1

19
Managing Personal
Communications
 Chapter Questions
 How can companies conduct direct marketing
for competitive advantage?
 How can companies carry out effective
interactive marketing?
 How does word of mouth affect marketing
success?
 What decisions do companies face in
designing and managing a sales force?
 How can salespeople improve their selling,
negotiating, and relationship marketing skills?
What is Direct Marketing?

Direct marketing is the use of consumer-

direct channels to reach and deliver goods
and services to customers without using
market middlemen.
Direct Marketing Channels

Direct mail

Catalog marketing

Telemarketing

Other media for direct response marketing

 Constructing a Direct-Mail Campaign

 Establish objectives: to receive an order from prospects and

judge a campaign’s success by the response rate.
 Select target prospects: RFM (Recency, Frequency,
Monetary amount)
 Develop offer elements: product, offer, medium, the
disribution method, creative strategy
 Test elements: on awareness, intention to buy, and WOM
 Measure campaign success: livetime value
 Catalog Marketing

 Consumer catalogs & business catalogs

 Form of calatogs: print, DVD, or online
Telemarketing
 Telemarketing is the use of the telephone
and call centers to attract prospects, sell
to existing customers, and provide service
by taking orders and answering questions.
 It helps companies increase revenue,
reduce selling costs, and improve
customer satisfaction.
 B2C telemarketing & B2B telemarketing
 Call centers: inbound telemarketing &
outbound telemarketing.
 Other Media for Direct Response

 Television  infomercials, at-home shopping

channels
 Radio
 Newspapers, magazines  can order product via
toll free number
 Internet
Public Issues in Direct Marketing

Irritation

Unfairness

Deception & fraud

Invasion of privacy
 Interactive Marketing
 Interactive marketing is online activities and
programs designed to engage customers or
prospects and directly or indirectly raise
awareness, improve image, or elicit sales of
products and services.
 The newest and fastest-growing channels for
communicating and selling directly to customers
are electronic.
 The internet provides marketers and consumers
with opportunities for much greater interaction and
individualization.
 Advantages & Disadvantages of
Interactive Marketing
 Tailored messages possible
 Easy to track responsiveness
 Contextual ads placement possible
 Search engine advertising possible
 Subject to click fraud; the threat from hacked
or vandalized
 Consumers develop selective attention
Figure 19.1 Average Time Spent
per Day with Select Media
for US Consumers
 Interactive Marketing
Communication Options
 Web sites
 Search ads
 Display ads / banner ads
 E-mail
 Mobile marketing
 Key Design Elements of Effective
Web Sites
 Context: Layout and design
 Content: Text, pictures, sound, video
 Community: User-to-user communication
 Customization: Site’s ability to tailor itself to diffeent users
or to allow users to personalize the site
 Communication: how the site enables site-to-user, user-
to-site, or two way communication
 Connection: Links to other sites
 Commerce: Ability to conduct transactions
 Word of Mouth (WOM)
 Word-of-mouth marketing is people-to-
people oral, written, or electronic
comunications that relate to the merits or
experiences or purchasing or using products
or services.
 WOM
 Social Media
 Buzz and Viral Marketing
 Opinion Leaders
 Measuring the Effect of WOM
Social Media

Platforms of Social Media

 Online communities and forums
 Blogs
 Social networks
 Buzz and Viral Marketing
 Buzz marketing generates excitement, creates
publicity, and conveys new relevant brand-related in-
formation through unexpected or even outrages
means.
 Viral marketing is another form of WOM, or “word of
mouse,” that encourages consumers to pass along
company-developed products and services or audio,
video, or written information to others online.
 The success of any viral or buzz campaign

depends on the willingness of consumers to talk to

other consumers.
 Measuring the Effect of WOM
 Firms can monitor with tracking tools 
customers blog, comment, post, shar, link,
upload, friend, stream, srieon a wall, or update
a profile.
 Sales Force

Types of Sales Representatives

1. Deliverer
2. Order taker
3. Missionary
4. Technician
5. Demand creator
6. Solution vendor
Designing a Sales Force

Sales Force Objectives

Sales Force Strategy

Sales Force Structure

Sales Force Size

Sales Force Compensation

Sales Force Objecties & Strategy
 Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating
 Sales Force Structure
 Territorial structure
 Product or market structure
 Complex structure

Established companies need to revise their sales

force structures as market and economic conditions
change.
 Sales Force Size
 Customers are grouped into size classes to
annual sales volume
 Desirable call frequencies are established
 Number of accounts in each size class
multiplied by call frequency
 Average number of calls possible per year
established
 Number of reps equal to total annual calls
required divided by number possible
 Sales Force Compensation

 Fixed amount
 Variable amount
 Expense allowance
 Benefits
Managing the Sales Force
Recruiting &
Selecting

Training

Supervising

Motivating

Evaluating
Salesperson Evaluation
 Principles of Personal Selling
 Situation questions
 Problem questions
 Implication questions
 Need-payoff questions
 The Six Steps in Effective Selling

1. Prospecting/qualifying
2. Preapproach
3. Approach
4. Presentation
5. Overcoming objections
6. Closing
7. Follow up
 Relationship Marketing
 Relationship marketing is not effective in all
situation. But when it is the right strategy and
is properly implemented, the organization will
focus on managing its customers as on
managing its product.
 Tugas

1. Pilihlah dan tentukan iklan TV terfavorit anda.

2. Berikan penjelasan mengapa anda
memfavoritkan iklan tersebut?
3. Menurut anda, seberapa efektif pesan dan
strategi kreatif yang ada di iklan tersebut?
Jelaskan!
4. Bagaimana iklan tersebut membangun brand
equity? Jelaskan!

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 19-31