Managing Personal Communications

Key Concepts

Direct Marketing

The use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen.

The use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen.

Direct Marketing Channels

Direct mail

Catalogs

Telemarketing

Interactive TV

Kiosks

Web sites

Mobile devices

Benefits of Direct Marketing

For consumers:

Convenience, ease, and speed of ordering

Can buy specialty items not available in local stores

For marketers:

Can buy mailing lists for almost any segment

Customize and personalize messages

Build relationships

Reach the most interested prospects at the right moment

Easily test alternatives and messages

Easily measure campaign results

Direct Mail Decisions

ObjectivesObjectivesTarget

markets and prospects

Target markets and prospects

Offer elementsOffer

elements

Measuring success: lifetime value

Measuring success: lifetime value

Testing elementsTesting elements

Catalog Marketing

Includes full-line merchandise catalogs, specialty consumer catalogs, and business catalogs, usually in print form but also sometimes as CDs, videos, or online.

Successful catalog marketing:Manage customer listsControl inventoryOffer quality goodsProject a distinctive image

Telemarketing

Outbound Telemarketing

Outbound Telemarketing

Inbound Telemarketing

Inbound Telemarketing

Other Media for Direct-Response Marketing

NewspapersNewspapers

MagazinesMagazines

RadioRadio

TelevisionTelevision

Public and Ethical Issues in Direct Marketing

Irritating consumers

Taking advantage of impulsive, less sophisticated, or vulnerable consumers

Misleading communications

Invasion of privacy

Interactive Marketing

New electronic channels offer: Interaction Individualization

Advantages of the Web: Contextual placement of ads Rich media ads

Elements of Effective Web Design (7 Cs Specific Design Elements)

ContextContext

ContentContent

CommunityCommunity

CustomizationCustomization

CommunicationCommunication

ConnectionConnection

CommerceCommerce

Forms of Interactive Marketing

Web sites

Microsites

Search-related ads

Display ads

Online videos and ads

Sponsorships

Alliances

Online communities

Email

Mobile marketing

Word of Mouth

Buzz marketingBuzz marketing

Viral marketingViral marketing

Opinion leadersOpinion leaders

BlogsBlogs

Buzz and Viral Marketing

Buzz marketing

Generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.

Buzz marketing

Generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.

Viral marketing

Encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.

Viral marketing

Encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.

Opinion Leaders

Cliques—small groups whose members interact frequently.

Bridges—people who belong to one clique and are linked to a person in another.

Factors working to ignite public interest in an idea:Reaching mavens, connectors, and salesmen

StickinessPower of context

Blogs

Regularly updated online journals or diaries.

Regularly updated online journals or diaries.

Marketing Skills:How to Start a Buzz Fire

Identify influential individuals and companies and devote extra attention to them.

Supply these key people with product samples to encourage word of mouth.

Cultivate contacts with community influentials.

Develop word-of-mouth referral channels.

Provide compelling information that people want to pass along.

Personal Selling and the Sales Force

The term sales representative covers six positions: Deliverer Order taker Missionary Technician Demand creator Solution vendor

Major Steps in Effective Selling

Overcoming objectionsOvercoming objections

ClosingClosing

Follow up and maintenance

Follow up and maintenance

Prospecting and qualifying

Prospecting and qualifying

PreapproachPreapproach

Presentation and demonstration

Presentation and demonstration

Designing a Sales Force

Sales Force Objectives and Strategy

Tasks:ProspectingTargetingCommunicatingSellingServicingInformation gatheringAllocating

Approach:Direct (company sales force)—consists of full- or part-time paid employees who work exclusively for the firm.

Contractual sales force—consists of manufacturers’ reps, sales agents, and brokers who earn a commission based on sales.

Sales Force Structure

Product or market structure

Product or market structure

Territorial structure

Territorial structure

Sales Force Size—Workload Approach

1. Group customers into size classes by annual sales volume.

2. Establish call frequencies for each customer class (number of calls per year).

3. Multiply the number of accounts in each size class by the call frequencies (determines total work load or sales calls per year).

4. Determine the average number of calls a sales rep can make per year.

5. Divide the total annual calls (step 3) by the average annual calls made by a rep (step 4) to determine how many reps are needed.

Sales Force Compensation

Fixed amountFixed amount

Variable amountVariable amount

Expense allowancesExpense allowances

BenefitsBenefits

Managing the Sales Force

Sales Rep Productivity

Time-and-duty analysis—helps reps understand how they spend their time and how they might increase their productivity.

Inside sales people: Technical support people Sales assistants Telemarketers

Sales Rep Productivity

Time-and-duty analysis—helps reps understand how they spend their time and how they might increase their productivity.

Inside sales people: Technical support people Sales assistants Telemarketers

Evaluating Sales Representatives

Reports include:Average number of calls per rep per dayAverage sales call time per contactAverage revenue per sales callAverage cost per sales callEntertainment cost per sales callPercentage of orders per hundred sales calls

Number of new customers per periodNumber of lost customers per periodSales force cost as a percentage of total sales