Chapter 19:

Managing Personal
Communications
• Direct and Interactive
Marketing
• Word of Mouth
• Personal Selling
Direct Marketing
• The use of consumer-direct (CD) channels to reach and deliver goods and
services to customers without using marketing middlemen.
• Is a form of Interactive Marketing System that uses one or more media to
effect a measurable response or transaction at any location. Direct
marketing, especially electronic marketing, is showing explosive growth.
(15th edition Marketing Management by Kotler)
• Market demassification results in a lot of market niches, market niches
are best reached by direct marketing.
• Examples
• Direct Mail
• Catalog Marketing
• Telemarketing
• Interactive TV
• Kiosk
• Etc.
Direct Mail Marketing
• Sending an offer, announcement, reminder, etc to an individual customer
using selective mailing list.
• Letters, flyers, foldouts, newsletters, multimedia DVD’s, Email
• 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
• Uses RFM
• Recency
• Frequency
• Monetary
• Sometimes Costly (buying leads and lists)
Catalog Marketing
• Companies may send full line merchandise catalog, specialty consumer
catalog, business catalogs.
• Print
• DVD
• Online or Website
• Success depends
• Managing customer list to avoid duplication or bad debts
• Controlling inventory
• Offer good quality merchandise
• Minimize returns
• Project distinctive image
Tele Marketing
• Use of telephones and call centers
• to attract prospects,
• sell to existing customers,
• provide service by taking orders
• answering questions
• Potentially intrusive

Other Media
• Ads on News Papers and Magazine
• Infomercials
• Home shopping channels
Disadvantage of Direct Marketing
• Irritation
• Invasion of Privacy
• Unfairness
• Deception or Fraud
Interactive Marketing
• Sometimes called trigger-based or event driven marketing, is a marketing
strategy that uses two-way communication channels to allow consumers to
connect with a company directly. Although this exchange can take place in
person, in the last decade it has increasingly taken place almost exclusively
online through email, social media, and blogs. (Wikipedia)
• Advantage:
• Tap Online Communities
• Search engines based on keywords
• Contextual Advertising/Placement
• Disadvantage:
• Consumers can screen out most messages
• Bogus clicks (if using cost per click)
• Prone to hacking and vandalism
• Invasion of Privacy
Interactive Marketing
• Examples of Interactive Marketing Channels
• Websites
• Search ads
• Display ads
• Email
• Mobile Marketing
• SMS
• Mobile apps
• notifications
• Social Media
 Word of Mouth

• Is the process of actively influencing and encouraging discussion about a

brand, organization, resource or event.

• It is a free form of advertisement or promotion.

• Shared by customers and triggered by an event the customer experiences.

 Social Media

• Online communities and forums - provide companies valuable resource and

provide multiple functions by both collecting and conveying key information.
 Social Media

• Blogs – are regularly updated online journals or diaries and have become an important
outlet for word of mouth.
 Social Media

• Social Networks – an online service or site through which people create and maintain
interpersonal relationships.
 Two Forms of Word of Mouth

• Buzz Marketing = generates excitement, creates publicity, and

conveys new relevant brand-related information through unexpected
or even outrageous means.

e.g. “Did you hear about Bitcoin? It’s an insane investment! I invested $100 and earned more
than $1000. Can you believe that?”

• Viral Marketing = encourages consumers to pass along company-

developed products and services or audio, video, or written
information to others online.

e.g. AlDub, Cebu Pacific’s dancing attendants, Kwentong Jollibee Valentine Series
 Designing the Sales Force

Sales force Sales force Sales force Sales force Sales force
objectives strategy structure size compensation
 Managing the Sales Force

Recruiting Training Supervising Motivating Evaluating

and selecting Sales Sales Sales Sales
sales representativ representativ representati representati
representativ e e ve ve
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