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Personal Selling and Direct Marketing

Chapter 17
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Principles of Marketing, Sixth Canadian Edition

Learning Objectives

17.
2

Copyright 2005 Pearson Education Inc.

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

Principles of Marketing, Sixth Canadian

Personal Selling

17.
3

Copyright 2005 Pearson Education Inc.

Salesperson: an individual acting for a company by performing one

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

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

17.
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Sales Force Management

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Sales force management: the analysis,

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

Sales Force Management (continued)

17.
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Recruiting: finding a pool of qualified applicants from which to

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

Sales Force Management (continued)

17.
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Copyright 2005 Pearson Education Inc.

Training: investing in the human capital of the company, helping

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

17.
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Sales Force Compensation

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Compensation is used to direct activities and motivate salespeople

Will consist of fixed amount (salary), variable amount (bonus or
incentives), expenses, and fringe benefits

Table 17.1

Gain market
share rapidly

Strategic Goal
Solidify market
leadership

Maximize
profitability

Ideal
salesperson:

An independent self-starter

A competitive problem solver

A team player

Sales focus:

Deal making

A relationship manager
Consultative selling

Account penetration

To reward new and existing

To manage the product mix

account sales

To encourage team selling

Sustained high effort

Compensation To capture accounts

To reward high performance
role:

To reward account management

Principles of Marketing, Sixth Canadian

Supervising Salespeople

Copyright 2005 Pearson Education Inc.

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

17.
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Figure 17.2

Motivating salespeople:

Organizational climate
Sales quotas
Sales meetings
Reward systems

Principles of Marketing, Sixth Canadian

Evaluating Salespeople

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17.
9

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

Principles of Marketing, Sixth Canadian

17.
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The Personal Selling Process

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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

Figure 17.3

Principles of Marketing, Sixth Canadian

Customer Relationship Management

Copyright 2005 Pearson Education Inc.

17.
11

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

Figure 17.3

Principles of Marketing, Sixth Canadian

Direct Marketing

17.
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Copyright 2005 Pearson Education Inc.

Direct marketing: direct communications with carefully

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

Direct Marketing (continued)

17.
13

Copyright 2005 Pearson Education Inc.

Customer database: organized collection of

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

Copyright 2005 Pearson Education Inc.

Forms of Direct Marketing (continued)

Paid ad with a
response channel

Telephone marketing
Direct mail marketing
Catalogue marketing
Direct-response
television marketing
Kiosk marketing

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Direct
mail

Figure 17.5

Integrated direct marketing:

Direct marketing campaigns that use
multiple vehicles and multiple stages to
improve response rates and profits

Outbound
telemarketing

Face-to-face
sales call

Continuing
communication

Principles of Marketing, Sixth Canadian

Copyright 2005 Pearson Education Inc.

Public Policy and Ethical Issues

17.
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Irritation, unfairness,
deception, and fraud
Invasion of privacy

Personal Information Protection and

Electronic Documents Act (2001):

Consumer consent
Limitations
Accuracy
Right to access

Principles of Marketing, Sixth Canadian

In Conclusion

17.
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Copyright 2005 Pearson Education Inc.

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

Principles of Marketing, Sixth Canadian