PersonalSellingandDirectMarketingChapter1717-1Objectives•Understandtheroleofacompany’ssalespeopleincreatingvalueforcustomersandbuildingcustomersrelationships.•Knowthesixmajorsalesforcemanagementsteps.17-2Objectives•Understandthepersonalsellingprocess,andhowtodistinguishbetweentransaction-orientedmarketingandrelationshipmarketing.•Learnaboutdirectmarketinganditsbenefitstocustomersandcompanies.•Knowthemajorformsofdirectmarketing.17-3•Record-breakingearningsandsalesgrowth•Outstandingsalesforce;ratedasoneofAmerica’sbest.•Salesforcefocusesoncustomersuccess•Salesforceisorganizedintoseparatedivisionsdedicatedtospecificcustomers•DivisionplatformteamsworkwithcustomersandarelinkedtocustomeroperationsatalllevelsLearCorporationCaseStudy17-4Definition•SalespersonAnindividualactingforacompanybyperformingoneormoreofthefollowingactivities:prospecting,communicating,servicing,andinformationgathering.17-5SalespeopleHaveManyNamesPersonalSelling•Agents•Salesconsultants•SalesRepresentatives•AccountExecutives•SalesEngineers•DistrictManagers•MarketingRepresentatives•AccountDevelopmentRepresentatives17-6•TheRoleoftheSalesForceTwo-waypersonalcommunicationMoreeffectivethanadvertisingincomplexsellingsituationsThesalesforceplaysamajorroleinmostcompaniesThesalesforceworkstoproductcustomersatisfactionandcompanyprofit.PersonalSelling17-7Definition•SalesForceManagementTheanalysis,planning,implementation,andcontrolofsalesforceactivities.Itincludessettinganddesigningsalesforcestrategy;andrecruiting,selecting,training,supervising,compensating,andevaluatingthefirm’ssalespeople.17-8•SalesForceStrategyandStructureSalesForceStructureTerritorialsalesforcestructureProductsalesforcestructureCustomersalesforcestructureComplexsalesforcestructureManagingtheSalesForce17-9•SalesForceStrategyandStructureSalesForceSizeManycompaniesusetheworkloadapproachtosetsalesforcesizeOtherIssuesOutsideandinsidesalesforcesTeamsellingManagingtheSalesForce17-10•RecruitingandSelectingSalespeopleCarefulrecruitingcan:IncreaseoverallsalesforceperformanceReduceturnoverReducerecruitingandtrainingcostsManagingtheSalesForce17-11TraitsofSuccessfulSalespeopleManagingtheSalesForce•Enthusiasm•Patience•Initiative•Self-Confidence•JobCommitment•CustomerOrientation•Independent•Self-Motivated•ExcellentListeners•Friendly•Persistent•Attentive•Honest•InternallyMotivated•RelationshipOriented•Disciplined•Hardworking•TeamPlayers17-12•RecruitingandSelectingSalespeopleRecruitinginvolves:SolicitingapplicationsScreeningcandidates–Interviews–Salesaptitude,personality,analyticaland/ororganizationaltests–References,workhistory,etc.ManagingtheSalesForce17-13•TrainingSalespeopleAveragetrainingperiodis4monthsTrainingisexpensive,butyieldsstrongreturnsTrainingprogramshavemanygoalsManycompaniesareaddingWeb-basedsalestrainingprogramsManagingtheSalesForce17-14•CompensatingSalespeopleCompensationelements:salary,bonuses,commissions,expenses,andfringebenefitsBasiccompensationplans:StraightsalaryStraightcommissionSalaryplusbonusSalarypluscommissionManagingtheSalesForce17-15•CompensatingSalespeopleCompensationplansshoulddirectthesalesforcetowardactivitiesthatareconsistentwithoverallmarketingobjectives.GainmarketshareSolidifymarketleadershipMaximizeprofitabilityManagingtheSalesForce17-16•SupervisingSalespeopleEffectivesupervisorsprovidedirectiontothesalesforceAnnualcallplansandtime-and-dutyanalysiscanhelpprovidedirectionSalesforceautomationsystemsassistincreatingmoreefficientsalesforceoperationsTheInternetisthefastest-growingsalestechnologytoolManagingtheSalesForce17-17•SupervisingSalespeopleEffectivesupervisorsalsomotivatethesalesforceOrganizationalclimateSalesquotasPositiveincentives–Salesmeetings,salescontests,honors,etc.ManagingtheSalesForce17-18•EvaluatingSalespeopleSeveraltoolscanbeusedSalesreportsCallreportsExpensereportsManagingtheSalesForce17-19StepsintheSellingProcessThePersonalSellingProcess•ProspectingandQualifying•Preapproach•Approach•PresentationandDemonstration•HandlingObjections•Closing•Follow-up17-20•ProspectingandQualifyingProspecting:identifyingpotentialcustomersQualifying:Screeningleads•PreapproachLearningasmuchaspossibleaboutaprospectivecustomerpriortomakingasalescall•ApproachStagewherethesalespersonmeetsthecustomerforthefirsttimeThePersonalSellingProcess17-21•PresentationandDemonstrationBenefitsoftheproductarepresented/demonstratedUnderstandingprospectneedsiskey•HandlingObjections•ClosingAskingfortheorder•Follow-upHelpsensurecustomersatisfactionThePersonalSellingProcess17-22•BenefitsofDirectMarketingtoBuyersConvenientEasytousePrivateAccesstoawealthofinformationImmediateInteractiveDirectMarketing17-23•BenefitsofDirectMarketingtoSellersPowerfultoolforbuildingrelationshipsAllowsfortargetingofsmallgroupsorindividualswithcustomizedoffersinapersonalizedfashionOffersaccesstobuyersthatcouldn’tbereachedviaotherchannelsLow-cost,effectivealternativeforreachingspecificmarketsDirectMarketing17-24•CustomerDatabases&DirectMarketingDatabasesi