19 Managing Personal Communications Direct and Interactive Marketing

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

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 -2

Cokes Embraces Interactive Marketing with My. Coke. com Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -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 19 -4

Direct Marketing Channels Direct mail Catalogs Telemarketing Other direct response Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -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 19 -6

RFM Formula for Selecting Prospects Recency Frequency Monetary value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -7

Elements of the Offer Strategy • • • Product Offer Medium Distribution method Creative strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -8

Components of the Mailing • • • Outside envelope Sales letter Circular Reply form Reply envelope Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -9

Types of Telemarketing • • Telesales Telecoverage Teleprospecting Customer service and technical support Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -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 19 -11

Public Issues in Direct Marketing Irritation Unfairness Deception/fraud Invasion of privacy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -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 19 -13

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 -14

A Microsite: Burger King’s Subservient Chicken Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -15

i. Tunes Affiliate Program Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -16

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 -17

Word-of-Mouth Marketing is Empowered by Social Networks Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -18

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 -19

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 -20

Types of Sales Representatives • • • Deliverer Order taker Missionary Technician Demand creator Solution vendor Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -21

Sales Tasks • • • Prospecting Targeting Communicating Selling Servicing Information gathering • Allocating Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -22

Figure 19. 7 Managing the Sales Force Recruiting, selecting Training Supervising Motivating Evaluating Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -23

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 -24

Components of Sales Force Compensation Fixed amount Variable amount Expense allowances Benefits Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -25

Table 19. 1 Form for Evaluating Performance Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -26

Principles of Personal Selling • • Situation questions Problem questions Implication questions Need-payoff questions Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -27

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 -28

Marketing Debate ü Are great salespeople born or made? Take a position: 1. The key to developing an effective sales 2. force is selection. 3. or 4. 2. The key to developing an effective sales 5. force is training. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -29

Marketing Discussion ü Pick a company and go to the Website. ü How would you evaluate the site? ü How well does it score on the seven C’s design elements? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19 -30