kotler • keller
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Phillip. Kevin Lane. Kotler • Keller. Marketing Management • 14e. Chapter 19. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth and Personal Selling. Discussion Questions. How can companies conduct direct marketing for competitive advantage? - PowerPoint PPT PresentationTRANSCRIPT
Kotler • KellerPhillip Kevin Lane
Marketing Management • 14e
Managing Personal Communications:Direct and Interactive Marketing, Word of Mouth and Personal Selling
Chapter 19
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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
Catalogs and Kiosks
Telemarketing
Interactive TV
Mobile Devices
Web Sites
Direct Mail
Defined
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The use of consumer-direct (CD)channels to reach and deliver goods and services to customers without using marketing middlemen.
Direct Marketing
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Benefits of Direct Marketing
Consumers
Market Demassification
Selective targetingPersonalized messagesMeasure effectiveness
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Direct Mail
Target market selectivity Measureable
Higher CPM
Flexible
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Objectives
Objectives• Sales Order
• Prospect Leads
• Customer Relationships
• Inform and Educate
• Reinforce Recent Purchases
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Target Markets and Prospects
RFM Formula
•Recency
•Frequency
•Monetary amount
Identify Prospects
•Demographics
•Lifestyle
•Previous purchases
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Offer Elements
Offer strategy
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Testing and Measuring
Testing• Product
• Features
• Copy platform
• Mailer type
• Envelope
• Prices
• Mailing lists
Measuring• Campaign costs
• Returned merchandise
• Bad debt
• Customer lifetime value
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Catalog Marketing
Catalog Types
•Full-line
•Specialty consumer
•Business
Top B-to-C catalog sellers Dell - $51 billionStaples - $8.9 billionCDW - $8.1 billion
Print and Online Catalogs
• 16,000 companies
• $235 billion in sales
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Telemarketing
Attract prospects
Sell to existing customers
Take orders
Answer questions
Inbound
Outbound
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Public and Ethical IssuesIrritation
Unfairness
Deception and FraudInvasion of Privacy
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Interactive Marketing
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Advantages and Disadvantages
Online Communities
Contextual Placement
Measureable
Screen out message
Loss of control
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Figu
re
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
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Interactive Marketing Options
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
Online Communities and Forums
Social Networks
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Buzz and Viral Marketing
Buzz Marketing
Viral Marketing
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Opinion Leaders
Mavens
Salesmen
Connectors
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Designing the Sales ForceDeliverer
Solution Vendor
TechnicianMissionary
One Day OnlySPECIAL OFFER
Demand Creator
Order Taker
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Figu
re
19.3
Designing the Sales Force
Objectives
Strategy
Structure
Size
Compensation
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Sales Force Objectives and Strategy
Servicing
ProspectingTargeting
Allocating
Information
Gathering
Communicating
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Sales Force Structure
Territorial
Product or Market
Strategic
Inside Sales Force
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Sales Force SizeWorkload ApproachGroup customers
(sales volume)
Determine Average No. of Sales Calls
Accounts x Frequency
Establish Call Frequency
Calls Required / Average Sales Calls
1,000 - A Accounts2,000 - B Accounts
A Accounts – 36 callsB Accounts – 12 calls
A Accounts – 36,000B Accounts – 24,000Total Calls – 60,000
Average Rep – 1,000 calls
60,000/1,000 = 60 reps
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Sales Force Compensation
Regular Income
Rewards
Fair pay
Control
Economy
Simplicity
Compensation Components• Fixed amount
(salary)
• Variable amount (commission or bonus)
• Expense allowances
• Benefits
TRENDS
Profitability
Customer Satisfaction
Customer Retention
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Figu
re
19.3
Managing the Sales Force
Recruiting
Training
Supervising
Motivating
Evaluating
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Recruiting and Selecting
• Referrals
• Agencies
• Classifieds
• Career Fairs
20% Turnover
• Formal Tests
• Simulations
Recruiting Methods
Selection Criteria
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Training and Supervising
28 weeks – Industrial products
12 weeks – Service companies
4 weeks – Consumer products
Time in Training
Computer-based
Video
Role Playing
Training Methods
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Sales Rep Productivity
Norms for Prospect Calls
New Accounts
Current Accounts Using Sales Time Wisely
Sales Technology
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MotivatingIntrinsic Rewards
Extrinsic Rewards
Sales Quotas
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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
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Principals of Personal Selling
SPIN
Situation Questions
Problem Questions
Implication Questions
Need-payoff Questions
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Figu
re
19.6
Major Steps in Effective SellingProspecting and
Qualifying
Overcome Objections
Presentation and Demonstration
Preapproach
Closing
Follow-up and Maintenance
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Prospecting and Qualifying
Hot Warm Cold
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Preapproach
• Product/Service Needs
• Decision Makers
Company Information
• Personal Characteristics
• Buying Style
Buyer Information
• Personal visit
• Phone call
• Letter
Contact Approach
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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 orderRecapitulate points of agreementGain agreement on minor points
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Follow-up and Maintenance