1
19
Managing Personal
Communications
Chapter Questions





How can companies use integrated direct
marketing for competitive advantage?
How can companies do effective e-marketing?
What decisions do companies face in designing a
sales force?
How do companies manage a sales force
efficiently?
How can salespeople improve selling,
negotiating, and relationship marketing skills?
19-2
Direct Marketing
Use of consumer-direct
channels to reach
and deliver goods and
services to
customers without using
market middlemen.
19-3
The Rebirth of Direct Marketing
Interactive dialogue & direct
interface between producers and
customers
The Relationship Paradigm
(Relationship Marketing or
Customer Relationship
Management)
19-4
Accommodating the Relationship Paradigm
Marketing is an organizational
function and a set of processes
for creating, communicating,
and delivering value to
customers and for managing
customer relationships in ways
that benefit the organization
and its shareholders (AMA –
September 2004)
19-5
The development of Information Technology has eased the
growth of direct marketing (and the relationship marketing)
19-6
The Future of the Internet
Revolutionary for
certain industries
and incremental for
others.
Conversational Marketing
“Markets are
conversations”
E.g., MySpace (used by Warner Bros)
Facebook (Coca-cola has a Sprite page & “Sprite Sips” game).
19-8
Creating horizontal communication
19-9
Direct Marketing Channels
Catalogs
 Direct mail
 Telemarketing
 Web sites
 Email marketing
 Mobile devices
 Interactive TV

19-10
Buy a book and it is auto-delivered wirelessly
in less than one minute.
19-11
Public Issues in Direct Marketing




Irritation
Unfairness
Deception/fraud
Invasion of privacy
19-12
Constructing A Direct-Mail Campaign
Establish objectives
Select target prospects
Develop offer elements
Test elements
Execute
Measure success
19-13
RFM Formula for Selecting Prospects
Recency
 Frequency
 Monetary value

19-14
Elements of the Offer Strategy





Product
Offer
Medium
Distribution method
Creative strategy
19-15
Components of the Mailing
Outside envelope
 Sales letter
 Circular
 Reply form
 Reply envelope

19-16
Types of Telemarketing
Telesales
 Telecoverage
 Teleprospecting
 Customer service and
technical support

19-17
Other Media for Direct Response
Television
• Direct Response
Advertising
• At home shopping
channels
• Videotext
Kiosks
19-18
Designing an Attractive Web Site







Context
Content
Community
Customization
Communication
Connection
Commerce
19-19
Ease of Use and Attractiveness

Ease of Use
 Downloads
quickly
 First page is easy to
understand
 Easy to navigate

Attractiveness
 Clean
looking
 Not overly crammed
with content
 Readable fonts
 Good use of color and
sound
19-20
Increasing Visits and Site Stickiness






Deep information
with links
Changing news of
interest
Changing offers
Contests and
sweepstakes
Humor and jokes
Games
19-21
Online Ads








Banner ads
Microsites
Sponsorships
Interstitials
Search-related ads
Content-targeted
advertising
Alliances
Affiliate programs
19-22
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

19-23
IMC Perspective
The eBay ad shows
how firms use
traditional mass media
advertising to drive
website traffic.
15-24
These materials have been reproduced with the permission of eBay Inc.
COPYRIGHT ©EBAY INC. ALL RIGHTS RESERVED.
Figure 19.2 Designing a Sales Force
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Compensation
19-25
Types of Sales
Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
19-26
Sales Tasks
Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating

19-27
Figure 19.3 Managing the Sales Force
Recruiting, selecting
Training
Supervising
Motivating
Evaluating
19-28
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
19-29
Components of Sales Force
Compensation
Fixed amount
 Variable amount
 Expense allowances
 Benefits

19-30
What Motivates Sales Reps?
Most Rewarding
 Pay
 Promotion
 Personal growth
 Sense of
accomplishment
Least Rewarding




Liking
Respect
Security
Recognition
19-31
Principles of Personal Selling


Be an active
order getter
Identifying
customers’ latent
needs and come
up with sound
product solution
19-32
Figure 19.4 Steps in Effective Selling
Prospecting/ Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up
19-33
Relationship Marketing Perspective
• Personal
Selling &
Negotiation : not
necessarily always
transaction-oriented
•That is, not just
immediate sales, but
to build long-term
supplier-customer
relationship.
19-34