marketing

Sedra

chapter1617.pdf

Home >Business & Finance homework help >Marketing homework help >marketing

MKT 300: Principles of Marketing Management Personal Selling, Sales Promotion, Online and Digital Marketing

Chapter 16 – 17

Personal Selling

• Companies around the world use sales forces to sell products and services to business customers and final consumers.

• But sales forces are also found in many other kinds of organizations.

The Nature of PersonalSelling

• Salesperson is an individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

• At one extreme, a salesperson might be largely an order taker.

• At the other extreme are order getters, whose positions demand creative selling and relationship building for products and services ranging from appliances, industrial equipment, and airplanes to insurance and information technology services.

• We define personal selling as personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships.

• People hold many stereotypes of salespeople─including some unfavorable ones. • Today, most salespeople are well-educated and well-trained professionals who add value

for customers and maintain long-term customer relationships.

The Role of the Sales Force Linking the Company with Its

Customers

• In many cases, sales people serve two masters─the seller and the buyer.

• First, they represent the company to customers.

• Then, they represent customers to the company.

Coordinating Marketing and Sales

• At the most basic level, it can increase communications between the two groups by arranging joint meetings and spelling out communications channels.

• A company can also create joint objectives and reward systems for sales and marketing teams or appoint marketing-sales liaisons

Managing the Sales Force

• We define sales force management as analyzing, planning, implementing, and controlling sales force activities.

• It includes designing sales force strategy and structure, as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm’s salespeople.

•

selling only a portion of the company’s products or lines. In all, a company as large and complex as GE might have

service portfolio. effectiveness.

••

dozens of separate sales forces serving its diverse product and sceursvtoinmgemrarjeolar taioccnosuhniptsstvhearts,uisnrteugrunl,airmapcrcoovuentsse.lling

•

https://www.youtube.com/watch?v=u0ojJ2M6w8E

Sales ForceSize

• Many companies use some form of workload approach to set sales force size.

• Using this approach, a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account.

• It then determines the number of salespeople needed to call on each class of accounts the desired number of times.

Other Sales Force Strategy and Structure Issues • A company may have an outside sales force (or field sales

force), an inside sales force, or both. • Outside sales force─Salespeople who travel to call on

customers in the field. • Inside sales force─Salespeople who conduct business from

their offices via telephone, the Internet, or visits from prospective buyers.

• Team Selling─Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

• Instead, most companies now use team selling to service large, complex accounts.

Recruiting and Selecting Salespeople

• Its research suggests that the best salespeople possess four key talents:

Intrinsic motivation

A disciplined work style

The ability to close a sale

The ability to build relationships with customers

Training Salespeople • Training programs have several goals.

• Salespeople need to know about customers and how to build relationships with them.

• An effective training program teaches them about the company’s objectives, organization, products, and the strategies of major competitors.

• Online training may range from simple text- based product training and Internet-based sales exercises that build sales skills to sophisticated simulations that re-create the dynamics of real-life sales calls.

Compensating Salespeople

• Compensation consists of four elements: a fixed amount, a variable amount, expenses, and fringe benefits.

• Different combinations of fixed and variable compensation give rise to four basic types of compensation plans:

• Compensation should direct salespeople toward activities that are consistent with the overall sales force and marketing objectives.

Straight salary

Straight commissi

Salary plus

bonus

Salary plus

commissi on

Supervising and Motivating Salespeople

• The goal of supervision is to help salespeople “work smart” by doing the right things in the right ways.

• The goal of motivation is to encourage salespeople to “work hard” and energetically toward sales force goals.

• If salespeople work smart and work hard, they will realize their full potential—to their own and the company’s benefit.

Selling and the Internet

• Sales organizations are now both enhancing their effectiveness and saving time and money by using a host of innovative Internet approaches to train sales reps, hold sales meetings, service accounts, and conduct sales meetings with customers.

• They help conserve salespeople’s valuable time, save travel dollars, and give salespeople a new vehicle for selling and servicing accounts.

Motivating Salespeople

• Organizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance.

• Sales quota is a standard that states the amount a salesperson should sell and how sales should be divided among the company’s products.

Evaluating Salespeople and Sales ForcePerformance

• The most important source is sales reports, including weekly or monthly work plans and longer-term territory marketing plans.

• Salespeople also write up their completed activities on call reports and turn in expense reports for which they are partly or wholly reimbursed.

• Formal evaluation forces management to develop and communicate clear standards for judging performance.

• It also provides salespeople with constructive feedback and motivates them to perform well.

Steps in the SellingProcess

Personal Selling and Managing Customer Relationships

• The steps in the just-described selling process are transaction oriented— their aim is to help salespeople close a specific sale with a customer.

• The sales force usually plays an important role in customer relationship building.

• Instead, most companies want their salespeople to practice value selling—demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.

• Value selling requires listening to customers, understanding their needs, and carefully coordinating the whole company’s efforts to create lasting relationships based on customer value.

Sales Promotion

• Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.

• Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.

The Rapid Growth of SalesPromotion

• Several factors have contributed to the rapid growth of sales promotion, particularly in consumer markets.

First, inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool.

Second, externally, the company faces more competition, and competing brands are less differentiated. Increasingly, competitors are using sales promotion to help differentiate their offers.

Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers have become more deal oriented.

Consumer Promotions • They include displays and demonstrations

that take place at the point of sale. • Contests, sweepstakes, and games give

consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort.

Point-of-purchase (POP) promotions

• It also called promotional products, are useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers.

Advertising Specialties

Premiums

• They are goods offered either free or at low cost as an incentive to buy a product.

• A premium may come inside the package (in-pack), outside the package (on-pack), or through the mail.

Rebates (cash refunds)

• Rebates are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.

Consumer Promotions

• Event marketing (or event sponsorships) creates a brand-marketing event or serving as a sole or participating sponsor of events created by others.

https://www.youtube.com/watch?v=kw7WqwShMQ4 https://www.youtube.com/watch?v=RXwWTKV3HY8

https://www.youtube.com/watch?v=kw7WqwShMQ4

https://www.youtube.com/watch?v=RXwWTKV3HY8

Trade Promotions

• Trade promotions can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.

• Shelf space is so scarce these days that manufacturers often have to offer price- offs, allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf and, once there, to keep them on it.

Business Promotions

• Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

• Many companies and trade associations organize conventions and trade shows to promote their products.

• A sales contest is a contest for salespeople or dealers to motivate them to increase their sales performance over a given period.

Direct and DigitalMarketing

Direct and digital marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

https://www.youtube.com/watch? v=j1NDjpAthmE

https://www.youtube.com/watch?v=j1NDjpAthmE

Direct and DigitalMarketing

Rapid Growth of Direct and Digital Marketing

Direct and digital marketing have become the fastest-growing form of marketing.

Direct marketing continues to become more Internet-based, and digital direct marketing is claiming a surging share of marketing spending and sales.

Direct and DigitalMarketing

Benefits of Direct and Digital Marketing—Buyers

• Convenient, easy and private

• Ready access to many products

• Access to comparative information about companies, products, and competitors

• Interactive and immediate

• Gives consumers a greater measure of control

Benefits of Direct and Digital Marketing—Sellers

• Can target small groups or individual consumers

• Low-cost, efficient, speedy alternative for reaching their markets

• Can offer greater flexibility • Gives sellers access to buyers that they

could not reach through other channels • Tool to build customer relationships

Forms of Direct and Digital Marketing

Marketing, The Internet, and the Digital Age

Digital and social media marketing—Using digital marketing tools such as

• websites,

• social media,

• mobile apps and ads,

• online video,

• email, and

• blogs

that engage consumers anywhere, anytime via their digital devices.

Marketing, The Internet, and the Digital Age

Online marketing is marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs.

Marketing Web sites engage consumers to move them closer to a direct purchase or other marketing outcome.

Branded community Web sites present brand content that engages consumers and creates customer community around a brand.

Marketing, The Internet, and the Digital Age

Online Marketing

Online advertising is advertising that appears while consumers are browsing online and includes display ads, search-related ads, online classifieds, and other forms.

E-mail marketing involves sending highly targeted, highly personalized, relationship-building marketing messages via e-mail.

Spam is unsolicited, unwanted commercial e-mail messages.

Marketing, The Internet, and the Digital Age

Online Marketing

Online video marketing involves posting digital video content on brand Web sites or social media sites such as YouTube, Facebook, and others.

Viral marketing is the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends.

Blogs are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics.

Social Media and Mobile Marketing

Advantages:

• Targeted and personal

• Interactive

• Immediate and timely

• Real-time marketing

• Cost effective • Engagement and social sharing

capabilities

Social Media Marketing

On the negative side:

• Most companies are still experimenting with how to use them and results are hard to measure.

• Social networks are largely user controlled.

Social Media and Mobile Marketing

Mobile Marketing

Mobile marketing delivers messages, promotions, and other content to on- the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.

Traditional Direct MarketingForms

Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particularaddress.

• Personalized-Permits high target-market selectivity; Well suited todirect, one-to-one communication

• Is flexible

• Easy-to-measure results

• Costs more than massmedia

• Providesbetter results than mass media per thousand people reached, but people reached are much betterprospects

Traditional Direct MarketingForms

Catalog used to be defined as a printed, bound piece of at least eight pages, selling multiple products, and offering a direct ordering mechanism.

Catalog direct marketing involves printed and Web-based catalogs.

Benefits of Web-based catalogs

• Lower cost than printed catalogs

• Unlimited amount of merchandise

• Real-time merchandising

• Interactive content

• Promotional features

Challenges of Web- based catalogs

• Require marketing

• Difficulties in attracting new customers

Traditional Direct MarketingForms

Telemarketinginvolves using the telephone to sell directly to consumers and business customers.

• Outboundtelephone marketing sells directly to consumers and businesses.

• Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs.

Traditional Direct MarketingForms

Direct-response television marketing includes thefollowing:

• 60 to 120 second advertisements that describe products or give customers a toll-free number or website for ordering

• 30-minute infomercials such as home shopping channels

Traditional Direct Marketing Forms

Kiosk Marketing

-Information and ordering machine

From self-service hotel and airline check-in devices, to unmanned product and information kiosks in malls, to in- store ordering devices that let you order merchandise not carried in the store

Public Policy Issues in Direct and Digital Marketing

• Irritation includes annoying and offending customers.

• Unfairness includes taking unfair advantage of impulsive or less- sophisticated buyers.

• Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers.

• Fraud includes identity theft and financial scams.

• Consumer privacy involves concerns that marketers may have too much information and use it to take unfair advantage.