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Chapter 14

The document outlines the significance and qualities of personal selling, emphasizing its effectiveness in the later stages of the buying process and the importance of building long-term customer relationships. It details the personal selling process, including prospecting, handling objections, closing sales, and follow-up, as well as the roles and tasks of salespeople. Additionally, it covers direct marketing, its advantages, types, and the growth of direct marketing, highlighting the importance of relationship marketing in fostering customer loyalty.

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4 views8 pages

Chapter 14

The document outlines the significance and qualities of personal selling, emphasizing its effectiveness in the later stages of the buying process and the importance of building long-term customer relationships. It details the personal selling process, including prospecting, handling objections, closing sales, and follow-up, as well as the roles and tasks of salespeople. Additionally, it covers direct marketing, its advantages, types, and the growth of direct marketing, highlighting the importance of relationship marketing in fostering customer loyalty.

Uploaded by

mariamakbar3.9
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Personal Selling & Direct Marketing – Exam Point of View Notes

Personal Selling

Importance

 Most effective at the later stages of the buying process.

 Influences:

o Buyer preference

o Buyer conviction

o Purchase action

Qualities of Personal Selling

1. Customized – Message can be tailored to each customer.

2. Relationship-Oriented – Builds long-term customer relationships.

3. Response-Oriented – Immediate customer feedback and


response.

Personal Selling Process

1. Prospecting and Qualifying

Identifying potential customers and checking if they are suitable buyers.

2. Presentation and Demonstration

FABV Approach

3. Handling Objections

Types of Objections

A. Psychological Resistance

 Preference for existing brands

 Apathy

 Reluctance to change

 Negative attitude toward salesperson

 Fear of making decisions

B. Logical Resistance

 Price objections
 Delivery issues

 Product concerns

 Company-related concerns

4. Closing the Sale

 Essential step of selling.

 Skilled salesperson knows the right time to close.

5. Follow-Up and Maintenance

 Ensures customer satisfaction.

 Confirms delivery and installation.

 Solves problems.

 Encourages repeat purchases.

Key Account Management

Salespeople should:

 Stay in contact regularly.

 Understand customer problems.

 Adapt to changing customer needs.

Salespeople's Main Tasks

1. Information Gathering

 Market research

 Competitive intelligence

2. Targeting

 Deciding whom to visit

3. Communicating

 Providing product information

4. Selling
 Presentation

 Objection handling

 Closing

5. Servicing

 Technical assistance

 Financing help

 Delivery arrangements

6. Allocating

 Distributing scarce products

Types of Sales Force

Direct (Company) Sales Force

 Company employees

 Full-time or part-time

Types

 Inside Salespeople → Work from office

 Field Salespeople → Visit customers

Contractual Sales Force

Includes:

 Sales agents

 Brokers

 Manufacturers' representatives

Payment

 Commission-based

Choosing Between Company Sales Force and Sales Agency

Sales Agency

Advantages:
 Lower initial cost

 Existing market contacts

Company Sales Force

Advantages:

 Better trained

 Focused on company products

 Stronger customer relationships

Sales Force Structure

Geographic Structure

Used when:

 One product line

 One industry

 Customers in many locations

Sales Force Compensation

Salespeople Want

 Stable income

 Performance rewards

 Fair pay

Management Wants

 Control

 Economy

 Simplicity

Selecting Salespeople

Less Reliable Predictors

 Personality

 Lifestyle

 Background experience
Sales Training

Modern salespeople must:

 Have deep product knowledge.

 Solve customer problems.

 Add value to customer operations.

 Be reliable and efficient.

Improving Sales Productivity

Prospect Call Norms

 Salespeople should contact prospects, not only existing customers.

Efficient Use of Time

 Increase role of inside sales force.

 Reduce travel costs.

Sales Technology

 Faster sales information.

 Decision-support systems.

 Better inventory management.

Motivating Salespeople

Most Valued Rewards

1. Pay

2. Promotion

3. Personal growth

4. Sense of achievement

Least Valued Rewards

 Recognition

 Security

 Respect
Sales Contests

Used to increase selling effort.

Types of Salespeople

Stars

 Prefer unlimited commissions.

 Motivated by high rewards.

Core Performers

 Motivated by stepwise targets.

 Respond to sales contests.

Laggards

 Motivated by regular bonuses.

 Respond to social pressure.

Evaluating Salespeople

Sources of information:

 Sales reports

 Personal observation

 Customer feedback

 Complaints

 Surveys

 Self-reports

Direct Marketing

Definition

Direct marketing is communicating and selling directly to customers


without intermediaries.

Advantages of Direct Marketing


 Lower cost

 Direct customer contact

 Better customer information

 Personalized communication

 Improved customer service

 Stronger brand image

 Measurable results

 Less visible to competitors

Types of Direct Marketing

1. Direct-Mail Marketing

Sending:

 Letters

 Flyers

 Announcements

 Reminders

2. Catalog Marketing

 Printed catalogs

 Online catalogs

 Business catalogs

3. Telemarketing

Inbound Telemarketing

 Customers call company.

Outbound Telemarketing

 Company calls customers.

Benefits:

 Increased revenue
 Lower selling costs

 Better customer service

4. Media-Based Direct Marketing

Uses:

 Newspapers

 Magazines

 Radio

 Television

 Infomercials

 Shopping channels

Growth of Direct Marketing

Reasons:

 Saves customer time

 Avoids traffic and parking issues

 24/7 online shopping

 Fast delivery

 Better customer service

 Availability of specialty products

Relationship Marketing in Direct Marketing

Successful direct marketers:

 Upsell products

 Cross-sell products

 Personalize offers

 Build long-term relationships

 Practice lifetime customer marketing

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