Merve Kevser Coşkun
CHAPTER 19
MANAGING PERSONAL COMMUNICATIONS : Direct Marketing And
Personal Sellig
Direct marketing is the use of consumer-direct (CD) channels to reach and deliver goods and
services to customers without using marketing middlemen. These channels include direct mail, catalogs,
telemarketing, interactive TV, kiosks, Web sites, and mobile devices.
The Benefits of Direct Marketing
-Higher costs of driving, traffic congestion, parking headaches, lack of time, a shortage of retail sales help,
and lines at checkout counters all encourage at-home shopping. Consumers appreciate toll-free phone
numbers and Web sites available 24 hours a day, 7 days a week, ourage at-home shopping.

Direct marketing benefits customers in many ways. Home shopping can be fun, convenient,
and hassle-free. It saves time and introduces consumers to a larger selection of
merchandise. They can do comparative shopping by browsing through mail catalogs and
online shopping services.
 Business customers also benefit by learning about available products and services without
tying up time in meeting salespeople.
 Sellers benefit as well. Direct marketers can buy a mailing list containing the names of
almost any group: left-handed people, overweight people, millionaires.
Catalog Marketing
In catalog marketing, companies may send full-line merchandise catalogs, specialty consumer
catalogs, and business catalogs, usually in print form but also sometimes as CDs, videos, or
online.
Through their catalogs, Avon sells cosmetics, and IKEA sells furniture,etc.
Telemarketing
Telemarketing is the use of the telephone and call centers to attract prospects, sell to existing
customers, and provide service by taking orders and answering questions. Telemarketing helps
companies increase revenue, reduce selling costs, and improve customer satisfaction.
Other Media for Direct-Response Marketing
Direct marketers use all the major media to make offers to potential buyers.


TELEVISION Television is used by direct marketers
KIOSK MARKETING A kiosk is a small building or structure that might house a selling or information
unit. McDonald's found that customers who used its kiosks to order spent 30 percent more per order.
Interactive Marketing
The newest channels for direct marketing are electronic. The Internet provides marketers and
consumers with opportunities for much greater interaction and individualization.
The Benefits of Interactive Marketing
 It is highly accountable and its effects can be easily traced
 The Web offers the advantage of "contextual placements." Marketers can buy ads from
sites that are related to their offerings, as well as place advertising based on contextual
keywords from online search outfits like Google.
 In that way, the Web can reach people when they have actually started the buying process.
Light consumers of other media, especially television, can be reached.
The Web is especially effective at reaching people during the day. Young, high-income,
high-education customers'.
E-Marketing Guidelines
If a company does an e-mail campaign right, it can not only build customer relationships,
but also reap additional profits. E-mail involves only a fraction of the cost of a "d-mail," or
direct-mail, campaign. For example, Microsoft spent approximately $70 million a year on
paper-driven campaigns.
Some Important Guidelines
o
o
Give the customer a reason to respond.
Personalize the content of your e-mails. IBM's iSource is distributed directly to customers'
office e-mail each week.
o Offer something the customer could not get via direct mail.
o Make it easy for customers to "unsubscribe".
Designing the Sales Force
Designing
the Sales
Force
Sales
force
objectives
ss
Sales
force
strategy
Sales
force
structure
Sales
force
size
Sales force
compensation
Sales Force Objectives and Strategy
Companies need to define the specific objectives they want their sales force to achieve. For
example, a company might want its sales representatisves to spend 80 percent of their time with
current customers and 20 percent with prospects.
Sales Force Structure
The sales force strategy has implications for the sales force structure. A company that sells one
product line to one end-using industry with customers in many locations.
Motorola, for example, manages four types of sales forces:
(1) a strategic market sales force composed of technical, applications, and quality engineers and
service personnel assigned to major accounts;
(2) a geographic sales force calling on thousands of customers in different territories;
(3) a distributor sales force calling on and coaching Motorola distributors; and
(4) an inside sales force doing telemarketing and taking orders via phone and fax.
Sales Force Size
The company clarifies its strategy and structure, it is ready to consider sales force size.
Sales Force Compensation
To attract top-quality sales reps, the company has to develop an attractive compensation package.
The company must determine the four components of sales force compensation—a fixed amount,
a variable amount, expense allowances, and benefits.
Managing the Sales Force
Once the company has established objectives, strategy, structure, size, and compensation, it has to
recruit, select, train, supervise, motivate, and evaluate sales representatives. Various policies and
procedures guide these decisions.
Managing
the Sales
Force
Recruiting
and
selecting
sales
representa
tives
Training
sales
represent
atives
Supervisi
ng sales
represen
tatives
Motivatin
g sales
represent
atives
Evaluating
sales
representat
ives
Recruiting and Selecting Representatives
At the heart of a successful sales force is the selection of effective representatives.
Training and Supervising Sales Representatives
Today's customers expect salespeople to have deep product knowledge, to add ideas to improve
the customer's operations, and to be efficient and reliable. These demands have required
companies to make a much higher investment in sales training.
Motivating Sales Representatives
The majority of sales representatives require encouragement and special incentives.Most
marketers believe that the higher the salesperson's motivation, the greater the effort and the
resulting performance, rewards, and satisfaction—and thus further motivation.
Evaluating Sales Representatives
An active order getter learns how to listen and question in order
to identify customer needs and come up with sound product
solutions.
The Six Steps
PROSPECTING and QUALIFYING The first step in selling is
to identify and qualify prospects.
PREAPPROACH
The salesperson needs to learn as much as possible about the
prospect company
PRESANTATION AND DEMONSTRATION
The salesperson now tells the product "story" to the buyer.
OVERCOMING OBJECTIONS Customers typically pose
objections during the presentation or when asked for the order.
CLOSING
Now the salesperson attempts to close the sale. Salespeople need
to know how to recognize closing signs from the buyer,
including physical actions, statements or comments, and
questions.
FOLLOW-UP AND MAINTENANCE
Follow-up and maintenance are necessary if the salesperson
wants to ensure customer satisfaction and repeat business.