Lectures Marketing management: Chapter 19 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 19: Managing personal communications (direct and interactive marketing, word of mouth, and personal selling) provides students with the knowledge: Direct marketing, interactive marketing, personal selling. Invite you to refer to the disclosures.

Chapter 19 Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn Chapter Questions How can companies conduct direct marketing for competitive advantage? How can companies carry out effective interactive marketing? How does word of mouth affect marketing success? What decisions companies face in designing and managing a sales force? How can salespeople improve their selling, negotiating, and relationship marketing skills? © Nguyễn Tiến Dũng Minicase: Pepsi’s Refresh Project ● For the first time in 23 years, PepsiCo chose not to advertise any of its soft drink brands during the biggest U.S media event, the Super Bowl Instead, it launched its ambitious Pepsi Refresh Project With a tagline “Every Pepsi Refreshes the World,” Pepsi earmarked $20 million for the program to fund ideas from anyone, anywhere, anytime to make a difference in six areas: health, arts and culture, food and shelter, the planet, neighborhoods, and education Ideas are submitted at refresheverything.com and voted online by the general public ● A significant presence on Facebook, Twitter, and other social networks is a key aspect to the program The first grant recipients received funding for a variety of different projects, including building a community playground, providing care packages and comfort items for troops in the field or recovering from wounds at home, and conducting financial literacy sessions for teens Pepsi also allocated an additional $1.3 million in the summer of 2010 to support communities in the Gulf of Mexico region affected by the catastrophic oil spill © Nguyễn Tiến Dũng Main Contents Direct Marketing Interactive Marketing Personal Selling © Nguyễn Tiến Dũng Direct Marketing ● The Benefits of Direct Marketing ● Direct Marketing Elements © Nguyễn Tiến Dũng Benefits of Direct Marketing ● Market demassification © Nguyễn Tiến Dũng 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 © Nguyễn Tiến Dũng Direct Marketing Channels ● Direct mail ● Catalogs ● Telemarketing ● Other direct response © Nguyễn Tiến Dũng Constructing a Direct-Mail Campaign ● Establish objectives ● Select target prospects ● Develop offer elements ● Test elements ● Execute ● Measure success © Nguyễn Tiến Dũng Direct Mail ● Objectives ● Order-response rate from prospects (2% - 4%) ● Create prospect leads ● Enhance customer relationships ● Inform and educate customers ● Remind customers of offers ● Reinforce recent customer purchase decisions © Nguyễn Tiến Dũng 10 Interactive Marketing: Advantages and Disadvantages ● Tailored messages possible ● Easy to track responsiveness ● Contextual ad placement possible ● Search engine advertising possible ● Subject to click fraud ● Consumers develop selective attention © Nguyễn Tiến Dũng 16 Seven Key Design Elements of an Effective Web Site ● Context Layout and design ● Content Text, pictures, sound, and video the site ● ● ● ● ● contains Community How the site enables user-to-user communication Customization Site’s ability to tailor itself to different users or to allow users to personalize the site Communication How the site enables site-to-user, userto-site, or two-way communication Connection Degree that the site is linked to other sites Commerce Site’s capabilities to enable commercial transactions © Nguyễn Tiến Dũng 17 © Nguyễn Tiến Dũng 18 Word of Mouth ● 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 © Nguyễn Tiến Dũng 19 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 © Nguyễn Tiến Dũng 20 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 © Nguyễn Tiến Dũng 21 Online Promotional Opportunities ● Websites ● Sponsorships ● Microsites ● Alliances and affiliate ● Search ads programs ● Online communities ● Email ● Mobile marketing ● Display ads ● Interstitials ● Internet-specific ads and videos © Nguyễn Tiến Dũng 22 Designing a Sales Force ● Sales force objectives ● Sales force strategy ● Sales force structure ● Sales force size ● Sales force compensation © Nguyễn Tiến Dũng 23 Types of Sales Representatives ● Deliverer ● Order taker ● Missionary ● Technician ● Demand creator ● Solution vendor © Nguyễn Tiến Dũng 24 Sales Tasks ● Prospecting ● Targeting ● Communicating ● Selling ● Servicing ● Information gathering ● Allocating Managing the Sales Force ● Recruiting ● Selecting ● Training ● Supervising ● Motivating ● Evaluating © Nguyễn Tiến Dũng 26 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 © Nguyễn Tiến Dũng 27 Components of Sales Force Compensation ● Fixed amount ● Variable amount = a x Product Revenue ● a = a specified percentage ● Mixed amount = Fixed + Variable © Nguyễn Tiến Dũng 28 Principles of Personal Selling ● Situation questions ● Problem questions ● Implication questions ● Need-payoff questions © Nguyễn Tiến Dũng 29 Steps in Effective Selling ● Prospecting/qualifying ● Preapproach ● Approach ● Presentation ● Overcoming objections ● Closing ● Follow up © Nguyễn Tiến Dũng 30 ... © Nguyễn Tiến Dũng Main Contents Direct Marketing Interactive Marketing Personal Selling © Nguyễn Tiến Dũng Direct Marketing ● The Benefits of Direct Marketing ● Direct Marketing Elements © Nguyễn. .. using market middlemen © Nguyễn Tiến Dũng Direct Marketing Channels ● Direct mail ● Catalogs ● Telemarketing ● Other direct response © Nguyễn Tiến Dũng Constructing a Direct-Mail Campaign ● Establish... ● Direct Marketing Elements © Nguyễn Tiến Dũng Benefits of Direct Marketing ● Market demassification © Nguyễn Tiến Dũng What is Direct Marketing? Direct marketing is the use of consumerdirect