Kotler • Keller

1. Phillip Kevin Lane Kotler • Keller Marketing Management • 14e

2. Chapter 19 Managing Personal Communications:Direct and Interactive Marketing, Word of Mouth and Personal Selling

3. 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 do companies face in designing and managing a sales force? • How can salespeople improve their selling, negotiating, and relationship marketing skills?

4. Direct Marketing Web Sites Telemarketing Interactive TV Direct Mail Mobile Devices Catalogs and Kiosks

5. Direct Marketing The use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen.

6. Benefits of Direct Marketing Market Demassification Consumers Selective targeting Personalized messages Measure effectiveness

7. Direct Mail Target market selectivity Flexible Higher CPM Measureable

8. Objectives • Sales Order • Prospect Leads • Customer Relationships • Inform and Educate • Reinforce Recent Purchases Objectives

9. Target Markets and Prospects • Identify Prospects • Demographics • Lifestyle • Previous purchases • RFM Formula • Recency • Frequency • Monetary amount

10. Offer Elements Offer strategy

11. Testing and Measuring • Testing • Product • Features • Copy platform • Mailer type • Envelope • Prices • Mailing lists • Measuring • Campaign costs • Returned merchandise • Bad debt • Customer lifetime value

12. Catalog Marketing • Catalog Types • Full-line • Specialty consumer • Business • Top B-to-C catalog sellers • Dell - $51 billion • Staples - $8.9 billion • CDW - $8.1 billion Print and Online • Catalogs • 16,000 companies • $235 billion in sales

13. Telemarketing Sell to existing customers Answer questions Inbound Take orders Attract prospects Outbound

14. Public and Ethical Issues Irritation Unfairness Invasion of Privacy Deception and Fraud

15. Interactive Marketing

16. Advantages and Disadvantages Contextual Placement Screen out message Measureable Loss of control Online Communities

17. Figure 19.1 Daily Usage of Select Media Online 4:13 TV/Video 3:17 Music/Radio 1:26 Mobile Phone 1:18 Landline Phone 0:36 Gaming 0:36 Reading 0:24

18. Interactive Marketing Options E-Mail Web Sites & Display Ads Search Ads Mobile Marketing

19. Word of Mouth Social Media Buzz and Viral Marketing Opinion Leaders

20. Social Media Social Networks Online Communities and Forums

21. Buzz and Viral Marketing Viral Marketing Buzz Marketing

22. Opinion Leaders Connectors Mavens Salesmen

23. Designing the Sales Force Deliverer One Day Only SPECIAL OFFER Demand Creator Technician Order Taker Missionary Solution Vendor

24. Figure 19.3 Designing the Sales Force Objectives Size Strategy Compensation Structure

25. Sales Force Objectives and Strategy Information Gathering Communicating Prospecting Targeting Servicing Allocating

26. Sales Force Structure Product or Market Territorial Inside Sales Force Strategic

27. Sales Force Size Workload Approach Group customers (sales volume) 1,000 - A Accounts 2,000 - B Accounts Establish Call Frequency A Accounts – 36 calls B Accounts – 12 calls A Accounts – 36,000 B Accounts – 24,000 Total Calls – 60,000 Accounts x Frequency Determine Average No. of Sales Calls Average Rep – 1,000 calls Calls Required / Average Sales Calls 60,000/1,000 = 60 reps

28. Sales Force Compensation Regular Income Rewards Fair pay • Compensation Components • Fixed amount (salary) • Variable amount (commission or bonus) • Expense allowances • Benefits T R E N D S Profitability Customer Satisfaction Customer Retention Control Economy Simplicity

29. Figure 19.3 Managing the Sales Force Recruiting Motivating Training Evaluating Supervising

30. Recruiting and Selecting 20% Turnover Selection Criteria • Formal Tests • Simulations Recruiting Methods • Referrals • Agencies • Classifieds • Career Fairs

31. Training and Supervising Time in Training 28 weeks – Industrial products 12 weeks – Service companies 4 weeks – Consumer products Training Methods Computer-based Video Role Playing

32. Sales Rep Productivity Using Sales Time Wisely Current Accounts New Accounts Norms for Prospect Calls Sales Technology

33. Motivating Intrinsic Rewards Extrinsic Rewards Sales Quotas

34. 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

35. Principals of Personal Selling S Situation Questions P Problem Questions N I Implication Questions Need-payoff Questions

36. Figure 19.6 Major Steps in Effective Selling Prospecting and Qualifying Preapproach Presentation and Demonstration Overcome Objections Closing Follow-up and Maintenance

37. Prospecting and Qualifying Hot Warm Cold

38. Preapproach Company Information • Product/Service Needs • Decision Makers Buyer Information • Personal Characteristics • Buying Style Contact Approach • Personal visit • Phone call • Letter

39. Presentation/Demonstration FABV Approach Features Advantages Benefits Value

40. Overcoming Objections Psychological Resistance Logical Resistance

41. Closing Ask for the order Recapitulate points of agreement Gain agreement on minor points

42. Follow-up and Maintenance