Transcript Chapter 19 Managing Personal Communications

Phillip
Kevin Lane
Kotler • Keller
Marketing Management • 14e
Managing Personal Communications:
Direct and Interactive Marketing, Word of
Mouth and Personal Selling
Discussion Questions
1. How can companies conduct direct marketing
for competitive advantage?
2. How can companies carry out effective
interactive marketing?
3. How does word of mouth affect marketing
success?
4. What decisions do companies face in
designing and managing a sales force?
5. How can salespeople improve their selling,
negotiating, and relationship marketing skills?
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Direct Marketing
Web Sites
Telemarketing
Interactive TV
Mobile Devices
Catalogs and Kiosks
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Direct Mail
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Direct Marketing
The use of consumer-direct (CD)
channels to reach and deliver goods and
services to customers without using
marketing middlemen.
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Benefits of Direct Marketing
Market Demassification
Consumers
Selective targeting
Personalized messages
Measure effectiveness
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Direct Mail
Target market selectivity
Measureable
Higher CPM
Flexible
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Objectives
• Sales Order
Objectives
• Prospect Leads
• Customer Relationships
• Inform and Educate
• Reinforce Recent Purchases
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Target Markets and Prospects
Identify Prospects
• Demographics
• Lifestyle
• Previous purchases
RFM Formula
• Recency
• Frequency
• Monetary amount
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Offer Elements
Product
Creative
Strategy
Offer
strategy
Distribution
Method
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Offer
Medium
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Testing and Measuring
Testing
• Product
• Features
• Copy platform
• Mailer type
Measuring
• Envelope
• Campaign costs
• Prices
• Returned merchandise
• Mailing lists
• Bad debt
• Customer lifetime value
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Catalog Marketing
Catalog Types
•
Full-line
•
Specialty consumer
•
Business
Print and Online
Top B-to-C catalog sellers
Dell - $51 billion
Staples - $8.9 billion
CDW - $8.1 billion
Catalogs
• 16,000 companies
• $235 billion in sales
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Telemarketing
Sell to existing customers
Answer questions
Inbound
Take orders
Outbound
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Attract prospects
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Public and Ethical Issues
Irritation
Unfairness
Invasion of
Privacy
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Deception and Fraud
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Interactive Marketing
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Advantages and Disadvantages
Contextual Placement
Screen out message
Measureable
Online Communities
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Loss of control
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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
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Interactive Marketing Options
E-Mail
Web Sites & Display Ads
Search Ads
Mobile Marketing
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Word of Mouth
Social Media
Buzz and Viral Marketing
Opinion Leaders
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Social Media
Social Networks
Online Communities
and Forums
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Buzz and Viral Marketing
Viral Marketing
Buzz Marketing
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Opinion Leaders
Connectors
Mavens
Salesmen
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Designing the Sales Force
Deliverer
Demand
Creator
Solution Vendor
Missionary
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Technician
Order Taker
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Designing the Sales Force
Objectives
Strategy
Structure
Size
Compensation
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Sales Force Objectives and Strategy
Information
Gathering
Communicating
Prospecting
Targeting
Servicing
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Allocating
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Sales Force Structure
Product or Market
Territorial
Inside
Sales Force
Strategic
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Sales Force Size
Group customers
(sales volume)
1,000 - A Accounts
2,000 - B Accounts
Establish Call
Frequency
A Accounts – 36 calls
B Accounts – 12 calls
Accounts x Frequency
A Accounts – 36,000
B Accounts – 24,000
Total Calls – 60,000
Workload Approach
Determine Average
No. of Sales Calls
Average Rep – 1,000 calls
Calls Required /
Average Sales Calls
60,000/1,000 = 60 reps
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Sales Force Compensation
Regular Income
Rewards
Compensation Components
• Fixed amount
(salary)
• Variable amount
(commission or bonus)
Fair pay
• Expense allowances
• Benefits
Control
Profitability
Economy
Customer Satisfaction
Simplicity
Customer Retention
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T
R
E
N
D
S
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Managing the Sales Force
Recruiting
Training
Supervising
Motivating
Evaluating
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Recruiting and Selecting
20% Turnover
Selection Criteria
• Formal Tests
• Simulations
Recruiting Methods
• Referrals
• Classifieds
• Agencies
• Career Fairs
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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
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Sales Rep Productivity
Current Accounts
Using Sales
Time Wisely
New
Accounts
Norms for Prospect Calls
Sales Technology
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Motivating
Intrinsic Rewards
Extrinsic Rewards
Sales Quotas
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Evaluating
Sales Performance Indicators
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•
•
•
•
•
•
•
•
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
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Principals of Personal Selling
S
P
I
N
Situation Questions
Problem Questions
Implication Questions
Need-payoff Questions
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Major Steps in Effective Selling
Prospecting and
Qualifying
Preapproach
Presentation and
Demonstration
Overcome Objections
Closing
Follow-up and
Maintenance
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Prospecting and Qualifying
Hot
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Warm
Cold
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Preapproach
Company Information
• Product/Service Needs
• Decision Makers
Buyer Information
• Personal Characteristics
• Buying Style
Contact Approach
• Personal visit
• Phone call
• Letter
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Presentation/Demonstration
FABV Approach
Features
Advantages
Benefits
Value
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Overcoming Objections
Psychological Resistance
Logical Resistance
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Closing
Ask for the order
Recapitulate points of agreement
Gain agreement on minor points
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Follow-up and Maintenance
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