CH14: Personal Selling and Direct Marketing Flashcards
personal selling
direct interaction with one or more prospective buyers for the purpose of making presentations, answering questions, and procuring orders
the 3 main qualities of personal selling
- customized
- relationship-oriented
- response-oriented
the 6 major steps in effective selling
- prospecting
- pre-approach
- presentation
- persuasion
- closing
- servicing
BANT for personal selling
- budget necessary to buy
- authority to buy
- need for the product or service
- timeline for delivery that is possible to fulfill
the 4 main activities during pre-approach
- learn about the prospect company; create an Intel Document
- understand the who, when, where, how, and why
- choose a contact approach
- plan an overall sales strategy
the FABV approach to presentations
- features
- advantages
- benefits
- value
the 2 types of buyer resistance
- psychological resistance (brand preference, biases, apathy, dislike of sales rep, etc.)
- logical resistance (objections to price, delivery, product, company, etc.)
the 2 main components of servicing
- followup/maintenance
- long-term relationship building
SPIN approach to asking sales questions
- Situation
- Problem
- Implication
- Need
situation questions
help you understand the buyer’s current situation; goal is to gather information
problem questions
help illustrate the different problems the product solves for the client
implication questions
hone in on the problems you’ve discovered, showing the client why they need to be solved
need-payoff questions
lead your customer to conclusions that show how your product or service can address their pain points (show, don’t tell)
the 5 main stages in designing the sales force
- objectives
- strategy
- structure
- size
- compensation
types of sales force tasks
- information gathering
- targeting
- communicating
- selling
- servicing
- allocating
information gathering
conducting market research and doing intelligence work
targeting (sales force activity)
deciding how to allocate time between prospects and customers
communicating
conveying information about the company’s products and services
selling
the process going from approach to closing
servicing
providing various services to customers; consulting on problems, technical assistance, arranging financing, expediting delivery, etc.
allocating
deciding which customers will get scarce products during shortages
direct sales force strategy
full or part-time paid employees who work exclusively for the company; inside sales and outside sales
contractual sales force strategy
manufacturer reps, sales agents, and brokers who earn a commission based on sales
breakeven between the two sales force strategies
at sales level B in dollars, it becomes more economical to have an internal sales force
salesforce structure considerations
- geographic regions
- products
- services
- customer needs
workload approach to determining sales force size
- group customers into size classes by annual sales volume
- establish desirable call frequencies for each customer class
- multiply number of accounts in each class by the corresponding call frequency to arrive at total workload for the country
- determine average number of sales calls per representative per year
- divide total annual calls by avg per rep to arrive at number of reps needed
components of sales force compensation
- fixed base
- variable amount
- expense allowances
- benefits
compensation can be straight salary, straight commission, or some combination of the two
the 5 stages of managing the sales force
- recruiting
- training
- supervising
- motivating
- evaluating
best predictors of high performance in sales reps
composite tests and assessment centers that simulate the working environment
time-and-duty analysis
measures sales time efficiency for a sales rep; help sales reps understand how they might be able to improve productivity
ways to motivate the sales force
- monetary and nonmonetary rewards
- change compensation based on whether the salesperson is a star, core performer, or laggard
ways to evaluate the sales force
- sales reports
- activity plans
- write-ups of activity results
- territory marketing plan
direct marketing
the use of consumer-direct channels to reach and deliver goods and services to customers without using intermediaries
the 4 main direct marketing channels
- direct mail
- catalog marketing
- telemarketing
- infomercials
