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?