Chapter 19

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth and Personal Selling

Marilou M. SantosSSS MMDP 5

What is Direct Marketing

* It is the use of consumer direct channels to reach and deliver goods and services to customer without using marketing middleman.

DIRECT MARKETING CHANNELS

* Direct Mail (Chosen on the basis of age, income, location, profession, buying

pattern, etc.. Presented custom tailored offers of goods & services via ordinary mail & email)

* Catalogs (List of priced and illustrated items for sale, presented

in book form or in other formats including CD-ROM or

video

* Telemarketing (Selling or promoting goods & services by telephone)

* Other Direct Response

Constructing a Direct-Mail Campaign

6. Measure success

5. Execute

4. Test elements

3. Develop offer elements

2. Select target prospects

1. Establish objectives

RFM Formula for Selecting Prospects

It is a marketing technique used to determine quantitatively which customer are the best ones by examining the following, an analysis based on the marketing axiom that “80% of your business comes from 20% of your customers.”:

Recency - how recently a customer has purchased

Frequency - how often they purchase

Monetary - how much the customer spends

What is Telemarketing Selling or promoting goods and services by

telephone, This can be done also through face-to-face or web conferencing appointment.

TYPES OF TELEMARKETING :• Telesales -selling of products or services in such a

way to make them desirable• Telecoverage• Teleprospecting- adds the essential human touch to

optimize your lead generation ROI by using the phone with intelligence

• Customer service and Technical support

Other Media for Direct Response

• Television

• Direct Response Advertising

• At-home shopping channels

• Videotext

• Kiosks

Interactive Marketing

* Tailored messages possible

* Easy to track responsiveness

* Contextual ad placement possible

* Search engine advertising possible

* Subject to click fraud

* Consumers develop selective attention

Online Promotional Opportunities

• Websites• Microsites• Search ads• Display ads• Interstitials• Internet-specific ads

and videos

• Sponsorships• Alliances and affiliate

programs• Online communities• Email• Mobile marketing

Word-of-Mouth Marketing is Empowered by Social Networks

Social Networks

• Facebook• MySpace• LinkedIn• Twitter• Blogs • Intuit

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

How to Start a Buzz

• Identify influential individuals and companies and devote extra effort to them

• Supply key people with product samples• Work through community influentials• Develop word-of-mouth referral channels to build

business• Provide compelling information that customers

want to pass along

- is the process of communicating with a potential buyer face-to-face with the purpose of selling a product or service

PRINCIPLES:

* SITUATION QUESTIONS * PROBLEM QUESTIONS * IMPLICATION QUESTIONS * NEED-PAYOFF QUESTIONS

Personal Selling

Steps in Effective Selling

• Prospecting/Qualifying• Preapproach• Approach• Presentation• Overcoming objections• Closing• Follow-up

Marketing Debate

Are great salespeople born or made?

Take a position:

1. The key to developing an effective sales

force is selection.

or

2. The key to developing an effective sales

force is training.