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PRINCIPLES OF PRINCIPLES OF MARKETINGMARKETING
University of Management and Technology1901 N. Fort Myer Drive
Arlington, VA 22209 USAPhone: (703) 516-0035
Fax: (703) 516-0985Website: www.umtweb.edu
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CHAPTER 14:CHAPTER 14:Integrated Marketing Integrated Marketing Communications: Personal Communications: Personal Selling and Direct MarketingSelling and Direct Marketing
Armstrong, G. & Kotler, P. Marketing: An Armstrong, G. & Kotler, P. Marketing: An IntroductionIntroduction
(6th ed.) Prentice Hall © 2003.(6th ed.) Prentice Hall © 2003.
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Road Map: Previewing the ConceptsRoad Map: Previewing the Concepts
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.
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 SellingThe Nature of Personal Selling
Most salespeople are well-educated, well-trained 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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The Role of the Sales ForceThe 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 ForceThe Role of the Sales Force
Sales Force Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce Customer
Satisfaction
Represent the Company to
Customers to Produce Company Profit
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Major Steps in Sales Force Major Steps in Sales Force Management (Fig. 14-1)Management (Fig. 14-1)
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Territorial Exclusive Territory to Sell the Company’s Full Product Line
CustomerSales Force Sells Only to Certain
Customers or Industries
ProductSales Force Sells Only a Portion of The Company’s Products or Lines
Designing Sales Force Strategy and Designing Sales Force Strategy and Structure Structure
Complex Forms Are a Combination of
Any Types of Sales Force Structures
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Other Sales Force Strategy and Other Sales Force Strategy and Structure IssuesStructure Issues
Inside SalesForce
Inside SalesForce
Outside Sales Force
Outside Sales Force
Travel to Call on Customers
Travel to Call on Customers
Sells to Major
Accounts
Sells to Major
Accounts
Finds MajorNew
Prospects
Finds MajorNew
Prospects
Conduct Business From Their Offices Via Phone/Buyer VisitsConduct Business From Their Offices Via Phone/Buyer Visits
TechnicalSupportPeople
TechnicalSupportPeople
Tele-Marketer
&Internet
Tele-Marketer
&Internet
SalesAssistants
SalesAssistants
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Team SellingTeam 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 SalespeopleSome Traits of Good Salespeople
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Salespeople from Other Companies
College Students
Search the Web
Classified Ads
Employment Agencies
Current Salespeople
Recommendations for Recruiting Recommendations for Recruiting SalespeopleSalespeople
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Help Salespeople Know & Identify With the Company
Learn About the Products
Learn About Competitors’and Customers’ Characteristics
Learn How to MakeEffective Presentations
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Training SalespeopleTraining Salespeople
Understand Field Proceduresand Responsibilities
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Fixed Amount: Usually a
Salary
Fixed Amount: Usually a
Salary
VariableAmount:Usually
CommissionsOr Bonuses
VariableAmount:Usually
CommissionsOr Bonuses
To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several ElementsTo Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements
Expense Allowance:For Job- Related
Expenses
Expense Allowance:For Job- Related
Expenses
Compensating SalespeopleCompensating Salespeople
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Supervising SalespeopleSupervising Salespeople
Directing Salespeople
Identify Customer Targets & Call Norms
Time Spent Prospecting for New Accounts
Use Sales Time EfficientlyAnnual Call Plan
Time-and-Duty Analysis
Sales Force Automation
Motivating Salespeople
Organizational Climate
Sales Quotas
Positive Incentives Sales Meetings
Sales Contests
Honors and Trips
Merchandise/Cash
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How Salespeople Spend Their Time How Salespeople Spend Their Time (Fig. 14-2)(Fig. 14-2)
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Major Steps in Effective Selling (Fig. Major Steps in Effective Selling (Fig. 14-3)14-3)
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ProspectingProspecting Salesperson Identifies Qualified Potential Customers.
Salesperson Identifies Qualified Potential Customers.
PreapproachPreapproachSalesperson Learns About a Prospective Customer Before
Making a Sales Call.
Salesperson Learns About a Prospective Customer Before
Making a Sales Call.
QualifyingQualifyingProcess of Identifying Good
Prospects and Screening Out Poor Ones.
Process of Identifying Good Prospects and Screening Out
Poor Ones.
Steps in the Selling ProcessSteps in the Selling Process
ApproachApproachSalesperson Meets the Buyer and Gets the Relationship Off
to a Good Start.
Salesperson Meets the Buyer and Gets the Relationship Off
to a Good Start.
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PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Showing
How the Product Solves Problems.
Salesperson Tells the Product “Story” to the Buyer Showing
How the Product Solves Problems.
ClosingClosing Salesperson Asks the Customer for an Order.Salesperson Asks the
Customer for an Order.
Handling ObjectionsHandling
Objections
Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to
Buying.
Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to
Buying.
Steps in the Selling ProcessSteps in the Selling Process
Follow-UpFollow-UpOccurs After the Sale and
Ensures Customer Satisfaction and Repeat Business.
Occurs After the Sale and Ensures Customer Satisfaction
and Repeat Business.
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What is Relationship Marketing?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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Most Mass Marketing Involves One-Way Communications Aimed At Consumers.
Mass Marketing and Direct MarketingMass Marketing and Direct Marketing
Direct Marketing Involves Two-Way Interactions With Customers.
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The New Direct Marketing ModelThe 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 Benefits and Growth of Direct MarketingMarketing
Benefits to BuyersConvenient
Easy to use
Private
Product access and selection
Abundance of information
Immediate
Interactive
Benefits to SellersConsumer relationship building
Reduces costs
Increases speed and efficiency
Provides flexibility
Global medium
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Customer Databases and MarketingCustomer 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 MarketingForms of Direct Marketing(Fig. 14-4)(Fig. 14-4)
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Forms of Direct MarketingForms of Direct Marketing
Telephone MarketingRepresents 36% of direct marketing sales.
Outbound telephone marketing sells directly to customers.
Inbound numbers provide a toll-free number to receive orders.
Direct-Mail MarketingRepresents 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 MarketingForms of Direct Marketing
Catalog MarketingSales 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 MarketingDirect-response advertising – marketers air TV spots or infomercials.
Home shopping channels – entire programs or channels dedicated to selling goods and services.
Kiosk MarketingPlacing information and ordering machines at various locations.
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George Foreman’s Lean Mean Fat-George Foreman’s Lean Mean Fat-Reducing Grilling MachineReducing 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 An Integrated Direct-Marketing Campaign (Fig. 14-5)Campaign (Fig. 14-5)
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Irritation to
Consumers
Unfairness,Deception,
orFraud
Invasionof
Privacy
Public Policy and Ethical Issues in Public Policy and Ethical Issues in Direct MarketingDirect Marketing
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Rest Stop: Reviewing the ConceptsRest Stop: Reviewing the Concepts
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.
Define direct marketing and discuss its benefits to customers and companies.
Identify and discuss the major forms of direct marketing.
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