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Managing Personal
Communications:
Direct and
Interactive Marketing,
Word of Mouth, and
Personal Selling
Marketing Management, 13th ed
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-2
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 19-3
Cokes Embraces Interactive Marketing
with MyCoke.com
Copyright © 2009 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-5
Direct Marketing Channels
Direct mail
Catalogs
Telemarketing
Other direct response
Copyright © 2009 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-7
RFM Formula for
Selecting Prospects
Recency
Frequency
Monetary value
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-8
Elements of the Offer Strategy
• Product
• Offer
• Medium
• Distribution method
• Creative strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-9
Components of the Mailing
• Outside envelope
• Sales letter
• Circular
• Reply form
• Reply envelope
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-10
Types of Telemarketing
• Telesales
• Telecoverage
• Teleprospecting
• Customer service
and technical
support
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-11
Other Media for Direct Response
Television
• Direct Response
Advertising
• At-home shopping
channels
• Videotext
Kiosks
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-12
Public Issues in Direct Marketing
Irritation
Unfairness
Deception/fraud
Invasion of privacy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-13
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 19-14
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-15
A Microsite:
Burger King’s Subservient Chicken
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-16
iTunes Affiliate Program
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-17
e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• 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 19-18
Word-of-Mouth Marketing is
Empowered by Social Networks
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-19
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 19-20
Figure 19.4 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 19-21
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-22
Sales Tasks
• Prospecting
• Targeting
• Communicating
• Selling
• Servicing
• Information
gathering
• Allocating
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-23
Figure 19.7 Managing the
Sales Force
Recruiting, selecting
Training
Supervising
Motivating
Evaluating
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-24
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-25
Components of Sales Force
Compensation
Fixed amount
Variable amount
Expense allowances
Benefits
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-26
Table 19.1 Form for Evaluating Performance
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-27
Principles of Personal Selling
• Situation questions
• Problem questions
• Implication questions
• Need-payoff questions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-28
Figure 19.8 Steps in Effective Selling
Prospecting/Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-29
Marketing Debate
 Are great salespeople born or made?
Take a position:
1. The key to developing an effective sales
force is selection.
or
2. The key to developing an effective sales
force is training.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-30
Marketing Discussion
 Pick a company and go to the
Website.
 How would you evaluate the site?
 How well does it score on the seven
C’s design elements?

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  • 1. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Marketing Management, 13th ed 19
  • 2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-2 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?
  • 3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-3 Cokes Embraces Interactive Marketing with MyCoke.com
  • 4. Copyright © 2009 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.
  • 5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-5 Direct Marketing Channels Direct mail Catalogs Telemarketing Other direct response
  • 6. Copyright © 2009 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
  • 7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-7 RFM Formula for Selecting Prospects Recency Frequency Monetary value
  • 8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-8 Elements of the Offer Strategy • Product • Offer • Medium • Distribution method • Creative strategy
  • 9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-9 Components of the Mailing • Outside envelope • Sales letter • Circular • Reply form • Reply envelope
  • 10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-10 Types of Telemarketing • Telesales • Telecoverage • Teleprospecting • Customer service and technical support
  • 11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-11 Other Media for Direct Response Television • Direct Response Advertising • At-home shopping channels • Videotext Kiosks
  • 12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-12 Public Issues in Direct Marketing Irritation Unfairness Deception/fraud Invasion of privacy
  • 13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-13 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-14 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-15 A Microsite: Burger King’s Subservient Chicken
  • 16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-16 iTunes Affiliate Program
  • 17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-17 e-Marketing Guidelines • Give the customer a reason to respond • Personalize the content of your emails • Offer something the customer could not get via direct mail • Make it easy for customers to unsubscribe
  • 18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-18 Word-of-Mouth Marketing is Empowered by Social Networks
  • 19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-19 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-20 Figure 19.4 Designing a Sales Force Sales force objectives Sales force strategy Sales force structure Sales force size Compensation
  • 21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-21 Types of Sales Representatives • Deliverer • Order taker • Missionary • Technician • Demand creator • Solution vendor
  • 22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-22 Sales Tasks • Prospecting • Targeting • Communicating • Selling • Servicing • Information gathering • Allocating
  • 23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-23 Figure 19.7 Managing the Sales Force Recruiting, selecting Training Supervising Motivating Evaluating
  • 24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-24 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-25 Components of Sales Force Compensation Fixed amount Variable amount Expense allowances Benefits
  • 26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-26 Table 19.1 Form for Evaluating Performance
  • 27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-27 Principles of Personal Selling • Situation questions • Problem questions • Implication questions • Need-payoff questions
  • 28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-28 Figure 19.8 Steps in Effective Selling Prospecting/Qualifying Preapproach Approach Presentation Overcoming objections Closing Follow-up
  • 29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-29 Marketing Debate  Are great salespeople born or made? Take a position: 1. The key to developing an effective sales force is selection. or 2. The key to developing an effective sales force is training.
  • 30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-30 Marketing Discussion  Pick a company and go to the Website.  How would you evaluate the site?  How well does it score on the seven C’s design elements?