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Personal Selling and Direct Marketing
Chapter 17PowerPoint slidesExpress version
I nstructor name Course name School name
Date
Pri nciples of M arketing, Sixth Canadian Edition
http://www.pearsoned.ca/kotler/7/27/2019 Kotler Pom Cw Ppt Exp Ch17
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17.2
Learning Objectives
After studying this chapter, you should be able to: Discuss the role of a companys 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 betweentransaction-oriented marketingand relationship marketing
Define direct marketing anddiscuss its benefits to customers
and companies Identify and discuss the major forms of direct marketing
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17.3
Personal Selling
Salesperson: an individual acting for a company by performing oneor more of these activities: Prospecting for new business Communicating with prospective/existing customers Servicing existing customers
Information gathering Nature of sales
positions will vary: Order taking
Order getting Creative selling Relationship management
Role of the sales force: Represent the company to
customers Represent the customer to
the company Produce customer
satisfaction and company profit
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17.4
Sales Force Management
Sales force management: the analysis, planning, implementation, and control of salesforce activities.
Sales force structure: Territorial sales force structure
Product sales force structure Customer sales force structure Complex sales force structure
Other issues: Outside sales force
Inside sales force Team selling
Figure 17.1
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17.5
Sales Force Management (continued)
Recruiting: finding a pool of qualified applicants from which tomake a selection decision Sources: internal, competitors, suppliers, educational
institutions, employment agencies, classified ads, and websites
Selection: choosing the candidate with the highest probability of
success in the position Methods: intelligence/personality testing, interviews, role play
exercises, references, and background checks
Figure 17.1
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17.6
Sales Force Management (continued)
Training: investing in the human capital of the company, helpingsales people to become more productive employees Objectives of training can be to learn:
Company history and culture Products and their application
Selling skills such as prospecting, questioning, closing, andtime and territory management
Figure 17.1
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17.7
Sales Force Compensation
Compensation is used to direct activities and motivate salespeople Will consist of fixed amount (salary), variable amount (bonus or
incentives), expenses, and fringe benefits
Table 17.1
Strategic GoalGain market Solidify market Maximizeshare rapidly leadership profitability
Ideal An independent self-starter A competitive problem solver A team player salesperson: A relationship manager
Sales focus: Deal making Consultative selling Account penetrationSustained high effort
Compensation To capture accounts To reward new and existing To manage the product mixrole: To reward high performance account sales To encourage team selling
To reward account management
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17.8
Supervising Salespeople
Supervision is used to direct and motivate salespeople Companies will vary in how closely they supervise their
salespeople Tools used:
Call reports and plans
Time-and-duty analysis Sales force automationsystems
Motivating salespeople: Organizational climate Sales quotas Sales meetings Reward systems
Figure 17.2
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Evaluating Salespeople
Measuring performance and providing feedback Information collected and used for evaluation purposes:
Sales reports Expense reports Call reports
Territory reviews may be conducted todiscuss performance
Standards of performance need to beclearly articulated to salespeople
Focus on behaviour
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17.10
The Personal Selling Process
The goal of the personal selling process is to find new customers andsell them something
Most salespeople spend their time maintaining existing accounts and building long-term customer relationships
Not all steps required in every sale
Figure 17.3
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17.11
Customer Relationship Management
Most personal selling is transaction-oriented Companies want to encourage repeat purchasing because it is
more efficient Mutually profitable relationships are built on creating value,
offering packaged solutions to problems, and improving productsand processes
Figure 17.3
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17.12
Direct Marketing
Direct marketing: direct communications with carefullytargeted individual consumers to obtain an immediate response Can be a primary approach or as a supplement to other
approaches
Benefits to consumers: Convenient, easy to use,
and private Ready access to wealth of
products
Immediate and interactive
Benefits to sellers: Powerful tool to build
customer relationships One-to-one marketing Low-cost, efficient
alternative for reachingtarget markets
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17.13
Direct Marketing (continued)
Customer database: organized collection of comprehensive data about individual customers or prospects,including geographic, demographic, psychographic, and
behavioral data Used to identify prospects and generate sales leads Profile customers based on
previous purchasing or responseto offers
Build customer loyalty bytailoring new offers to their specific interests
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Forms of Direct Marketing (continued)
Telephone marketing Direct mail marketing Catalogue marketing Direct-response
television marketing Kiosk marketing
Integrated direct marketing:
Direct marketing campaigns that usemultiple vehicles and multiple stages toimprove response rates and profits Continuing
communication
Paid ad with aresponse channel
Directmail
Outboundtelemarketing
Face-to-facesales call
Figure 17.5
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17.15
Public Policy and Ethical Issues
Irritation, unfairness,deception, and fraud
Invasion of privacy
Personal Information Protection andElectronic Documents Act (2001): Consumer consent
Limitations Accuracy Right to access
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17.16In Conclusion
The learning objectives for this chapter were: Discuss the role of a companys 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 betweentransaction-oriented marketingand relationship marketing
Define direct marketing anddiscuss its benefits to customersand companies
Identify and discuss the major forms of direct marketing