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19-2
Chapter Questions
• How can companies use integrated direct marketing for competitive advantage?
• How can companies do effective e-marketing?• What decisions do companies face in designing a
sales force?• How do companies manage a sales force
efficiently?• How can salespeople improve selling,
negotiating, and relationship marketing skills?
19-3
Direct Marketing
Use of consumer-direct channels to reachand deliver goods and services to
customers without using market middlemen.
19-4
Direct Marketing Channels
Catalogs
Direct mail
Telemarketing
Web sites
Email marketing
Mobile devices
Interactive TV
19-5
Public Issues in Direct Marketing
IrritationIrritation
UnfairnessUnfairness
Deception/fraudDeception/fraud
Invasion of privacyInvasion of privacy
19-6
Constructing a Direct-Mail Campaign
Establish objectives
Select target prospects
Develop offer elements
Test elements
Execute
Measure success
19-7
RFM Formula for Selecting Prospects
RecencyRecency
FrequencyFrequency
Monetary valueMonetary value
19-8
Elements of the Offer Strategy
• Product• Offer• Medium• Distribution method• Creative strategy
19-9
Components of the Mailing
• Outside envelope
• Sales letter
• Circular
• Reply form
• Reply envelope
19-10
Types of Telemarketing
• Telesales
• Telecoverage
• Teleprospecting
• Customer service and technical support
19-11
Other Media for Direct Response
Television
• Direct Response Advertising
• At-home shopping channels
• Videotext
Kiosks
19-12
Designing an Attractive Web Site
• Context• Content
• Community• Customization
• Communication• Connection• Commerce
19-13
Ease of Use and Attractiveness
• Ease of Use– Downloads quickly– First page is easy to understand– Easy to navigate
• Attractiveness– Clean looking– Not overly crammed with content– Readable fonts– Good use of color and sound
19-14
Increasing Visits and Site Stickiness• Deep information with
links• Changing news of
interest• Changing offers • Contests and
sweepstakes• Humor and jokes• Games
19-15
Online Ads
• Banner ads• Microsites• Sponsorships• Interstitials• Search-related ads• Content-targeted
advertising• Alliances• Affiliate programs
19-17
e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could not get via direct mail
• Make it easy for customers to unsubscribe
19-18
Figure 19.2 Designing a Sales Force
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Compensation
19-19
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
19-20
Sales Tasks
• Prospecting• Targeting• Communicating• Selling• Servicing• Information gathering• Allocating
19-21
Figure 19.3 Managing the Sales Force
Recruiting, selecting
Training
Supervising
Motivating
Evaluating
19-22
Workload Approach to Determining Sales Force Size
• Customers are grouped into size classes
• 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
19-23
Components of Sales Force Compensation
Fixed amount
Variable amount
Expense allowances
Benefits
19-24
What Motivates Sales Reps?
Most Rewarding• Pay• Promotion• Personal growth• Sense of
accomplishment
Least Rewarding• Liking• Respect• Security• Recognition
19-26
Figure 19.4 Steps in Effective Selling
Prospecting/Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up
19-27
Marketing Debate
Are Great Salespeople Born or Made?
Take a position:1. The key to developing an effective salesforce is selection.2. The key to developing an effective salesforce is training.