CHAPTER 14:

PERSONAL SELLING

AND DIRECT
MARKETING
McGraw-Hill
Part 5: Communicate the Value Offering through the
ducation Elements of Integrated Marketing Communications
 LEARNING OBJECTIVES
2

 Understand the role of personal selling in an

integrated marketing communications strategy
 Learn the process of relationship selling.
 Understand the major job responsibilities of sales
management.
 Identify the role of direct marketing in integrated
marketing communications (IMC).
 TOWARD A MORE PERSONAL
COMMUNICATION WITH THE CUSTOMER
3

 Companies need tools to communicate directly

with the customer.
 Firms want the customer to communicate directly
with them.

Personal Selling Direct Marketing

 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
4

 Three distinct advantages over other marketing

communications methods:
1 . Immediate feedback to the customer
2 . Ability to tailor the message to the customer
3 . Enhance the personal relationship between company
and customer
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
5

 Personal selling is a two-way communication

process between salesperson and buyer with the
goal of securing, building, and maintaining long term
relationships with profitable customers.

Salesperson’s
Job

Communicate Sell Build Customer Manage

Relationships
Information.
 MATRIX OF SELLING
ACTIVITIES EXHIBIT 14.1
Build
Customer Manage
Communicate Sell Relationships Information
Technology 1. E-mail 1. Script sales pitch 1. Create useful Develop database
company Web page management skills to
2. Make telephone 2. Create customer
content manage customer
calls / leave specific content
database
voicemail 2. Develop good team
3. Provide relevant
messages skills inside the
technology to
company
customer
Nontechnology 1. Enhance language 1. Learn relationship 1. Develop strong 1. Develop time
and overall selling skills supplier alliances management skills
communication
2. Conduct research 2. Build rapport with 2. Organize
skills of customer’s all members of the information flow to
2. Develop effective business customer’s maximize the
presentation skills effectiveness and
3. Define and sell buying center
reduce irrelevant data
value-added
3. Network inside the
services to
company and
customer
throughout the
4. Follow up after customer’s
customer contact business
5. Identify and target 4. Build trust
key customer
5. Coordinate
accounts
customer
6. Listen effectively relationships inside
the Company

6
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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Key Success Factors

Effective Ability to
Ability to adapt
Good verbal personal interact with
sales style from
Listening Follow up Persistence communication planning and individuals at
situation to
skills time every level of
situation the organization
management
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 In terms of sheer numbers, most salespeople are

employed in various kinds of retail selling – B2C
(Business to Consumer).
 Much more relationship selling is done by
salespeople in B2B (Business to Business) markets.
 Classifying Sales Positions
9

Trade Missionar
Servicer y
Seller

Technical Solution
Seller Seller
 THE PERSONAL SELLING
PROCESS EXHIBIT 14.2

Prospecting for Customers

Opening the Relationship

Qualifying the Prospect

Making the Sales Presentation

Handling Customer Objections

Follow up with Customers

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 The Personal Selling Process
11

 Prospecting for Customers

 Outbound telemarketing
 Inbound telemarketing

 Opening the Relationship

 Determine who has the influence or authority to buy
 The Personal Selling Process
12

 Qualifying the Prospect

 Does the prospect h ave a need for the comp any’s
products?
 Can the prospect derive added value from the product in
ways that the company can deliver?
 Can the salesperson effectively contact, communicate, and
work with the prospect over an extended period of time?
 Does the prospect h ave the financial ability and authority
to make the sale?
 Will the sale be profitable for the company?
 The Personal Selling Process
13

 Sales Presentation - Communicating the Sales

Message
 Setting Goals and Objectives to Obtain Action
 Educate the customer by providing enough knowledge about
the company's products.
 Get the customer's attention.
 Build interest for the company's products.
 Nurture the customer's desire and conviction to purchase.
 Obtain a customer commitment to action (purchase).

 Characteristics of a Great Sales Presentation

 CHARACTERISTICS OF A GREAT SALES P
RESENTATION EXHIBIT 14.3

Characteristic Answers the Customer Question

Explains the Value Proposition What is the value added of the product?

Asserts the advantages and benefits of the What are the advantages and benefits of the
product product?

Enhances the customer’s knowledge of What are the key points I should know about this
the company, product, and services company, product, and their services?

Creates a memorable experience What should I remember about this presentation?

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 The Personal Selling Process
15

 Sales Presentation - Communicating the

Sales Message
 Steps in a Sales Presentation
 Identify the customer needs
 Apply Knowledge to Customer Needs
 Satisfy Customer Needs
 The Personal Selling Process
16

 Sales Presentation -
Communicating the Sales
Message
 Handling Objections –
Negotiating Win-Win Solutions
 Respond to Customer Concerns
 COMMON C U STOMER
CONCERNS EXHIBIT 14.4

Product

Need

Common
Company
Customer Price
Trust
Concerns

More
Time

17
 The Personal Selling Process
18

 Sales Presentation - Communicating the Sales

Message
 Closingthe Sale
 Follow Up After the Sale
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Organizing the Sales Fo rce

 Company Sales Force or Independent
Agents
 Economi
c  Control
 Transaction costs
 Strategic Flexibility
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Organizing the Sales Force

 Geographic Orientation
 EXAMPLE OF GEOGRAPHIC O R
GANIZATION EXHIBIT 14.5

General Sales Manager

Eastern
Western Regional Sales
Regional Sales
Manager
Manager

District Sales Manager District Sales Manager District Sales Manager District Sales Manager

Source: Adapted from Mark W. Johnston and Greg W. Marshall, Sales Force Management, 9th ed. (New York: McGraw-Hill, 2009), p. 114.
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 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Organizing the Sales Force

 Product Orientation
 Many firms organize the sales force along product lines
 Advantages are focus on product knowledge, closer
relationship between sales and engineering, product
development and manufacturing. Managers h ave greater
control of the selling effort.
 Disadvantages are more sales people in the geographic
region which leads to higher costs.
 EXAMPLE OF PRODUCT O
RIENTATION EXHIBIT 14.6

General Sales Manager

Division Sales Manager – Product A Division Sales Manager – Product B

Eastern Region Sales Manager Western Region Sales Manager

District Sales Manager

District Sales Manager

Source: Adapted from Mark W. Johnston and Greg W. Marshall, Sales Force Management, 9th ed. (New York: McGraw-Hill, 2009), p. 115.
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PERSONAL SELLING – THE
MOST PERSONAL FORM OF
COMMUNICATION
 Organizing the Sales Force
 Customer Type or Market Organization
 EXAMPLE OF C U STOMER O
RIENTATION EXHIBIT 14.7

General Sales Manager

Sales Manager Sales Manager Sales Manager

Automotive Light Trucks Farm Equipment

District Sales Manager District Sales Manager

Source: Adapted from Mark W. Johnston and Greg W. Marshall, Sales Force Management, 9th ed. (New York: McGraw-Hill, 2009), p. 116.
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 PERSONAL SELLING – THE MOST
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 Organizing the Sales Force

 Sales Force Size
 Workload method
1 . Classify all the company’s customers in categories
2 . Determine the frequency with which each type of account should be
called on and the desired length of each sales call
3 . Calculate the workload involved in covering the entire market
4 . Determine the time available for each salesperson
5 . Apportion the salesperson’s time by task performed
6 . Calculate the number of salespeople needed
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Managing the Sales Force

 Salesperson Performance: Motivating the Sales Force
 Organizational, Environmental and Personal Factors
 Role Perceptions
 Sales Aptitude:Are good salespeople born or made?
 Sales Skill Levels
 Motivation
 Performance
 Rewards
 Satisfaction
EXHIBIT 18.8 MODEL OF SALESPERSON PERFORMANCE

Personal, organizational, and

environmental variables

Role
perceptions

Aptitude
Rewards Satisfaction
Performance Internally mediated Intrinsic
Externally mediated Extrinsic
Skill level

Motivation

level
Source: Mark W. Johnston and Greg W. Marshall, Sales Force Management, 9th ed. (New York: McGraw-Hill, 2009), Exhibit 6.1, pg. 200.

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 PERSONAL SELLING – THE MOST
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 Managing the Sales Fo rce

 Recruiting and Selecting Salespeople
 Analyze the job and determine the selection criteria
 Find and attract a pool of applicants
 Develop and apply selection procedures to evaluate applicants.
 Training
 Improve customer relationships
 Increase productivity
 Improve morale
 Lower turnover
 Improve selling skills
 EXHIBIT 14.9 SALES TRAINING TOPICS

Product
Knowledge

Specialized Market/
Training Industry
Topics Orientation

Sales
Training
Topics Company
Technology
Orientation

Legal/ Time and

Ethical Territory
Issues Management

Source: Mark W. Johnston Greg W. Marshall, Relationship Selling, 2nd ed. (New York: McGraw-Hill, 2008), p. 336.

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 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Compensation and Rewards

 Salary
 Incentive pay
 Commissions
 Bonuses
 Nonfinancial incentives
 PERSONAL SELLING – THE MOST
PERSONAL FORM OF COMMUNICATION
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 Evaluating Salesperson Performance

 Understand controllable and non-controllable factors
 Objective measures from internal data
 Output measures show the results of the salesperson’s
efforts
 Input measures focus on the efforts of salespeople during
the sales process
 Subjective measures rely on personal evaluations,
usually by the direct supervisor
 DIRECT MARKETING
33

 Direct Marketing is an interactive marketing

system that uses one or more advertising media to
affect a measurable response and/or transaction at
any location.
 Direct Marketing Channels
 Direct Mail
 Telemarketing

 Catalogs

 Internet marketing
 DIRECT MARKETING
34

 Creating a Direct Marketing Campaign

and Sp
offer
he
ign

ntify

lified

get
 Direct Sales Channels
35

Direct Mail Telemarketing Catalogs

• Outside • List of • Full line and

envelope qualified specialty
• Sales prospects • Integrated
collateral • Act with website
• Contact immediately • Use customer
information • Act with high lists
ethical • Inventory
standards control
• Monitor costs
 Photo Credits
36

 Slide 16: moodboard/Superstock

 Slide 33: McGraw-Hill Companies Mark Dierker,
photographer