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Personal Selling and

Direct Marketing
Chapter 17
17- 1
Objectives
Understand the role of a
companys salespeople in
creating value for customers
and building customers
relationships.
Know the six major sales force
management steps.
17- 2
Objectives
Understand the personal selling
process, and how to distinguish
between transaction-oriented
marketing and relationship marketing.
Learn about direct marketing and its
benefits to customers and companies.
Know the major forms of direct
marketing.
17- 3
Record-breaking
earnings and sales
growth
Outstanding sales
force; rated as one
of Americas best.
Sales force
focuses on
customer success

Sales force is
organized into
separate divisions
dedicated to specific
customers
Division platform
teams work with
customers and are
linked to customer
operations
c
Lear
17- 4
Definition
Salesperson
An individual acting
for a company by
performing one or
more of the following
activities: prospecting,
communicating,
servicing, and
information gathering.
17- 5
Personal Selling
Salespeople Have Many Names
Agents
Sales
consultants
Sales
Representatives
Account
Executives
Sales Engineers
District Managers
Marketing
Representatives
Account
Development
Representatives
17- 6
The Role of the Sales Force
Two-way personal communication
More effective than advertising in
complex selling situations
The sales force plays a major role in
most companies
The sales force works to produce
customer satisfaction and company
profit
Personal Selling
17- 7
Definition
Sales Force Management
The analysis, planning,
implementation, and control of sales
force activities. It includes setting and
designing sales force strategy; and
recruiting, selecting, training,
supervising, compensating, and
evaluating the firms salespeople.
17- 8
Figure 17-1:
Major Steps in
Sales Force Management
17- 9
Sales Force Strategy and Structure
Managing the Sales Force

Sales Force Structure
Territorial sales force
structure
Product sales force
structure
Customer sales force
structure
Complex sales force
structure
17- 10
Sales Force
Strategy and
Structure
Sales Force Size
Many companies
use the workload
approach to set
sales force size
Managing the Sales Force
17- 11
Sales Force Strategy and Structure
Outside and inside sales forces
Team selling
Managing the Sales Force
17- 12
Recruiting and
Selecting
Salespeople
Careful recruiting can:
Increase overall
sales force
performance
Reduce turnover
Reduce recruiting
and training costs
Managing the Sales Force
17- 13
Managing the Sales Force
Traits of Successful Salespeople
Enthusiasm
Patience
Initiative
Self-Confidence
Job Commitment
Customer
Orientation
Independent
Self-
Motivated
Excellent
Listeners
Friendly
Persistent
Attentive
Honest
Internally
Motivated
Relationship
Oriented
Disciplined
Hardworking
Team Players
17- 14
Recruiting & Selecting Salespeople
Recruiting involves:
Soliciting applications
Screening candidates
Interviews
Sales aptitude, personality, analytical
and/or organizational tests
References, work history, etc.
Managing the Sales Force
17- 15
Training Salespeople
Average training period is
4 months
Training is expensive, but
yields strong returns
Training programs have
many goals
Many companies are
adding Web-based sales
training programs
Managing the Sales Force
17- 16
U.S. companies spend more that $7 billion
annually on training salespeople and devote
more than 22 hours per year to the average
salesperson.
17- 17
Compensating Salespeople
Compensation elements: salary,
bonuses, commissions, expenses, and
fringe benefits
Basic compensation plans:
Straight salary
Straight commission
Salary plus bonus
Salary plus commission
Managing the Sales Force
17- 18
Compensating
Salespeople
Compensation plans
should direct the sales
force toward activities that
are consistent with overall
marketing objectives.
Gain market share
Solidify market
leadership
Maximize profitability
Managing the Sales Force
17- 19
Supervising Salespeople
Effective supervisors provide direction to the
sales force
Annual call plans and time-and-duty analysis
can help provide direction
Sales force automation systems assist in
creating more efficient sales force operations
The Internet is the
fastest-growing sales
technology tool
Managing the Sales Force
17- 20
Figure 17-2:
How Salespeople Spend
Their Time
17- 21
Supervising Salespeople
Effective supervisors
also motivate the
sales force
Organizational climate
Sales quotas
Positive incentives
Sales meetings,
sales contests,
honors, etc.
Managing the Sales Force
17- 22
American Express
targets companies
in need of sales
force incentives.

The Persona
Select cards are
prepaid reward
cards that allow
recipients to buy
whatever they
most want.
17- 23
Evaluating
Salespeople
Sales reports
Call reports
Expense
reports
Managing the Sales Force
17- 24
Figure 17-3:
The Personal Selling
Process
17- 25
Prospecting and
Qualifying
Prospecting:
identifying
potential
customers
Qualifying:
Screening leads
The Personal Selling
Process
17- 26
Cold calling by salespeople visiting
offices without an appointment was
mentioned in the text as one method of
identifying potential prospects.

Discuss the pros and cons of cold
calling. Is it more appropriate for certain
industries or product types than others?
Discussion Question
17- 27
MarketSoft Video Clip
Trade shows are
often an excellent
source of sales
leads.
BusinessNow
Click the picture above to play video
17- 28
Preapproach
Learning as much
as possible about
a prospective
customer prior to
making a sales call
The Personal Selling
Process
17- 29
Approach
Stage of the
selling process
where the
salesperson
meets the
customer for
the first time
The Personal Selling
Process
17- 30
Benefits of the
product are
presented or
demonstrated
Understanding
prospect
needs is key
The Personal Selling
Process
Presentation & Demonstration
17- 31
Virtual reality is being used by J ohnson &
Johnsons sales representatives to help
prospects learn about STERRAD.
17- 32
Handling
Objections
Closing
Asking for the
order
Follow-up
Helps ensure
customer
satisfaction
The Personal Selling
Process
17- 33
Direct Marketing
Benefits: Buyers
Convenient
Easy to use
Private
Access to a
wealth of
information
Immediate
Interactive
Direct Marketing
17- 34
Direct Marketing Benefits: Sellers
Powerful tool for building relationships
Allows for targeting of small groups or
individuals with customized offers in a
personalized fashion
Offers access to buyers that couldnt
be reached via other channels
Low-cost, effective alternative for
reaching specific markets
Direct Marketing
17- 35
Dells
success
is due to
their
direct
selling
model
17- 36
Customer Databases & Direct
Marketing
Databases include customer profile,
purchase history, and other detailed
information
Databases can be used to identify
prospects, profile customers, and
select customers to receive offers, and
to build relationships
Direct Marketing
17- 37
Customer
Databases &
Direct Marketing
Database
marketing requires
substantial
investment in
hardware,
software, and
personnel
Direct Marketing
17- 38
Suppose that you work for
a casino that has recently
decided to develop a
database in order to better
target promotional offers to
its clientele.

What types of information
would you collect or track in
this database? List as many
database fields as you feel
are appropriate.
Discussion Question
17- 39
Figure 17-4:
Forms of Direct Marketing
17- 40
Telephone Marketing
Inbound toll-free 800
numbers are used to
receive orders from
print or TV ads
New legislation and
technological
advances threaten
the future of
telemarketing
Direct Marketing
17- 41
Direct-Mail
Marketing
New trends
include fax, mail,
e-mail, and voice
mail
Catalog
Marketing
Many
cataloguers
have migrated to
the web
Direct Marketing
17- 42
Direct-Response
Television
Marketing
Direct-response
advertising
Infomercials
Home shopping
channels
Kiosk Marketing

Direct Marketing
17- 43
Figure 17-5:
An Integrated
Direct-Marketing Campaign
17- 44
Integrated Direct Marketing
Public Policy and Ethical Issues
Irritation, Unfairness, Deception,
and Fraud
Invasion of Privacy
Direct Marketing
17- 45
The DMA recently developed its Privacy
Promise to American Consumers
DMA Privacy
Policy

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