Managing Personal Communications:

Direct and Interactive Marketing,

Word of Mouth, and Personal Selling

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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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Traditional Direct Marketing
Forms
Direct-mail marketing involves an offer, announcement,
reminder, or other item to a person at a particular address.
• Personalized
• Easy-to-measure results
• Costs more than mass media
• Provides better results than mass media

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Traditional Direct Marketing Forms

Catalog direct marketing involves

printed and Web-based catalogs.

Benefits of Web- Challenges of Web-

based catalogs based catalogs

• Lower cost than • Require marketing

printed catalogs • Difficulties in
• Unlimited amount of attracting new
merchandise customers
• Real-time
merchandising
• Interactive content
• Promotional features

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Traditional Direct Marketing
Forms
Telemarketing involves using the telephone to sell
directly to consumers and business customers.
• Outbound telephone marketing sells directly to consumers and businesses.
• Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail,
and catalogs.

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Components of the Mailing

• Outside envelope
• Sales letter
• Circular
• Reply form
• Reply envelope

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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
• Direct Response
Advertising
• At-home shopping
channels
• Videotext
Kiosks

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

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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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 Designing
a Sales Force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Compensation

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• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor

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Sales Tasks

•Prospecting
•Targeting
•Communicating
•Selling
•Servicing
•Information gathering
•Allocating

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Managing the
Sales Force

Recruiting, selecting

Training

Supervising

Motivating

Evaluating

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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 allowances

Benefits

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Steps in Effective Selling

Prospecting/Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up

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