1. Promotional Strategy MKT4230 Personal Selling Patricia Knowles, Ph.D. Associate Professor Clemson University 1

2. 2 Promotional Strategy MKT4230 2 Personal Selling This is an introduction to the topic of personal selling. Textbook Page 4 Typically under control of Sales Manager 3. 3 Promotional Strategy MKT4230 3 Promoting Products These are the differences between direct and indirect promotion: Direct promotion Through advertising and promotion Direct-marketing efforts Dyadic communication allows for immediate feedback and adjustment Plays critical role in industrial settings Indirect promotion Through resellers Through sales people Textbook Pages 5 - 6 4. 4 Promotional Strategy MKT4230 4 Determining the Role of Personal Selling These are the four questions that management must answer when determining the role of personal selling in an IMC program. Textbook Pages 5 - 6 How cost effective is each alternative? How effective is each alternative in carrying out the needed exchange? What are the alternative ways to carry out these communications objectives? What information must be exchanged between firm and potential customer? 5. 5 Promotional Strategy MKT4230 5 Determining the Role of Personal Selling These are the personal selling alternatives: Textbook Pages 5 6 / Exhibit 22 - 1 6. 6 Promotional Strategy MKT4230 6 Stages of Personal Selling Evolution This chart summarizes the stages of the evolution of personal selling. Textbook Pages 6 - 7 Selling activity limited to order-taking and delivery Provider Attempting to persuade customer to buyPersuader Seeking out buyers perceived to have a needProspector Buyers identify problems to be met by goodsProblem-solver Seller determines buyer needs and fulfills them Procreator 7. 7 Promotional Strategy MKT4230 7 New Roles for Salespeople These are some of the additional activities and roles sales people will engage in as they adapt to a changing marketing environment. Textbook Pages 7 8 Surveying Mapmaking Guiding Fire Starting 8. 8 Promotional Strategy MKT4230 8 Customer Relationship Marketing This is the definition of relationship marketing: An organizations effort to develop a link with individual customers that is Long-term Cost effective Mutually beneficial Textbook Page 8 9. 9 Promotional Strategy MKT4230 9 Customer Relationship Marketing This is an ad by SAS, one of the many companies offering CRM software. Textbook Page 8 / Figure 22 - 1 SAS designs software to assist customer relationship management 10. 10 Promotional Strategy MKT4230 10 Factors in Keeping a Customer This is a summary of the factors that are very important to customer: Textbook Page 9 / Figure 22 - 3 Product Uniqueness Customer Service Depth of Product Line Perceived Price to Value Proposition Loyalty/ Reward Program Product Quality 11. 11 Promotional Strategy MKT4230 11 Salesperson Classifications These are the three classifications of salespeople: Textbook Pages 9 - 10 / Figure 22 - 4 More casual role Often involves straight rebuying Order Taking Essentially a support role May not actually take orders Missionary Sales Assess situation, determine needs Get order Creative Selling Present ability to satisfy needs 12. 12 Promotional Strategy MKT4230 12 Personal Selling Responsibilities This is a summary of the duties and the responsibilities of a salesperson, which are numerous and require a wide range of skills. Textbook Pages 9 - 10 Follow up and service the account Close the sale Demonstrate product capabilities Recommend a way to satisfy them Determine customers needs and wants Locate prospective customers 13. 13 Promotional Strategy MKT4230 13 Salespeople Have Many Duties In many companies, salespeople perform multiple roles, including creative selling, order taking, and customer service and support. Textbook Page 9 / Exhibit 22 - 2 14. 14 Promotional Strategy MKT4230 14 Test Your Knowledge With the evolution of personal selling, an individual salesperson's job requirements may include: A. Determining customers' needs and wants B. Demonstrating the capabilities of the firm C. Following up and servicing the account D. Locating prospective customers E. All of the above 15. 15 Promotional Strategy MKT4230 15 Traits of Effective Salespeople These are the traits that are common to effective salespeople: Textbook Page 11 / Figure 22 - 5 Good Communicator Knowledgeable Results- oriented Relationship- oriented Professional Reliable Customer-focused Thorough Problem Solver Responsive 16. 16 Promotional Strategy MKT4230 16 Traits Buyers Like and Dislike These are the traits that buyers prefer in salespeople and the ones that they find objectionable: Textbook Page 11 / Figure 22 - 6 Desirable Objectionable 1. Knowledgeable 2. Empathizes 3. Well organized 4. Prompt 5. Follows through 6. Has solutions 7. Punctual 8. Hard working 9. Energetic 10. Honest 1. Unprepared 2. Uninformed 3. Aggressive 4. Undependable 5. No follow through 6. Presumptive 7. Walk-ins 8. Gabbers 9. Problem avoiders 10. Lack of respect 17. These are the advantages and disadvantages of personal selling: 17 Promotional Strategy MKT4230 17 Pros and Cons of Personal Selling Textbook Pages 12 - 14 Reach may be very limited Message can be tailored to recipient Two-way interaction with prospect Prospect isn't likely to be distracted Cost is often extremely high Possible management-sales force conflict Messages may be inconsistent Seller involved in purchase decision Source of research information Potential ethical problems Advantages Disadvantages 18. 18 Promotional Strategy MKT4230 18 Personal Selling and Other Tools This chart shows that personal selling is regularly combined with the other IMC tools including advertising, public relations, direct marketing, sales promotion, and the Internet. Textbook Pages 14 - 18 Advertising Public Relations Direct Marketing Sales Promotion The Internet Personal Selling 19. 19 Promotional Strategy MKT4230 19 Personal Selling and Advertising This is an ad by Dell that informs customers that they compete in the business-to-business market. Textbook Pages 14 15 / Exhibit 22 - 4 20. 20 Promotional Strategy MKT4230 20 Personal Selling and Public Relations This is how personal selling can be combined with public relations: Textbook Pages 15 - 16 Rep is often best source of PR Representative of the organization Involved in community Creates goodwill 21. 21 Promotional Strategy MKT4230 21 Personal Selling and Public Relations This visual shows sales force volunteers from PacifiCare Corporation helping to rebuild a house destroyed by Hurricane Katrina. Textbook Pages 15 16 / Exhibit 22 - 5 Sales Force Volunteers at Work 22. 22 Promotional Strategy MKT4230 22 Test Your Knowledge By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm. A. Sales promotion B. Advertising C. Public relations D. Direct marketing E. Telemarketing 23. 23 Promotional Strategy MKT4230 23 Personal Selling and Direct Marketing This visual shows an ad for Phone Works, a company that helps organizations with the sales process, including assisting in the development and implementation of direct marketing methods. Textbook Pages 16 17 / Exhibit 22 - 6 24. 24 Promotional Strategy MKT4230 24 Personal Selling and Sales Promotion This is how elements of sales promotion and personal selling support each other: Textbook Pages 17 - 18 Reseller Consumer Sales Force Sales Promotion Targets 25. 25 Promotional Strategy MKT4230 25 Personal Selling and the Internet This visual shows an ad for GoToMeeting.com, a company that provides conferencing, video conferencing and online meeting services. Textbook Pages 18 19 / Exhibit 22 - 8 26. 26 Promotional Strategy MKT4230 26 Evaluating the Personal Selling Effort These are the factors to be considered during the sales review process: Review of all target accounts Review of all cross-functional selling Review of specific territory objectives Knowledge of products, customers, and customer organizations Ability to apply this market knowledge Development of a favorable attitude Required course corrections Textbook Pages 18 19 / Figure 22 - 9 27. 27 Promotional Strategy MKT4230 27 Characteristics Affecting Performance These are the five characteristics that were identified as critical for differentiating effective versus non-effective sales performances. Textbook Pages 18 - 20 Strength of the field manager Clear link between company culture/values to sales strategies Management processes that drive performance Consistent training The courage to change 28. 28 Promotional Strategy MKT4230 28 Evaluating Personal Selling These are the criteria for evaluating the contribution of the personal selling effort to the promotional program. Textbook Page 20 Provision of marketing intelligence Follow-up activities Program implementations Attainment of communications objectives 29. 29 Promotional Strategy MKT4230 29 Test Your Knowledge The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion? A. Attainment of communications objectives B. Program implementation C. Follow-up activities D. Providing market intelligence E. None of the above 30. 30 Promotional Strategy MKT4230 30 Quantitative Measures of Sales Results These are the quantitative measures that can be used to evaluate sales force performance. Textbook Page 21 / Figure 22 - 10 Orders Sales Volume Margins Customer Accounts Sales Calls Selling Expenses Customer Service Quantitative Measures 31. 31 Promotional Strategy MKT4230 31 Qualitative Measures of Sales Results These are the qualitative criteria used to evaluate sales force performance. Textbook Page 21 / Figure 22 - 10 Selling Skills Sales Related Activities