training Program lasts for Four Months and Has the Following Goals: Help Salespeople Know & Identify With the Company Learn About the Products Learn About Competitors and Customers Characteristics Learn How to Make Effective Presentations Understand Field Procedures and Responsibilities
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Compensating Salespeople
To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements

Fixed Amount: Usually a Salary

Variable Amount: Usually Commissions Or Bonuses

Expense Allowance: For JobRelated Expenses

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Supervising Salespeople
Directing Salespeople
Identify Customer Targets & Call Norms Time Spent Prospecting for New Accounts Use Sales Time Efficiently Annual Call Plan

Motivating Salespeople
Organizational Climate Sales Quotas

Positive Incentives
Sales Meetings Sales Contests

Time-and-Duty Analysis
Sales Force Automation

Honors and Trips

Merchandise/Cash

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How Salespeople Spend Their Time (Fig. 14-2)

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Major Steps in Effective Selling (Fig. 14-3)

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Steps in the Selling Process

Prospecting Qualifying Preapproach Approach
Salesperson Identifies Qualified Potential Customers.

Process of Identifying Good Prospects and Screening Out Poor Ones. Salesperson Learns About a Prospective Customer Before Making a Sales Call. Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start.
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Steps in the Selling Process

Presentation
Salesperson Tells the Product Story to the Buyer Showing How the Product Solves Problems. Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying. Salesperson Asks the Customer for an Order. Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.
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Handling Objections
Closing Follow-Up

What is Relationship Marketing?

Relationship Marketing Emphasizes Maintaining Profitable Long-Term Relationships with Customers by Creating Superior Customer Value and Satisfaction.

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Form students into groups of three to five. Each group should answer the following questions:
Explain the meaning of relationship marketing. Describe how relationship marketing might be used in selling a new car.

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Mass Marketing and Direct Marketing

Most Mass Marketing Involves One-Way Communications Aimed At Consumers.

Direct Marketing Involves Two-Way Interactions With Customers.

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The New Direct Marketing Model

Some firms use direct marketing as a supplemental medium. For many companies, direct marketing especially Internet and e-commerce companies constitutes a new and complete model for doing business. Some firms use the new direct model as their only approach. New marketing model of the next millennium.
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Benefits and Growth of Direct Marketing

Benefits to Buyers
Convenient Easy to use Private Product access and selection Abundance of information Immediate Interactive

Benefits to Sellers
Consumer relationship building Reduces costs Increases speed and efficiency Provides flexibility Global medium

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Customer Databases and Marketing

Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects. Allows companies to offer fine-tuned marketing offers and communications to customers.

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Forms of Direct Marketing (Fig. 14-4)

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Forms of Direct Marketing

Telephone Marketing
Represents 36% of direct marketing sales. Outbound telephone marketing sells directly to customers. Inbound numbers provide a toll-free number to receive orders.

Direct-Mail Marketing
Represents 31% of direct marketing sales. High target-market selectivity. Personalized & flexible. Allows easy measurement of results. Fax mail, e-mail, voice mail are now popular
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Forms of Direct Marketing

Catalog Marketing
Sales expected to exceed $94 billion by 2002. Printed, selling multiple products, offering direct ordering mechanism. Printed catalogs remain the primary medium, but many are now electronic.

Direct-Response TV Marketing
Direct-response advertising marketers air TV spots or infomercials. Home shopping channels entire programs or channels dedicated to selling goods and services.

Kiosk Marketing
Placing information and ordering machines at various locations.
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George Foremans Lean Mean Fat-Reducing Grilling Machine

Current infomercial champ George Foreman! Selling for 3 easy payments of $19.95 (plus shipping & handling). Totaled almost $400 million in sales last year.

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An Integrated Direct-Marketing Campaign (Fig. 14-5)

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Public Policy and Ethical Issues in Direct Marketing

Irritation to Consumers Invasion of Privacy
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Unfairness, Deception, or Fraud

Rest Stop: Reviewing the Concepts

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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