MARKETING MANAGEMENT
Lecture Notes
(Chapter 19)
Managing Personal Communications:
Direct Marketing and Personal Selling
 DİRECT MARKETİNG
Direct marketing is the use of consumer-direct (CD) channels to reach and deliver goods and
services to customers without using marketing middlemen.
 The Benefits of Direct Marketing
Direct marketing benefits customers in many ways.
 Direct Mail
Direct-mail marketing involves sending an offer, announcement, reminder, or other item to a
person.
 "Carpet bombing." Direct mailers gather or buy as many names as possible and send out a mass
mailing. Usually the response rate is very low.
 Database marketing. Direct marketers mine the database to identify prospects who would have
the most interest in an offer.
 Interactive marketing. Direct marketers include a telephone number and Web address, and offer
to print coupons from the Web site. Recipients can contact the company with questions. The
company uses the interaction as an opportunity to up-sell, cross-sell, and deepen the
relationship.
 Real-time personalized marketing. Direct marketers know enough about each customer to
customize and personalize the offer and message.
 Lifetime value marketing. Direct marketers develop a plan for lifetime marketing to each
valuable customer, based on knowledge of life events and transitions.

Objectives
Most direct marketers aim to receive an order from prospect.

Target markets and prospects
Direct marketers need to identify the characteristics of prospects and customers who
are most able, willing, and ready to buy.

Offer elements
Nash sees the offer strategy as consisting of five elements—the product, the offer, the
medium, the distribution method, and the creative strategy. Fortunately, all of these
elements can be tested.

Testing elements
One of the great advantages of direct marketing is the ability to test, under real
marketplace conditions, different elements of an offer strategy, such as products,
product features, copy platform, mailer type, envelope, prices, or mailing lists.

Measuring campaign success
Lifetime value by adding up the planned campaign costs, the direct marketer can figure
out in advance the needed break-even response rate. This rate must be net of returned
merchandise and bad debts.
 Catalog Marketing
Companies may send full-line merchandise catalogs, specialty consumer catalogs, and business
catalogs
 Telemarketing
Telemarketing is the use of the telephone and calls centers to attract prospects, sell to existing
customers, and provide service by taking orders and answering questions.
 Other Media for Direct-Response Marketing
Direct marketers use all the major media to make offers to potential buyers.


Television
Kiosk marketing
 INTERACTİVE MARKETİNG
The Internet provides marketers and consumers with opportunities for much greater interaction
and individualization.
 Benefits of Interactive Marketing
24
Interactive marketing offers many unique benefits. It is highly accountable and its effects can be
easily traced.
 Designing an Attractive Web Site
Clearly, all companies need to consider and evaluate e-marketing and e-purchasing
opportunities. A key challenge is designing a site that is attractive on first viewing and interesting
enough to encourage repeat visits.
 Context
 Content
 Community
 Customization
 Communication
 Connection
 Commerce
 Placing Ads and Promotion Online
A company has to decide which forms of internet advertising will be most cost – effective in
achieving advertising objectives.
 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.
 Designing the Sales Force
U.S. firms spend over a trillion dollars annually on sales forces and sales force materials. Companies are
trying to increase the productivity of the sales force through better selection, training, supervision,
motivation, and compensation.
The term sales representative covers a broad range of positions. Six types of creative selling can be
distinguished:
1) Deliverer 2) Order taker 3) Missionary 4) Technician 5) Demand creator 6) Solution vendor

Sales Force Objectives and Strategy
Salespeople will have one or more of the following specific tasks to perform:
Prospecting –Targeting – Communicating – Selling- Servicing - Information
gathering -Allocating

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 would use a territorial structure. A company that sells many products to
many types of customers might need a product or market structure.

Sales Force Size
Once the company establishes the number of customers it wants to reach, it can use
a workload approach to establish sales force size. Sales representatives are one of
the company's most productive and expensive assets. Increasing their number will
increase both sales and costs.

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: 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.

Recruiting and Selecting Representatives
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
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. Such thinking is based on several assumptions.

Evaluating Sales Representatives
Good feed-forward requires good feedback, which means getting regular
information from reps to evaluate performance.

Source of Information
The most important source of information about reps is sales reports.

Formal Evaluation
The sales force's reports along with other observations supply the raw
materials for evaluation. There are several approaches to conducting
evaluations. One type of evaluation compares current performance to past
performance.
 Principles of Personal Selling
Major steps involved in any effective sales are:

Prospecting and qualifying
To identify and qualify prospects salespersons

Preapproach
Salesperson needs to learn as much as possible about the prospect company

Presentation and demonstration
Salesperson now tells the product "story" to the buyer

Overcoming objections
The salesperson maintains a positive approach,

Closing
Salesperson attempts to close the sale.

Follow-up and maintenance
Maintenance is necessary if the salesperson wants to ensure customer
satisfaction and repeat business.

Negotiation - Relationship Marketing