17-1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 17 Personal

17-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Chapter 17

Personal selling

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Learning objectives

1. To examine the role of personal selling in the integrated marketing communication program.

2. To describe the advantages and disadvantages of personal selling as part of an IMC program.

3. To propose how personal selling might be combined with other elements in an IMC program.

4. To explain how to determine the effectiveness of the personal selling effort.


Role

Evaluation

LimitationsAdvantages

Personal selling

Public relations

Part of IMC

AdvertisingSales

promotionDirect

marketingInternet


Personal selling

Personal selling involves selling through a person-to-person

communication process.

Personal selling involves selling through a person-to-person

communication process.

The communication process is known as dyadic communications.

The communication process is known as dyadic communications.

Direct Direct

PersonalPersonal

Real timeReal time


Determining the role of personal selling

How cost effective is each alternative?How cost effective is each alternative?

How effective is each alternative in carrying out the needed exchange?

How effective is each alternative in carrying out the needed exchange?

What are the alternative ways to carry out these communications objectives?

What are the alternative ways to carry out these communications objectives?

What information must be exchanged between firm and potential customer?

What information must be exchanged between firm and potential customer?


When the sales force is a major part of IMC


Evolution of the seven steps of selling


Evolved sales process


New roles for sales people

Database knowledge & management

Database knowledge & management

Problem diagnosis & problem-solvingProblem diagnosis & problem-solving

Nurturing & maintaining relationships

Nurturing & maintaining relationships

Value creators, value adders

Value creators, value adders


Desired qualities for sales people


Relationship marketing

Relationship marketing defined:

The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.

Relationship marketing defined:

The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.


Factors important in customer retention


Types of sales jobs

This is essentially a support roleThis is essentially a support role

Requires the most skill and preparationRequires the most skill and preparation

Must assess situation, determine needsMust assess situation, determine needs

This role is much more casualThis role is much more casual

Often involves straight rebuyingOften involves straight rebuying

May not actually take the orderMay not actually take the order

Creative selling

Creative selling

Order takingOrder taking

Missionary sales

Missionary sales


Company 360—a great way to identify prospects


Six steps of selling

1. Prospecting and qualifying leads1. Prospecting and qualifying leads

2. Determining customer’s needs and wants.2. Determining customer’s needs and wants.

3. Recommending a way to satisfy customer needs3. Recommending a way to satisfy customer needs

4. Demonstrating the capabilities of the company and its products

4. Demonstrating the capabilities of the company and its products

5. Closing the sale5. Closing the sale

6. Following up the service account6. Following up the service account


10 traits of effective salespeople

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.

2. Sense of urgency: wanting to get it done now.

3. Ego drive: a combination of competitiveness and self-esteem.

4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently.

5. Risk-taking: willing to innovate and take a chance.


10 traits of effective salespeople (cont.)

6. Sociable: outgoing, friendly, talkative and interested in others.

7. Abstract reasoning: ability to understand concepts and ideas.

8. Scepticism: a slight lack of trust and suspicion of others.

9. Creativity: the ability to think differently.

10. Empathy: the ability to place oneself in someone else’s shoes.


Traits buyers consider helpful and unhelpful


Personal selling advantages and disadvantages

Poor reachPoor reach

Tailoring the messageTailoring the message

Two-way interaction with prospect

Two-way interaction with prospect

Prospect is not likely to be distracted

Prospect is not likely to be distracted

High cost High cost

Potential for management/ sales force conflict

Potential for management/ sales force conflict

Inconsistent messagesInconsistent messages

Seller involved in purchase decision

Seller involved in purchase decision

Source of research information

Source of research information

Potential ethical problemsPotential ethical problems

AdvantagesAdvantages DisadvantagesDisadvantages


Role

Evaluation


Personal selling

Public relations

Part of IMC

AdvertisingSales

promotionDirect

marketingInternet


Personal selling combines with other IMC tools

AdvertisingAdvertising

Public relationsPublic relations

Direct marketingDirect marketing

Sales promotionSales promotion

The internetThe internet

Personal selling

Personal selling


Personal selling and advertising work together


Combining personal selling and advertising


Combining personal selling and public relations

Sales staff directly perform PR functions

Sales staff directly perform PR functions

Encourage sales staff to undertake ‘pro bono’ work

Encourage sales staff to undertake ‘pro bono’ work

Encourage sales staff to support NFP and philanthropic organisations

or causes

Encourage sales staff to support NFP and philanthropic organisations

or causes

StrategiesStrategies

Provide incentives for sales staff to join clubs and community groups

Provide incentives for sales staff to join clubs and community groups


The Body Shop


Personal selling and direct marketing

Screen leads and qualify prospectsScreen leads and qualify prospects

Supporting sales staffSupporting sales staff

PR dimensionPR dimension

Customer service & follow-upCustomer service & follow-up

Can be combined with direct mail, email and other DM methodsCan be combined with direct mail, email and other DM methods

TelemarketingTelemarketing


Growth of telemarketing


Incentives targeted at the sales force


Combining personal selling and the internet

Provide product informationProvide product information

Screen prospectsScreen prospects

Build and market from databasesBuild and market from databases

Generate leadsGenerate leads

Fulfil ordersFulfil orders


Personal selling and the internet


Evaluating the personal selling effort


Role

Evaluation


Personal selling

Public relations

Part of IMC

AdvertisingSales

promotionDirect

marketingInternet


Evaluating the sales force

Sales resultsSales results

Sales effortsSales efforts


Quantitative measures of sales force


Characteristics affecting sales force performance

The courage to changeThe courage to change

Consistent training that leads to consistent executionConsistent training that leads to consistent execution

Rigorous management processes that drive performanceRigorous management processes that drive performance

A clear link between company culture and value to sales strategies

A clear link between company culture and value to sales strategies

The strength of the field managerThe strength of the field manager


Criteria for evaluating personal selling's contribution

Are communications objectives attained?Are communications objectives attained?

Are IMC programs being implemented?Are IMC programs being implemented?

Are follow-up activities conducted well?Are follow-up activities conducted well?

Provide good marketing intelligence?Provide good marketing intelligence?


Summary and conclusions The role of personal selling is evolving into a customer

relationship model.

Within companies, the role of personal selling varies, depending on the nature of the industry, competition and market conditions.

In large industrial environments personal selling may be the dominant form of communications whereas in consumer non-durables, it may play a minor role.

Although personal selling can be expensive, the real-time nature of communications has many advantages.

One of personal selling’s limitations is the non-standardised nature of the message.

Evaluation of personal selling is the responsibility of the sales department.

Documents

17-1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 17 Personal