1. 19 Managing Personal Communications 1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-2 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?

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

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-4 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.

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

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

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

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

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

10. 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

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

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

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

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-14 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

15. 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

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

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-17 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

18. 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

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

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-20 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

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

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

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

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

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-25 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

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

27. 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

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

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

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

31. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-31 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

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

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

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

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

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

37. 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