Nur Fathiah Muhammad Salleh Siti Norfadzlin Daud Nor Lyana Mastura Zainal Abidin

0932072 1018276 1012364

Benefits of Direct Marketing

Benefits customers
Home shopping can be fun, convenient, and hassle-free Saves time Introduces consumers to a larger selection of merchandise Ease of comparative shopping Can order goods for themselves and others Business customers can benefit by learning about available products and services

Benefits sellers They can customize and personalize messages. They can build a continuous relationship with each customer. Direct marketing can be timed to reach prospects at the right moment. Can receive higher readership because it is sent to more interested prospects. Permits the testing of alternative media and messages in a cost-effective approach. Direct marketers can measure responses to their campaigns to decide which one has been more profitable.

Direct Mail
In constructing an effective direct-mail campaign, direct marketers must decide on: their objectives, target markets and prospects, offer elements, means of testing the campaign, and measures of campaign success.

Objectives
Aim to receive orders from prospects and judge a campaign success by the response rate Communication objective - strengthen customer relationships - produce prospects lead

Target markets and prospects R-F-M formula: Recency, frequency, monetary amount to select customers. Identify prospects on the basis of age, sex, income, education, previous mailorders purchases, and occasions. In B2B direct marketing, the prospect is often not an individual but a group of people or a committee that includes both decision makers and multiple decision influencers. Each member needs to be treated differently, and the timing, frequency, nature, and format of contact must reflect the members status and role.

Offer elements Product Offer Medium Distribution Method Creative Strategy

Testing the campaign To derive a more comprehensive estimate of the promotions impact, some companies are measuring direct marketings impact on: a. Awareness b. Intention to buy c. Word of mouth

Catalog Marketing

Avoid duplication and bad debts Huge reach, low costs.

The success of a catalog business depends on the companys ability to manage its: a. Customer lists. b. c. Control inventory. Offer quality merchandise so returns are low.

d.

Project a distinctive image.

Telemarketing
Telemarketing helps companies increase revenue, reduce selling costs, and improve customer satisfaction.

it is too difficult to set up in emerging Asian economies with poor telecommunications infrastructure extensive training is required there is high staff turnover, as reliable and bright telemarketers are hard to keep given the tight labor market for their services there are numerous multicountry complications and associated language problems

Public and Ethical Issues in Direct Marketing

Advantages & Disadvantages

Tailored messages Contextual placement Tracking consumer traffic at ease Lose some control over consumers activity Web user may block certain sites, hackers and vandals

Communication Options
Websites Search Ads Display Ads

Email
Mobile Marketing

Online Communities & Forums

Blogs

Social Network

Buzz and Viral Marketing

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 product and service or audio, video or written information to others online.

Opinion Leader The Law of The Few

Mavens

people knowledgeable about big and small things.

people who know and communicate with a great number of other people. who possess natural persuasive power.

Connectors
Salesmen
Stickiness

The Power of Context

In designing the sales force, the company must develop sales force objectives, strategy, structure, size, and compensation.

Types of Sales Representative

Deliverer

A salesperson whose major task is product delivery (water, fuel, oil).

Order taker

A salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager).
Missionary

A salesperson who is not expected or permitted to take an order but whose major task is to build goodwill or to educate the actual or potential user (the medical detailer representing an ethical pharmaceutical house).

Technician

A salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to the client companies).
Demand creator

A salesperson who relies on creative methods for selling tangible products (vacuum cleaners, cleaning brushes, and household products) or intangibles (insurance, advertising services, or education).

Solution vendor

A salesperson whose expertise lies in solving a customers problem, often with a system of the companys products and services (e.g., computer and communications systems).

Sales Force Objectives and Strategy

ProspectingSearching for prospects, or leads. TargetingDeciding how to allocate their time among prospects and customers CommunicatingCommunicating information about the companys products and services. SellingApproaching, presenting, answering objections, and closing sales. ServicingProviding various services to the customersconsulting on problems, rendering technical assistance, arranging financing, expediting delivery. Information gatheringConducting market research and doing intelligence work.

AllocatingDeciding which customers will get scarce products during product shortages.

Sales Force structure

Territorial

Product/Market

Complex

Sales Force Size

1. Customers are grouped into size classes according to annual sales volume. 2. Desirable call frequencies (number of calls on an account per year) are established for each class. 3. The number of accounts in each size class is multiplied by the corresponding call frequency to arrive at the total workload for the country, in sales calls per year. 4. The average number of calls a sales representative can make per year is determined.

5. The number of sales representatives needed is determined by dividing the total annual calls required by the average annual calls made by a sales representative.

Sales Force Compensation

The company must determine the four components of sales-force compensation: i. ii. iii. iv. The fixed amount The variable amount Expense allowances Benefits

Recruiting and Selecting Training Supervising Motivating

Evaluating

Supervising Sales Representatives

Norms 4 Prospect Calls

Using Sales Time Efficiently

Sales Technology

Motivating Sales Representatives

Intrinsic Versus Extrinsic Value

Sales Quotas

Evaluating Sales Representatives

Sources of Information

Formal Evaluation

Prospecting & Qualifying Pre approach Presentation & Demonstration Overcoming Objection

Closing

Follow-up & Maintanance

Negotiation
Language
Eye Contact Time Status and Title Decision-Making Style Fluid Contracts Mediation and Informal Communication

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