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17 Managing Personal Communications

Chapter Questions
How can companies use direct marketing for competitive advantage? How can companies use interactive marketing and word of mouth most effectively? How can personal selling be sued to build profitable customer relationships? What decisions do companies face in designing and managing a sales force?
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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 consumerdirect 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 Interactive TV Kiosks Websites Mobile devices Other direct response
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Average Time Spent per Day with Select Media for US Consumers

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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 Recency Frequency Frequency Monetary value 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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Catalog Marketing
In catalog marketing companies send fullline merchandise catalogs (consumer or business) in print and/or electronic (CD, video, online) form.
The success of catalog business depends on: How well the consumer list is managed, avoiding duplication or bad debts Careful control of inventory Offering quality merchandise so that returns are low Projecting a distinctive image.
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Telemarketing
Telemarketing is the use of telephone and call centers to attract prospects, sell to existing customers and provide service by taking orders and answering questions.
Inbound vs. outbound Telesales Telecoverage Teleprospecting Customer service and technical support
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Public and Ethical Issues in Direct Marketing


Irritation Unfairness Deception/fraud Invasion of privacy

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Interactive Marketing
Advantages Tailored messages reflecting special interests Easy to track responsiveness through internet Contextual placement possible on related sites Search engine advertising possible Web is effective to reach people during the day Disadvantages Consumers develop selective attention Subject to click fraud
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Placing Ads and Promotions Online


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

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7 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

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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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Word of Mouth

Earned media

Paid media

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Word of Mouth and Social Media


Online Communities and Forums Blogs Social Networks

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What is Buzz Marketing?


Bazz marketing generates excitement, creates publicity and conveys new relevant brand related information through unexpected or even outrageous means.

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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


Viral marketing is a form of word of mouth, or word of mouse, that encourages consumers to pass along companydeveloped products and services or audio, video, or written information to others online.

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Personal Selling and the Sales Force


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

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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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Sales-Force Objectives and 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 - salary Variable amount commissions, bonus, profit sharing Expense allowance travel and entertaining expenses Benefits vacation, sick leave, pension, insurance

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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


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