Chapter 22 - Personal selling. The main goals of this chapter are: To understand the role of personal selling in the integrated marketing communications program, to know the advantages and disadvantages of personal selling as a promotional program element, to understand how personal selling is combined with other elements in an IMC program.
Chapter 22 Personal Selling Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Personal Selling Selling through a persontoperson communications process Affected by increased emphasis on customer relationship management Importance varies for each firm depending on: Nature of the product or service being marketed Size of the organization Type of industry Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Dyadic Communication Direct and interpersonal communication Allows sender to immediately receive and evaluate feedback from receiver Messages can be changed to address the receiver’s specific needs and wants Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Factors that Determine the Role of Personal Selling Determining the information to be exchanged Examining promotional-mix alternatives Evaluating the relative effectiveness of alternatives Determining cost-effectiveness Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Characteristics of Stages of Personal Selling Evolution Stages and description Customer needs Type of market Nature and intensity of competition Provider - Accepts orders and delivers to buyer • Assumed to exist • Not a concern Sellers’ • None Persuader - Attempts to convince anyone to buy available offerings • Created • Awakened Buyers’ • Undifferentiated • Slight intensity Segmented • Differentiated • Growing Prospector - Seeks out • Considered but prospects with need inferred for available offering and resources to buy Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Characteristics of Stages of Personal Selling Evolution Stages and description Customer needs Type of market Nature and intensity of competition Problem solver Matches available offerings to solve customer-stated problems • Diagnosed with attention to customer input Participative • Responsive and counteractive with increasing resources Procreator - Creates a unique offering to match the buyer’s needs as mutually specified, involving any or all aspects of the seller’s total marketing mix • • Mutually defined Matched with tailored offering Coactive • • Focused Growing in breadth of market and service offerings Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education New Role of Salespeople Surveying Mapmaking Guiding Fire starting Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Relationship Marketing Organization’s effort to develop a longterm, cost effective link with individual customers for mutual benefit Customer relationship management (CRM): Support targeting, acquiring, retaining, understanding and collaborating with customers Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Figure 22.4 The Eight Step Personal Selling Process Source: From Reds Communications, “The 8 Step Personal Selling Process—Let Us Help You,” www.redscommunications.co.za Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education Types of Sales Jobs Order taking: Accomplished by: Inside order takers Work inside the sales office and receive orders by phone, mail, or the Internet Field order takers Travel to customers to get their orders Creative selling: Getting an order by: Assessing a situation and determining the needs Presenting capabilities to satisfy the needs Missionary sales: Introduce new products, promotions, and/or programs with the actual order to be taken Perform a support role Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 10 Traits of a Salespeople Successful Most helpful to Most objectionable to salespeople customers customers • Knowledgeable • Knowledge • Unprepared • Professional • Empathy • Uninformed • Thorough • Well organized • Aggressive • Results-oriented • Promptness • Undependability • Problem solving • Follow-through • Poor follow-through • Relationship-oriented • Solutions • Presumptuousness • Customer-focused • Punctuality • Calling without • Responsive • Hard work appointments • Good communicators • Energetic • Compulsive talkers • Reliable • Honesty • Problem avoiders Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution withoutofthe prior writtenrespect consent • Lack personal of McGraw-Hill Education 11 Advantages and Disadvantages of Personal Selling Advantages • Allows for two-way interaction • Tailors the message Disadvantages • Inconsistent messages • Sales force/management conflict • Lack of distraction • High cost • Involvement in the decision • Poor reach process • Potential ethical problems • Source of research Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 12 Ways to Use Advertising to Sell More Save sales force time Avoid lengthy explanations Add impact to the presentation and reinforce selling points Ego boosters and personal refreshers Clues to prospects’ interests Prove a point and create preference Help prospects to make a decision Provide followups Fight lowerpriced competitors Getting the customer into the act Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 13 Combining Personal Selling with Other Promotional Tools Public relations Direct marketing Sales Promotion Internet Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 14 Figure 22.12 Factors to Be Considered in the Sales Review Process Source: Steve Deist and Rich Johnson, “Developing an Effective Sales Force,” Industrial Distribution Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 15 Criteria Used to Evaluate Sales Forces Measures Sales results Sales efforts Quantitative measures • • • • • Sales calls Orders Sales volume • Selling expenses Margins • Customer service Customer accounts Qualitative measures • Selling skills • Sales-related activities Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 16 Characteristics That Improve Performance Effectiveness Strength of the field manager Clear link between company culture and values to sales strategies Rigorous management processes that drive performance Consistent training that leads to consistent execution Courage to change Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 17 Criteria for Evaluating Personal Selling Provision of marketing intelligence Followup activities Program implementations Attainment of communications objectives Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 18 ... Direct and interpersonal communication Allows sender to immediately receive and evaluate feedback from receiver Messages can be changed to address the receiver’s specific needs and wants... McGraw-Hill Education Characteristics of Stages of Personal Selling Evolution Stages and description Customer needs Type of market Nature and intensity of competition Provider - Accepts orders and. .. Avoid lengthy explanations Add impact to the presentation and reinforce selling points Ego boosters and personal refreshers Clues to prospects’ interests Prove a point and create preference