1

19
Managing
Personal
Communications

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?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-2

The Pepsi Refresh Project

Changed How Pepsi Marketed
Itself to its Target Market

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19-3

What is Direct Marketing?

Direct marketing is the use of consumerdirect channels to reach and deliver goods
and services to customers without using
market middlemen.

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19-4

Direct Marketing Channels

Direct mail
Catalogs
Telemarketing
Other direct response

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19-5

Constructing a Direct-Mail Campaign

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

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19-6

RFM Formula for

Selecting Prospects

Recency
Frequency
Monetary value

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19-7

Elements of the Offer Strategy

Product
Offer
Medium
Distribution Method
Creative Strategy
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19-8

Components of the Mailing

Outside envelope
Sales letter
Circular
Reply form
Reply envelope

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19-9

Catalogs

How many catalogs did you get in the mail

yesterday?
How many catalog websites do you visit when
shopping online?

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19-10

Types of Telemarketing

Telesales
Telecoverage
Teleprospecting
Customer service and technical support

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19-11

Other Media for Direct Response

Television
Radio
Kiosks
Newspapers
Magazines
Internet

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19-12

Public Issues in Direct Marketing

Irritation
Unfairness
Deception/fraud
Invasion of privacy

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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

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-14

Figure 19.1 Average Time Spent

per Day with Select Media
for US Consumers

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19-15

Whopper Freakout Integrated

Interactive Media

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19-16

Online Promotional Opportunities

Websites
Microsites
Search ads
Display ads
Interstitials
Internet-specific ads
and videos

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Sponsorships
Alliances and
affiliate programs
Online
communities
Email
Mobile marketing

19-17

Figure 19.2 Key Design Elements

of Effective WebSites

Context: Layout and design

Content: Text, pictures, sound, video
Community: User-to-user communication
Customization: Sites personalization ability
Communication: Site-user communication
Connection: Links to other sites
Commerce: Ability to conduct transactions

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-18

Online Ads
Search Ads

Display Ads

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19-19

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

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-20

Is mobile marketing the next big

medium for direct marketers?

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19-21

Word of Mouth

Earned
media

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Paid
media

19-22

Platforms of Social Media

Online Communities and Forums

Blogs

Social Networks

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19-23

Motrin Learns the

Power of Social Media

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19-24

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

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-25

Creating a Viral Opportunity

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19-26

Types of Sales Representatives

1. Deliverer
2. Order taker
3. Missionary
4. Technician
5. Demand creator
6. Solution vendor

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19-27

Figure 19.3 Designing

a Sales Force
Sales Force Objectives

Sales Force Strategy

Sales Force Structure

Sales Force Size

Sales Force Compensation

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19-28

Sales Tasks

Prospecting
Targeting
Communicating
Selling
Servicing
Information gathering
Allocating

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19-29

How should the firm

organize the sales force
structure?

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19-30

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

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19-31

Components of Sales Force

Compensation

Fixed amount
Variable amount
Expense allowance
Benefits

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19-32

Figure 19.5 Managing the

Sales Force
Recruiting
Selecting
Training

Supervising
Motivating
Evaluating
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19-33

Salesperson Evaluation

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19-34

Principles of Personal Selling

Situation questions
Problem questions
Implication questions
Need-payoff questions

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19-35

Steps in Effective Selling

1. Prospecting/qualifying
2. Preapproach
3. Approach
4. Presentation
5. Overcoming objections
6. Closing
7. Follow up

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-36

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?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

19-37