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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,19-,87,Copyright 2009 Pearson Education South Asia Pte Ltd,An Asian Perspective,(5,th,edition),Marketing Management:,19,Philip Kotler, Kevin Lane Keller, Swee Hoon Ang, Siew Meng Leong, & Chin Tiong Tan,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,18-,*,Copyright 2009 Pearson Education South Asia Pte Ltd,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,18-,*,Copyright 2009 Pearson Education South Asia Pte Ltd,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,18-,*,Copyright 2009 Pearson Education South Asia Pte Ltd,Managing Personal Communications: Direct Marketing and Personal Selling,Copyright 2009 Pearson Education South Asia Pte Ltd,19-,1,Copyright 2009 Pearson Educa,1,19-,2,19-2,2,Understand how companies can integrate direct marketing for competitive advantage,Understand how companies can do effective interactive marketing,Understand how marketers can best take advantage of the power of word of mouth,Learning Objectives:,19-,3,Understand how companies can i,3,Understand what decisions companies face in designing and managing a sales force,Understand how salespeople can improve selling, negotiating, and relationship marketing skills,Learning Objectives:,19-,4,Understand what decisions comp,4,Direct Marketing,- The Benefits of Direct Marketing,Direct marketing:,use of consumer-direct (CD) channels,to reach & deliver goods & services,to customers,without using marketing middlemen,Direct Marketing- The Benefit,Direct Marketing,- The Benefits of Direct Marketing,Growth of direct marketing due to:,Market demassification -,market niche,At-home shopping,High driving costs,Traffic congestion,Lack of time,Stores drop specialty items - opportunity for direct marketers,Increased credit card penetration,Growth of Internet, email, cell phones,Direct Marketing- The Benefit,Figure 19.1,Direct Marketing Flow Chart,19-,7,Figure 19.1 Direct Marketing,Direct Marketing,- The Benefits of Direct Marketing,Customers benefits :,Home shopping - fun, convenient, hassle-free,Comparative shopping - browse mail catalogs & online shopping services,Order goods for themselves or others,Business customers: learn about products & services without meeting salespeople,Direct Marketing- The Benefit,Direct Marketing,- The Benefits of Direct Marketing,Sellers benefits:,Buy mailing lists - names of target groups of customers,Customize & personalize messages,Build continuous relationship with each customer,Direct Marketing- The Benefit,Direct Marketing,- The Benefits of Direct Marketing,Sent to keen people - right time, high readership,Test alternative media & messages - most cost-effective way,Makes offer & strategy less visible to competitors,Can measure responses to campaigns - most profitable,Direct Marketing- The Benefit,Direct Marketing,- Direct Mail,Direct-mail marketing: sending an offer, announcement, reminder,Popular, WHY?,Permits target market selectivity,Can be personalized,Flexible,Allows early testing & response measurement,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,Direct mail marketing - stages:,“Carpet bombing”,Database marketing,Interactive marketing,Real-time personalized marketing,Lifetime value marketing,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,OBJECTIVES:,Order from prospects,Success - response rate: 2,%,good,Achieve other objectives,Produce leads,Strengthen relationships,Inform & educate customers,Remind customers of offers,Reinforce recent purchases,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,TARGET MARKETS & PROSPECTS:,Identify- most able, willing, ready to buy HOW?,RFM:,(recency, frequency, monetary amount),Variables: age, sex, income, education,Consumer lifestyle or “passion” groups,B2B: prospect group of people,Target defined - obtain specific names,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,OFFER ELEMENTS:,5 elements,Product,Offer,Medium,Distribution method,Creative strategy,5 mailing components:,Outside envelope,Sales letter,Circular,Reply form,Reply envelope,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,TESTING ELEMENTS:,Advantage: ability to test elements - real market conditions,Response rates - understate campaigns long-term impact,Impact on awareness, intention to buy & word-of-mouth,Direct Marketing- Direct Mail,Direct Marketing,- Direct Mail,MEASURING CAMPAIGN SUCCESS: LIFETIME VALUE:,Sum of planned campaign costs - needed break-even response rate,Analyze past campaign improve future,Value,buy response to one mailing,Value,=,expected profit on future buys,Direct Marketing- Direct Mail,Direct Marketing,- Catalog Marketing,Merchandise, Specialty, business catalogs, in print, CDs, videos or online,Success of catalog business depends on:,Ensure little duplication & bad debt in list,Control inventory carefully,Offer quality merchandise - low returns,Project distinctive image,Direct Marketing- Catalog Mar,Direct Marketing,- Telemarketing,Telemarketing:,use of telephone & call centers,to attract prospects,sell to existing customers,& provide service,by taking orders,& answering questions,Direct Marketing- Telemarketi,Direct Marketing,- Telemarketing,Inbound & outbound telemarketing,Telesales,Telecoverage,Teleprospecting,Customer service & technical support,4,Types,Direct Marketing- Telemarketi,Direct Marketing,- Telemarketing,Telemarketing not common in Asia WHY?,Difficult set up, emerging economies, poor telecommunications infrastructure,Extensive training required,High staff turnover- tight labor market,Multi-country complications & language problems,Direct Marketing- Telemarketi,Direct Marketing,- Telemarketing,Reduce need for personal selling,Improves with use of videophones,SMS marketing:,Potential in emerging economies,Wireless access (,eg: Philippines,),Direct Marketing- Telemarketi,Direct Marketing,- Telemarketing,But,:,Too many phones, hard to find one solution,Availability of low internet costs,Operators reluctant to centralize billing,Security issue with wireless transactions,Direct Marketing- Telemarketi,Direct Marketing,- Other Media for Direct-Response Marketing,TELEVISION,Direct-response advertising,Infomercials - sales call + TV ad,At-home shopping channels,Dedicated channels,Videotext & interactive TV,Linked to catalog - cable/line,KIOSK MARKETING:,Small unit - selling/information unit,Direct Marketing- Other Media,Public & Ethical Issuesin Direct Marketing,Direct marketers & customers - rewarding relationships. Occasional darker side:,Irritation more hard-sell,Unfairness - exploit impulsive or less sophisticated buyers,Deception & fraud - intention to mislead,Invasion of privacy - too much knowledge on buyer - unfair advantage,Public & Ethical Issuesin Dir,Interactive Marketing,Internet - greater,interaction,&,individualization,But exchange process more customer-initiated & controlled,More rich media ads, online,Interactive MarketingInternet,Interactive Marketing,Benefits of Interactive Marketing,Benefits,:,Highly accountable & effects easily traced,Web offers advantage of “contextual placements”,Light consumers of other media, can be reached,Interactive MarketingBenefits,Figure 19.2 Seven Key Design Elements of an Effective Web,Figure 19.2 Seven Key Design E,Interactive Marketing,- Designing an Attractive Web Site,Ease-of-use,:,Quick downloads,1st page easily understood,Easy to navigate, pages open quickly,Physical attractiveness:,Pages - clean & not crammed,Typeface, font size - very readable,Good use of color,Visitors judge sites performance by:,Interactive Marketing- Design,Interactive Marketing,- Designing an Attractive Web Site,Returning to site depends on content,Deep information with related links,Changing news of interest,Changing free offers to visitors,Contests & sweepstakes,Humor & jokes,Games,Interactive Marketing- Design,Interactive Marketing,- Placing Ads & Promotion Online,Audience targeted & costs reasonable,Banner ads:,small boxes text/picture - relevant sites,Sponsorships:,special content on sites that carry news, financial information,Microsite:,limited area managed & paid for by an external advertiser/company,Interactive Marketing- Placin,Interactive Marketing,- Placing Ads & Promotion Online,Interstitials:,Ads, animation, pop up between changes on website,Search-related ads:,Search terms - proxy for interests & relevant links listed alongside search results,Content-target advertising:,Links ads to content of Webpage, not to keywords,Alliances &,affiliate programs:,firms work & advertise each other,Interactive Marketing- Placin,Interactive Marketing,- E-Marketing Guidelines,Small,%,of direct mail costs,Click rate for email,other online marketing,If done well, build relationships - profits,Interactive Marketing- E-Mark,Interactive Marketing,- E-Marketing Guidelines,Important guidelines - email marketers:,Give customer reason to respond,Personalize content of emails,Offer something customer could not get via direct mail,Make it easy for customers to “unsubscribe,”,Interactive Marketing- E-Mark,Word-of-Mouth,Social networks, like MySpace and Facebook, have become an important force in both business-to-consumer and business-to-business marketing.,A key aspect of social networking is the word of mouth,Companies are becoming acutely aware of the power of word of mouth,Word of mouth can be particularly effective for smaller business,Social networking can be a vital resource for companies,Word-of-MouthSocial networks,Buzz and Viral Marketing,Buzz marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.,Viral marketing is another form of word of mouth,Companies can help to create buzz,Buzz and Viral MarketingBuzz m,Opinion Leaders,Communication researchers propose a social-structure view of interpersonal communication. They see society as consisting of cliques, small groups whose members interact frequently.,Bridges: people who belong to one clique and are linked to a person in another.,The Law of the Few: “Mavens, Connectors, Salesmen”,Concentrate on the “bees” hyperdevoted customers who live to spread the word.,Controversial tactic: Shill marketing or stealth marketing,Opinion LeadersCommunication r,Marketing Memo: “How to start a buzz fire”,Certain steps increase the likelihood of a positive buzz:,identify influential individuals and companies; supply key people with product samples; work through community influentials; develop a word of mouth referral channel; provide compelling information that customers want to pass along.,Marketing Memo: “How to start,Blogs,A regularly updated online journal or diary have become an important outlet for word of mouth.,One obvious appeal of blogs is that they bring together people with common interests.,BlogsA regularly updated onlin,Designing the Sales Force,Sales Force:,Industrial firm - sales - locate & develop prospects - customers & grow business,Consumer companies - direct-selling: agents, stockbrokers & distributors,Direct-sales companies: opportunities for locals as sales representatives,Designing the Sales ForceSales,Designing the Sales Force,Sales representative 6 positions,from least to most creative types of selling:,Deliverer,Order taker,Missionary,Technician,Demand creator,Solution vendor,Designing the Sales ForceSales,Designing the Sales Force,Personal link to customers,Feedback customer information,High, rising costs to maintain sales force,Consider Figure 19.4,Designing the Sales ForcePerso,Designing the Sales Force,- Sales Force Objectives & Strategy,Specific tasks of sales force:,Prospecting,Targeting,Communicating,Selling,Servicing,Information gathering,Allocating,Designing the Sales Force- Sa,Designing the Sales Force,- Sales Force Objectives & Strategy,Leveraged sales force,:,Sell complex products to large accounts,Low-end selling - inside sales & web orders,Deploy sales force strategically,Analyze sales & marketing data,Direct sales:,company,paid employees,Contractual sales:,reps, agents & brokers commission based on sales,Designing the Sales Force- Sa,Designing the Sales Force,- Sales Force Structure,Territorial structure:,1 product line to 1 end-using industry + customers - many locations,Product/market structure:,Many products to many types of customers,Revise sales force structure - market & economic conditions change,Designing the Sales Force- Sa,Figure 19.6 The Four Factors for a Successful Sales Force,Figure 19.6 The Four Factors f,Designing the Sales Force,- Sales Force Size,Workload approach:,sales force size,5 steps,Customers - size classes - annual sales,Call frequencies - for each class,Each size class account x call frequency = annual sales calls,Average annual calls determined,Sales rep needed =,total annual calls required,average annual calls,Designing the Sales Force- Sa,Designing the Sales Force,- Sales Force Compensation,Sales force compensation = fixed amount + variable amount + expense allowances + Benefits,3 plans: straight salary, straight commission & mix of both,Fixed compensation - emphasis in non-selling jobs - selling task complex,Designing the Sales Force- Sa,Designing the Sales Force,- Sales Force Compensation,Straight salary secure income - willing to do non-sales work,Straight commission high performers, motivate, control costs,but,emphasis on sale not relationships,Combination plans is best,Designing the Sales Force- Sa,Figure 19.7,Managing the Sales Force,Figure 19.7 Managing the Sal,Managing the Sales Force,- Recruiting & Selecting Representatives,Decide on criteria, traits in reps,HR Department - applicants from various sources,Select from pool of applicants,Managing the Sales Force- Rec,Managing the Sales Force,- Training & Supervising Sales Representatives,Customers expect sales reps,Deep knowledge,Improvement ideas,Be reliable,Higher investment - training,Training - few weeks to months,Depends on complexity of task & type of person,Managing the Sales Force- Tra,Managing the Sales Force,- Training & Supervising Sales Representatives,Research, rep training - MNC & local firm,MNCs,More result-oriented,More market/customer-oriented,Local firms,More cost-focused in training,More product-oriented,New training methods - role playing, sensitivity training etc,Managing the Sales Force- Tra,Managing the Sales Force,- Training & Supervising Sales Representatives,East Asian business - adaptation of sales-training techniques,Mentoring techniques - Japan,Training enhance salesperson retention,Companies vary in how closely they supervise sales reps,Managing the Sales Force- Tra,Managing the Sales Force,- Sales Rep Productivity,NORMS FOR PROSPECT CALLS:,Specify time - prospect new account,USING SALES TIME EFFICIENTLY:,Best reps - manage time effectively,Time-and-duty analysis:,how time is spent & how to increase productivity,Managing the Sales Force- Sal,Managing the Sales Force,- Sales Rep Productivity,Ways to improve sales productivity:,Use “phone power,”,Simplify record keeping & time,Computer & Internet,Call & routing plans,Supply customer & competitive data,Automate order preparation process,Managing the Sales Force- Sal,Managing the Sales Force,- Sales Rep Productivity,3 types of Inside salespeople:,Technical support people,Sales assistants,Telemarketers,Let outside reps time - major accounts,Spend more time - check inventory, follow up orders,etc,Managing the Sales Force- Sal,Managing the Sales Force,- Sales Rep Productivity,High-tech equipment - email & PCs allow salesperson to be “electronic”,Company Web site - useful a prospecting tool,Managing the Sales Force- Sal,Managing the Sales Force,- Motivating Sales Representatives,Reps - encouragement & incentives,Higher motivation - greater effort & performance, rewards & satisfaction,Increase motivation - reinforce all types of intrinsic & extrinsic rewards,Managing the Sales Force- Mot,Managing the Sales Force,- Motivating Sales Representatives,Financial rewards valued - older, longer-tenured staff, large families,Higher-order rewards (recognition), more valued by the young,Annual sales quotas - compensation,Profits maximized - focus on important & profitable products,Managing the Sales Force- Mot,Managing the Sales Force,- Motivating Sales Representatives,Setting sales quotas -,problems,Underestimated - quota easy - rep overpaid & vice versa,Quotas - drive reps get most business - may ignore service,Short-term results at cost of long-term customer satisfaction,Managing the Sales Force- Mot,Managing the Sales Force,- Evaluating Sales Representatives,SOURCES OF INFORMATION:,Sales reports:,Activity plans,&,write-ups of activity results,Observation, self-reports, customer letters & complaints etc,Annual territory marketing plan: program,Develop new accounts &,Increase business from current ones,Call reports -,completed activities,Managing the Sales Force- Eva,Managing the Sales Force,- Evaluating Sales Representatives,Key indicators of sales performance:,Average calls per salesperson per day,Average call time per contact,Average revenue per call,Average cost per call,Managing the Sales Force- Eva,Managing the Sales Force,- Evaluating Sales Representatives,Key indicators of sales performance:,Entertainment cost per call,%,of orders per hundred calls,Number of new customers per period,Number of lost customers per period,Sales-force cost as,%,of total sales,Managing the Sales Force- Eva,Managing the Sales Force,- Evaluating Sales Representatives,FORMAL EVALUATION:,Sales forces reports + observations supply materials for evaluation,One type - compare current performance to past performance,Managing the Sales Force- Eva,Table 19.1,Form for Evaluating Sales Representatives Performance,Table 19.1 Form for Evaluati,Managing the Sales Force,- Evaluating Sales Representatives,Evaluations - company knowledge, products, customers, competitors, territory & responsibilities,Personality rated: general manner, appearance, speech & temperament,US MNCs in Asia use,knowledge, appearance & motivation,WHY?,Managing the Sales Force- Eva,Managing the Sales Force,- Evaluating Sales Representatives,Minimal monitoring, stable & minimize resources on sales control,Qualitative factors favored by Asian firms,Outside of more developed Asian countries -,educational standards, commercial orientations, & personal affluence levels,- not uniform,Managing the Sales Force- Eva,Figure 19.8,Major Steps in Effective Selling,Figure 19.8,SPIN method:,Situation question:,facts or buyers situation What system is used to invoice customers?,Problem question:,problem & dissatisfaction What parts of system create errors?,Implication question,:,effect of problemHow problem affect peoples productivity?,Need-payoff questions:,value of solutionHow much savings if reduce errors by 80,%,?,SPIN method:,Principles of Personal Selling,- The Seven Steps,1. PROSPECTING & QUALIFYING:,Identify & qualify prospects,Contact leads - assess interest level & financial capacity,2. PREAPPROACH:,Learn ALL about prospect company & buyers,Principles of Personal Selling,Principles of Personal Selling,- The Seven Steps,3. APPROACH:,Greet buyer - right manner - key questions & active listening,4. PRESENTATION & DEMONSTRATION:,Product “story” AIDA,Attention-interest-desire-,a,ction,FABV approach,Features-advantages-benefits-value,Principles of Personal Selling,Principles of Personal Selling,- The Seven Steps,5. OVERCOMING OBJECTIONS:,Psychological resistance:,preconceived ideas,Logical resistance:,price,Objections handle positively,Get buyer to clarify, question obj
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