kotler_mm13e_im_19 - SONAL COMMUNICATIONS: DIRECT IVE TH,...

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SONAL COMMUNICATIONS: DIRECT TIVE TH, L SELLING 19 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know how companies can integrate direct marketing for competitive advantage Know how companies can do effective interactive marketing Know how marketers can best take advantage of the power of word of mouth Know what decisions companies face in designing and managing a sales force Know how salespeople can improve selling, negotiating, and relationship marketing skills CHAPTER SUMMARY Direct marketing is an interactive marketing system that uses one of more media to effect a measurable response or transaction at any location. Direct marketing, especially electronic marketing is showing explosive growth. Direct marketers plan campaigns by deciding on objectives, target markets and prospects, offers, and prices. This is followed by testing and establishing measures to determine the campaign’s success. Major channels for direct marketing include face-to-face selling, direct mail, catalog marketing, telemarketing, interactive TV, kiosks, Web sites, and mobile devices. Interactive marketing provides marketers with opportunities for much greater interaction and individualization through well-designed Web sites as well as online ads and promotions. Word of mouth marketing finds ways to engage customers so that they choose to talk with others about products, services, and brands. Two notable forms of word of mouth marketing are buzz marketing, which seeks to get people talking about a brand by ensuring that a product or service or how it is marketed is out of the ordinary, and viral marketing, which encourages people to exchange information related one way or another to a product or service online. Sales personnel serve as a company’s link to its customers. The sales rep is the company to many of its customers, and it is the rep who brings back to the company much-needed information about the customer. Designing the sales force requires decisions regarding objectives, strategy, structure, size, and compensation. Objectives may include prospecting, targeting, communicating, selling, servicing, information gathering, and allocating. Determining strategy requires choosing the most effective mix of selling 1
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Chapter-by-Chapter Instructional Material approaches. Choosing the sales-force structure entails dividing territories by geography, product, or market (or some combination of these). Estimating how large the sales force needs to be involves estimating the total workload and how many sales hours (and hence salespeople) will be needed. Compensating the sales force entails determining what types of salaries, commissions, bonuses, expense accounts, and benefits to give, and how much weight customer satisfaction should have in determining total compensation. There are five steps involved in managing the sales force: (1) recruiting and
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kotler_mm13e_im_19 - SONAL COMMUNICATIONS: DIRECT IVE TH,...

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