19 Managing Personal Communications

Chapter Questions How can companies conduct direct marketing for competitive advantage? How can companies carry out effective interactive marketing? How does word of mouth affect marketing success? What decisions do companies face in designing and managing a sales force? How can salespeople improve selling, negotiating, and relationship marketing skills? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-2

The Pepsi Refresh Project Changed How Pepsi Marketed Itself to its Target Market Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-3

What is Direct Marketing? Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen. Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-4

Direct Marketing Channels Direct mail Catalogs Telemarketing Other direct response Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-5

Constructing a Direct-Mail Campaign Establish objectives Select target prospects Develop offer elements Test elements Execute Measure success Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-6

RFM Formula for Selecting Prospects Recency Frequency Monetary value Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-7

Elements of the Offer Strategy Product Offer Medium Distribution Method Creative Strategy Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-8

Components of the Mailing Outside envelope Sales letter Circular Reply form Reply envelope Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-9

Catalogs How many catalogs did you get in the mail yesterday? How many catalog websites do you visit when shopping online? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-10

Types of Telemarketing Telesales Telecoverage Teleprospecting Customer service and technical support Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-11

Other Media for Direct Response Television Radio Kiosks Newspapers Magazines Internet Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-12

Public Issues in Direct Marketing Irritation Unfairness Deception/fraud Invasion of privacy Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-13

Interactive Marketing Tailored messages possible Easy to track responsiveness Contextual ad placement possible Search engine advertising possible Subject to click fraud Consumers develop selective attention Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-14

Figure 19.1 Average Time Spent per Day with Select Media for US Consumers Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-15

Whopper Freakout Integrated Interactive Media Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-16

Online Promotional Opportunities Websites Microsites Search ads Display ads Interstitials Internet-specific ads and videos Sponsorships Alliances and affiliate programs Online communities Email Mobile marketing Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-17

Figure 19.2 Key Design Elements of Effective WebSites Context: Layout and design Content: Text, pictures, sound, video Community: User-to-user communication Customization: Site’s personalization ability Communication: Site-user communication Connection: Links to other sites Commerce: Ability to conduct transactions Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-18

Online Ads Search Ads Display Ads Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-19

e-Marketing Guidelines Give the customer a reason to respond Personalize the content of your emails Offer something the customer could not get via direct mail Make it easy for customers to unsubscribe Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-20

Is mobile marketing the next big medium for direct marketers? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-21

Word of Mouth Earned media Paid media Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-22

Platforms of Social Media Online Communities and Forums Blogs Social Networks Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-23

Motrin Learns the Power of Social Media Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-24

How to Start Buzz Identify influential individuals and companies and devote extra effort to them Supply key people with product samples Work through community influentials Develop word-of-mouth referral channels to build business Provide compelling information that customers want to pass along Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-25

Creating a Viral Opportunity Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-26

Types of Sales Representatives 1. Deliverer 2. Order taker 3. Missionary 4. Technician 5. Demand creator 6. Solution vendor Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-27

Figure 19.3 Designing a Sales Force Sales Force Objectives Sales Force Strategy Sales Force Structure Sales Force Size Sales Force Compensation Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-28

Sales Tasks Prospecting Targeting Communicating Selling Servicing Information gathering Allocating Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-29

How should the firm organize the sales force structure? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-30

Workload Approach to Determining Sales Force Size Customers are grouped into size classes Desirable call frequencies are established Number of accounts in each size class multiplied by call frequency Average number of calls possible per year established Number of reps equal to total annual calls required divided by number possible Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-31

Components of Sales Force Compensation Fixed amount Variable amount Expense allowance Benefits Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-32

Figure 19.5 Managing the Sales Force Recruiting Selecting Training Supervising Motivating Evaluating Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-33

Salesperson Evaluation Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-34

Principles of Personal Selling Situation questions Problem questions Implication questions Need-payoff questions Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-35

Steps in Effective Selling 1. Prospecting/qualifying 2. Preapproach 3. Approach 4. Presentation 5. Overcoming objections 6. Closing 7. Follow up Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-36

For Review How can companies conduct direct marketing for competitive advantage? How can companies carry out effective interactive marketing? How does word of mouth affect marketing success? What decisions do companies face in designing and managing a sales force? How can salespeople improve selling, negotiating, and relationship marketing skills? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 19-37