The document discusses various topics related to direct marketing, interactive marketing, sales forces, and sales skills. It provides information on direct marketing channels like direct mail, catalogs, and telemarketing. It also discusses how to construct a direct mail campaign, use the RFM formula to select prospects, and components of mailings. Additionally, it covers interactive marketing opportunities online including websites, search ads, and social media. The document also examines considerations for designing a sales force like objectives, structure, size, and compensation. It concludes by discussing steps to effective selling, recruiting, and managing a sales force.

1. Framework for Marketing Management
17
Managing Personal
Communications
1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-2
Chapter Questions
 How can companies conduct direct marketing
and interactive marketing for competitive
advantage?
 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
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4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-4
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.

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Direct Marketing Channels
 Direct mail
 Catalogs
 Telemarketing
 Other direct response

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Constructing a Direct-Mail Campaign
 Establish objectives
 Select target prospects
 Develop offer elements
 Test elements
 Execute
 Measure success

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RFM Formula for
Selecting Prospects
 Recency
 Frequency
 Monetary value

8. Elements of the Offer Strategy
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Product
Offer
Medium
Distribution Method
Creative Strategy

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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?
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11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-11
Types of Telemarketing
 Telesales
 Telecoverage
 Teleprospecting
 Customer service and technical support

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-12
Other Media for Direct Response
 Television
 Radio
 Kiosks
 Newspapers
 Magazines
 Internet

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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

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-14
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

15. Figure 17.1 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
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16. Online Ads
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Search Ads
Display Ads

17. Is mobile marketing the next big
medium for direct marketers?
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18. Platforms of Social Media
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Online Communities and Forums
Blogs
Social Networks

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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

20. Types of Sales Representatives
1. Deliverer
2. Order taker
3. Missionary
4. Technician
5. Demand creator
6. Solution vendor
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21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-21
Figure 17.1 Designing
a Sales Force
Sales Force Objectives
Sales Force Strategy
Sales Force Structure
Sales Force Size
Sales Force Compensation

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-22
Sales Tasks
 Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating

23. How should the firm
organize the sales force
structure?
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24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-24
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

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-25
Components of Sales Force
Compensation
 Fixed amount
 Variable amount
 Expense allowance
 Benefits

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 17-26
Figure 17.2 Managing the
Sales Force
Recruiting
Selecting
Training
Supervising
Motivating
Evaluating

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Steps in Effective Selling
1. Prospecting/qualifying
2. Preapproach
3. Approach
4. Presentation
5. Overcoming objections
6. Closing
7. Follow up

28. For Review
 How can companies conduct direct marketing
and interactive marketing for competitive
advantage?
 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 17-28