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?
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 The Pepsi Refresh Project
Changed How Pepsi Marketed
Itself to its Target Market

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 What is Direct Marketing?

Direct marketing is the use of consumer-

direct channels to reach and deliver goods
and services to customers without using
market middlemen.

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 Direct Marketing Channels
 Direct mail
 Catalogs
 Telemarketing
 Other direct response

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 Constructing a Direct-Mail Campaign

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

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 RFM Formula for
Selecting Prospects
 Recency
 Frequency
 Monetary value

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 Elements of the Offer Strategy
Product

Offer

Medium

Distribution Method

Creative Strategy

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 Components of the Mailing
 Outside envelope
 Sales letter
 Circular
 Reply form
 Reply envelope

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 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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 Types of Telemarketing
 Telesales
 Telecoverage
 Teleprospecting
 Customer service and technical support

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 Other Media for Direct Response

 Television
 Radio
 Kiosks
 Newspapers
 Magazines
 Internet

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 Public Issues in Direct Marketing
 Irritation
 Unfairness
 Deception/fraud
 Invasion of privacy

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 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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 Figure 19.1 Average Time Spent
per Day with Select Media
for US Consumers

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 Whopper Freakout Integrated
Interactive Media

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 Online Promotional Opportunities
 Websites  Sponsorships
 Microsites  Alliances and
 Search ads affiliate programs
 Display ads  Online
communities
 Interstitials
 Internet-specific ads
 Email
and videos  Mobile marketing

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 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: Site’s personalization ability
 Communication: Site-user communication
 Connection: Links to other sites
 Commerce: Ability to conduct transactions

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 Online Ads

Search Ads

Display Ads

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 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

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 Is mobile marketing the next big
medium for direct marketers?

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 Word of Mouth

Earned Paid
media media

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 Platforms of Social Media

Online Communities and Forums

Blogs

Social Networks

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 Motrin Learns the
Power of Social Media

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 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

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 Creating a Viral Opportunity

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 Types of Sales Representatives

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

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 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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 Sales Tasks
 Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating

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 How should the firm
organize the sales force
structure?

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 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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 Components of Sales Force
Compensation
 Fixed amount
 Variable amount
 Expense allowance
 Benefits

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 Figure 19.5 Managing the
Sales Force
Recruiting

Selecting

Training

Supervising

Motivating

Evaluating

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 Salesperson Evaluation

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 Principles of Personal Selling
 Situation questions
 Problem questions
 Implication questions
 Need-payoff questions

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 Steps in Effective Selling

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

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 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