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19 Managing Personal Communications

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Presentation on theme: "19 Managing Personal Communications"— Presentation transcript:

1 19 Managing Personal Communications

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

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

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

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

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

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

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

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

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

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

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

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

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

15 Figure 19.1 Average Time Spent per Day with Select Media for US Consumers
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

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

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

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

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

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

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

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

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

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

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

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

28 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

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

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

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

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

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

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

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

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

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

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