ch 19 managing personal communications
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Marketing ManagementTRANSCRIPT
Marketing Management
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Marketing Management
Chapter-19
Managing Personal CommunicationsDirect Marketing, Personal Selling,
andExtended Marketing Mix
Part : 07
Promotion
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MARKETING MANAGEMENT12th edition
19 Managing Personal
Communications
Kotler Keller
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Chapter Questions
How can companies use integrated direct marketing for competitive advantage?
How can companies do effective e-marketing?
What decisions do companies face in designing a sales force?
How do companies manage a sales force efficiently?
How can salespeople improve selling, negotiating, and relationship marketing skills?
What is Extended Marketing Mix?
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Direct Marketing
Direct Marketing is the use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen (intermediary).
Direct Marketing is one of the fastest-growing avenues for serving customers.
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Direct Marketing Tools
E-Marketing
TV and otherDirect-Response
MediaTelemarketing
CatalogMarketing
DirectMail
Direct Marketing
Tools
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Direct Marketing Tools
Direct marketers can use a number of channels to reach individuals prospects and customers.
a. Direct Mailb. Catalog Marketingc. Telemarketingd. TV and other Direct-Response Mediae. Kiosk Marketingf. E-Marketing
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Direct Marketing Toolsa. Direct Mail : It involves sending an offer, announcement,
reminder or other item to a person like letters, flyers etc.
b. Catalog Marketing : The companies send full-line merchandise catalogs, specialty consumer catalogs and business catalogs in print form, CDs, videos or online.
c. Telemarketing : It is the use of the telephone and call centers to attract prospects, sell to existing customers and provide service by taking orders and answering questions. Telemarketing can be categorized as ‘Inbound’ or ‘Outbound’.
Inbound Telemarketing (Receiving calls from customers) Outbound Telemarketing (Initiating calls to prospects and
customers)
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Direct Marketing Tools
Telemarketing Direct Mail
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Direct Marketing Tools
d. TV and other Direct-Response Media (Direct-Response Advertising, At-Home Shopping Channels, Videotext and Interactive TV : In which consumer’s TV set is linked with a seller’s catalog by cable or telephone lines)
e. Kiosk Marketing : A kiosk is a small building or structure that might house a selling or information unit. The name describes newsstands, refreshment stands, and free-standing carts whose vendors sell watches, costume jewelry, and other items. Some marketers have adapted the self-service feature of kiosks to their businesses, like McDonald’s and Continental Airlines (Electronic Check-In).
f. E-Marketing : The newest channels for direct marketing are electronic which are growing explosively. The Internet provides marketers and consumers with opportunities for much greater interaction and individualization.
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Direct Marketing Tools
f. E-Marketing : The newest channels for direct marketing are electronic which are growing explosively. The Internet provides marketers and consumers with opportunities for much greater interaction and individualization.
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Direct Marketing Tools
Kiosk Marketing Electronic Marketing
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Personal Selling
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Principles of Personal Selling
Personal Selling : It is the face-to-face interaction with one or more prospective purchasers for the purpose of making sales and building customer relationships.
The companies spend hundreds of millions of dollars each year to train salespeople in the art of selling.
The sales training approaches try to transform a salesperson from a passive order taker into an active order getter who engages in customer problem solving.
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Principles of Personal Selling
The major steps involved an effective sales process are as follows.
1. Prospecting and Qualifying 2. Pre-approach3. Presentation and Demonstration 4. Overcoming Objections 5. Closing6. Follow-up and Maintenance
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Principles of Personal Selling
Prospecting/Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up
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Principles of Personal Selling
1. Prospecting and Qualifying : The first step in selling is to identify and qualify prospects. The leads then can be categorized as ‘hot’ prospects or ‘warm’ prospects etc.
2. Pre-Approach : This step involves to learn as much as possible about the prospect, the best contact approach (personal visit, phone call or letter), and devising a sales strategy.
3. Presentation and Demonstration : In this step, the salesperson now tells in the product “story” to the buyer following the AIDA formula of getting attention, holding interest, arousing desire and obtaining action. The salesperson uses a features, advantages, benefits, and value approach (FABV).
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Principles of Personal Selling
4. Overcoming Objections : Customers typically pose objections during the presentation or when asked for the order. Psychological Resistance (like, preference for established supply sources or brands) , Logical Resistance (objections to the price, delivery, payment terms, or to certain product features)
5. Closing : Now the salesperson attempts to close the sale.
6. Follow-up and Maintenance : Follow-up and maintenance are necessary if the salesperson wants to ensure customer satisfaction and repeat business.
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Important Sales Terms
1. Sales Calls : Regular appointments between the sales representatives and potential buyers.
2. Sales Blitz : An aggressive sales campaign.
3. Sales Lead : A sales lead is the identity of a person or entity potentially interested in purchasing a product or service, and represents the first stage of a sales process. Sales leads come from either marketing lead generation processes such as trade shows, direct marketing, internet marketing etc.
4. Missionary Salesperson : A 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.
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Extended Marketing Mix The marketing mix is the combination of marketing
activities that an organization engages in so as to best meet the needs of its targeted market. Traditionally the marketing mix consisted of just 4 Ps.
i. Productii. Priceiii. Placeiv. Promotion
In addition to the traditional four Ps it is now customary to add some more Ps to the mix to give us Seven Ps.
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Extended Marketing Mix The additional Ps have been added because today
marketing is far more customer oriented than ever before, and because the service sector of the economy has come to dominate economic activity in this country.
These 3 extra Ps are particularly relevant to this new extended service mix. The three extra Ps are
v. Physical Layoutvi. People/Provision of Customer Servicevii. Processes
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Extended Marketing Mix5- Physical Layout
v. Physical Layout : Today consumers typically come into contact with products in retail units - and they expect a high level of presentation in modern shops - e.g. record stores, clothes shops etc. Not only do they need to easily find their way around the store, but they also often expect a good standard or presentation.
The importance of quality physical layout is important in a range of service providers, including:
Students going to college or university have far higher expectations about the quality of their accommodation and learning environment than in the past. As a result colleges and universities pay far more attention to creating attractive learning environments, student accommodation, shops, bars and other facilities.
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Extended Marketing Mix5- Physical Layout
Air passengers expect attractive and stimulating environments, such as interesting departure lounges, with activities for young children etc.
Hair dressing salons are expected to provide pleasant waiting areas, with attractive reading materials, access to coffee for customers, etc.
Physical layout is not only relevant to stores, which we visit, but also to the layout and structure of virtual stores, and websites.
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Extended Marketing Mix6- People/Provision of Customer Service
vi. People/Provision of Customer Service : All people that are directly or indirectly involved in the consumption of a service are an important part of the Extended Marketing Mix.
Knowledge workers, employees, management and consumers often add significant value to the total product or service offering.
Customer service lies at the heart of modern service industries.
Customers are likely to be loyal to organizations that serve them well - from the way in which a telephone query is handled, to direct face-to-face interactions.
Call Centre staff and customer interfacing personnel are the front line troops of any organization and therefore need to be thoroughly familiar with good customer relation's practice.
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Extended Marketing Mix7- Processes
vii. Processes : Associated with customer service are a number of processes involved in making marketing effective in an organization e.g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc.
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Extended Marketing Mix
The 7 Ps - Product, Price, Place, Promotion, Physical Layout, People/Provision of Customer Service, and Processes comprise the Modern Marketing Mix that is particularly relevant in service industry, but is also relevant to any form of business where meeting the needs of customers is given priority.
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Assignment