19 Managing Personal Communications 1

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?

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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