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Marketing Management, 13th ed

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Presentation on theme: "Marketing Management, 13th ed"— Presentation transcript:

1 Marketing Management, 13th ed
19 Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Marketing Management, 13th ed

2 Chapter Questions How can companies integrate direct marketing for competitive advantage? How can companies do effective interactive marketing? How can marketers best take advantage of the power of word of mouth? What decisions do companies face in designing and managing a sales force? How can salespeople improve selling, negotiating, and relationship marketing skills? Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

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 © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

4 Direct Marketing Channels
Direct mail Catalogs Telemarketing Other direct response Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

5 Constructing a Direct-Mail Campaign
Establish objectives Select target prospects Develop offer elements Test elements Execute Measure success Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

6 RFM Formula for Selecting Prospects
Recency Frequency Monetary value Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

7 Elements of the Offer Strategy
Product Offer Medium Distribution method Creative strategy Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

8 Components of the Mailing
Outside envelope Sales letter Circular Reply form Reply envelope Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

9 Types of Telemarketing
Telesales Telecoverage Teleprospecting Customer service and technical support Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

10 Other Media for Direct Response
Television Direct response advertising At-home shopping channels Videotext Kiosks Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

11 Public Issues in Direct Marketing
Irritation Unfairness Deception/fraud Invasion of privacy Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

12 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 © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

13 Online Promotional Opportunities
Websites Microsites Search ads Display ads Interstitials Internet-specific ads and videos Sponsorships Alliances and affiliate programs Online communities Mobile marketing Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

14 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 Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

15 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 © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

16 Designing a Sales Force
Sales force objectives Sales force strategy Sales force structure Sales force size Compensation Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

17 Types of Sales Representatives
Deliverer Order taker Missionary Technician Demand creator Solution vendor Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

18 Sales Tasks Prospecting Targeting Communicating Selling Servicing
Information gathering Allocating Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

19 Managing the Sales Force
Recruiting Selecting Training Supervising Motivating Evaluating Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

20 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 © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

21 Components of Sales Force Compensation
Fixed amount Variable amount Expense allowance Benefits Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

22 Principles of Personal Selling
Situation questions Problem questions Implication questions Need-payoff questions Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

23 Steps in Effective Selling
Prospecting/qualifying Preapproach Approach Presentation Overcoming objections Closing Follow up Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

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