case study chapter 19 managing personal communication
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direct sales and personal sellingTRANSCRIPT
PowerPoint Presentation
Nur Fathiah Muhammad Salleh 0932072
Siti Norfadzlin Daud 1018276
Nor Lyana Mastura Zainal Abidin1012364
Benefits of Direct MarketingHome shopping can be fun, convenient, and hassle-freeSaves timeIntroduces consumers to a larger selection of merchandiseEase of comparative shoppingCan order goods for themselves and othersBusiness customers can benefit by learning about available products and servicesBenefits customers
They can customize and personalize messages.They can build a continuous relationship with each customer.Direct marketing can be timed to reach prospects at the right moment. Can receive higher readership because it is sent to more interested prospects.Permits the testing of alternative media and messages in a cost-effective approach.Direct marketers can measure responses to their campaigns to decide which one has been more profitable.Benefits sellers
Direct MailIn constructing an effective direct-mail campaign, direct marketers must decide on:their objectives,target markets and prospects,offer elements,means of testing the campaign, andmeasures of campaign success.ObjectivesAim to receive orders from prospects and judge a campaign success by the response rateCommunication objective - strengthen customer relationships - produce prospects leadTarget markets and prospectsR-F-M formula: Recency, frequency, monetary amount to select customers.
Identify prospects on the basis of age, sex, income, education, previous mail-orders purchases, and occasions.
In B2B direct marketing, the prospect is often not an individual but a group of people or a committee that includes both decision makers and multiple decision influencers.
Each member needs to be treated differently, and the timing, frequency, nature, and format of contact must reflect the members status and role.
Offer elementsProductOfferCreative StrategyDistribution MethodMedium
Testing the campaignTo derive a more comprehensive estimate of the promotions impact, some companies are measuring direct marketings impact on:AwarenessIntention to buyWord of mouth
Catalog Marketing
Avoid duplication and bad debts
Huge reach, low costs.The success of a catalog business depends on the companys ability to manage its:Customer lists.
Control inventory.
Offer quality merchandise so returns are low.
Project a distinctive image.
TelemarketingTelemarketing helps companies increase revenue, reduce selling costs, and improve customer satisfaction.
it is too difficult to set up in emerging Asian economies with poor telecommunications infrastructureextensive training is requiredthere is high staff turnover, as reliable and bright telemarketers are hard to keep given the tight labor market for their servicesthere are numerous multicountry complications and associated language problems
Public and Ethical Issues in Direct Marketing
Advantages & DisadvantagesTailored messages Contextual placementTracking consumer traffic at ease
Lose some control over consumers activity Web user may block certain sites, hackers and vandals
Communication OptionsEmailDisplay AdsWebsites
Search Ads
Mobile Marketing
Results from press coverage of company-generated advertising, publicity or other promotional efforts.
All the PR benefits a firm receives without having directly paid for anything (i.e., news stories, blogs, social network conversations that deal with a brand).
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 product and service or audio, video or written information to others online.
Buzz and Viral Marketing
Opinion LeaderThe Law of The Few
StickinessThe Power of Context
In designing the sales force, the company must develop sales force objectives, strategy, structure, size, and compensation.
Types of Sales RepresentativeDelivererA salesperson whose major task is product delivery (water, fuel, oil).
Order takerA salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager).MissionaryA salesperson who is not expected or permitted to take an order but whose major task is to build goodwill or to educate the actual or potential user (the medical detailer representing an ethical pharmaceutical house).TechnicianA salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to the client companies).
Demand creatorA salesperson who relies on creative methods for selling tangible products (vacuum cleaners, cleaning brushes, and household products) or intangibles (insurance, advertising services, or education).Solution vendorA salesperson whose expertise lies in solving a customers problem, often with a system of the companys products and services (e.g., computer and communications systems).
Sales Force Objectives and Strategy
Sales Force structure
Sales Force SizeCustomers are grouped into size classes according to annual sales volume.
Desirable call frequencies (number of calls on an account per year) are established for each class.
The number of accounts in each size class is multiplied by the corresponding call frequency to arrive at the total workload for the country, in sales calls per year.
The average number of calls a sales representative can make per year is determined.
The number of sales representatives needed is determined by dividing the total annual calls required by the average annual calls made by a sales representative.Workload approach
Sales Force CompensationThe company must determine the four
components of sales-force compensation:
The fixed amountThe variable amountExpense allowancesBenefits
Supervising Sales Representatives
Norms 4 Prospect Calls Using Sales Time Efficiently
Sales Technology
Motivating Sales RepresentativesSales QuotasIntrinsic Versus Extrinsic Value
Evaluating Sales RepresentativesSources of Information Formal Evaluation
The six steps
Negotiation Decision-Making Style
Mediation and Informal Communication
Fluid Contracts
Status and Title
Time
Language
Eye Contact
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