Mark 3000 1st Edition Lecture 15 Outline of Last Lecture I Public Relations II Sales Promotions III Direct marketing IV Digital Marketing Outline of Current Lecture I Personal Selling II Supply chain Management Personal Selling 2 Way flow of information Real time interaction between seller and potential buyer Considered the most costly method of promotion When to use personal selling Item is expensive high involvement item Item is complex or needs explanation Cutco knives The customer is a business or organization Scopes and Nature of Personal Selling Personal selling can take place over the Internet Telephone or Face to Face The Personal Selling Process 1 Generate and qualify leads a Generate a list of potential customers and assess their potential b Does the Potential customer have i Need for item or service ii Ability to buy iii Willingness to buy c Can talk to current customers Do research over the internet or do networking d Can generate leads through tradeshows major events attended by buyers who choose to be exposed to the products These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute e Cold calls is a method of prospecting in which salespeople telephone or go to see potential customers without appointments f Telemarketing is a cold call that always occurs over the phone 2 Preapproach Use of CRM systems a Preapproach Occurs prior to meeting the customer for first time and extends qualification of leads procedure in this step salesperson conducts additional research and develops plans for meeting customer b Done before interacting with customer c Doing homework and practicing for the sales pitch d Main goal determine customer s specific need and the range of options 3 Sales presentation and overcoming reservations a The Presentation Can be in person or in a written proposal i Formula selling Formulized approach to selling based on AIDA ii Stimulus Response Saying the right thing at the right time and guiding the customer to a standard question answer iii Successive Commitment Giving the customer a commitment in order to make the purchase iv Needs satisfaction fulfill the needs of the customer b Reservations or objections i Know the common ones ahead of time 1 Ex How does the competitor s product compare ii Deal with as part of presentation iii View as a way to provide customer with more information 4 Closing the sale a Getting the order b Most stressful part of sale process c Look for customer signals d Negotiate with the customer to close the deal e Provide non price incentives f Presumptive close assume that the buyer is ready to purchase 5 Follow up a Make sure that the customer is satisfied b Satisfied customers will provide a good word of mouth c Very important for high involvement items Value added by personal selling Salespeople provide information and advice Sales people act as business consultants Sales people are often entrepreneurs Professional selling as a career Lot of flexibility and variety in the job Can be very lucrative Very visible to management and good for promotions Supply chain Management Set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers manufacturers warehouses stores and transportation intermediaries into a seamless operation in which merchandised is produced and sold in the right quantitates to right locations at the right place Channel Management is managing the relationship between manufacturers and other companies involved in selling products to consumer Channel intermediaries include 1 Retailer the one who sells mainly to final consumers 2 Wholesalers buy and take title to goods form manufacturer a Stores ships and sells to retailers 3 Agent broker facilitates sale between mfg and others but never has title to the goods Designing Market channels Direct market channel the manufacturer sells directly to the buyer No Intermediaries Indirect Channels When one or more intermediaries work with manufacturers to provide goods and services to customers Reasons to use Intermediates 1 They develop skills in selling a Have customer knowledge b Efficiency in handling large volumes c Good at merchandizing 2 The overcome market discrepancies a Discrepancy of quantity manufacturer produces in large volume while consumer buys in small volume b Discrepancy of assortment Mfg produces many of one item while consumer buys one of many items c Temporal Discrepancy Difference in when something is produced and when it is purchased d SpatialDiscrepancy Difference between where something is produced and where it is purchased 3 The improve contact efficiency a Less and more efficient transactions with the consumer