Beruflich Dokumente
Kultur Dokumente
MBAM 562
UNIT TWO: PERSONAL SELLING
MARKET STRATEGY
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2.1 Introduction to personal selling
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Saxe and Weitz has identified SIX customer orientated
selling as:
1. The desire to help customers make satisfactory
purchase decisions.
2. Helping customers assess their needs.
3. Offering products that will satisfy those needs.
4. Describing products accurately.
5. Avoiding deceptive or manipulative influence tactics.
6. Avoiding the use of high pressure sales techniques.
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6. Handling objections: - Buyers may have objection-
psychological or rational. Psychological objection may be
subjective or attitudinal. Rational objection is on quality,
Price and utility. Salesman must convince the prospect
by cogent argument.
7. Closing: - He should look for the right moment to clinch
the deal. This is called closing. Proper gestures/
gesticulation or body language must be read carefully.
Unnecessary prolonging presentation may be counter
productive.
8.Follow up: - Begins when prospect signs order. He
dispatches the item, arranges delivery, arranges grant of
credit, assures about his wisdom of buying and ensures after
sales service. Proper follow up assists second purchase and
recommendation
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2.3 Personal selling strategies
The following strategies are given below.
1.Selling strategy:-
Selling strategies are short-term and long term. Short-
term focuses on promotional steps and current sales.
Long-term focus on continuous sales, growth and goodwill.
Customer service, co-operation, assistance and technical
services assist long-term customer goodwill. This gives the
customer loyalty. Selling strategy is considered better than
negotiation.
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2.Negotiation: - Negotiation on sales on price and
other terms are use to iron out differences and finally
enter into agreement. The negotiations are more use
full all the prospects and sellers, in this concept both
are discussed thoroughly about the product and
finalize the product, in case of any buyer buy the
product, where as not satisfied about product. He/she
cannot recommend the others. In this, the salesman
must to satisfy the prospective buyer.
3.AIDAS model( already covered in the previous
chapter).
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2.4 Direct Marketing
• Some companies use direct marketing to inform and
educate customers about product/ service in anticipation
that it may precipitate future actions, reminding
about offers, image building, maintain customer
satisfaction, strengthen relationship, and reassure
customers about purchases .
• Direct marketing is an interactive system of marketing
and uses a set of all major direct- response media
including print, TV, Internet and cellular phones as the
tools to implement communications and accomplish its
objectives.
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• Direct marketing attempts to acquire and retain
customers by contacting them without the use of an
intermediary.
• Depending upon the changes that took place in the
fast growing consumer movement, the companies
today adopt so many strategies in order to meet the
changing demands of the society. In this regard, the
importance of direct marketing is very high.
• Direct marketing is a kind of directly meeting the
consumer. Under this method, the housewives carry
the message about the product and its details along
with the product through the circle of friends,
relatives and neighbors of them.
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• In direct marketing, the dealers are called consultants, for
successful direct marketing, the consultants have to be
more talented, hardworking, pursuing, convincing the
customers. Under this method, the products are not sold
through or displayed in shops. Direct marketing is indeed
a marketing of house-hold items by the housewives
through house.
• The objective is to achieve a direct response which may
take one of the following forms:
A purchase over the telephone or by post;
A request for a catalogue or sales literature;
An agreement to visit a location/event (e.g. an exhibition);
A request for a demonstration of a product;
A request for a salesperson’s visit.
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Direct marketing is an interactive system of marketing
which uses one or more advertising media to affect a
measurable response and/or transaction at any location.
In Marketing Management a number of factors are
promoting the attractiveness of direct marketing. The main
factors are:
1. Availability of consumer credit cards.
2. Availability of professional agencies.
3. Competitive Pressures, Rising Media Costs, and Market
Fragmentation.
4. Increasing family incomes, including dual-income
families.
5. Technological advances.
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• According to Peter Hoko “ The total of activities by
which the seller in effecting the transfer of goods and
services to the buyer, directs his efforts to a qualified
audience using one or more media for the purpose of
soliciting response by phone, mail or personal visit
from a prospect or customer”.
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Direct marketing consists of the following activities
A. Direct sales:- Assist direct sale by getting an order in
response to the mail.
B. Direct mail:- This is nothing but courier services
A. Direct Sales
In direct selling, the manufacturer choose to use the door-to-
door direct selling method. Alternatively the manufacturer
decides to open its own retail outlets. By direct selling, firm
has taken additional responsibility of marketing functions
like distribution. Additional expenses of distribution involve
the following:
• Transportation
• Storage
• Financing
• Risk taking
• Door-to-door selling
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In case of setting up its own retail-outlets, it
involved the following costs
• Setting up more street locations
• Cost of building and stores
• Cost of retail salesman
• Retail advertisement.
Direct selling is more common in industrial
products(plant and machinery) compared to
consumer products. However, costs are high even
industrial products field. In this field direct sales
person need better training which is expensive.
They are to be paid more in selling directly to the
industrial users.
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The main advantages of this method are:
• High profit per unit of product sold
• Shifts wide range of problems to middle man
• Better utilization of specialized skill of salesmanship.
• One drawback is there i.e. no control and identification
of customers is very difficult.
B. Direct Mail: Direct mail is unsolicited mail, most of us
are familiar with. For some of us it is fairly irritating
and we call it “Junk mail” and throw it or ignore
without reading. Companies of all sizes and shape use
direct mail. This mail is generally based on mailing lists
the companies buy from independent sources, or in
some cases is confined to customers who have made
purchases earlier.
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Google, Yahoo, Hotmail, AOL, Amazon, Fabmart, India
times, and many others have vast lists of home and e-
mail addresses. Direct mails generally generate lower
response rates from potential customers. The cost of
direct mail as e-mail is practically nothing.
• Direct mail is an amazing medium. This is used by more
advertisers than any other advertising medium. This is
also known as electronic mail service(EMS)
Features:-
• Select subject, prospect and message.
• It gives personal touch.
• Considerable flexibility in producing message/ letter in
time and space.
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• Mail order business requires a small capital.
• Even small entrepreneurs also start this business.
• Sending mail to right person in the right list in
right time.
• Easy economical to test and evaluate.
• This business is not possible in all type of goods.
The goods which can be considered suitable for
mail order business should generally carry the
goods. Like books, drugs, sport articles etc.
several banks have effectively used direct mail
for their credit cards.
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Classification of direct mail: Some of them are following
1.Catalogues: Both, consumer and B2B companies may
send catalogues of their entire product lines, mostly in
print form, sometimes also online, as CDs, or even
videos. Considering the global scenario, many
companies use catalogue to sell variety of merchandise
including clothing, and cosmetics. Some companies
started as catalogue companies and subsequently also
branched into retail outlets, such as First and second
bookseller initially had a website that presented its
catalogue but now also has a retail outlets. For example
in New Delhi.
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2. Broadcast Media: Direct marketer can use television and
radio. Almost entire advertising with respect to direct
marketing occurs on television. This type of advertising is
either in the form of direct-response advertising, or support
advertising. Direct-response advertising encourages
customers to place orders by using a toll-free telephone
number. Support advertising informs customers generally
to take part in sweepstakes or expect something in mail.
Widespread use of credit cards and availability of toll-free
telephone numbers in more developed countries has
promoted teleshopping. Some TV channels exclusively
sell products and services 24 hours a day, such as Home
Shopping Network. The programme host offers low prices
on a variety of items including jewelry, kitchenware,
fitness products, insurance, and CDs, etc. Customers
sitting in their homes make their purchases by calling a
toll-free number and the ordered item is delivered within
48 hours.
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3. Print Media: Newspapers and magazines are not
considered to be ‘sound choice’ for direct marketing.
There are too many ads competing for attention. Specific
interest newspapers focused on financial matters, or sports
and hobby magazines are sometimes used.
CONCLUSION:
Sales executives must understand the jobs of those
reporting to them. Sales executives understand the tasks
assigned to sales personnel, and have insight into how
these tasks affect the though processes and behavior
pattern of sales personnel, they are ready to manage
sales personnel. They have necessary background to
training sales personnel, to direct the sales force’s efforts,
and to evaluate individual salesperson’s achievements.
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• This chapter has explored the growth of direct marketing
as a means of selling products and services. Direct
marketing activity has helped companies such as Direct Line,
First Direct and Dell Computers to sell directly to
customers without the need for traditional salespeople or
distributors. The use of direct mail and telemarketing is
reducing the need for a field sales force, particularly for
smaller customers.
• Direct marketing activity needs to be carefully planned in
order to produce integrated campaigns that make the best use
of the tools available. Key media include direct mail,
telemarketing, direct response advertising, catalogue
marketing and internet marketing.
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THANK YOU 30