Presentation on :

MANAGING PERSONAL COMMUNICATIONS:

DIRECT MARKETING & PERSONAL SELLING.

Group Members:
Digesh Shah
Kartik Patel
Paresh Sidhdhapura
To Start with…

 The term direct marketing is believed to have

been first used in 1967 in a speech by Lester
Wunderman, who pioneered direct
marketing techniques with brands such as
American Express and Columbia Records. The
term junk mail, referring to unsolicited
commercial ads delivered via post office or
directly deposited in consumers' mail boxes,
can be traced back to 1954.
DIRECT MARKETING
 It’s the use of consumer-direct channels to reach & deliver goods
& services to customers without using marketing middlemen.

Kiosk
Benefits of Direct Marketing

 For Buyers:
 Convenient
 Easy to use
 Private
 Access to a wealth of information
 Immediate
 Interactive
Benefits of Direct Marketing
 For Sellers
 Powerful tool for building relationships
 Allows for targeting of small groups or individuals with
customized offers in a personalized fashion
 Can be timed to reach prospects at the right time
 Offers access to buyers that couldn’t be reached via other
channels
 Low-cost, effective alternative for reaching specific
markets
Direct Marketing Channels:

 Direct mail
 Catalog
 Telemarketing
 Web sites
 Email marketing
 Mobile devices
 Interactive TV
Direct mail :
Establish objectives

Select target prospects

Develop offer elements

Test elements

Execute

Measure success
Objectives

 Producing prospect leads

 Strengthening customer relationships
 Informing and educating customers
 Reminding customers of offers
Selecting Target Prospects

RFM Formula for Selecting Prospects

 Recency-”how much times has passed since
their last purchase”
 Frequency-”how many times they have
purchased”
 Monetary value-”how much they have spent
since becoming a customer”
Develop Offer Element

Components of the Mailing

 Outside envelope
 Sales letter
 Circular
 Reply form
 Reply envelope
Testing Elements

 To derive a more comprehensive estimate of

the promotion’s impact, companies are
measuring the impact of direct marketing on
awareness, intention to buy and word of
mouth.
Measuring Campaign Success
 By adding up the planned campaign costs, the
direct marketer can figure out in advance the
needed break-even response rate.
 The direct marketer needs to analyze main causes
of returned merchandise (late shipment, damage
in transit, incorrect order fulfilment,etc)
 A customer’s ultimate value is not revealed by a
purchase response to a particular mailing, rather it
is the expected profit made on all future purchases.
Catalog Marketing:

 Send full-line merchandise catalogs,

consumer catalog, business catalog.
 Success depends on managing customer lists
carefully to avoid duplication, controlling
inventory, offering quality merchandise &
projecting a distinctive image.
Types of Telemarketing

 Telesales
 Telecoverage
 Teleprospecting
 Customer service and technical support
Other Media for Direct Response

Television
 Direct Response Advertising
 At home shopping channels
 Videotext

Kiosks
E Marketing
 Permission Marketing
 Levels of Permission Marketing
▪ No permission level
▪ Low permission level
▪ Medium permission level
▪ High permission level
▪ Transaction level
 E Marketing Guidelines
 Give the customer a reason to respond
 Personalize the content of your e-mails
 Offer something the customer could not get via direct mail
 Make it easy for the customer to “unsubscribe”
Interactive Marketing
Designing an Attractive Web Site
 Context
 Content
 Community
 Customization
 Communication
 Connection
 Commerce
Door-to-Door Leaflet Selling:

 Leaflet Distribution services are used extensively

by the fast food industries, and many other
business focusing on a local catchment Business
to consumer business model, similar to direct
mail marketing, this method is targeted purely
by area and costs a fraction of the amount of a
mail shot due to not having, to purchase
stamps, envelopes or having to buy address lists
and the names of home occupants.
Designing the Sales Force :

McMurry has distinguished these six types of sales representatives

 1. Deliverer: A salesperson whose major task is the delivery of a
product (milk, bread, or fuel).

 2. Order taker: A salesperson who acts predominantly as an inside

order taker (the salesperson standing behind the counter) or
outside order taker (the soap salesperson calling on the
supermarket manager).

 3. Missionary: A salesperson whose major task is to build goodwill

or to educate the actual or potential user, rather than to sell (the
medical “detailer” representing an ethical pharmaceutical firm).
Contd….
 4. Technician: A salesperson with a high level of technical
knowledge (the engineering salesperson who is primarily a
consultant to client companies).

 5. Demand creator: A salesperson who relies on creative

methods for selling tangible products (vacuum cleaners or
siding) or intangibles (insurance or education).

 6. Solution vendor: A salesperson whose expertise lies in

solving a customer’s problem, often with a system of the
firm’s goods and services (such as computer and
communications systems).
Contd….
In general, salespeople perform one or more of the following tasks:
 ➤ Prospecting: Searching for prospects, or leads,
 ➤ Targeting: Deciding how to allocate their time among prospects and
customers,
 ➤ Communicating: Communicating information about the company’s
products and services,
 ➤ Selling: Approaching, presenting, answering objections, and closing
sales,
 ➤ Servicing: Providing various services to customers—consulting on
problems, rendering technical assistance, arranging financing,
expediting delivery,
 ➤ Information gathering: Conducting market research and doing
intelligence work, and
 ➤ Allocating: Deciding which customers will get scarce products during
shortages.
 Evaluating
Evaluating Salespeople
Salespeople
Supervising
Supervising Salespeople
Salespeople
Compensating
Compensating Salespeople
Salespeople
Training
Training Salespeople
Salespeople
Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople
Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure
Managing the Salesforce
Designing Sales Force Strategy and
Structure

of Sales
Types of
Types Structure
Force Structure
Sales Force

Territorial
Territorial
Exclusive
ExclusiveTerritory
Territoryto
to
Sell
Sellthe
theCompany’s
Full
Company’s Product
Product
FullProduct
ProductLine
Line Sales
SalesForce
ForceSells
SellsAlong
Along
Product
ProductLines
Lines Customer
Customer
Sales
SalesForce
ForceSells
SellsAlong
Along
Customer/
Customer/Industry
IndustryLines
Lines
ofAbove
Combinationof
Combination Typesof
AboveTypes SalesForce
ofSales Structures
ForceStructures
Complex
Complex
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
and
and Structure
Structure

Vs.

Sales Force
Sales Size
Force Size

Other Sales
Other Force Strategy
Sales Force and Structure
Strategy and Issues
Structure Issues

Who
WhoWill
WillBe
BeInvolved
Involvedininthe
the How
HowWill
WillSales
Salesand
andSales
SalesSupport
Support
Selling
SellingEffort?
Effort? People
PeopleWork
WorkTogether?
Together?
Outside
OutsideSales
SalesForce
Force Team
TeamSelling
Selling
Inside Sales Force
Inside Sales Force
Recruiting
Recruiting and
and
Selecting
Selecting
Salespeople
Salespeople

•Enthusiasm
•Enthusiasmand
andSelf-Confidence
Salespeople
ofSalespeople
of Self-Confidence
Characteristics
SomeCharacteristics
Some •Persistence
•Persistence
•Initiative
•Initiative
•Job
•JobCommitment
Commitment

•Current
•CurrentSalespeople
Procedures
RecruitingProcedures Salespeople
Recruiting •Employment
•EmploymentAgencies
Agencies
•Classified
•ClassifiedAds
Ads
•College Campuses
•College Campuses

Process •Sales
•SalesAptitude
Process Aptitude
•Analytical
•Analytical&&Organizational
OrganizationalSkills
Skills
Selection
SalespersonSelection
Salesperson
•Personality Traits
•Personality Traits
•Other
•OtherCharacteristics
Characteristics
Understand
UnderstandField
FieldProcedures
Procedures
and
andResponsibilities
Responsibilities
Learn
LearnHow
How to
toMake
Make
Effective
EffectivePresentations
Presentations
Learn
LearnAbout
AboutCompetitors’
Competitors’
and
andCustomers’
Customers’Characteristics
Characteristics
Learn
LearnHow
Howthe
theProducts
ProductsWork
Work
Help
HelpSalespeople
SalespeopleKnow
Know&&Identify
Identify
With
Withthe
theCompany
Company
Following Goals:
The Average Sales Training Program lasts for Four Months and Has the
Salespeople
Training Salespeople
Training
Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct
Their Activities.

Salary
E CK
YCH
PA

Benefits Components
of
Compensation
Bonus

Commission
Supervising Salespeople

Directing Salespeople Motivating Salespeople

• Identify Customer Targets • Organizational Climate

& Set Call Norms • Sales Quotas
• Develop Prospect Targets • Positive Incentives
– Honors
• Use Sales Time Efficiently
– Annual Call Schedule – Awards
– Time-and-Duty Analysis – Merchandise/ Cash
– Sales Force Automation
– Trips
Motivating the Sales Force

Rewards and incentives include:

 Ceremonies
 Vacations
 Merchandise
 Pay raises
 Cash bonuses
 Stock options
 Tuition assistance
 Product discounts
How Salespeople Spend Their
Time
Administrative
Service Calls Tasks
12% 17%
Companies
Telephone Look For Ways
Selling to Increase the
21%
Face-to-Face Amount of
Selling Time
30%
Waiting/
Salespeople
Traveling Spend Selling.
20%

Source : Wall Street Journal, February 23, 2006, B1.

Evaluating Salespeople
Expense
Expense Sales
Sales
Reports
Reports Report
Report

Sources
Sources
of
of
Call
Call Information
Information Work
Work
Reports
Reports Plan
Plan

Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan
Character of Top Sales Performers
 Strong, healthy self esteem
 Can bounce back from rejection
 Sense of urgency and competitiveness
 Persuasive
 Self-confident
 Sociable
 Willing to take risks
 Understand complex concepts
 Creative in developing solutions
 Possess empathy
 Women in Car Sales
 For its Florida and Texas dealerships, Asbury
Automotive Group is actively recruiting
saleswomen– at shopping malls.

 11% of the automotive sales force is female.In

contrast, 50% of retail-industry employees are
women.

 Women influence 81% of new auto purchases, and

women may even be better at selling cars than
men.
SOURCE: Jennifer Saranow,
“Car Dealers Recruit Saleswomen at the Mall,”
Wall Street Journal, April 12, 2006, B1.
 Personal Selling
Personal Selling Advertising & Sales Promotion
is more important if... are more important if...

Product
Product has
has a high value. Product
Product has
has aa low
low value.
value.

Product is custom made. Product is

is standardized.
standardized.

There
There are few customers. There
There are many customers.
customers.

Product is Product is
technically complex. simple
simple to
to understand.
understand.
Customers
Customers are
are Customers are
concentrated.
concentrated. geographically
geographically dispersed.
dispersed.
 Personal Selling Advantages

 Detailed explanation or demonstration

 Variable sales message
Personal
Personal  Directed to qualified prospects
Selling
Selling
 Controllable adjustable selling costs
Advantages
Advantages
 More effective than other promotion in
obtaining sale and gaining customer satisfaction
Personal Selling Process

Ma kin g th e
P r o s p e c tin g P r e -a p p r o a c h Ap p r o a c h
P r e s e n ta tio n

Fo llo win g Clo s in g Ove r c o m in g

Up th e S a le Ob je c tio n s
Steps
Steps in
in the
the Selling
Selling Process
Process

Prospectingand
Step1.1. Prospecting
Step Qualifying
andQualifying

 Developing Lists
of Potential
Customers

Preapproach
Step 2.2. Preapproach
Step

 Finding and
Analyzing
Information
About Prospects
 Approach
Step3.3. Approach
Step THIS DEALS WITH
HOW WE MAKE THE
INITIAL CONTACT WITH A
POTENTIAL CUSTOMER

Step4.4.Presentation/
Step Demonstration
Presentation/Demonstration

 Attract and Hold Attention,

Plus Stimulate Interest and
Desire
 IF HE HADN’T TOLD
ME WHAT HIS OBJECTION
5. Handling
Step5. Objections
HandlingObjections
Step WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!

Step 6.
Step Closing
6. Closing

 Asking the Prospect

to Buy
 Satisfaction
Customer
 Long-term
Step
Step7.
7. Follow-Up
Follow-Upand
andmaintenance
maintenance
Negotiation

Negotiation is an act performed by both the

parties in order to reach an agreement on
any issue which is concerned about the
business deal between both the parties.

For e.g. A seller might have price X in his

mind but the buyer expects price Y as a
result of this, both buyer and seller will have
to negotiate in order ton arrive at one price.
Negotiation
 When to negotiate
▪ When factors bear not only on price,
but also on quality of service
▪ When business risk cannot be accurately
predetermined
▪ When a long period of time is required to
produce the items purchased
▪ When production is interrupted frequently
because of numerous change orders

21-43
 Relationship Selling

Relationship
Relationship
A sales practice that involves
(Consultative)
(Consultative) building, maintaining, and
Selling
Selling enhancing interactions with
customers in order to develop
long-term satisfaction through
mutually beneficial
partnerships.
Traditional Selling and Relationship Selling

Traditional
Relationship Selling
Personal Selling
Sell products Sell advice, assistance, counsel

Focus on closing sales Focus on customer’s bottom line

Limited sales planning Sales planning is top priority
Discuss product Build problem-solving environment
Assess “product-specific” Conduct discovery in scope of
needs operations
“Lone wolf” approach Team approach
Profit impact and strategic
Pricing/product focus
benefit focus
Short-term sales follow-up Long-term sales follow-up