chapter 19 - marketing management

Managing Personal Communications:

Direct and Interactive Marketing,

Word of Mouth, and Personal Selling

Marketing Management, 13th ed

19

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-2

Chapter Questions

• How can companies integrate direct marketing for 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?


Direct Marketing

Use of consumer-direct channels to reachand deliver goods and services to

customers without using market middlemen.


Direct Marketing Channels

Catalogs

Direct mail

Telemarketing

Web sites

Email marketing

Mobile devices

Interactive TV

19-5

Constructing a Direct-Mail Campaign• Establish objectives

A. to receive an order from prospects (response rate-2% normally),

B. to produce prospect leads,

C. to strengthen customer relationships,

D. to inform and educate customers,

E. to remind customers of offers,

F. to reinforce recent customer purchase decisions

• Select target prospectsA. recency—30 to 60 days

B. frequency

C. monetary amount

• Develop offer elements

• Test elementsA. products

B. product features

C. copy platform

D. mailer type

E. prices

F. mailing lists

• Execute

• Measure success—campaign costs minus revenue


RFM Formula for Selecting Prospects

Recency—last orderRecency—last order

Frequency—number of times purchased

Frequency—number of times purchased

Monetary value--money spent since becoming a customer

Monetary value--money spent since becoming a customer


Elements of the Offer Strategy

• Product• Offer• Medium• Distribution method• Creative strategy


Components of the Mailing

• Outside envelope• Illustration (color)

• Sales letter• Personal, quality paper, bold type

• Circular• colorful

• Reply form• Toll-free number, website

• Reply envelope• Postage-free


Types of Telemarketing

• Telesales• Taking orders from catalogs or

ads and outbound calls• Telecoverage

• Call customers to maintain and nurture key account relationships and neglected accounts

• Teleprospecting• Generating and qualifying new

leads for closure by another sales channel

• Customer service and technical support• Answering service and technical

questions


Other Media for Direct Response

Television

• Direct Response Advertising

•Infomercials

• At-home shopping channels

•TV channels dedicated to selling goods

• Videotext

•Consumer’s TV set linked with seller’s catalog by cable or telephone line

Kiosks

•Small building or structure to sell or provide information


Public Issues in Direct Marketing

Irritation--timingIrritation--timing

Unfairness-impulsive or less sophisticated buyers

Unfairness-impulsive or less sophisticated buyers

Deception/fraud-mislead buyers

Deception/fraud-mislead buyers

Invasion of privacy- names included on several databases

Invasion of privacy- names included on several databases


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


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


Online Ads• Banner ads--small, rectangular

boxes containing text and maybe a picture

• Microsites--limited area on web (e.g., insurance on an used car website)

• Sponsorships--pays for showing content and is acknowledged

• Interstitials--ads that pop-up between changes on website

• Search-related ads--search terms that charge for cost per click

• Content-targeted advertising-- links ad to content of webpage

• Alliances--advertising each other on their respective website

• Affiliate programs--post ads on affiliate websites


Ease of Use and Attractiveness

• Ease of Use• Downloads quickly• First page is easy to understand• Easy to navigate

• Attractiveness• Clean looking• Not overly crammed with content• Readable fonts• Good use of color and sound


Designing an Attractive Web Site

• Context--Layout & design• Content--Text, picture, sound,

video• Community--user-to-user

communication• Customization—tailor to user

or allow personalization• Communication—enables

site-to-user, user-to-site, or two-way communication

• Connection—ability to link to other sites

• Commerce—ability to enable commercial transactions


iTunes Affiliate Program


Increasing Visits and Site Stickiness

• In-dept information with links

• Changing news of interest

• Changing offers • Contests and

sweepstakes• Humor and jokes• Games


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


Salespeople represent

whole company


whole company

Sales force provides market

information


information


information


information


whole company


whole company

Helping to buy is good sellingHelping to buy is good selling

Requires strategy decisions




Helping to buy is good sellingHelping to buy is good selling

The Importance and Role of Personal Selling

Salespeople can be strategy

planners

Salespeople can be strategy

planners

Personal Selling

Is Important

Personal Selling

Is Important


What Kinds of Personal Selling Are Needed?

Order-Taking

Order-TakingOrder-Taking

Order-Taking

Order-Getting

Order-GettingOrder-Getting

Order-Getting

SupportingSupporting

BasicSales Tasks

BasicSales Tasks


Wholesalers’ Order Getters Work Closely with Retailers

Wholesalers’ Order Getters Work Closely with RetailersWholesalers’ Order Getters Work Closely with Retailers

Wholesalers’ Order Getters Work Closely with Retailers

Producers’ Order Getters Find New Opportunities

Producers’ Order Getters Find New OpportunitiesProducers’ Order Getters Find New Opportunities

Producers’ Order Getters Find New Opportunities

Order Getters and Order-Getting




Retail Order Getters Influence Buyer Behavior

Retail Order Getters Influence Buyer Behavior

Order Getters Develop New Business Relationships


Wholesalers’ Order Takers Don’t Get Orders But Keep Them




Producers’ Order Takers Train, Explain & Collaborate




Order Takers and Order-Taking




Retail Order Takers Are Often Poor Sales Clerks

Retail Order Takers Are Often Poor Sales Clerks

Order Takers Nurture Relationships to Keep the Business Coming


Technical Specialists



(technical assistance)


(technical assistance)

Missionary Salespeople



(good will and educate)


(good will and educate)

Customer Service Reps

(resolve problems with a purchase)

Customer Service Reps

(resolve problems with a purchase)

SupportingSalesTasks

SupportingSalesTasks

Supporting Sales Force Informs and Promotes in the Channel


Solves problems after a purchase

Solves problems after a purchaseSolves problems after a purchase

Solves problems after a purchase


Technical SpecialistsPart of promotionPart of promotion

Reps are customer advocates

Reps are customer advocates

What is

Customer Service?

What is

Customer Service?

Customer Service Promotes the Next Purchase


Sales TerritoriesSales TerritoriesSales Territories

TelemarketingTelemarketingTelemarketing

Major Accounts

Sales Force

Major Accounts

Sales Force

Major Accounts

Sales Force

Different Markets, Different

Tasks


Tasks


Tasks

Team SellingTeam SellingTeam SellingTeam Selling

Sales Force Size and Workload

Sales Force Size and Workload

The Right Structure Helps Assign Responsibility


Key Steps in the Personal Selling Process


Straight Commission

Straight Commission

Straight Commission

Straight CommissionStraight SalaryStraight SalaryStraight SalaryStraight Salary

Level of Compensation


Method of Payment

Method of Payment



Method of Payment

Method of Payment

Combination Plan

Combination Plan

Compensating and Motivating Salespeople


Flexibility vs. Simplicity


Study Question 1

• Direct marketing channels include direct mail, catalogs, Web sites, interactive TV, and ____________A. Telemarketing

B. Billboards

C. Coupons

D. Bounce-back coupons

E. None of the above


Study Question 2

• In constructing an effective direct-mail campaign, marketers must decide on their objectives, target markets, and prospects; offer elements; means of testing the campaign; and _________

A. Sales promotions

B. Advertising campaign

C. Salespeople’s input

D. Measures of campaign success

E. Management’s input


Study Question 3

• A direct-mail campaign that has an order-response rate of ________ is considered a success.A. 10%

B. 3%

C. 15%

D. 2%

E. 5%


Study Question 4

• Direct marketers use a number of channels to reach prospects, including ___________A. Direct mail

B. Catalog marketing

C. Telemarketing

D. Kiosk marketing

E. All of the above


Study Question 5

• Direct marketing permits the ________ of alternative media and messages in search of the most cost-effective approach.A. Testing

B. Use

C. Implementation

D. Outsourcing

E. Accent

chapter 19 - marketing management

Documents

pearson education

prentice hall

direct channels

direct responsetelevisiond

relationship marketing

word of mouth

customer relationships

sales channelcustomer