A FRAMEWORK for MARKETING MANAGEMENT Chapter 17 Managing Personal Communications Kotler Keller Cunningham

© Copyright 2008 Pearson Education Canada Chapter Questions How can companies use integrated direct marketing for competitive advantage? How can companies do effective interactive marketing? What decisions do companies face in designing and managing a sales force? How can salespeople improve their selling, negotiating, and relationship marketing skills? © Copyright 2008 Pearson Education Canada

Profile: Canadian Marketing Excellence SHAW COMMUNICATIONS INC. Shaw Communications is a diversified Canadian telecommunications company whose core business is providing cable TV, internet, and satellite Is the leading residential provider of broadband in western Canada Customer care and product quality are at the forefront of Shaw’s offering Use of door-to-door selling, with salesmen doubling as engineers © Copyright 2008 Pearson Education Canada

Marketing Communications Direct marketing Interactive marketing Personal selling © Copyright 2008 Pearson Education Canada

Direct Marketing Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen © Copyright 2008 Pearson Education Canada

Direct Marketing Channels Face-to-face Direct mail Online Catalog Kiosk Telemarketing Interactive TV © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Direct Marketing Steps in developing a direct-mail campaign: Step 1: Set objectives Step 2: Identify target markets Step 3: Define the offer elements Step 4: Test the elements Step 5: Measure results (and lifetime value) © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Offer Elements Product Offer Medium Distribution Creative © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Telemarketing Use of telephone operators and call centres to attract prospects, sell to existing customers, and provide service by taking orders and answering questions Telesales Telecoverage Teleprospecting Customer service and technical support © Copyright 2008 Pearson Education Canada

Direct Response TV Advertising © Copyright 2008 Pearson Education Canada

Elements of Effective Website Design Context Content Community Customization Connection Communication Commerce © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Website Performance Physical Attractiveness Clean pages Readable fonts Good colour and sound Ease of Use Fast downloads Intuitive first page Easy navigation © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Online Ads Banner ad © Copyright 2008 Pearson Education Canada

Yahoo! Features Rich Media Ads © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Search-related Ads Sponsored search Premium sponsored Search Organic search © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada E-mail Marketing © Copyright 2008 Pearson Education Canada

E-marketing Guidelines Give the customer a reason to respond Personalize the e-mail content Offer something the customer could not get via direct mail Make it easy to unsubscribe © Copyright 2008 Pearson Education Canada

Designing the Sales Force Types of Sales Representatives Deliverer Order taker Missionary Technician Demand creator Solution vendor © Copyright 2008 Pearson Education Canada

Figure 17.1 Designing a Sales Force objectives Sales force structure Sales force compensation Sales force strategy Sales force size © Copyright 2008 Pearson Education Canada

Designing the Sales Force Objectives Sales volume and profitability Customer satisfaction Strategy Account manager Type of sales force Direct (company) or contractual Steps in Process Objectives and strategy Structure Sales force size Compensation © Copyright 2008 Pearson Education Canada

Designing the Sales Force Types of sales force structures: Territorial Product Market Complex Key accounts Steps in Process Objectives and strategy Structure Sales force size Compensation © Copyright 2008 Pearson Education Canada

Designing the Sales Force Workload approach: Group customers by volume Establish call frequencies Calculate total yearly sales call workload Calculate average number of calls/year Calculate number of sales representatives Steps in Process Objectives and strategy Structure Sales force size Compensation © Copyright 2008 Pearson Education Canada

Designing the Sales Force Four components of compensation: Fixed amount Variable amount Expense allowances Benefits Compensation plans Straight salary Straight commission Combination Steps in Process Objectives and strategy Structure Sales force size Compensation © Copyright 2008 Pearson Education Canada

Figure 17.2 Managing a Sales Force Recruiting/ selecting Supervising Evaluating Training Motivating © Copyright 2008 Pearson Education Canada

Managing the Sales Force Recruiting begins with the development of selection criteria Customer-desired traits Traits common to successful sales representatives Selection criteria are publicized Various selection procedures are used to evaluate candidates © Copyright 2008 Pearson Education Canada

Motivating Sales Representatives Most valued rewards Pay Promotion Personal growth Sense of accomplishment Least valued rewards Liking Respect Security Recognition Which of the rewards are intrinsic rewards? Extrinsic? © Copyright 2008 Pearson Education Canada

Evaluating the Sales Force The amount of time needed and the training method used vary with the level of task complexity Successful firms have procedures to aid in evaluating the sales force Norms for customer calls Norms for prospect calls Using sales time efficiently © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada Call Reports Average number of sales calls per rep per day Average sales call time per contact Average revenue per sales call Average cost per sales call Entertainment cost per sales call Percentage of orders per hundred sales calls Number of new customers per period Number of lost customers per period Sales force cost as a percentage of total sales © Copyright 2008 Pearson Education Canada

Major Steps in Effective Selling Prospecting and qualifying Pre-approach Approach Presentation and demonstration Overcoming objections Closing Follow-up and maintenance © Copyright 2008 Pearson Education Canada

© Copyright 2008 Pearson Education Canada For Discussion Salespeople who meet or exceed their assigned quotas are typically given higher quotas the following year. How might this practice impact a company’s internal marketing efforts with employees? relationship marketing efforts with external customers? © Copyright 2008 Pearson Education Canada