Chapter 14

creating a direct marketing campaign

1. Set the strategy for the campaign 2. specify direct marketing channels 3. identify qualified target customers 4. develop and test the offer for the campaign 5.analyze results of the offer

stages of the personal selling process

1. prospecting for customers 2. opening the relationship 3. qualifying the prospect 4. making the sales presentation 5. handling customer objectives 6. closing the sale

follow-up

A company's actions after the customer has decided to purchase the product

change conflict

A customer's reluctance to choose change by selecting a company's product

workload method

A method for determining the correct size of a company's sales force based on the premise that all salespeople should undertake an equal amount of work

FAB (Features, Advantages, Benefits)

A selling approach designed to make the company's products more relevant for customers by explaining the products features, advantages, and benefits.

transactional cost analysis (TCA)

A tool that measures cost of using different types of selling agents

features

Any product attribute or performance characteristic

adaptive selling

Being able to adjust the sales style from one sales situation to another in real time based on customer feedback

trade servicer

Resellers such as retailers or distributors with whom the sales force does business.

technical selling

Selling that requires a salesperson to have technical understanding of the product or service

technical seller

Selling that requires a salesperson to have technical understanding of the product or service EX: a chemical engineer from Dow Chemical Company who call on Sherwin Williams to sell bulk chemicals to be used in its pain manufacturing process

sales presentation

The delivery of information relevant to meet the customer's needs.

advantages

The particular product/service characteristic that helps meet the customer's needs

outsourcing the sales force

Using independent sales agents to sell a company's products.

salary

a fixed sum of money paid at regular intervals

reasons that marketing managers need to understand the personal selling process

a number of marketing activities will be affected by the personal selling function, personal selling is the single most critical connection to the customer

commission

a payment based on short-term results, usually a salesperson;s dollar or unit sales volume

nonfinancial incentive

a sales manager's use of promotional opportunities as an effective sales force motivator

sales skill level

a salesperson's learned proficiency at performing necessary sales tasks

personal selling

a two way communication process between salesperson and buyer with the goal of securing, building, and maintaining long-term relationships with profitable customers

direct marketing

an interactive marketing system that uses one or more advertising media to affect a measurable response and/ or transaction at any location

more time, price, product need, company trust

areas of common customer concern

rewards

based on any given level of performance, which of the following does a company bestow?

outbound telemarketing

calling potential customers at their home or office, wither to make a sales call via telephone or to set up an appointment for a field salesperson

financial incentives

commissions and bonuses

incentives

commissions tied to sales volume or profitability, or bonuses for meeting or exceeding specific performance targets

sell

create customer-specific content

build customer relationships

create useful company web page content

identify and clarify true objections

customers often mask true concerns with general problems, but successful salespeople know how to.....

customer expectations after the purchase decision

delivery, installation and initial service of the product training needed to operate the equipment correctly disposition of appropriate customer problems

manage information

develop database management skills to manage customer database

qualifying the prospect

does the prospect have a need for the company's products? can the prospect derive added value from the product in a way that the company can deliver? can the salesperson effectively contact, communicate, and work with the prospect over an extended time period (the time it takes to complete the ale and follow up after the sale)? does the prospect have the financial ability and authority to make the sale? will the account be profitable or the company?

advantages of personal selling

enhancing the personal relationship between the company and customer tailoring the message to the customer immediate feedback to the customer

B2C

goods are less expensive, decision-making process involves less people

B2B

goods are technically complex, customers tend to be larger, customers engage in more extensive decision-making process

telemarketing

has one of the highest response rates of any direct marketing channel

motivation

how much the salesperson wants to expend effort on each activity or task associated with the sales job

influence or authority

in the approach to the prospective customer, the sales representative should try to determine who has the greatest _____ or _____ in the purchase

objectives of sales training

increased productivity, improved customer relationships, improved selling skills, lower turnover, improved morale

qualify

it is important for salespeople to _____ the prospect to determine if the company is a legitimate potential customer before spending much time trying to establish a relationship

teams

it is important the selling company uses _______ when the purchase involves people across the customer's organization

organizational, environmental, and personal factors

job experience, the manager's interaction style, and performance feedback

communicate

make telephone calls/ leave voicemail messages

input measures

measures that focus on the effort of salespeople during the sales process

subjective measures

measures that rely on the personal evaluations by someone connected to the salesperson's sales process, usually the immediate sales manager or a customer

output measures

measures that show the results of the efforts expended by the salesperson

customer type

method of organizing a company sales force which is a natural extension of creating value for the customer and reflects a market segmentation strategy

product orientation

method of organizing a company's sales force that enables greater control in the allocation of selling effort across various products

goals and objectives of sales presentations

obtain customer commitment to action (purchase), build interest for the company's products, educate the customer by providing enough knowledge about the company's products, nurture the customer's desire and conviction to purchase, get the customer's attention

closing the sale

obtaining commitment from the customer to make the purchase

missionary salespeople

often do not take orders from customers directly, but persuade customers to by their firms product from distributors or other suppliers

direct mail

one of the least expensive direct marketing channels with costs of $0.75 to $2.00 per message

elements of a direct-mail offer

outside envelope, contact information, sales collateral

sales training topics

product knowledge, market/ industry orientation, company orientation, time and territory management, legal/ ethical issues, technology, specialized training topics

prospecting

recruiting of new customers

objective measures

reflect statistics the sales manager gathers from the firm's internal data

missionary seller, trade servicer, solution seller, technical seller

sales positions

sales aptitude

salesperson performance function that has historically been considered a function of (1) physical factors, (2) aptitude factors, and (3) personality characteristics

inbound telemarketing

selling where prospective customers call a toll-free number for more information and is also used to identify and qualify prospects

transaction cost analysis

states that when substantial transaction-specific assets are necessary to sell a manufacturer's product, the cost of using and administering independent agents is likely higher than the cost of hiring and managing a company's sales force

factors in the decision to use independent agents versus a company sales force

strategic flexibility control transaction costs economic

the sales presentation

the delivery of information relevant to meet the customer;s needs and is the heart of the selling process

trade servicers

the group of resellers such as retailers or distributors with whom the sales force does business

effectiveness of sales training

the overall challenge for sales managers is measuring the.......

role perceptions

the set of activities or behaviors that a sales representative must perform on the job

geographic orientation

the simplest and most common method of organizing a company sales force

key account salespeople

those salespeople who are skilled in developing complex solutions to a particular customer problem and responsible for managing large accounts

catalog marketers

use a variety of different types of collections including full-line ones, speciality ones designed for small customer groups, as well as B2B ones to target potential buyers

personal and organizational

variables such as job experience, the manager's interaction style, and performance feedback influence the amount or role conflict and ambiguity sales people perceive

assets

what are the advantages and benefits of the product?

enhances the customer's knowledge of the company

what are the key points I should know about this company, product, and services?

value proposition

what is the value-added of the product?

creates a memorable experience

what should I remember about this presentation?