Direct Marketing undergrad lecture
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Direct Marketing undergrad lecture
- 1. Business & Management 1B (Marketing) Direct Marketing Communications Jobber and Ellis-Chadwick, Chapter 16 Laurence Dessart 1
- 2. Aims Introduce direct marketing communications • Personnal selling • Direct marketing Be critical and envisage what can go wrong in direct /online marketing – thought of the day : Anti branding! 2
- 4. Overview • Direct marketing communications – Personal selling and sales management #personalselling #salesmgmt – Direct marketing #directmarketing • Marketing thought of the day: #antibranding 4
- 6. “Everyone lives by selling something” Robert Louis Stevenson 6
- 7. Personal selling is an interpersonal communication tool which involves face to face activities in order to inform, persuade or remind a target. 7
- 8. Characteristics of personal selling • Opportunity for long-term relations • Communication of complex information • Customized message • Ability to demonstrate • High customer attention • Two-way interaction 8
- 9. Modern selling 9 1. CRM 4. Marketing the Product 2. Customer Retention/Deletion 5. Database Management 6. Problem solving 3. Need satisfaction
- 10. The selling process 101. Preparation 2. Opening 3. Need identification 4. Presentation 5. Dealing with objections 6. Closing 7. Following-up
- 12. 2. Opening 12 Who would you buy an insurance/car servicing/mascara from?
- 13. 3. Need and problem identification • Identify needs and problems of the customer • Sales reps often in consultant type roles (esp. in B2B) • Develop good questioning and listening skills • Let the customer do a lot of the talking 13
- 14. 4. Presentation The sales process often involves product or service demonstrations Focus on benefits, not technical features Demonstrations allows the customer to be actively involved in the product- selling process Chance to verify product claim Reduce perceived risk of buying a product 14
- 15. 5. Dealing with objections Sales processes often involves customer objections • Listen and do not interrupt • Accept the perceived problems with your product • Take time to answer • Don’t answer if you can’t! 15
- 16. 6. Closing • Ask for the order • Concession close (say 10% off if order placed now) • Action agreement (when sale must be cleared 16
- 17. 7. Following-up • Most companies rely on repeat purchase • By following up, you demonstrate interest in real customer value, not just bottom-line performance • Cognitive dissonance 17
- 19. Direct marketing is the distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured. 19
- 20. Key characteristics • Direct communications with no intermediaries • Directly to consumer: outbound • Consumer directly to firm: inbound • Aims at direct response • E.g., influence consumer to call, text or visit a shop • In the UK, direct marketing accounts for • 9% of total B2C spending • £60 billion worth of B2B spending • Heavy reliance on marketing databases (CRM – Big data) 20
- 21. Main types of direct marketing 1. Direct mail 2. Online advertising and e-mail 3. Telemarketing 4. Direct-response advertising 5. Mobile marketing 21
- 22. Case study 22
- 23. Direct mailing & Catalogue 23
- 24. Email marketing • Geotargeted • Call to Action • Personalised • Purchase record and history through loyalty programme • Integrated with TV actions • Humanising the brand 24
- 26. Mobile Marketing IKEA Catalogue 2013: A New Kind Of Catalogue… #augmentedreality http://www.youtube.com/watch?v=0dS5L7zHv74 26
- 28. Measurement of direct marketing effectiveness Response rate (proportion of contacts responding) Importance of determining what is the expected “responses”, especially when it involves steps. CPM CPC CPA CTR 28
- 29. Ethical considerations • Deception • Hard sell • Bribery • Reciprocal buying • Intrusive nature of calls • Invasion of privacy • Poorly targeted direct mail 29
- 30. Can direct communications backfire? 30
- 31. Marketing thought of the day Anti Branding #antibranding 31
- 37. #antibranding Rankings 37 Top 50 of most hated brands Source: http://www.socialmediaexplorer.com/
- 38. #antibranding Why join an anti brand community 38 [Ethics] Doubtful brand ethics, or contradiction between consumer and corporate values [Oppositional loyalty] Preference for a competing brand [Social identity] Need for social approval [Voluntary simplicity] Want to detach oneself from material and branded goods in general [Dissatisfaction] Negative experiences with the brand
- 39. #antibranding So what? Should companies care?What can they do? 39
- 40. Summary • Direct forms of communication involve contact without intermediaries, either face to face or through online technologies • Personal selling particularly relevant in B2B or highly technical industries • Direct marketing has highly traceable outcomes and often involves information technologies (online marketing) • Online marketing can also be used by users for the purpose of anti-branding. 40
Hinweis der Redaktion
- Direct communications are the opposite of mass communication, they involve higher levels of personalization. 3 key categories of direction communications:Personal selling and sales management Exhibitions (not covered here)Direct marketing
- You always sell something You sell you movie choices to your friend when you want to see somethingYou sell yourself to employers when you apply for a jobYou sell to your mom the idea that she should buy you the next iphonePersuasion and sales techniques are part of our daily lives, so performing then better than others.
- Interpersonal = involves two parties. The customer is active, involved in the processFace-to-face: no mediain-between Aim: inform – persuade – remind : acts at different points in the acquisition process and customer lifetime.
- Long term relations are favouredInformation can be complex and very technical. Personal selling often occurs in B2B segments (equipment, machinery, IT solutions) , or sensitive ones (medical sector)Message is customized to each customer’s needsThere is an ability to demonstrate, which reduces risks by allowing to see exactly how the product/service performsHigh attention Two-way interaction A main drawback of personal selling from the company’s point of view are the costs (bills and training can be 2xsalary of salesperson)
- CRM/ because a LT approach. Requires design, creation and maintenance of the relationship. Done strategically by the marketing departmentRetention is important; 80% of your profit is generated by 20% of your customers. Importance to keep customers, especially as acquisition is more expensive than retention. Deletion of non profitable customers (customer value) – link to tutorial Salesperson needs to stimulate need recognition Salesperson participates in strategic decisions such as prod dev thanks to his expertise. Acts as market research consultant Support by technology – integrated throughout the organisation (ideally) Has a role of consultant. Identifies problems and implements solutions.
- During the preparation of the sales meeting, several points are crucial Set your objectivesKnow your product Know the competition Know your customer decision making process, and key players Prepare your presentation
- Create a good first impression Be business like, but not familiar, thank your client, wait for prompting Not the same rules in different industriesNot the same rules in different cultures (relation to punctuality for instance)
- Identifying the needs will further allow the salesperson to bring up the adequate benefits
- Focus on benefits, not technical features (the client is not interested in them) Continue asking questions, it should not be a monologueDemonstrations are important as they allow to reduce risk and uncertaintty: they show exactly how the product is expected to perform, how to use and operate it, which can be very important when technical
- Agree and counterImportance of preparation, product knowledge, competition knowledge and understanding of the needs
- Ask for order (after summarizing discussion) Action agreement can be necessary, not all meetings can end in a sale, especially if you are not speaking with the decision maker, you just cannot close the deal then.
- It shows that you care Cognitive dissonance is when the customer feels axious, has after-thoughts- this can also be reduced by follow-up.
- Interactive, often involves a direct response from the target Measurement is ensured because no intermediary and often monitoring through a technology.
- Catalogues are a strong and established strategy at IKEA and in addition to being available in store and online, they are still send through the mail in most regions. Benefits of mailing : low cost and enables specific (geo) targeting Benefits of catalogues also allow discussion at home, centralised distribution systems etc. Limitations of mailing: burdensome to organise, relies on databases which can quickly be outdated and can be costly to maintain Limitations of catalogues: cost of production, not flexible
- Relativey low cost (mailchimp)Enables specific targeting Global reach Inclusion of multimedia Flexible, customisablePermission email can help build relationships (subscription to newsletter etc)Bad sides: junk mail, outdated email addresses
- Highly traceable in terms of performance Online ad networks monitor Can be highly targeted thanks to bid data, databases, predictive advertising and cookies.
- Highly flexibleAugmented reality Can (or not) lead to direct action Brand building potential Top of mind, repeat usage, entertainingLimitations in size of screen, need to be built specially for that support, can be expensive (app creation)
- Call to action in mass media ad is a less obvious, yes potentially generating direct action.
- Importance of setting objectives, like in any other marketing campaign
- Deception: lying or hiding a part of the deal Hard sell: high-pressure sales tactics to close a sale Bribery: gifts, payment…can be very subtle Junk email, spamming
- Using direct methods of communication, particularly using information technologies, requires brands to put themselves out there, be genuine and open to criticism. This can backfire, as shown in the example of anti-branding movements, which are gaining traction especially online, using the same methods as those used by direct marketers sometimes.
- 1`8``- 1`34``
- Is it important for companies to pay attention to critics?Yes and no – it dependsDepends on the scope, the reason for hate, the legitimacy and relevance of claims‘Haters’ gonna hate’