Lecture Principles of Marketing - Chapter 13: Communicating customer value: Personal selling and direct marketing

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This chapter discuss the role of a company’s 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,...

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Nội dung Text: Lecture Principles of Marketing - Chapter 13: Communicating customer value: Personal selling and direct marketing

Chapter Thirteen Communicating Customer Value: Personal Selling and Direct Marketing
Roadmap: Previewing the Concepts 1. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. 2. Identify and explain the six major sales force management steps. 3. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. 4. Define direct marketing and discuss its benefits to customers and companies. 5. Identify and discuss the major forms of direct marketing. Copyright 2007, Prentice Hall, Inc. 13-2
Case Study CDW – Relationship Building Success Background Personal Selling’s Role  Nation’s largest reseller  “Clicks & people” strategy of technology products combines personal selling and services to small and with strong Web presence. mid-size businesses.  Salespeople build and  Since 2000, sales up manage relationships by 48% to $5.7 billion and being trusted advisors. profits up 15% annually.  Training is extensive as  Highly devoted to salespeople must be customer with “Circle of knowledgeable and Service” philosophy. customer focused.
The Nature of Personal Selling  Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships.  The term salesperson covers a wide range of positions: – Order taker: Department store clerk – Order getter: Creative selling in different environments
The Role of the Sales Force  Personal selling is a paid, personal form of promotion. – Involves two-way personal communication between salespeople and individual customers.  Salespeople: – Probe customers to learn about problems. – Adjust marketing offers to fit special needs. – Negotiate terms of sales. – Build long-term personal relationships.
The Role of the Sales Force  Sales force serves as critical link between company and its customers. – They represent the company to the customers. – They represent the customers to the company. – Goal = customer satisfaction and company profit.
Sales Force Management  The analysis, planning, implementation, and control of sales force activities.  Includes: – Designing sales force strategy & structure – Recruiting and selecting salespeople – Training salespeople – Compensating salespeople – Supervising salespeople – Evaluating salespeople
Sale Force Structure  Territorial: – Salesperson assigned to exclusive area and sells full line of products.  Product: – Sales force sells only certain product lines.  Customer: – Sales force organized by customer or industry.  Complex: – Combination of several types of structures.
Outside & Inside Sales Forces  An outside sales force travels to call on customers in the field.  An inside sales force conducts business from their offices via telephone or visits from perspective buyers. – Includes: • Technical support people • Sales assistants • Telemarketers
Team Selling  Used to service large, complex accounts.  Can find problems, solutions, and sales opportunities that no single person could.  Can include experts from different areas of selling firm.  Pitfalls: – Can confuse or overwhelm customers. – Some people have trouble working in teams. – Hard to evaluate individual contributions.
Successful Salespeople  Careful selection can greatly enhance overall sales force performance while minimizing costly turnover.  Key talents of successful salespeople: – Intrinsic motivation. – Disciplined work style. – Ability to close a sale. – Ability to build relationships with customers.
Recruiting Salespeople  Recommendations  Searching the from current sales Web force  College  Employment placement agencies services  Classified ads  Recruit from other companies
Sales Force Training Goals  Learn about different types of customers and their needs, buying motives, and buying habits.  Learn how to make effective sales presentations.  Learn about and identify with the company, its products and its competitors.
Compensating Salespeople  Fixed amount: – Salary  Variable amount: – Commissions or bonuses  Expenses: – Repays for job-related expenditures  Fringe benefits: – Vacations, sick leave, pension, etc.
Supervising Salespeople  Goal of supervision is to encourage salespeople to “work smart.” – Help them identify customers and set call norms. – Specify time to be spent prospecting: • Annual call plan • Time-and-duty analysis • Sales force automation systems
Motivating Salespeople  Goal of motivating sales force is to encourage salespeople to “work hard.” – Organizational climate. – Sales quotas. – Positive incentives: • Sales meetings • Sales contests • Recognition and honors • Cash awards, trips, profit sharing
The Personal Selling Process  Prospecting: – The salesperson identifies qualified potential customers (called prospects).  Preapproach: – The salesperson learns as much as possible about a prospect before making a sales call.  Approach: – The salesperson meets the customer for the first time.  Presentation: – The salesperson tells the “product story” to the buyer, highlighting customer benefits.
The Personal Selling Process  Handling Objections: – The salesperson seeks out, clarifies, and overcomes customer objections to buying.  Closing: – The salesperson asks the customer for an order.  Follow-up: – The salesperson follows up after the sale to ensure customer satisfaction and repeat business.  The selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships.
Direct Marketing  Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. – One-on-one communication in which offers are tailored to needs of narrowly defined segments. – Usually seeks a direct, immediate, and measurable consumer response.
The New Direct-Marketing Model  Some firms use direct marketing as a supplemental medium.  For many companies, direct marketing constitutes a new and complete model for doing business.  Some firms employ the direct model as their only approach.  Some see this as the new marketing model of thismillennium.