Chapter 17 Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-1 1-1 Learning objectives 1. To examine the role of personal selling in the integrated marketing communication program. 2. To describe the advantages and disadvantages of personal selling as part of an IMC program. 3. To propose how personal selling might be combined with other elements in an IMC program. 4. To explain how to determine the effectiveness of the personal selling effort. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-2 Evaluation Advantages Limitations Role Personal selling Part of IMC Advertising Public relations Direct marketing Sales promotion Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internet 17-3 Personal selling Personal selling involves selling through a person-to-person communication process. Direct Personal Real time The communication process is known as dyadic communications. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-4 Determining the role of personal selling What information must be exchanged between firm and potential customer? What are the alternative ways to carry out these communications objectives? How effective is each alternative in carrying out the needed exchange? How cost effective is each alternative? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-5 When the sales force is a major part of IMC Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-6 Evolution of the seven steps of selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-7 Evolved sales process Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-8 New roles for sales people Database knowledge & management Problem diagnosis & problem-solving Value creators, value adders Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Nurturing & maintaining relationships 17-9 Desired qualities for sales people Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-10 Relationship marketing Relationship marketing defined: The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-11 Factors important in customer retention Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-12 Types of sales jobs Creative selling Order taking Missionary sales Requires the most skill and preparation Must assess situation, determine needs This role is much more casual Often involves straight rebuying This is essentially a support role May not actually take the order Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-13 Company 360—a great way to identify prospects Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-14 Six steps of selling 1. Prospecting and qualifying leads 2. Determining customer’s needs and wants. 3. Recommending a way to satisfy customer needs 4. Demonstrating the capabilities of the company and its products 5. Closing the sale 6. Following up the service account Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-15 10 traits of effective salespeople 1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. Sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self-esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently. 5. Risk-taking: willing to innovate and take a chance. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-16 10 traits of effective salespeople (cont.) 6. Sociable: outgoing, friendly, talkative and interested in others. 7. Abstract reasoning: ability to understand concepts and ideas. 8. Scepticism: a slight lack of trust and suspicion of others. 9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone else’s shoes. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-17 Traits buyers consider helpful and unhelpful Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-18 Personal selling advantages and disadvantages Advantages Disadvantages Two-way interaction with prospect Inconsistent messages Tailoring the message Potential for management/ sales force conflict Prospect is not likely to be distracted High cost Seller involved in purchase decision Poor reach Source of research information Potential ethical problems Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-19 Evaluation Advantages Limitations Role Personal selling Part of IMC Advertising Public relations Direct marketing Sales promotion Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internet 17-20 Personal selling combines with other IMC tools Advertising Public relations Personal selling Direct marketing Sales promotion The internet Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-21 Personal selling and advertising work together Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-22 Combining personal selling and advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-23 Combining personal selling and public relations Sales staff directly perform PR functions Provide incentives for sales staff to join clubs and community groups Strategies Encourage sales staff to undertake ‘pro bono’ work Encourage sales staff to support NFP and philanthropic organisations or causes Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-24 The Body Shop Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-25 Personal selling and direct marketing Screen leads and qualify prospects Customer service & follow-up Supporting sales staff Telemarketing PR dimension Can be combined with direct mail, email and other DM methods Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-26 Growth of telemarketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-27 Incentives targeted at the sales force Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-28 Combining personal selling and the internet Provide product information Generate leads Screen prospects Build and market from databases Fulfil orders Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-29 Personal selling and the internet Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-30 Evaluating the personal selling effort Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-31 Evaluation Advantages Limitations Role Personal selling Part of IMC Advertising Public relations Direct marketing Sales promotion Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internet 17-32 Evaluating the sales force Sales results Sales efforts Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-33 Quantitative measures of sales force Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-34 Characteristics affecting sales force performance The strength of the field manager A clear link between company culture and value to sales strategies Rigorous management processes that drive performance Consistent training that leads to consistent execution The courage to change Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-35 Criteria for evaluating personal selling's contribution Provide good marketing intelligence? Are follow-up activities conducted well? Are IMC programs being implemented? Are communications objectives attained? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-36 Summary and conclusions The role of personal selling is evolving into a customer relationship model. Within companies, the role of personal selling varies, depending on the nature of the industry, competition and market conditions. In large industrial environments personal selling may be the dominant form of communications whereas in consumer non-durables, it may play a minor role. Although personal selling can be expensive, the real-time nature of communications has many advantages. One of personal selling’s limitations is the non-standardised nature of the message. Evaluation of personal selling is the responsibility of the sales department. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 17-37