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

Chapter 19
Managing Personal Communications: Direct
and Interactive Marketing, Word of Mouth,
and Personal Selling
Nguyen Tien Dung, MBA
Email:


Chapter Questions
1. How can companies conduct

2.
3.
4.

5.

direct marketing for competitive
advantage?
How can companies carry out
effective interactive marketing?
How does word of mouth affect
marketing success?
What decisions do companies
face in designing and managing
a sales force?
How can salespeople improve
their selling, negotiating, and
relationship marketing skills?

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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
catastrophic oil spill.
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Main Contents

1. Direct Marketing
2. Interactive Marketing
3. Personal Selling

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1. Direct Marketing
● The Benefits of Direct Marketing
● Direct Marketing Elements

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Benefits of Direct Marketing
● Market demassification

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What is Direct Marketing?
Direct marketing is the use of consumerdirect channels to reach and deliver goods
and services to customers without using
market middlemen.

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Direct Marketing Channels
● Direct mail
● Catalogs
● Telemarketing
● Other direct response

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Constructing a Direct-Mail Campaign
● Establish objectives
● Select target prospects
● Develop offer elements
● Test elements
● Execute
● Measure success

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Direct Mail
● Objectives
● Order-response rate from prospects (2% - 4%)
● Create prospect leads
● Enhance customer relationships
● Inform and educate customers
● Remind customers of offers
● Reinforce recent customer purchase decisions

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● 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
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Components of the Mailing
● Outside envelope
● Sales letter
● Circular
● Reply form
● Reply envelope

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Types of Telemarketing
● Telesales
● Telecoverage
● Teleprospecting
● Customer service and technical support

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Other Media for Direct Response
● Television
● Direct response advertising
● At-home shopping channels
● Videotext

● Kiosks

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Public and Ethical Issues in Direct Marketing
● Irritation
● Unfairness
● Deception and fraud
● Invasion of privacy

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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

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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, userto-site, or two-way communication
Connection. Degree that the site is linked to other sites
Commerce. Site’s capabilities to enable commercial
transactions

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4. Word of Mouth
● Buzz marketing
● generates excitement, creates publicity, and

conveys new relevant brand-related information
through unexpected or even outrageous means.
● Viral marketing
● encourages consumers to pass along company-

developed products and services or audio, video,
or written information to others online.

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How to Start 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

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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

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Online Promotional Opportunities
● Websites

● Sponsorships

● Microsites

● Alliances and affiliate

● Search ads

programs
● Online communities

● Email
● Mobile marketing

● Display ads
● Interstitials
● Internet-specific ads

and videos

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5. Designing a Sales Force
● Sales force objectives
● Sales force strategy
● Sales force structure
● Sales force size
● Sales force compensation

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Types of Sales Representatives
● Deliverer
● Order taker
● Missionary

● Technician
● Demand creator
● Solution vendor

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Sales Tasks
● Prospecting
● Targeting
● Communicating
● Selling
● Servicing
● Information gathering
● Allocating