Kotler MM 14e 19 Ippt GE

19Managing Personal

Communications

1

Copyright © 2012 Pearson Education 19-2

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?

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



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.


Direct Marketing Channels

Direct mail Catalogs Telemarketing Other direct response


Constructing a Direct-Mail Campaign

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


RFM Formula for Selecting Prospects

Recency Frequency Monetary value

Elements of the Offer Strategy


Product

Offer

Medium

Distribution Method

Creative Strategy


Components of the Mailing

Outside envelope Sales letter Circular Reply form Reply envelope

Catalogs

How many catalogs did you get in the mail yesterday?

How many catalog websites do you visit when shopping online?



Types of Telemarketing

Telesales Telecoverage Teleprospecting Customer service and technical support


Other Media for Direct Response

Television Radio Kiosks Newspapers Magazines Internet


Public Issues in Direct Marketing

Irritation Unfairness Deception/fraud Invasion of privacy


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

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


Whopper Freakout Integrated Interactive Media



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

Figure 19.2 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


Online Ads


Search Ads

Display Ads


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

Is mobile marketing the next big medium for direct marketers?


Word of Mouth


Earned media

Paid media

Platforms of Social Media


Online Communities and Forums

Blogs

Social Networks

Motrin Learns the Power of Social Media



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

Creating a Viral Opportunity


Types of Sales Representatives

1. Deliverer

2. Order taker

3. Missionary

4. Technician

5. Demand creator

6. Solution vendor



Figure 19.3 Designing a Sales Force

Sales Force Objectives

Sales Force Strategy

Sales Force Structure

Sales Force Size

Sales Force Compensation


Sales Tasks

Prospecting Targeting Communicating Selling Servicing Information gathering Allocating

How should the firm organize the sales force

structure?



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


Components of Sales Force Compensation

Fixed amount Variable amount Expense allowance Benefits


Figure 19.5 Managing the Sales Force

Recruiting

Selecting

Training

Supervising

Motivating

Evaluating

Salesperson Evaluation



Principles of Personal Selling

Situation questions Problem questions Implication questions Need-payoff questions


Steps in Effective Selling

1. Prospecting/qualifying

2. Preapproach

3. Approach

4. Presentation

5. Overcoming objections

6. Closing

7. Follow up

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?
