Kotler Mm14 Ch19 Dppt

7/29/2019 Kotler Mm14 Ch19 Dppt

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Kotler KellerPhillip Kevin Lane

Marketing Management 14e


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Managing Personal Communications:Direct and Interactive Marketing, Word of

Mouth and Personal Selling


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Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 42

Discussion Questions

1. How can companies conduct direct marketingfor 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


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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 targeting

Personalized messages

Measure effectiveness


7/42Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 42

Direct Mail

Target market selectivity Measureable

Higher CPM

Flexible



Objectives

Objectives

Sales Order

Prospect Leads

Customer Relationships

Inform and Educate

Reinforce Recent Purchases



Target Markets and Prospects

RFM Formula

Recency

Frequency

Monetary amount

Identify Prospects

Demographics

Lifestyle

Previous purchases



Product

Offer

MediumDistribution

Method

CreativeStrategy

Offer Elements

Offer

strategy



Testing and Measuring

Testing

Product

Features

Copy platform

Mailer type

Envelope

Prices

Mailing lists

Measuring

Campaign costs

Returned merchandise

Bad debt

Customer lifetime value



Catalog Marketing

Catalog Types

Full-line

Specialty consumer

Business

Top B-to-C catalog sellers

Dell - $51 billion

Staples - $8.9 billionCDW - $8.1 billion

Print and Online Catalogs

16,000 companies

$235 billion in sales



Telemarketing

Attract prospects

Sell to existing customers

Take orders

Answer questions

Inbound

Outbound



Public and Ethical Issues

Irritation

Unfairness

Deception and Fraud

Invasion of

Privacy



Interactive Marketing



Advantages and Disadvantages

Online Communities

Contextual Placement

Measureable

Screen out message

Loss of control



Daily Usage of Select Media

Online 4:13

TV/Video 3:17

Music/Radio 1:26

Mobile Phone 1:18

Landline Phone 0:36Gaming 0:36

Reading 0:24



Interactive Marketing Options

Web Sites & Display Ads

Search Ads

Mobile Marketing

E-Mail



Word of Mouth

Social Media

Buzz and Viral Marketing

Opinion Leaders



Social Media

Online Communities

and Forums

Social Networks



Buzz and Viral Marketing

Buzz Marketing

Viral Marketing



Opinion Leaders

Mavens

Salesmen

Connectors


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Designing the Sales Force

Deliverer

Solution Vendor

TechnicianMissionary

Demand

Creator

Order Taker


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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 Size

Workload ApproachGroup customers(sales volume)

Determine AverageNo. of Sales Calls

Accounts x Frequency

Establish Call

Frequency

Calls Required /

Average Sales Calls

1,000 - A Accounts

2,000 - B Accounts

A Accounts 36 calls

B Accounts 12 calls

A Accounts 36,000

B Accounts 24,000

Total 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

TR

E

N

D

S

Profitability

Customer Satisfaction

Customer Retention


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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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Motivating

Intrinsic Rewards

Extrinsic Rewards

Sales Quotas

l


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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

l f l ll


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Principals of Personal Selling

S

P

IN

Situation Questions

Problem Questions

Implication Questions

Need-payoff Questions


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Major Steps in Effective Selling

Prospecting and

Qualifying

Overcome Objections

Presentation andDemonstration

Preapproach

Closing

Follow-up and

Maintenance

P i d Q lif i


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Prospecting and Qualifying

Hot Warm Cold

P h


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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

P i /D i


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Presentation/Demonstration

FABV Approach

Features

Advantages

Benefits

Value

O i Obj ti


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Overcoming Objections

Psychological Resistance

Logical Resistance

Cl i


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Closing

Ask for the orderRecapitulate points of agreement

Gain agreement on minor points

F ll d M i t


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Follow-up and Maintenance

Documents

Kotler Mm14 Ch19 Dppt