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Managing Personal Communications. 19-2 Direct Marketing Use of consumer-direct channels to reach and deliver goods and services to customers without using.

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Presentation on theme: "Managing Personal Communications. 19-2 Direct Marketing Use of consumer-direct channels to reach and deliver goods and services to customers without using."— Presentation transcript:

1 Managing Personal Communications

2 19-2 Direct Marketing Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.

3 19-3 Direct Marketing Channels Catalogs Direct mail Telemarketing Web sites Email marketing Mobile devices Interactive TV

4 19-4 Public Issues in Direct Marketing Irritation--timing Unfairness- impulsive or less sophisticated buyers Deception/fraud- mislead buyers Invasion of privacy- names included on several databases

5 19-5 RFM Formula for Selecting Prospects Recency—last order Frequency—number of times purchased Monetary value-- money spent since becoming a customer

6 19-6 Elements of the Offer Strategy Product Offer Medium Distribution method Creative strategy

7 19-7 Components of the Mailing Outside envelope –Illustration (color) Sales letter –Personal, quality paper, bold type Circular –colorful Reply form –Toll-free number, website Reply envelope –Postage-free

8 19-8 Types of Telemarketing Telesales –Taking orders from catalogs or ads and outbound calls Telecoverage –Call customers to maintain and nurture key account relationships and neglected accounts Teleprospecting –Generating and qualifying new leads for closure by another sales channel Customer service and technical support –Answering service and technical questions

9 19-9 Other Media for Direct Response Television Direct Response Advertising Infomercials At-home shopping channels TV channels dedicated to selling goods Videotext Consumer’s TV set linked with seller’s catalog by cable or telephone line Kiosks Small building or structure to sell or provide information

10 19-10 Designing an Attractive Web Site Context -- Layout & design Content--Text, picture, sound, video Community--user-to-user communication Customization—tailor to user or allow personalization Communication—enables site-to-user, user-to-site, or two-way communication Connection—ability to link to other sites Commerce—ability to enable commercial transactions

11 19-11 Ease of Use and Attractiveness Ease of Use –Downloads quickly –First page is easy to understand –Easy to navigate Attractiveness –Clean looking –Not overly crammed with content –Readable fonts –Good use of color and sound

12 19-12 Increasing Visits and Site Stickiness Deep information with links Changing news of interest Changing offers Contests and sweepstakes Humor and jokes Games

13 19-13 Online Ads Banner ads--small, rectangular boxes containing text and maybe a picture Microsites--limited area on web— insurance on an used car website Sponsorships--pays for showing content and is acknowledged Interstitials--ads that pop-up between changes on website Search-related ads--search terms--cost per click Content-targeted advertising-- links ad to content of webpage Alliances--advertising each other on their respective website Affiliate programs--post ads on affiliate websites

14 19-14 iTunes Affiliate Program

15 19-15 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

16 19-16 Salespeople represent whole company Sales force provides market information Salespeople represent whole company Helping to buy is good selling Requires strategy decisions Requires strategy decisions Requires strategy decisions Requires strategy decisions Helping to buy is good selling The Importance and Role of Personal Selling Salespeople can be strategy planners Personal Selling Is Important Personal Selling Is Important

17 19-17 What Kinds of Personal Selling Are Needed? Order- Taking Order- Getting Supporting Basic Sales Tasks Basic Sales Tasks

18 19-18 Wholesalers’ Order Getters Work Closely with Retailers Producers’ Order Getters Find New Opportunities Order Getters and Order-Getting Retail Order Getters Influence Buyer Behavior Order Getters Develop New Business Relationships

19 19-19 Wholesalers’ Order Takers Don’t Get Orders But Keep Them Producers’ Order Takers Train, Explain & Collaborate Order Takers and Order-Taking Retail Order Takers Are Often Poor Sales Clerks Order Takers Nurture Relationships to Keep the Business Coming

20 19-20 Technical Specialists (technical assistance) Technical Specialists (technical assistance) Missionary Salespeople Missionary Salespeople (good will and educate) Customer Service Reps ( resolve problems with a purchase) Customer Service Reps ( resolve problems with a purchase) Supporting Sales Tasks Supporting Sales Force Informs and Promotes in the Channel

21 19-21 Solves problems after a purchase Technical Specialists Part of promotion Reps are customer advocates What is Customer Service? What is Customer Service? Customer Service Promotes the Next Purchase

22 19-22 Sales Territories Telemarketing Major Accounts Sales Force Different Markets, Different Tasks Team Selling Sales Force Size and Workload The Right Structure Helps Assign Responsibility

23 19-23 Straight Commission Straight Salary Level of Compensation Method of Payment Level of Compensation Method of Payment Combination Plan Compensating and Motivating Salespeople

24 19-24 Flexibility vs. Simplicity

25 19-25 Key Steps in the Personal Selling Process

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