Professional Documents
Culture Documents
An Asian Perspective,
6th Edition
Instructor Supplements
Created by Geoffrey da Silva
Managing Personal Communications:
Direct Marketing and Personal Selling
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19
Learning Issues for Chapter Nineteen
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Chapter Outline
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Chapter Outline
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Direct Marketing
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Direct Marketing
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Direct Marketing
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Benefits of Direct Marketing
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Benefits of Direct Marketing
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Benefits of Direct Marketing
b. Can be personalized
c. Is flexible
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Direct Mail and Local Cultures
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Direct Mail Campaign
i. their objectives,
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1. Objectives
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2. Target Market and Prospects
• Points are established for each level of RFM to select the most
attractive customers.
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Target Prospects in B2B Markets
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Identifying Prospects from Lists
• The direct marketer can also buy lists of names from list
brokers.
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3. Offer Elements
1. The product
2. The offer
3. The medium
5. Creative strategy
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4. Testing Elements
• One of the great advantages of direct marketing is the ability to test, under
real marketplace conditions, different elements of an offer strategy, such as
products, product features, copy platform, mailer type, envelope, prices, or
mailing lists.
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5. Measuring Campaign Success: Lifetime Value
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Catalog Marketing
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L. L. Bean in the Japanese Market
L.L. Bean has done well in its catalog business in Japan as it has adapted to local tastes and trends
with a narrower selection of colors, especially those in earthy tones.
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Catalog Marketing
a. Customer lists.
b. Control inventory.
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Telemarketing
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Telemarketing
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Problems with Telemarketing in Asia
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Telemarketing in Business Marketing
• Salespeople have closed big sales without ever meeting the customer face-
to-face in the U.S.
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SMS Marketing
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Challenges in Asian Context
• The wide range of mobile phones available in the region makes it difficult
for the industry to come up with a single compatible m-commerce solution.
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Public and Ethical Issues in Direct Marketing
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Public and Ethical Issues in Direct Marketing
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Interactive Marketing
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Advantages of Interactive Marketing
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Advantages of Interactive Marketing
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Disdvantages of Interactive Marketing
• Marketers may think their ads are more effective than they
are if bogus clicks are generated by software-powered Web
sites.
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Online Advertising
Young and trend-conscious Chinese Internet users have attracted companies, including Tiffany, to
advertise online.
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Customers are Defining the Rules of Engagement
• Asian youths feel that what is “hot” is spending time online, using mobile
services, sending emails, and using social networks; while what is not “hot”
includes watching TV and spending money on music.
• Customers define what information they need, what offerings they are
interested in, and what they are willing to pay.
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Online Communities
Internet cafes such as this one are a common sight in Asia even in poorer communities. Some 56
percent of Asian youths think that spending online is “hot.”
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Interactive Marketing Communication Options
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Websites
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Figure 19.1: Seven Key Design Elements of an
Effective Website
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Attractiveness of websites
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Microsites
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Search Ads
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Search Ads
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Search Engines
Naver.com is Korea’s leading search engine, with a market share of over 70 percent.
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Display Ads
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Email
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Marketing Memo: How to Maximize the Marketing
Value of E-Mails
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Mobile Marketing
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Word of Mouth
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Word of Mouth
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Earned media is not really free …
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Social Media
• There are three main platforms for social media: (1) online
communities and forums, (2) bloggers, and (3) social networks.
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Online Communities
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Online Communities
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Blogs
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Blogs
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Blogshops
Blogshops are gaining popularity in Singapore as the entry cost is low relative to the high retail
rentals.
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Social Networks
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Importance of Social Networks
• Also, given that users generate their own content, ads may
find themselves appearing beside inappropriate or even
offensive content.
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Importance of Social Networks
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Using Social Media
• But as useful as they may be, social media can never become
the sole source of marketing communications.
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Using Social Media
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Buzz and Viral Marketing
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Opinion Leaders
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Opinion Leaders
a. The first type are Mavens, people knowledgeable about big and
small things.
b. The second are Connectors, people who know and
communicate with a great number of other people.
c. The third are Salesmen, who possess natural persuasive power.
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Marketing Memo: “How to Start a Buzz Fire”
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Marketing Memo: “How to Start a Buzz Fire”
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Measuring the Effects of Word of Mouth
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Designing the Sales Force
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Direct Selling Force
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Costs and Productivity of the Sales Force
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Six Types of Sale Representatives
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Sales Force as the Link
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Designing the Sales Force
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Sales Force Objectives and Strategies
• The days when all the sales force would do was “sell, sell, sell” are long
gone.
• Today, sales reps need to know how to diagnose a customer’s problem and
propose a solution.
• Companies need to define the specific objectives they want their sales force
to achieve.
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Sales Force Tasks
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Sales Force Tasks:
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Leveraged Sales Force
• A leveraged sales force is where the sales force focuses on selling the
company’s more complex and customized products to large accounts.
• Tasks such as lead generation, proposal writing, order fulfillment, and post-
sale support are turned over to others.
• As a result, salespeople handle fewer accounts, but are awarded for key
account growth.
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Strategic Focus and Account Management
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Teamwork in the Sales Force
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Market Focus
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Internal Conflict
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Figure 19.3: A Hypothetical (Dysfunctional) Sales-
Marketing Exchange
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Direct versus Contractual Sales Force
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Sales Force Structure
• A company that sells one product line to one end-using industry with
customers in many locations would use a territorial structure.
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Sales Force Size
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Workload Approach to Determining Sales Force Size
1. Customers are grouped into size classes according to annual sales volume.
4. The average number of calls a sales representative can make per year is
determined.
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Sales-force Compensation
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Implications of Asian Culture on Compensation
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Sales-Force Compensation
i. Straight salary
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Sales-Force Compensation
• Straight-salary plans provide sales reps with a secure income, make them
more willing to perform non-selling activities, and give them less incentive
to overstock customers.
• Combination plans feature the benefits of both plans while reducing their
disadvantages.
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Sales-force Compensation and Strategic Goals
• With compensation plans that combine fixed and variable pay, companies
may link the variable portion of a salesperson’s pay to a wide variety of
strategic goals.
• Other companies are basing the rep’s reward partly on a sales team’s
performance or even company-wide performance.
• This should get reps to work more closely together for the common good.
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Managing the Sales Force
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Recruiting and Selecting Representatives
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Training and Supervising Sales Representatives
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Training and Supervising Sales Representatives
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Sales Rep Productivity
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Norms for Prospect Calls
• Left to their own devices, many reps will spend most of their time
with current customers.
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Using Sales Time Efficiently
• Studies have shown that the best sales reps are those who manage
their time effectively.
• To cut costs, reduce time demands on their outside sales force, and
take advantage of computer and telecommunications innovations,
many companies have increased the size and responsibilities of
their inside sales force.
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Inside Sales Force
• The inside sales force frees the outside reps to spend more
time:
a. Selling to major accounts
b. Identifying and converting new major prospects
c. Placing electronic ordering systems in customers’ facilities
d. Obtaining more blanket orders and systems contracts
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Sales Technology
• One of the most valuable electronic tools for the sales rep is
the company Web site:
a. As a prospecting tool
b. To help define the firm’s relationship with individual accounts
c. Identify those whose business warrants a personal sales call
d. Provides an introduction to self-identified potential customers
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Sales Force and Internet Selling
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Motivating Sales Representatives
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Intrinsic vs. Extrinsic Rewards
• One research study found the reward with the highest value
was pay, followed by promotion, personal growth, and sense
of accomplishment.
• Many companies set annual sales quotas, developed from the annual
marketing plan, on dollar sales, unit volume, margin, selling effort or
activity, or product type.
• The company first prepares a sales forecast that becomes the basis for
planning production, workforce size, and financial requirements.
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Sales Quotas
• Each area sales manager divides the area’s quota among its reps.
Sometimes a rep’s quotas are set high, to spur extra effort, or more
modestly, to build confidence.
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Sales Quotas
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Problems with Sales Quotas
• If the company underestimates and the sales reps easily achieve their
quotas, it has overpaid them. If it overestimates sales potential, the
salespeople will find it very hard to reach their quotas and be frustrated or
quit.
• Another downside is that quotas can drive reps to get as much business as
possible—often ignoring the service side of the business.
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Evaluating Sales Representatives
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Sources of Information
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Sales Reports
• These reports provide raw data from which sales managers can extract key
indications of sales performance.
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Key Indicators of Sales Performance
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Formal Evaluation
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Table 19.1: Form for Evaluating Sales
Representative’s Performance
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Formal Evaluations
• The sales force’s reports along with other observations supply the
raw materials for evaluation.
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Formal Evaluations
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Principles of Personal Selling
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SPIN Method
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SPIN Method
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Figure 19.5: Major Steps in Effective Selling
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1. Prospecting and Qualifying
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2. Pre-approach
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3. Presentation and Demonstration
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FABV
4. Value describes the worth (often in monetary terms) of the offering. Too
often, salespeople spend too much time dwelling on product features (a
product orientation) and not enough stressing the offering’s benefits and
value (a customer orientation).
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4. Overcoming Objections
c. Questions the buyer in a way that the buyer has to answer his
or her own objection(s)
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Overcoming Objections
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5.Closing
a. Physical actions
b. Statements or comments
c. Questions
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Closing Techniques
e. Get the buyer to make minor choices such as color and sizes
f. Indicate what the buyer will lose if the order is not placed
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6. Follow-up and Maintenance
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Negotiation
• In negotiated exchange, price and other terms are set via bargaining
behavior, in which two or more parties negotiate long-term binding
agreements.
• Although the price is the most frequently negotiated issue, other issues
include contract completion time; the quality of goods and services offered;
purchase volume; responsibility for financing, risk taking, promotion, and
title; and product safety.
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Negotiation
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Negotiations in Asian Context
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Language
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Eye Contact
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Time
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Status and Title
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Decision-making Style
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Relationship Marketing
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Relationship Marketing
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Relationship Marketing—Asian Context
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Relationship Marketing- Asian Context
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Relationship Marketing- Asian Context
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Schema for Chapter Nineteen
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