Professional Documents
Culture Documents
PERSONAL
COMMUNICATIONS-
DIRECT MARKETING
& PERSONAL
SELLING
Submitted to: Prof. (Dr.) J.D. Jadeja
Prepared by: Digesh Shah
Kartik Patel
Paresh Sidhdhapura
INDEX
Sectio Topic
n
1.1 Communication
1.2 Direct Marketing
1.3 Different Channels of Direct Marketing
1.4 Construction of Direct mail campaign
1.5 AIDA Concept
1.6 Permission Marketing
1.7 Designing Sales Force
1.8 Managing Sales Force
1.9 Designing Sales Force Strategy and Structure
1.10 Recruiting and Selecting Sales Representative
1.11 Sales Quotas
1.12 Sources of Information about representatives
1.13 Principles of personal selling
1.1 Communication:
Categories of Communication
Although Wunderman may have been the first to use the term
direct marketing, the practice of mail order selling (direct marketing
via mail) essentially began in the U.S. upon invention of the typewriter
in 1867. The first modern mail-order catalog was produced by Aaron
Montgomery Ward in 1872. The Direct Mail Advertising Association,
predecessor of the present-day Direct Marketing Association, was first
established in 1917.] Third class bulk mail postage rates were
established in 1928.
Direct marketing's history in Europe can be traced to the 15th
century. Upon Gutenberg's invention of movable type, the first trade
catalogs from printer-publishers appeared sometime around 1450.
1. Convenient
2. Easy to use
3. Private
5. Immediate
6. Interactive
Direct mail
Junk mail
Any low-budget medium that can be used to deliver a communication
to a customer can be employed in direct marketing. Probably the most
commonly used medium for direct marketing is mail, in which
marketing communications are sent to customers using the postal
service. The term direct mail is used in the direct marketing industry
to refer to communication deliveries by the Post Office, which may also
be referred to as "junk mail" or "ad mail" or "crap mail" and may
involve bulk mail.
Junk mail includes advertising circulars, catalogs, free trial CDs, pre-
approved credit card applications, and other unsolicited merchandising
invitations delivered by mail or to homes and businesses, or delivered
to consumers' mailboxes by delivery services other than the Post
Office. Bulk mailings are a particularly popular method of promotion for
businesses operating in the financial services, home computer, and
travel and tourism industries.
Telemarketing
Email Marketing
E-Marketing Guidelines:
3. Offer something the customer could not get via direct mail:
Because e-mail campaigns can be carried out quickly, they can
offer time sensitive information.
Kiosk Marketing:
Broadcast faxing
Voicemail Marketing
Couponing
One of the most famous DRTV commercials was for Ginsu Knives by
Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of
adding items to the offer and the guarantee of satisfaction were much
copied and came to be considered part of the formula for success with
short form direct response TV ads (DRTV)
Direct selling
2. The sales letter should use a personal salutation and start with
a headline in bold type. The letter should be printed on good-
quality paper and be brief.
• Testing Elements:
4. High Permission Level: They have not yet done any business with
these companies, but they are confident these companies will
send them something relevant and interesting to see, read or
hear. They are not reluctant to give companies a lot of data about
themselves to get some interesting offers or a special catalog.
3. Training Salespeople
4. Compensating Salespeople
5. Supervising Salespeople
6. Evaluating Salespeople
Call right customers at the right time in the right way. Sales
representatives work with customers in several ways:
Conference selling
More and more need for teamwork. Support from other personnel like
top management, technical people, customer service representatives,
office staff etc.
Direct sales force – full time or part time paid employees working
exclusively for company. Inside sales personnel and field sales
personnel.
Contractual sales force – manufacturer’s reps, sales agents and
brokers. Paid commission based on sales.
Product: structure along product lines. Sales reps should know their
product. Products are technically complex, highly unrelated and
very numerous.
5. No of sales reps = total annual calls / average annual calls per sales
rep
The top 27% of sales force bring in 52% of the sales. Beyond this is the
great waste in hiring and training the wrong person .The average
turnover in all industries is about 20%. A sales force with new people is
far less productive, the financial cost only being a part of it, apart from
the fringe benefits and cost the new sales man has to produce gross
margins too which at least cover the costs
Selecting them: -
Look for common traits of very successful salesmen. E.g.: -A high level
of Energy, abounding self confidence, chronic hunger for money, well
established habit of the industry and a challenging state of min
After the management has set a selection criteria, it must start its
recruitment .To encourage selling as a profession organizations give
additional perks.
Selling
Administration
Telemarketers
Inside sales force frees outside reps to spend more time selling to
major accounts and other external tasks. Outside sales reps are paid
on incentive-compensation basis while internal on a salary & bonus
basis.
Many companies must set sales quotas prescribing what reps should
sell during the year. Quotas can be set on dollar sales, unit volume,
margin, selling effort or activity, and product type. Compensation is
often tied to degree of quota fulfillment.
Quotas are set higher than the sales forecast to encourage managers
and sales people to perform at their best. If they fail to make their
quotas, the company nevertheless makes its sales forecast.
High quota school sets quotas higher than what sales reps will
achieve but that are attainable to spur extra efforts.
Supplementary motivators
Sales reports are divided between activity plans and write ups of
activity results. A best example of the former is salesperson’s work
plan, which sales reps submit a week or month in advance. The plan
describes intended calls or routing. This report forces the sales reps to
plan and schedule their activities, informs management of their
whereabouts, and provides a basis for comparing their plans and
accomplishments. Sales reps can be evaluated on their ability to “plan
their work and work their plan”
These reports provide raw data from where sales managers can
extract key indicators of sales performance. E.g. average no. of sales
calls per sales person per day, average sales call time per contact,
average cost per sales call, entertainment cost per sales call,
percentage of orders per sales call, no. of new/ lost customers per
period.
Formal Evaluation
One type of evaluation is to compare current performance with past
performance. This can be evaluated against sales increase across
products, gross profits, sales expense, lost customers, trend in sales
and gross profits per customer, annual number of calls, etc and then
analyzed.
Sales professionalism
Negotiation
Relationship marketing
Professionalism:
Most companies leave this to sales person. But now companies are
taking this on and leaving salespersons to spend their expensive time
selling
Pre-approach
Approach
The sales person should know how to greet the buyer to relationship
off to a good start.
The salesperson now tells the product story to the buyer following the
AIDA formula of getting attention, holding interest, arousing desire and
obtaining action. The salesman uses A FABV approach that is features,
advantages, benefits and value approach
Overcoming objectives;
Closing
Now the salesperson attempts to close the sale. Salespersons need to
recognize closing signs from a buyer.
Negotiation
In negotiated exchange price and other terms are set via bargaining
behavior.
When to negotiate
When many factors bear not only on price but also on quality
and service
Invent options for mutual gain: search for a larger pie than
fighting for each others share
Big pot: leave yourself a lot of room to negotiate. Start with high
demands
Relationship marketing
1. http://en.wikipedia.org/wiki/direct_marketing
2. http://en.wikipedia.org/wiki/permission_marketing
3. http://en.wikipedia.org/wiki/negotiation
4. http://www.scribd.com