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19 Managing Personal Communications

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?
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The Pepsi Refresh Project Changed How Pepsi Marketed Itself to its Target Market

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19-3

What is Direct Marketing?

Direct marketing is the use of consumerdirect channels to reach and deliver goods and services to customers without using market middlemen.

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19-4

Direct Marketing Channels

Direct mail Catalogs Telemarketing Other direct response

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19-5

Constructing a Direct-Mail Campaign

Establish objectives Select target prospects Develop offer elements Test elements Execute Measure success

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19-6

RFM Formula for Selecting Prospects

Recency Frequency Monetary value

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19-7

Elements of the Offer Strategy

Product Offer

Medium
Distribution Method Creative Strategy
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Components of the Mailing

Outside envelope Sales letter Circular Reply form Reply envelope

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19-9

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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19-10

Types of Telemarketing

Telesales Telecoverage Teleprospecting Customer service and technical support

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19-11

Other Media for Direct Response

Television Radio Kiosks Newspapers Magazines Internet

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Public Issues in Direct Marketing

Irritation Unfairness Deception/fraud Invasion of privacy

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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

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19-14

Figure 19.1 Average Time Spent per Day with Select Media for US Consumers

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19-15

Whopper Freakout Integrated Interactive Media

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19-16

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

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Figure 19.2 Key Design Elements of Effective WebSites

Context: Layout and design Content: Text, pictures, sound, video Community: User-to-user communication Customization: Sites personalization ability Communication: Site-user communication Connection: Links to other sites Commerce: Ability to conduct transactions

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19-18

Online Ads
Search Ads

Display Ads

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19-19

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

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19-20

Is mobile marketing the next big medium for direct marketers?

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19-21

Word of Mouth

Earned media

Paid media

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19-22

Platforms of Social Media

Online Communities and Forums

Blogs

Social Networks

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19-23

Motrin Learns the Power of Social Media

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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

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19-25

Creating a Viral Opportunity

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19-26

Types of Sales Representatives

1. Deliverer 2. Order taker 3. Missionary 4. Technician 5. Demand creator 6. Solution vendor

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19-27

Figure 19.3 Designing a Sales Force

Sales Force Objectives

Sales Force Strategy

Sales Force Structure

Sales Force Size

Sales Force Compensation

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Sales Tasks

Prospecting Targeting Communicating Selling Servicing Information gathering Allocating

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How should the firm organize the sales force structure?

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19-30

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

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Components of Sales Force Compensation

Fixed amount Variable amount Expense allowance Benefits

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Figure 19.5 Managing the Sales Force

Recruiting Selecting Training

Supervising Motivating Evaluating

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Salesperson Evaluation

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Principles of Personal Selling

Situation questions Problem questions Implication questions Need-payoff questions

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19-35

Steps in Effective Selling

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

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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?
19-37

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall