Lectures Marketing management: Chapter 19 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 19: Managing personal communications (direct and interactive marketing, word of mouth, and personal selling) provides students with the knowledge: Direct marketing, interactive marketing, personal selling. Invite you to refer to the disclosures.

Chapter 19 Managing Personal Communications: Direct

and Interactive Marketing, Word of Mouth,

and Personal Selling

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

direct marketing for competitive

advantage?

effective interactive marketing?

marketing success?

face in designing and managing

a sales force?

their selling, negotiating, and

relationship marketing skills?

Minicase: Pepsi’s Refresh Project

● For the first time in 23 years, PepsiCo chose not to advertise any

of its soft drink brands during the biggest U.S media event, the

Super Bowl Instead, it launched its ambitious Pepsi Refresh

Project With a tagline “Every Pepsi Refreshes the World,” Pepsi

earmarked $20 million for the program to fund ideas from anyone,

anywhere, anytime to make a difference in six areas: health, arts

and culture, food and shelter, the planet, neighborhoods, and

education Ideas are submitted at refresheverything.com and

voted online by the general public

● A significant presence on Facebook, Twitter, and other social

networks is a key aspect to the program The first grant recipients

received funding for a variety of different projects, including

building a community playground, providing care packages and

comfort items for troops in the field or recovering from wounds at

home, and conducting financial literacy sessions for teens Pepsi

also allocated an additional $1.3 million in the summer of 2010 to

support communities in the Gulf of Mexico region affected by the

1 Direct Marketing

● The Benefits of Direct Marketing

● Direct Marketing Elements

Benefits of Direct Marketing

● Market demassification

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

Constructing a Direct-Mail Campaign

● Establish objectives

● Select target prospects

● Develop offer elements

● Test elements

● Execute

● Measure success

Direct Mail

● Objectives

● Target markets and prospects: RFM formula

● Recency: When did you make the last purchase?

● Frequency: How many times have you purchased?

● Monetary amount: How much have you spent since becoming a customer?

● Offer elements

● the product

● the offer

● the medium

● the distribution method

● the creative strategy

● Testing Elements

Components of the Mailing

Other Media for Direct Response

● Television

● Kiosks

Public and Ethical Issues in Direct Marketing

● Irritation

● Unfairness

● Deception and fraud

● Invasion of privacy

3 Interactive Marketing: Advantages and

Disadvantages

● Tailored messages possible

● Easy to track responsiveness

● Contextual ad placement possible

● Search engine advertising possible

● Subject to click fraud

● Consumers develop selective attention

Seven Key Design Elements of an Effective Web Site

● Context Layout and design

● Content Text, pictures, sound, and video the site

contains

● Community How the site enables user-to-user

communication

● Customization Site’s ability to tailor itself to different

users or to allow users to personalize the site

● Communication How the site enables site-to-user, to-site, or two-way communication

user-● Connection Degree that the site is linked to other sites

● Commerce Site’s capabilities to enable commercial

© Nguyễn Tiến Dũng 18

4 Word of Mouth

● Buzz marketing

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

● Viral marketing

company-developed products and services or audio, video,

or written information to others online.

How to Start Buzz

devote extra effort to them

business

want to pass along

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

Online Promotional Opportunities

5 Designing a Sales Force

● Sales force objectives

● Sales force strategy

● Sales force structure

● Sales force size

● Sales force compensation

Types of Sales Representatives

Managing the Sales Force

Workload Approach to Determining Sales Force Size

call frequency

established

divided by number possible

Components of Sales Force Compensation

Principles of Personal Selling

● Situation questions

● Problem questions

● Implication questions

● Need-payoff questions

Steps in Effective Selling