PowerPoint Presentation

Nur Fathiah Muhammad Salleh 0932072

Siti Norfadzlin Daud 1018276

Nor Lyana Mastura Zainal Abidin1012364

Benefits of Direct MarketingHome shopping can be fun, convenient, and hassle-freeSaves timeIntroduces consumers to a larger selection of merchandiseEase of comparative shoppingCan order goods for themselves and othersBusiness customers can benefit by learning about available products and servicesBenefits customers

They can customize and personalize messages.They can build a continuous relationship with each customer.Direct marketing can be timed to reach prospects at the right moment. Can receive higher readership because it is sent to more interested prospects.Permits the testing of alternative media and messages in a cost-effective approach.Direct marketers can measure responses to their campaigns to decide which one has been more profitable.Benefits sellers

Direct MailIn constructing an effective direct-mail campaign, direct marketers must decide on:their objectives,target markets and prospects,offer elements,means of testing the campaign, andmeasures of campaign success.ObjectivesAim to receive orders from prospects and judge a campaign success by the response rateCommunication objective - strengthen customer relationships - produce prospects leadTarget markets and prospectsR-F-M formula: Recency, frequency, monetary amount to select customers.

Identify prospects on the basis of age, sex, income, education, previous mail-orders purchases, and occasions.

In B2B direct marketing, the prospect is often not an individual but a group of people or a committee that includes both decision makers and multiple decision influencers.

Each member needs to be treated differently, and the timing, frequency, nature, and format of contact must reflect the members status and role.

Offer elementsProductOfferCreative StrategyDistribution MethodMedium

Testing the campaignTo derive a more comprehensive estimate of the promotions impact, some companies are measuring direct marketings impact on:AwarenessIntention to buyWord of mouth

Catalog Marketing

Avoid duplication and bad debts

Huge reach, low costs.The success of a catalog business depends on the companys ability to manage its:Customer lists.

Control inventory.

Offer quality merchandise so returns are low.

Project a distinctive image.

TelemarketingTelemarketing helps companies increase revenue, reduce selling costs, and improve customer satisfaction.

it is too difficult to set up in emerging Asian economies with poor telecommunications infrastructureextensive training is requiredthere is high staff turnover, as reliable and bright telemarketers are hard to keep given the tight labor market for their servicesthere are numerous multicountry complications and associated language problems

Public and Ethical Issues in Direct Marketing

Advantages & DisadvantagesTailored messages Contextual placementTracking consumer traffic at ease

Lose some control over consumers activity Web user may block certain sites, hackers and vandals

Communication OptionsEmailDisplay AdsWebsites

Search Ads

Mobile Marketing

Results from press coverage of company-generated advertising, publicity or other promotional efforts.

All the PR benefits a firm receives without having directly paid for anything (i.e., news stories, blogs, social network conversations that deal with a brand).

Buzz marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.

Viral marketing encourages consumers to pass along company-developed product and service or audio, video or written information to others online.

Buzz and Viral Marketing

Opinion LeaderThe Law of The Few

StickinessThe Power of Context

In designing the sales force, the company must develop sales force objectives, strategy, structure, size, and compensation.

Types of Sales RepresentativeDelivererA salesperson whose major task is product delivery (water, fuel, oil).

Order takerA salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager).MissionaryA salesperson who is not expected or permitted to take an order but whose major task is to build goodwill or to educate the actual or potential user (the medical detailer representing an ethical pharmaceutical house).TechnicianA salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to the client companies).

Demand creatorA salesperson who relies on creative methods for selling tangible products (vacuum cleaners, cleaning brushes, and household products) or intangibles (insurance, advertising services, or education).Solution vendorA salesperson whose expertise lies in solving a customers problem, often with a system of the companys products and services (e.g., computer and communications systems).

Sales Force Objectives and Strategy

Sales Force structure

Sales Force SizeCustomers are grouped into size classes according to annual sales volume.

Desirable call frequencies (number of calls on an account per year) are established for each class.

The number of accounts in each size class is multiplied by the corresponding call frequency to arrive at the total workload for the country, in sales calls per year.

The average number of calls a sales representative can make per year is determined.

The number of sales representatives needed is determined by dividing the total annual calls required by the average annual calls made by a sales representative.Workload approach

Sales Force CompensationThe company must determine the four

components of sales-force compensation:

The fixed amountThe variable amountExpense allowancesBenefits

Supervising Sales Representatives

Norms 4 Prospect Calls Using Sales Time Efficiently

Sales Technology

Motivating Sales RepresentativesSales QuotasIntrinsic Versus Extrinsic Value

Evaluating Sales RepresentativesSources of Information Formal Evaluation

The six steps

Negotiation Decision-Making Style

Mediation and Informal Communication

Fluid Contracts

Status and Title

Time

Language

Eye Contact

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