19 Managing Personal Communications: Direct and Interactive Marketing,

19 Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Marketing Management, 13th 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 MyCoke.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 Recency Frequency Frequency Monetary Monetary value 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

iTunes 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 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 19-29

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? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-30