chapter 19 - marketing management
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Kotler's Marketing ManagementTRANSCRIPT
Managing Personal Communications:
Direct and Interactive Marketing,
Word of Mouth, and Personal Selling
Marketing Management, 13th ed
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-2
Chapter Questions
• How can companies integrate direct marketing for competitive advantage?
• How can companies do effective interactive marketing?
• How can marketers best take advantage of the power of word of mouth?
• What decisions do companies face in designing and managing a sales force?
• How can salespeople improve selling, negotiating, and relationship marketing skills?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-3
Direct Marketing
Use of consumer-direct channels to reachand deliver goods and services to
customers without using market middlemen.
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Direct Marketing Channels
Catalogs
Direct mail
Telemarketing
Web sites
Email marketing
Mobile devices
Interactive TV
19-5
Constructing a Direct-Mail Campaign• Establish objectives
A. to receive an order from prospects (response rate-2% normally),
B. to produce prospect leads,
C. to strengthen customer relationships,
D. to inform and educate customers,
E. to remind customers of offers,
F. to reinforce recent customer purchase decisions
• Select target prospectsA. recency—30 to 60 days
B. frequency
C. monetary amount
• Develop offer elements
• Test elementsA. products
B. product features
C. copy platform
D. mailer type
E. prices
F. mailing lists
• Execute
• Measure success—campaign costs minus revenue
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RFM Formula for Selecting Prospects
Recency—last orderRecency—last order
Frequency—number of times purchased
Frequency—number of times purchased
Monetary value--money spent since becoming a customer
Monetary value--money spent since becoming a customer
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Elements of the Offer Strategy
• Product• Offer• Medium• Distribution method• Creative strategy
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Components of the Mailing
• Outside envelope• Illustration (color)
• Sales letter• Personal, quality paper, bold type
• Circular• colorful
• Reply form• Toll-free number, website
• Reply envelope• Postage-free
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Types of Telemarketing
• Telesales• Taking orders from catalogs or
ads and outbound calls• Telecoverage
• Call customers to maintain and nurture key account relationships and neglected accounts
• Teleprospecting• Generating and qualifying new
leads for closure by another sales channel
• Customer service and technical support• Answering service and technical
questions
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Other Media for Direct Response
Television
• Direct Response Advertising
•Infomercials
• At-home shopping channels
•TV channels dedicated to selling goods
• Videotext
•Consumer’s TV set linked with seller’s catalog by cable or telephone line
Kiosks
•Small building or structure to sell or provide information
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Public Issues in Direct Marketing
Irritation--timingIrritation--timing
Unfairness-impulsive or less sophisticated buyers
Unfairness-impulsive or less sophisticated buyers
Deception/fraud-mislead buyers
Deception/fraud-mislead buyers
Invasion of privacy- names included on several databases
Invasion of privacy- names included on several databases
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-12
Interactive Marketing
• Tailored messages possible
• Easy to track responsiveness
• Contextual ad placement possible
• Search engine advertising possible
• Subject to click fraud
• Consumers develop selective attention
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-13
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
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Online Ads• Banner ads--small, rectangular
boxes containing text and maybe a picture
• Microsites--limited area on web (e.g., insurance on an used car website)
• Sponsorships--pays for showing content and is acknowledged
• Interstitials--ads that pop-up between changes on website
• Search-related ads--search terms that charge for cost per click
• Content-targeted advertising-- links ad to content of webpage
• Alliances--advertising each other on their respective website
• Affiliate programs--post ads on affiliate websites
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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
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Designing an Attractive Web Site
• Context--Layout & design• Content--Text, picture, sound,
video• Community--user-to-user
communication• Customization—tailor to user
or allow personalization• Communication—enables
site-to-user, user-to-site, or two-way communication
• Connection—ability to link to other sites
• Commerce—ability to enable commercial transactions
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iTunes Affiliate Program
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Increasing Visits and Site Stickiness
• In-dept information with links
• Changing news of interest
• Changing offers • Contests and
sweepstakes• Humor and jokes• Games
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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
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Salespeople represent
whole company
Salespeople represent
whole company
Sales force provides market
information
Sales force provides market
information
Sales force provides market
information
Sales force provides market
information
Salespeople represent
whole company
Salespeople represent
whole company
Helping to buy is good sellingHelping to buy is good selling
Requires strategy decisions
Requires strategy decisions
Requires strategy decisions
Requires strategy decisions
Helping to buy is good sellingHelping to buy is good selling
The Importance and Role of Personal Selling
Salespeople can be strategy
planners
Salespeople can be strategy
planners
Personal Selling
Is Important
Personal Selling
Is Important
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What Kinds of Personal Selling Are Needed?
Order-Taking
Order-TakingOrder-Taking
Order-Taking
Order-Getting
Order-GettingOrder-Getting
Order-Getting
SupportingSupporting
BasicSales Tasks
BasicSales Tasks
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Wholesalers’ Order Getters Work Closely with Retailers
Wholesalers’ Order Getters Work Closely with RetailersWholesalers’ Order Getters Work Closely with Retailers
Wholesalers’ Order Getters Work Closely with Retailers
Producers’ Order Getters Find New Opportunities
Producers’ Order Getters Find New OpportunitiesProducers’ Order Getters Find New Opportunities
Producers’ Order Getters Find New Opportunities
Order Getters and Order-Getting
Order Getters and Order-Getting
Order Getters and Order-Getting
Order Getters and Order-Getting
Retail Order Getters Influence Buyer Behavior
Retail Order Getters Influence Buyer Behavior
Order Getters Develop New Business Relationships
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Wholesalers’ Order Takers Don’t Get Orders But Keep Them
Wholesalers’ Order Takers Don’t Get Orders But Keep Them
Wholesalers’ Order Takers Don’t Get Orders But Keep Them
Wholesalers’ Order Takers Don’t Get Orders But Keep Them
Producers’ Order Takers Train, Explain & Collaborate
Producers’ Order Takers Train, Explain & Collaborate
Producers’ Order Takers Train, Explain & Collaborate
Producers’ Order Takers Train, Explain & Collaborate
Order Takers and Order-Taking
Order Takers and Order-Taking
Order Takers and Order-Taking
Order Takers and Order-Taking
Retail Order Takers Are Often Poor Sales Clerks
Retail Order Takers Are Often Poor Sales Clerks
Order Takers Nurture Relationships to Keep the Business Coming
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Technical Specialists
Technical Specialists
Technical Specialists
(technical assistance)
Technical Specialists
(technical assistance)
Missionary Salespeople
Missionary Salespeople
Missionary Salespeople
(good will and educate)
Missionary Salespeople
(good will and educate)
Customer Service Reps
(resolve problems with a purchase)
Customer Service Reps
(resolve problems with a purchase)
SupportingSalesTasks
SupportingSalesTasks
Supporting Sales Force Informs and Promotes in the Channel
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Solves problems after a purchase
Solves problems after a purchaseSolves problems after a purchase
Solves problems after a purchase
Technical Specialists
Technical SpecialistsPart of promotionPart of promotion
Reps are customer advocates
Reps are customer advocates
What is
Customer Service?
What is
Customer Service?
Customer Service Promotes the Next Purchase
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Sales TerritoriesSales TerritoriesSales Territories
TelemarketingTelemarketingTelemarketing
Major Accounts
Sales Force
Major Accounts
Sales Force
Major Accounts
Sales Force
Different Markets, Different
Tasks
Different Markets, Different
Tasks
Different Markets, Different
Tasks
Team SellingTeam SellingTeam SellingTeam Selling
Sales Force Size and Workload
Sales Force Size and Workload
The Right Structure Helps Assign Responsibility
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Key Steps in the Personal Selling Process
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Straight Commission
Straight Commission
Straight Commission
Straight CommissionStraight SalaryStraight SalaryStraight SalaryStraight Salary
Level of Compensation
Level of Compensation
Method of Payment
Method of Payment
Level of Compensation
Level of Compensation
Method of Payment
Method of Payment
Combination Plan
Combination Plan
Compensating and Motivating Salespeople
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Flexibility vs. Simplicity
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Study Question 1
• Direct marketing channels include direct mail, catalogs, Web sites, interactive TV, and ____________A. Telemarketing
B. Billboards
C. Coupons
D. Bounce-back coupons
E. None of the above
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-31
Study Question 2
• In constructing an effective direct-mail campaign, marketers must decide on their objectives, target markets, and prospects; offer elements; means of testing the campaign; and _________
A. Sales promotions
B. Advertising campaign
C. Salespeople’s input
D. Measures of campaign success
E. Management’s input
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 19-32
Study Question 3
• A direct-mail campaign that has an order-response rate of ________ is considered a success.A. 10%
B. 3%
C. 15%
D. 2%
E. 5%
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Study Question 4
• Direct marketers use a number of channels to reach prospects, including ___________A. Direct mail
B. Catalog marketing
C. Telemarketing
D. Kiosk marketing
E. All of the above
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Study Question 5
• Direct marketing permits the ________ of alternative media and messages in search of the most cost-effective approach.A. Testing
B. Use
C. Implementation
D. Outsourcing
E. Accent