3484-3202 kotler mm 13e media 19-personal communication

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    Managing Personal

    Communications:

    Direct andInteractive Marketing,

    Word of Mouth, and

    Personal Selling

    19

    Marketing Management

    A Sou th Asian Perspect ive, 13th

    ed

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-2

    Chapter Questions

    How can companies integrate direct marketingfor 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?

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-3

    Cokes Embraces Interactive Marketing

    with MyCoke.com

    http://www.mycoke.com/
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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-4

    What is Direct Marketing?

    Direct marketingis the use of

    consumer-direct channels to reach and

    deliver goods and services to

    customers without using market

    middlemen.

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-5

    Direct Marketing Channels

    Direct mail

    Catalogs

    Telemarketing

    Other direct response

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-6

    Constructing a Direct-Mail Campaign

    Establish objectives

    Select target prospects

    Develop offer elements

    Test elements

    Execute

    Measure success

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-7

    RFM Formula for

    Selecting Prospects

    Recency

    Frequency

    Monetary value

    http://www.the-dma.org/
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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-8

    Elements of the Offer Strategy

    Product

    Offer

    Medium Distribution method

    Creative strategy

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-9

    Components of the Mailing

    Outside envelope

    Sales letter

    Circular Reply form

    Reply envelope

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-10

    Types of Telemarketing

    Telesales

    Telecoverage

    Teleprospecting

    Customer service

    and technical

    support

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-11

    Other Media for Direct Response

    Television

    Direct Response Advertising

    At-home shopping channels

    Videotext

    Kiosks

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-12

    Public Issues in Direct Marketing

    Irritation

    Unfairness

    Deception/fraud

    Invasion of privacy

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 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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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 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

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-15

    A Microsite:

    Burger Kings Subservient Chicken

    http://www.subservientchicken.com/
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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-16

    e-Marketing Guidelines

    Give the customer a reason to respond

    Personalize the content of your emails

    Offer something the customer could notget via direct mail

    Make it easy for customers to

    unsubscribe

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-17

    Word-of-Mouth Marketing is

    Empowered by Social Networks

    http://www.myspace.com/
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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-18

    How to Start Buzz

    Identify influential individuals and companiesand 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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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-19

    Figure 19.4 Designing

    a Sales Force

    Sales force objectives

    Sales force strategy

    Sales force structure

    Sales force size

    Compensation

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-20

    Types of Sales Representatives

    Deliverer

    Order taker Missionary

    Technician

    Demand creator

    Solution vendor

    http://localhost/var/www/apps/conversion/tmp/scratch_9/19_AFLAC.mov
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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-21

    Sales Tasks

    Prospecting

    Targeting

    Communicating

    Selling

    Servicing

    Information

    gathering Allocating

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-22

    Figure 19.7 Managing the

    Sales Force

    Recruiting, selecting

    Training

    Supervising

    Motivating

    Evaluating

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 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 callsrequired divided by number possible

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-24

    Components of Sales Force

    Compensation

    Fixed amount

    Variable amount

    Expense allowances

    Benefits

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-25

    Table 19.1 Form for Evaluating Performance

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 19-27

    Figure 19.8 Steps in Effective Selling

    Prospecting/Qualifying

    Preapproach

    Approach

    Presentation

    Overcoming objections

    Closing

    Follow-up

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 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 salesforce is training.

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    Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 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

    Cs design elements?