Selling through a person-to-person communications process
Affected by increased emphasis on customer relationship management
Importance varies for each firm depending on:
Nature of the product or service being marketed
Size of the organization
Type of industry
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Chapter 22Personal SellingPersonal SellingSelling through a person-to-person communications processAffected by increased emphasis on customer relationship managementImportance varies for each firm depending on:Nature of the product or service being marketedSize of the organizationType of industry2Dyadic CommunicationDirect and interpersonal communicationAllows sender to immediately receive and evaluate feedback from receiverMessages can be changed to address the receiver’s specific needs and wants3Factors that Determine the Role of Personal SellingDetermining the information to be exchangedExamining promotional-mix alternativesEvaluating the relative effectiveness of alternativesDetermining cost-effectiveness4Characteristics of Stages of Personal Selling EvolutionStages and descriptionCustomer needsType of marketNature and intensity of competitionProvider - Accepts orders and delivers to buyerAssumed to existNot a concernSellers’NonePersuader - Attempts to convince anyone to buy available offeringsCreatedAwakenedBuyers’UndifferentiatedSlight intensityProspector - Seeks out prospects with need for available offering andresources to buyConsidered but inferredSegmentedDifferentiatedGrowing5Characteristics of Stages of Personal Selling EvolutionStages and descriptionCustomer needsType of marketNature and intensity of competitionProblem solver - Matchesavailable offerings to solve customer-stated problemsDiagnosed with attention to customer inputParticipativeResponsive and counteractive with increasing resourcesProcreator - Creates a unique offering to match the buyer’s needs as mutually specified,involving any or all aspects of the seller’s total marketing mixMutually definedMatched with tailored offeringCoactiveFocusedGrowing in breadth of market and service offerings6New Role of SalespeopleSurveyingMapmakingGuidingFire starting7Relationship MarketingOrganization’s effort to develop a long-term, cost-effective link with individual customers for mutual benefitCustomer relationship management (CRM): Support targeting, acquiring, retaining, understanding and collaborating with customers8Figure 22.4 - The Eight Step Personal-Selling ProcessSource: From Reds Communications, “The 8 Step Personal Selling Process—Let Us Help You,” www.redscommunications.co.za.9Types of Sales JobsOrder taking: Accomplished by:Inside order takers - Work inside the sales office and receive orders by phone, mail, or the InternetField order takers - Travel to customers to get their orders Creative selling: Getting an order by:Assessing a situation and determining the needsPresenting capabilities to satisfy the needsMissionary sales: Introduce new products, promotions, and/or programs with the actual order to be takenPerform a support role10Traits of a SalespeopleSuccessful salespeopleKnowledgeableProfessionalThoroughResults-orientedProblem solvingRelationship-orientedCustomer-focusedResponsiveGood communicatorsReliableMost helpful to customersKnowledgeEmpathyWell organizedPromptnessFollow-throughSolutionsPunctualityHard workEnergeticHonestyMost objectionable to customersUnpreparedUninformedAggressiveUndependabilityPoor follow-throughPresumptuousnessCalling without appointmentsCompulsive talkersProblem avoidersLack of personal respect11Advantages and Disadvantages of Personal SellingAdvantagesAllows for two-way interactionTailors the messageLack of distractionInvolvement in the decision processSource of research informationDisadvantagesInconsistent messagesSales force/management conflictHigh costPoor reachPotential ethical problems12Ways to Use Advertising to Sell MoreSave sales force timeAvoid lengthy explanationsAdd impact to the presentation and reinforce selling pointsEgo boosters and personal refreshersClues to prospects’ interestsProve a point and create preferenceHelp prospects to make a decisionProvide follow-upsFight lower-priced competitorsGetting the customer into the act13Combining Personal Selling with Other Promotional ToolsPublic relationsDirect marketingSales PromotionInternet14Figure 22.12 - Factors to Be Considered in the Sales Review ProcessSource: Steve Deist and Rich Johnson, “Developing an Effective Sales Force,” Industrial Distribution.15Criteria Used to Evaluate Sales ForcesMeasuresSales resultsSales effortsQuantitative measuresOrdersSales volumeMarginsCustomer accountsSales callsSelling expensesCustomer serviceQualitative measuresSelling skillsSales-related activities16Characteristics That Improve Performance EffectivenessStrength of the field managerClear link between company culture and values to sales strategiesRigorous management processes that drive performanceConsistent training that leads to consistent executionCourage to change17Criteria for Evaluating Personal SellingProvision of marketing intelligenceFollow-up activitiesProgram implementationsAttainment of communications objectives18
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