Presentation on :
MANAGING PERSONAL COMMUNICATIONS: DIRECT MARKETING & PERSONAL SELLING.
Group Members:
Digesh ShahKartik PatelParesh Sidhdhapura
To Start with…
The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records. The term junk mail, referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954.
DIRECT MARKETING
It’s the use of consumer-direct channels to reach & deliver goods & services to customers without using
marketing middlemen. Kiosk
Benefits of Direct Marketing
For Buyers: Convenient Easy to use Private Access to a wealth of information Immediate Interactive
Benefits of Direct Marketing For Sellers
Powerful tool for building relationships Allows for targeting of small groups or
individuals with customized offers in a personalized fashion
Can be timed to reach prospects at the right time
Offers access to buyers that couldn’t be reached via other channels
Low-cost, effective alternative for reaching specific markets
Direct Marketing Channels:
Direct mailCatalogTelemarketingWeb sitesEmail marketingMobile devices Interactive TV
Direct mail :
Establish objectives
Select target prospects
Develop offer elements
Test elements
Execute
Measure success
Objectives
Producing prospect leadsStrengthening customer
relationships Informing and educating customersReminding customers of offers
Selecting Target Prospects
RFM Formula for Selecting Prospects
Recency-”how much times has passed since their last purchase”
Frequency-”how many times they have purchased”
Monetary value-”how much they have spent since becoming a customer”
Develop Offer Element
Components of the MailingOutside envelopeSales letterCircularReply formReply envelope
Testing Elements
To derive a more comprehensive estimate of the promotion’s impact, companies are measuring the impact of direct marketing on awareness, intention to buy and word of mouth.
Measuring Campaign Success
By adding up the planned campaign costs, the direct marketer can figure out in advance the needed break-even response rate.
The direct marketer needs to analyze main causes of returned merchandise (late shipment, damage in transit, incorrect order fulfilment,etc)
A customer’s ultimate value is not revealed by a purchase response to a particular mailing, rather it is the expected profit made on all future purchases.
Catalog Marketing:
Send full-line merchandise catalogs, consumer catalog, business catalog.
Success depends on managing customer lists carefully to avoid duplication, controlling inventory, offering quality merchandise & projecting a distinctive image.
Types of Telemarketing
TelesalesTelecoverageTeleprospectingCustomer service and technical
support
Other Media for Direct Response
TelevisionDirect Response AdvertisingAt home shopping channelsVideotext
Kiosks
E Marketing
Permission Marketing Levels of Permission Marketing
▪ No permission level▪ Low permission level▪ Medium permission level▪ High permission level▪ Transaction level
E Marketing Guidelines Give the customer a reason to respond Personalize the content of your e-mails Offer something the customer could not get via
direct mail Make it easy for the customer to “unsubscribe”
Interactive Marketing
Designing an Attractive Web SiteContextContentCommunityCustomizationCommunicationConnectionCommerce
Door-to-Door Leaflet Selling:Leaflet Distribution services are used
extensively by the fast food industries, and many other business focusing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area and costs a fraction of the amount of a mail shot due to not having, to purchase stamps, envelopes or having to buy address lists and the names of home occupants.
Designing the Sales Force :
McMurry has distinguished these six types of sales representatives
1. Deliverer: A salesperson whose major task is the delivery of a product (milk, bread, or fuel).
2. Order taker: A salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager).
3. Missionary: A salesperson whose major task is to build goodwill or to educate the actual or potential user, rather than to sell (the medical “detailer” representing an ethical pharmaceutical firm).
Contd….
4. Technician: A salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to client companies).
5. Demand creator: A salesperson who relies on creative methods for selling tangible products (vacuum cleaners or siding) or intangibles (insurance or education).
6. Solution vendor: A salesperson whose expertise lies in solving a customer’s problem, often with a system of the firm’s goods and services (such as computer and communications systems).
Contd….
In general, salespeople perform one or more of the following tasks:
➤ Prospecting: Searching for prospects, or leads, ➤ Targeting: Deciding how to allocate their time among
prospects and customers, ➤ Communicating: Communicating information about the
company’s products and services, ➤ Selling: Approaching, presenting, answering objections,
and closing sales, ➤ Servicing: Providing various services to customers—
consulting on problems, rendering technical assistance, arranging financing, expediting delivery,
➤ Information gathering: Conducting market research and doing intelligence work, and
➤ Allocating: Deciding which customers will get scarce products during shortages.
Managing the Salesforce
Designing Salesforce Strategy and StructureDesigning Salesforce Strategy and Structure
Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople
Training SalespeopleTraining Salespeople
Compensating SalespeopleCompensating Salespeople
Supervising SalespeopleSupervising Salespeople
Evaluating SalespeopleEvaluating Salespeople
Designing Sales Force Strategy and Structure
Types of Sales Force StructureTypes of Sales Force Structure
ComplexCombination of Above Types of Sales Force Structures
ComplexCombination of Above Types of Sales Force Structures
TerritorialExclusive Territory toSell the Company’sFull Product Line
TerritorialExclusive Territory toSell the Company’sFull Product Line Product
Sales Force Sells AlongProduct Lines
ProductSales Force Sells Along
Product Lines CustomerSales Force Sells Along
Customer/ Industry Lines
CustomerSales Force Sells Along
Customer/ Industry Lines
How Will Sales and Sales SupportPeople Work Together?
Team Selling
How Will Sales and Sales SupportPeople Work Together?
Team Selling
Designing Sales Force Strategy and StructureDesigning Sales Force Strategy and Structure
Sales Force SizeSales Force Size
Who Will Be Involved in the Selling Effort?
Outside Sales ForceInside Sales Force
Who Will Be Involved in the Selling Effort?
Outside Sales ForceInside Sales Force
Other Sales Force Strategy and Structure IssuesOther Sales Force Strategy and Structure Issues
Vs.
Some Characteristicsof Salespeople
Some Characteristicsof Salespeople
Recruiting ProceduresRecruiting Procedures
Salesperson Selection Process
Salesperson Selection Process
•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment
•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment
Recruiting and Selecting Salespeople
Recruiting and Selecting Salespeople
•Current Salespeople•Employment Agencies•Classified Ads•College Campuses
•Current Salespeople•Employment Agencies•Classified Ads•College Campuses
•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics
•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics
Training SalespeopleTraining Salespeople
Help Salespeople Know & IdentifyWith the Company
Help Salespeople Know & IdentifyWith the Company
Learn How the Products WorkLearn How the Products Work
Learn About Competitors’and Customers’ Characteristics
Learn About Competitors’and Customers’ Characteristics
Learn How to MakeEffective Presentations
Learn How to MakeEffective Presentations
Understand Field Proceduresand Responsibilities
Understand Field Proceduresand Responsibilities
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Compensating Salespeople
Componentsof
Compensation
PAYCHECK
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.
Benefits
Bonus
Salary
Commission
Supervising Salespeople
Directing Salespeople Motivating Salespeople
• Identify Customer Targets & Set Call Norms
• Develop Prospect Targets
• Use Sales Time Efficiently– Annual Call Schedule– Time-and-Duty Analysis– Sales Force Automation
• Organizational Climate
• Sales Quotas
• Positive Incentives
– Honors
– Awards
– Merchandise/ Cash
– Trips
Motivating the Sales Force
Ceremonies Vacations
Merchandise Pay raises
Cash bonuses Stock options
Tuition assistance Product discounts
Rewards and incentives include:
How Salespeople Spend Their Time
Administrative Tasks17%
TelephoneSelling
21%
Waiting/ Traveling
20%
Service Calls12%
Face-to-Face Selling
30%
Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
Source : Wall Street Journal, February 23, 2006, B1.
Evaluating Salespeople
AnnualTerritory
Marketing Plan
AnnualTerritory
Marketing Plan
CallReports
CallReports
ExpenseReports
ExpenseReports
WorkPlan
WorkPlan
SalesReportSales
Report
Sourcesof
Information
Sourcesof
Information
Character of Top Sales Performers
Strong, healthy self esteem Can bounce back from rejection
Sense of urgency and competitiveness Persuasive
Self-confident Sociable
Willing to take risks Understand complex concepts
Creative in developing solutions Possess empathy
Women in Car Sales
SOURCE: Jennifer Saranow, “Car Dealers Recruit Saleswomen at the Mall,”
Wall Street Journal, April 12, 2006, B1.
For its Florida and Texas dealerships, Asbury Automotive Group is actively recruiting saleswomen– at shopping malls.
11% of the automotive sales force is female. In contrast, 50% of retail-industry employees are women.
Women influence 81% of new auto purchases, and women may even be better at selling cars than men.
Personal Selling
Personal Selling is more important if...
Customers are concentrated.
Customers are concentrated.
Product is technically complex.
Product is technically complex.
There are few customers.There are few customers.
Product is custom made.Product is custom made.
Product has a high value.Product has a high value.
Customers are geographically dispersed.
Customers are geographically dispersed.
Product is simple to understand.
Product is simple to understand.
There are many customers.There are many customers.
Product is standardized.Product is standardized.
Product has a low value.Product has a low value.
Advertising & Sales Promotion are more important if...
Personal Selling Advantages
Detailed explanation or demonstration
Variable sales message
Directed to qualified prospects
Controllable adjustable selling costs
More effective than other promotion in obtaining sale and gaining customer satisfaction
PersonalSelling
Advantages
PersonalSelling
Advantages
Personal Selling Process
Prospecting Pre-approach ApproachMaking the
Presentation
FollowingUp
Closing the Sale
OvercomingObjections
Step 1. Prospecting and Qualifying Step 1. Prospecting and Qualifying
Step 2. Preapproach Step 2. Preapproach
Steps in the Selling ProcessSteps in the Selling Process
Finding and Analyzing Information About Prospects
Developing Lists of Potential Customers
Step 3. Approach Step 3. Approach
Step 4. Presentation/ Demonstration Step 4. Presentation/ Demonstration
THIS DEALS WITH HOW WE MAKE THE
INITIAL CONTACT WITH APOTENTIAL CUSTOMER
Attract and Hold Attention, Plus Stimulate Interest and Desire
Step 5. Handling Objections Step 5. Handling Objections
Step 6. Closing Step 6. Closing
IF HE HADN’T TOLDME WHAT HIS OBJECTION
WAS, I NEVER WOULDHAVE BEEN
ABLE TO HELP!
Asking the Prospect to Buy
Step 7. Follow-Up and maintenance Step 7. Follow-Up and maintenance
Long-term Customer Satisfaction
Negotiation
Negotiation is an act performed by both the parties in order to reach an agreement on any issue which is concerned about the business deal between both the parties.
For e.g. A seller might have price X in his mind but the buyer expects price Y as a result of this, both buyer and seller will have to negotiate in order ton arrive at one price.
21-43
Negotiation
When to negotiate▪ When factors bear not only on price,
but also on quality of service▪ When business risk cannot be
accurately predetermined▪ When a long period of time is required
to produce the items purchased▪ When production is interrupted
frequently because of numerous change orders
Relationship(Consultative)
Selling
Relationship(Consultative)
Selling
Relationship Selling
A sales practice that involves building, maintaining, and
enhancing interactions with customers in order
to develop long-term satisfaction through mutually beneficial
partnerships.
Traditional Selling and Relationship Selling
Sell advice, assistance, counsel Sell products
TraditionalPersonal Selling
Focus on closing sales
Limited sales planning
Discuss product
Assess “product-specific” needs
“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
Focus on customer’s bottom line
Sales planning is top priority
Build problem-solving environment
Conduct discovery in scope of operations
Team approach
Profit impact and strategic benefit focus
Long-term sales follow-up
Relationship Selling