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After studying this chapter you will be able to understand: 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 do companies face in designing and managing a sales force? How can salespeople improve their selling, negotiating, and relationship marketing skills?
Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Ch r e t p a Managing Personal Communications: Direct and Interactive Marketing, Discussion 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? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 42 Direct Marketing Web Sites Telemarketing Interactive TV Mobile Devices Catalogs and Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Direct Mail Slide of 42 d e in f e D Direct Marketing The use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 42 Benefits of Direct Marketing Market Demassification Consumers Selective targeting Personalized messages Measure effectiveness Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 42 Direct Mail Target market selectivity Measureable Flexible Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Higher CPM Slide of 42 Objectives • Sales Order Objective s • Prospect Leads • Customer Relationships • Inform and Educate ã Reinforce Recent Purchases Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 42 Target Markets and Prospects Identify Prospects •Demographics •Lifestyle •Previous RFM Formula purchases ãRecency ãFrequency ãMonetary amount Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide of 42 Offer Elements Offer strategy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 10 of 42 Sales Force Compensation Compensation Components • Fixed amount (salary) Regular Income • Variable amount (commission or bonus) Rewards Fair pay • Expense allowances • Benefits Control Profitability Economy Customer Simplicity Satisfaction Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall T R E N D S Slide 28 of 42 e r u g Fi 9.3 Managing the Sales Force Recruiting Training Supervisin g Motivating Evaluating Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 29 of 42 Recruiting and Selecting 20% Turnover Selection Criteria • Formal Tests • Simulation s Recruiting Methods • Referrals • Classifieds • Agencies ã Career Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 30 of 42 Training and Supervising Time in Training 28 weeks – Industrial products 12 weeks – Service companies weeks – Consumer Training Methods Computer-based products Video Role Playing Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 31 of 42 Sales Rep Productivity Current Accounts New Account s Using Sales Time Wisely Norms for Prospect Calls Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Sales Technology Slide 32 of 42 Motivating Intrinsic Rewards Extrinsic Rewards Sales Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 33 of 42 Evaluating Sales Performance Indicators • Calls per day • • • • • • • • Call time per contact Revenue per sales call Cost per sales call Entertainment cost per call % of orders per 100 calls New customers per period Lost customers per period Sales force cost as a percent of total sales Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 34 of 42 Principals of Personal Selling S P I N Situation Questions Problem Questions Implication Questions Need-payoff Questions Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 35 of 42 e r u g Fi 9.6 Major Steps in Effective Prospecting and Selling Qualifying Preapproach Presentation and Demonstration Overcome Objections Closing Follow-up and Maintenance Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 36 of 42 Prospecting and Qualifying Hot Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall War m Cold Slide 37 of 42 Preapproach Company Information • Product/Service Needs • Decision BuyerMakers Information • Personal Characteristics • Buying Style Contact Approach • Personal visit • Phone call • Letter Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 38 of 42 Presentation/Demonstration FABV Approach Features Advantages Benefits Value Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 39 of 42 Overcoming Objections Psychological Resistance Logical Resistance Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 40 of 42 Closing Ask for the order Recapitulate points of agreement Gain agreement on minor points Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 41 of 42 Follow-up and Maintenance Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Slide 42 of 42 ... Prentice Hall Slide 11 of 42 Catalog Marketing Catalog Types •Full-line •Business Top B-to-C catalog sellers Dell - $51 billion Staples - $8.9 billion CDW - $8.1 billion Print and Online Catalogs... Direct Marketing Web Sites Telemarketing Interactive TV Mobile Devices Catalogs and Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Direct Mail Slide of 42 d e in f e D Direct Marketing. .. Direct and Interactive Marketing, Discussion Questions How can companies conduct direct marketing for competitive advantage? How can companies carry out effective interactive marketing? How does