Sales

Management

Chapter
11 & 12
 DIRECT MARKETING

Direct Marketing House Lists

Database Marketing Mailing Houses
Campaign Management Telemarketing
Creative Brief Mobile Marketing
Direct Mail
Direct Response Advertising
Consumer Lists
Catalogue Marketing
Consumer Lifestyle Lists
B2B Lists
Direct marketing
Acquire and retain
customers by contacting
them without the use of an
intermediary.
Distribute of products,
information and
promotional benefits to
target customer through
interactive communication
in a way allowing response
to be measured.
Direct marketing (cont.)
5 factors affect the rise of direct marketing
Market fragmentation
Computer technology
The list explosion
Sophisticated analytical techniques
Co- ordinate marketing system
Database marketing
An interactive approach using
individually addressable marketing media
and channels to:
Provide information
Stimulate demand
Stay close to customers
Database marketing (cont.)
Typical information:
Information on actual and potential customer
Transactional information
Promotional information
Product information
Geographic information
 Campaign management
Manage process including the following steps:

Marketing plan

Identifying and understanding

the target audience

Setting campaign objectives

Creative
decisions Media
decisions

Campaign execution and

evaluation
Creative brief
Be to achieve the level of success in direct
marketing
Include:
Communication objectives
Target market analysis
Brand benefits
Development of the offer
Message communication
Action plan
Direct mail

Material sent by post to a

home or business address to
promote a product or
maintain relationship.
Key factor: Quality of
mailing list
Customer lists and customer
lifestyle list
Resources: subscriptions
to magazines, catalogues,
membership of
organizations, etc.
Customer lifestyle lists:
compile from
questionnaires
 B2B Lists

For Business to Business Lists, the characteristics used to

segment might be a combination of the following:
Geographic, such as county, radius around a store or a
neighborhood
Business type (Standard Industrial Classification or
North American Industry Classification System)
Firmographic, such as company sales, annual sales
amount, years in business
Conducted from: directory producers, trade magazine
subscription lists, etc.
 House List

The in-house proprietary customer or subscriber

lists of a company or publication that may be
available for rent from list brokers or compilers.
Or, you can work with business owners you know
to exchange lists
Mailing House

An organization that specializes in planning,

creating, and implementing direct mail campaign
for clients
In Vietnam, these organizations appeared mostly
after 2008
E.g.: Media Post, PTP (Post and
Telecommunications Printing Joint Stock Company),
etc.
Telemarketing
A method of direct marketing in which a salesperson
solicits prospective customers to buy products or services,
either over the phone or Web conferencing appointment
scheduled during the call
 Telemarketing
(cont.)

Outbound telemarketing
Telesales
Telephone survey
Event Broadcasting
Customer Satisfaction
Up-sell/ Cross-sell campaigns
Inbound telemarketing: Toll Free,
Help Desk, Customer Support, etc.
Mobile Marketing
Mobile marketing is marketing on
or with a mobile device, in other
word is marketing by sending short
messages direct to mobile phone

In Vietnam, this type have a high

potential to develop
In 2011, Vietnam has 116 million
mobile subscribers
80% of mobile users keep their
phones on
45% of Vietnamese often use
mobile to message
Direct Response
Marketing
Any marketing activity that
includes a response device. The
use of a response device makes
it possible to track the results of
the activity
Usually include direct marketing
and direct mail, if they use a
response device
However, a broadcast
advertisement can use direct
response as well
 Catalogue Marketing
Lists several of the products that a
merchant sells to its customers, and
this list often includes short written
descriptions and pictures of the
product
The merchant traditionally mails
catalogues that have a book or
magazine format, although some
merchants also provide online
catalogues on their websites
To be relatively expensive compared
to postcards, fliers and other types
of direct mail advertisements
 RU Receiving Me?
(pg. 349 350)
Why might someone be prepared to pay to receive marketing
messages?
What types of strategic messages might be delivered in
future?
What factors might reduce the acceptability of SMS for
customers?
What might account for the very positive response to SMS?
What type of company might benefit most from SMS?
 Case Summary
Text messaging has been a phenomenon of the 21th century.
Cellular phones became widely available to young audience and
then the growth in the number of messages sent has been
astronomical. Marketers rapidly recognize the potential
opportunities in this new means of communication. As a result,
marketers now send out text messages to potential customers via
their mobile phone, a way of reaching out directly to a potentially
lucrative audience. Then SMS is being used to promote everything
(movies, fast-food, books, etc.)
But unsolicited text messages are now supposed as equally
irritating as spamming on email. The SMS system operates like
any other direct marketing method, by interactive with the
recipients. Then SMS professionals have to police the system in
order to prevent spammers from damaging customer trust.
 However, from recipients viewpoint this means still
has some obvious advantages (the text messages themselves
cost nothing, can be read at a convenient time, or be usually
brief). Research shows that SMS is not only acceptable but
also actually popular (68% of respondents would likely to
recommend the service to their friends, 43% would respond
to messages positively)
Currently, thanks to the advanced technology, SMS
are used for tightly targeted direct marketing campaigns
 Answers
1. Why might someone be prepared to pay to receive
marketing messages?

People are happy to pay to receive information on

products that interest them, particularly if a special offer is
part of the package. They want to get information about what
they care in a quick, brief and most convenient way. Some
people do not have time to access the Internet to get daily
news, so they feel comfortable when these news are sent to
their phone automatically. Moreover, some kinds of
information need to be updated day by day like gold price,
bonds and stocks index might make recipients feel it is worth
to spend money for.
2. What types of strategic
messages might be delivered in
future?

Almost any kind of brand-building

message might be delivered,
especially the ones that are defined
exactly their target customers.
Sending indiscriminate product
promotions would certainly reduce
the likelihood of individuals
signing up for SMS services.
3. What factors might reduce the acceptability of SMS for
customers?

Unselective messaging and unwarranted messaging

would certainly reduce the acceptability of SMS for
customers. Both would be difficult to control, and the overuse
of the media could likely give the difficulty of reaching the
specific target audience.
4. What might account for the very positive response to SMS?

The positive response might be accounted for by the

specificity of the messages and the control which the recipient
has over whether and when to receive the messages. Since
SMS recipients have opted into the service, there is a degree
of power and control over what happens, and the interactive
nature of the service means that recipients can easily express
their displeasure if they want.
5. What type of company might
benefit most from SMS?

Nowadays, as text messaging

becomes more widespread, the
most beneficial one is the
company dealing with a youth
market. The reason is that the
youth has the highest proportion
of using text messaging.
Besides, the other beneficiaries
could be companies that can
give special offers or deals to
SMS club members.
 Internet and IT applications
in Sales Management

Information Technology (IT) Sales Force Automation

E-commerce (SFA)
Customer
Relationship Intranets and Extranets
Management (CRM) Sales Force Effectiveness
Customer Relationship
Quality (CRQ)
The application of computers and
telecommunications equipment to store,
retrieve, transmit and manipulate data,
often in the context of a business or other
enterprise
 E-Commerce

Electronic commerce refers to any sales or trading

activities that are carried out over an electronic network
E-Commerce (cont.)
4 levels of e-commerce

Integrate

Transact

Interact

Publish
 Publish
 Interact
 Transact
 Integrate
Customer Relationship
Management

A term for methodologies,

technology and e-commerce
capabilities used by firms to
manage customer relationships
 Sales Force
Automation (SFA)

A laptop software application used to support sales

activities
Functions: order processing, contact management,
information sharing, inventory monitoring and control,
order tracking, customer management, sales forecast
analysis and employee performance evaluation
Often used interchangeably with CRM
SFA packages typically include a Web-ready database, an
e-mail package, and customizable templates
 SFA (cont.)

Benefits:
Freeing salespeople from
routine office administrative
tasks
Providing better customer
service
Capturing information
Helping to create and manage
sales opportunities
 SFA (cont.)
Three generations of SFA over the past decade:

Generation 1:
Generation 2: Generation 3:
Personal information The networked Technology-
and contact sales force enabled selling
management
 Intranets and
Extranets

Intranets are private computer networks built with standard

Internet technologies. Access to these networks is restricted
to an authorized group of users, usually within a company
or a department of a company
Extranet is an intranet that is accessible by authorized
external parties who are not members or employees of the
organization (outside vendors or clients)
Intranets and extranets are designed to create strategic
partnership between a company and its employees,
suppliers, distributors, and retailers while keeping their
ideas safe
 Intranets and
Extranets (cont.)

Intranet
1. Better internal
communications
2. Sharing of resources and
best practice
3. Customer service
improvement
4. Reduction in paper
Extranet
1. Cost reduction
2. Effective collaboration
3. Business relationship
improvement
4. Customer service
improvement
 Intranets and
Extranets (cont.)

Example:
Walmart's Intranet is a website
informing their managers what
tasks to complete today
Walmart's Extranet is what
their vendors use to get
information about products
and promotion, fulfill orders
and pay bills
 Sales Force
Effectiveness (SFE)

Sales force effectiveness is

a concept that evaluating
the working result and
qualification of sales force
of a company
 SFE (cont.)

Three different categories of measurement:

Accounting-based measures: overall revenues achieved
and profit margins by team and by individual
Sales activity measures: calls per period, proposals
submitted, sales pipeline coverage, sale forecast figures
Customer relationship quality (CRQ) measures:
identify how likely existing customer are to continue to
buy from the same supplier based on a measurement of
strength of their relationship
Customer relationship
quality (CRQ)

The most important factor in

customer retention
The three most important
factors in CRQ are:
Customer satisfaction
Trust
Relationship commitment
 CRQ (cont.)

Benefits
With a measure of relationship quality that is quantifiable, a
Sales Director can:
Measure of the performance of account managers in
building good customer relationships;
Measure of the relationship quality in individual major
accounts
Identify early warning signs about potential customer or
account defections before they actually happen
Identify account managers are over or under performance
 CRQ (cont.)

Deep-Insight is a best European provider about CRQ solution

They provide: package named Deep Customer Insight
Actionable reports that measure the true quality of customer
relationship on an ongoing (typically annual) basis
Online assessment: 10 minutes to complete; response rate of
around 50%, getting results within days => sales director can get
regular and speedy feedback that allows them to take remedial
action where necessary
Conclusion
The selling and sales management have undergone
significant changes over the past decade as a result
of development in IT and the internet.
Customer can search product and price
information more easily than ever before.
Sales activities become more simple because of
reduction of salespeople or distributor.