Personal Selling, Database Marketing, and Customer Relationship Management

Chapter 12 with Duane Weaver

Personal Selling - Retail The retail sales connection to the IMC

plan is vitally important to marketing success…the salesperson “is” the company…the last 3 feet of the marketing effort

4 Categories of Retail1. Shops and stores

Single transaction (one to one assistance/negotiation) to order taker

2. Personal selling and services1. Sales rep sells service and may lead to repeat

selling relationship2. Sell and then also provide the service

3. Telemarketing Inbound Outbound

4. Other retail sales activities Add-on sales/service initiatives to enhance

sales profit or customer value

Business to Business SellingField SalesOrder GettersContinuum of Buyer Seller Relationship

Strategic Partnership

EDI relationship

Trust Relationships

Contractual Agreements

Repeat Transactions

Occasional Transactions

Single Transactions

Managing Business to Business Sales Identify (fill the pipeline) Qualify (filter/ripen the pipeline) Knowledge Acquisition (Needs Analysis –

understanding the buyer) Intrinsic (commodity price focused – place order)

$ Extrinsic (product as solution -consultation) $$$ Strategic (vendors willing to be partners to

satisfy customer needs) $$$$$$$$$ FOLLOW UP: intrinsic to building long term

relationships and maintaining brand loyalty

Sales ApproachesStimulus-response (canned)Need-satisfaction (skilled open-ended

questioning)Problem-solution (similar to above, yet

identifies & communicates pains related to solutions)

Mission-sharing (borderline joint venture sale – e.g.: business development)

Sales Cycle

Presented by D. Weaver, 2Birds1Stone Media

The Basic Sales Cycle

1. Needs Analysis

2. Recommendation

3. Preparing the Close

4. Closing

5. Repeat/Referral Business

Recommend

Prepare the Close

Repeat/ReferralBusiness

Close

NeedsAnalysis

Copyright 2006

Presented by D. Weaver, 2Birds1Stone Media

Learning and Practicing Skills – Identifying NeedsClosed-Ended Questions (example?)

Advantage / Disadvantage?Open-Ended Questions (example?)

Advantage / Disadvantage?Exercise – in 2 minutes write down two open-

ended questions you could use when you first speak to a customer. Turn to your neighbor and ask him the question. Note his response.

Database MarketingDetermine ObjectivesCollect DataBuild Data WarehouseData MiningDevelop Marketing ProgramsEvaluate Programs/Evaluate Data

Warehouse

Direct MarketingMailCataloguesMass MediaAlternative Media InternetE-mail

Permission based Marketing

1. Obtain customer permission2. Offer curriculum to consumer over

time3. Reinforce the incentive to continue

relationship (provide value)4. Increase level of permission (gain

trust and maintain integrity)5. Leverage permission to the benefit of

both parties

Frequency Programs Incentive program designed to create

repeat purchases

CRM(Customer Relationship Management)Designed to build long-term loyalty

and bonds with customers through the use of personal touch facilitated by technology (ACT…etc)

METRICS OF CRM:Lifetime Value of CustomerShare of the Customer (% of potential

customer lifetime value accessed)

Discussion QuestionsQuestion 3 on page 392Question 4 on page 392Question 8 on page 393

ThanksBe prepared for a quiz at anytime