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A FRAMEWORK for
MARKETING MANAGEMENT
Chapter 17
Managing
Personal
Communications
Kotler
Keller
Cunningham
Chapter Questions
• How can companies use integrated direct
marketing for competitive advantage?
• How can companies do effective
interactive marketing?
• 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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Profile: Canadian Marketing Excellence
SHAW COMMUNICATIONS INC.
• Shaw Communications is a
diversified Canadian
telecommunications company
whose core business is
providing cable TV, internet,
and satellite
• Is the leading residential
provider of broadband in
western Canada
• Customer care and product
quality are at the forefront of
Shaw’s offering
• Use of door-to-door selling,
with salesmen doubling as
engineers
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Marketing Communications
Direct
marketing
Interactive
marketing
Personal
selling
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Direct Marketing
Direct marketing is the
use of consumer-direct channels
to reach and deliver
goods and services to customers
without marketing middlemen
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Direct Marketing Channels
Face-to-face
Direct mail
Catalog
Online
Kiosk
Telemarketing
Interactive TV
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Direct Marketing
• Steps in developing a direct-mail campaign:
• Step 1: Set objectives
• Step 2: Identify target markets
• Step 3: Define the offer elements
• Step 4: Test the elements
• Step 5: Measure results (and lifetime value)
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Offer Elements
Product
Offer
Medium
Distribution
Creative
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Telemarketing
• Use of telephone operators and call
centres to attract prospects, sell to
existing customers, and provide service
by taking orders and answering questions
• Telesales
• Telecoverage
• Teleprospecting
• Customer service and technical support
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Direct Response TV Advertising
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Elements of Effective Website Design
Context
Content
Community
Customization
Connection
Communication
Commerce
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Website Performance
Physical
Attractiveness
Ease of Use
• Fast downloads
• Intuitive first page
• Easy navigation
• Clean pages
• Readable fonts
• Good colour and
sound
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Online Ads
Banner ad
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Yahoo! Features Rich Media Ads
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Search-related Ads
Sponsored
search
Premium
sponsored
Search
Organic
search
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E-mail Marketing
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E-marketing Guidelines
• Give the customer a reason to respond
• Personalize the e-mail content
• Offer something the customer could not
get via direct mail
• Make it easy to unsubscribe
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Designing the Sales Force
Types of Sales Representatives
Deliverer
Order taker
Missionary
Technician
Demand creator
Solution vendor
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Figure 17.1 Designing a Sales Force
Sales force
objectives
Sales force
structure
Sales force
strategy
Sales force
compensation
Sales force
size
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Designing the Sales Force
Steps in Process
• Objectives and
strategy
• Structure
• Sales force size
• Compensation
• Objectives
• Sales volume and
profitability
• Customer
satisfaction
• Strategy
• Account manager
• Type of sales force
• Direct (company)
or contractual
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Designing the Sales Force
Steps in Process
• Objectives and
strategy
• Structure
• Sales force size
• Compensation
• Types of sales force
structures:
• Territorial
• Product
• Market
• Complex
• Key accounts
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Designing the Sales Force
Steps in Process
• Objectives and
strategy
• Structure
• Sales force size
• Compensation
Workload approach:
• Group customers by
volume
• Establish call frequencies
• Calculate total yearly
sales call workload
• Calculate average
number of calls/year
• Calculate number of
sales representatives
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Designing the Sales Force
Steps in Process
• Objectives and
strategy
• Structure
• Sales force size
• Compensation
• Four components of
compensation:
•
•
•
•
Fixed amount
Variable amount
Expense allowances
Benefits
• Compensation plans
• Straight salary
• Straight commission
• Combination
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Figure 17.2 Managing a Sales Force
Recruiting/
selecting
Supervising
Training
Evaluating
Motivating
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Managing the Sales Force
• Recruiting begins with the development of
selection criteria
• Customer-desired traits
• Traits common to successful sales
representatives
• Selection criteria are publicized
• Various selection procedures are used to
evaluate candidates
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Motivating Sales Representatives
Most valued rewards
• Pay
• Promotion
• Personal growth
• Sense of
accomplishment
Least valued rewards
• Liking
• Respect
• Security
• Recognition
Which of the rewards are intrinsic rewards?
Extrinsic?
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Evaluating the Sales Force
• The amount of time needed and the training
method used vary with the level of task
complexity
• Successful firms have procedures to aid in
evaluating the sales force
• Norms for customer calls
• Norms for prospect calls
• Using sales time efficiently
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Call Reports
• Average number of
sales calls per rep
per day
• Average sales call
time per contact
• Average revenue per
sales call
• Average cost per
sales call
• Entertainment cost
per sales call
• Percentage of orders
per hundred sales
calls
• Number of new
customers per period
• Number of lost
customers per period
• Sales force cost as a
percentage of total
sales
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Major Steps in Effective Selling
•
•
•
•
•
•
•
Prospecting and qualifying
Pre-approach
Approach
Presentation and demonstration
Overcoming objections
Closing
Follow-up and maintenance
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For Discussion
Salespeople who meet or exceed their
assigned quotas are typically given higher
quotas the following year. How might this
practice impact a company’s
• internal marketing efforts with
employees?
• relationship marketing efforts with
external customers?
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