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115 Cards in this Set
- Front
- Back
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What do you do for your customers that they can't get elsewhere?
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- as a business owner, must answer to be successful
- do people care about your business? - answer by developing a SUPERIOR CUSTOMER SERVICE STRATEGY -IMAGE: most difficult for competitors to duplicate |
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Great Service
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1. Differentiates your business
2. Solidifies your customer relationships 3. Allows us to compete on value rather than price 4. Is more profitable (Sewell) ex: American Express charges more but offers better service than competitors |
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Value Equation
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Value = (Entertainment + Quality + Intangibles) / (Time + Price)
Value = What I get / What I pay |
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Why is service leadership required?
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- High discretionary content of most service jobs: difference between excelling vs. what takes to keep the job; need encouragement to serve others
-get by or be great? |
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Qualities of service leadership
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1. Vision-Focus
- Sears' focus in retail, Walmart's focus in low prices -Chevrolet Corvette vs. Ford Thunderbird: Corvette remained the same gas-guzzling muscle car while Thunderbird lost vision and focus and became bigger 2. Belief in others- coach rather than boss 3. Love the business: Matress Mac 4. Integrity-- can't expect your employees to treat your customers any differently than you treat them |
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Cultivating service leadership
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1. Hire the right people--must have positive attidue
2. Emphasize the trust factor--make them feel like they are part of the business ex. Mattress Mac--took all off commission and onto sales and gives all employees 30% of sales even if not directly working with the customers 3. Invest in employee success: employees know company cares about them ex: Sewell has low A&M student employee turnover |
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Building a service quality information system
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The customer defines service quality
ex: Sewell asked customers what they disliked about the auto industry--never on time, price more than originally say, must bring back; tracked by questionnaire, if have to do it twice will do it free the second time, estimate 15% higher than what it actually is --What attributes will continue to be most important to our target markets? --Which attributes of the competition weakest? --Existing and potential capabilities of our company? Essential components of the system --Transactional surveys --Total market surveys: random, customers and non customers --Employee surveys: employer must respond to show employee is important |
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Service strategy
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defines the company's "reason for being"
must be easy to understand ex: Taco Bell--fast and cheap; cheaper to rent out space with convenient stores ex: Del Mar--people aren't price sensitive about problems such as clogged toilets = time and dependability is important |
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NACS
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provide marketing research data
like LEAST -value for $$ -speed of checkout -convenient hours--forgot college students are nocturnal animals -used books--liberal buy back performs well -availability section -friendly, knowledgeable staff |
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Dimensions of Service Quality
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1. Tangibles: is the store clean? people well dressed? trucks clean? (see, feel, touch, taste, smell)
2. Reliability: MOST IMPORTANT, MAJOR dimension, can i count of them to deliver 3. Responsiveness: will they pay attention to me when they have a complaint 4. Assurance (Best Buy to buy a PC) 5. Empathy: will they treat me like an individual, will they see things from my perspective |
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Pavlov's Principle
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When the bell rings, there had better be some supper
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Reliability
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- in service business customers are buying a promise
-service delivery is subject to variability: want to take variability out of the system ex: 90% of service quality is in the system (Early Bird cleaners didn't have clothes delivered on time) -is an attitude |
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Recovery
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second essential component of service
what you do when something goes wrong necessary because of Murphy's 6th Law be prepared to do the job right the first time and VERY right the second time |
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Murphy's 6th Law
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If you perceive that there are four possible ways which a procedure can go wrong and circumvent these, then a fifth way, unprepared for, will promptly develop
>>>can't prepare for anything |
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Law of Divine Intervention
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all skills is in vain when an angel pees in the touchhole of your musket
--doesn't matter how good of a marketer you are and how good your system is there is always something that is going to go wrong |
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Outcome of dissatisfaction
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1. customer complains and is satisfied with recovery (90% of time will return to business)
2. customer complains and is not satisfied with recovery: dangerous in age of social media 3. customer does NOT complain, remains dissatisfied: most dangerous because don't know there is a problem with your system, most customers fit into this system |
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principle of recovery
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1. never argue with the customer--you may win
2. make it easy to complain 3. resolve at the point of contact 4. resolve quickly 5. emphasize a fair solution 6. repair the system --98% have a legitimate complaint, 2% are trying to rip you off ex: Mattress Mac allows you to see him directly |
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objectives of recovery
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1. restore the customer's confidence
2. improve the service system |
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fairness
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1. not the same as legality: customer might not think it's legal
2. is defined by the customer 3. particularly important for "black box" service: customer can't see what you are doing (ex: auto, surgery) |
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table stake for any business
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1. reliability
2. recovery 3. fairness --how much it takes to get into the game --must surprise them: give them something different |
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Zone of Tolerance
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customer comes in expecting some level of service
Desired Service: have gone above and beyond Zone of Tolerance Adequate Service |
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Gallery Furniture
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1. Same day delivery
2. No special orders, no back orders, vendors as partners 3. Open 8AM-10PM, 7 days every week 4. Fun atmosphere 5. no commissioned sales people 6. single location, lots of advertising 7. never take customers for granted 8. love that community |
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Services
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are not customer service (adds value to the product)
can use tangible tools, but dominated by the intangible portion of the total product provided through the application of human and/or mechanical efforts that are directed at people or objects economic growth (70% in services)= more service jobs to lessen time; more fitness oriented; older populations = more health care, high tech goods = support services -changes in lifestyle--people would rather trade their money for their time (discretionary income) |
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Intangibility
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cannot be perceived by the senses or physically possessed
-why brand name is more important for services than physical goods |
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tangibility continuum
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pure goods are rare because of customer service
brand name is more important for intangibles--as become more tangible can judge for yourself |
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inseparability
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the production of a service cannot be separated from its consumption by customers
--produced, sold, and consumed at the same time --customer want it performed in a specific way --implies a shared responsibility between the customer and service provider ex: air passenger service |
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perishability
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unused service capacity of one time period cannot be stored for future use (seasonal fluctuations-Christmas)
ex: unsold basketball tickets, unsold airline seats, empty hotel rooms --goods are generally less perishable than services (ex: jeans) --service marketers face more hurdles in balancing supply and demand |
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heterogeneity
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variation in quality because of human characteristics
--allows for customization --variation even in chains --training and establishment of standard procedures helps; cultural sensitivity **increases as the degree of labor intensiveness increases ex: auto repair, education, hairstyling = labor intensive public transportation, health clubs = equip intensive |
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client-based relationships
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interactions that result in satisfied customers who use a service repeatedly over time
--only successful to degree of retaining clients --word of mouth communication is key |
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customer contact
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the level of interaction between the service provider and the customer needed to deliver the service
high contact-- health care, real estate, spa service, legal services (typically require the customer to go the production facility--physical appearance of facility important) -satisfied employees lead to satisfied customers low contact-- tex preparation, auto repair, travel reservations, dry cleaning |
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Development of services
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core service and supplementary service
supplementary- used to differentiate between competitors ex: Progressive and collision coverage --heterogeneity allows for customization (Subway, IBM services, health care) --dilemma: how to provide service at an acceptable level of quality in an efficient and economic manner and still satisfy indiv. customer needs>>>>standardize packages (Spa, auto, cable) -intangibility: market promises to customers, customer forced to place degree of trust >>marketers employ tangible cues as well groomed pro-appearing contact personal and clean facilities; uniforms; life insurance policy on nice paper --inseparability of production and consumption/customer contact: other customers can affect experience ex: smoking in restaurant |
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distribution of services
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--most delivered at provider's facilities
"arm's length" no face to face contact--electric, cable, phone --usually short and direct: directly to end user intermediaries: travel agents with airlines, independent insurance, financial planners --very concerned with inventory management and supply/demand for services: reservations and appointments --replaced some contact personnel with equipment--changed from high to low contact but less personal (ATMs) |
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promotion of services
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promotion related challenges because of intangibility
-can't show in advertising or display in store cues that symbolize the service ex: Trans American with pyramid shaped building, cupped hands of All state --more likely to promote price, guarantees, performance documentation, availability, training of employees ex: Bear Sterns with advertising votes "america's most admired securities company" --personal selling --hard to give trial basis |
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pricing of services
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-some based on specific services, some based on time (plumbers)
-some are demand-based pricing: unused capacity in low demand is lost forever peak demand: time sensitive in that a number of customers desire a service at a specific time, most revenue ex: matinee pricing, airline overbooking -choose between pricing a bundle or individually -sometime customers rely heavily on price as an indicator of quality (ex: lawyer with a mahogany desk vs. one with ikea desk) -generic services and gov't regulated services: limit to how much charged |
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brand
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a name, term, design, symbol, or any other feature that identifies one marketer's product as distinct from those of other marketers
-including symbolism and experiences Mattress Mac: brand is the only thing that the business truly owns |
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brand name
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the part of a brand that can be spoken including letters, words, and numbers
--is as fundamental as the product itself --owners try to protect them from being used as generic names |
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brand mark
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the element of a brand that is not made up of words--often a symbol or design, hard to verbalize
ex: McDonald's golden arches, nike's swoosh |
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trademark
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a legal designation indicating that the owner has exclusive use of a brand or a part of a brand and others are prohibited by law from using it
-10 years -not necessary to register it under Common Law, some countries under Civil Law -registered in U.S. doesn't mean it's protected everywhere internationally |
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trade name
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the full legal name of an organization rather than the name of the specific product
ex: Ford Motor Company |
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importance of branding
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customers:
help identify products that they do or do not like, which facilitates purchase of items that satisfy their needs and reduce the time required to purchase the product (beta mode) product selection would be random -form of self expression -help evaluate the quality of products: quality of brand represents that quality of the item -reduce perceived risk of purchase: coke will always be coke -psychological reward of owning brand with status sellers: -makes repeat purchasing easier -helps to introduce a new product -promotion of each branded product indirectly promotes other -brand loyalty: market share stability -raise total asset valuation of company (Manchester United, Dallas Cowboys, Dixie Chicken) cultural branding |
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cultural branding
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how a brand conveys a powerful myth that consumers find useful in cementing their identities
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branding is not directly controlled
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by the marketer since brand exist independently in consumers' mind
-every aspect subject to memory, involvement |
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brand loyalty
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a customer's favorable attitude toward a specific brand
because of customer satisfaction -varies from one product to another -varies between countries: France, Germany, U.K less than U.S. |
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3 degrees of brand loyalty
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1. brand recognition: when customer is aware the brand exists and views it as an alternative purchase if the preferred brand is unavailable (get into evoke/consideration set)
-mildest form 2. brand preference: a customer prefers one brand over competitive offerings and will purchase this product when available; will accept a substitute 3. brand insistence: a customer strongly prefers a specific brand, will accept no substitute, and is willing to spend a great deal of time and effort to acquire that brand -service products as Hilton Hotels, Dallas Cowboys -strongest but least common |
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brand equity
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marketing and financial value associated with a brand's strength in a market
-represents the value of the brand--market share ex: Innovative Brand bought P&G Pure deodorant and Pert Shampoo four major elements: 1. brand name awareness: brand familiarity--more likely to be in a consideration set 2. brand loyalty: reduces a brand's vulnerability to competitors' actions; keep customers, spend less $$ getting new; brand visibility to new customers 3. perceived brand quality: brand as quality indicator, supports a premium price, helps intro of brand extensions, get most valuable shelf space HEB brand asparagus (loyalty to store) vs. Del Monte (retailers have incentive because brings more $$) 4. brand associations: link lifestyle or personality type; -trade characters--Pillsbury Dough Boy ex: Michelin man with safety |
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manufacturer brands
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initiated by producers and ensure that producers are identified with their products at the point of purchase
-producer involved in pricing ex: Levi's, Green Giant, Compaq Computer -to compete: develop multiple manufacturer brands to compete with private brands; stopped increasing prices, legal ramifications against imitative private brands |
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private distributor brands/store brands
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initiated and owned by resellers (wholesalers or retailers)
-manufacturer not identified ex: HEB -efficient promotion, higher gross margin, store image -some retailers manufacturer own product -retailers advertise manufacturer brands but sell own brand to price-sensitive customers ex: IGA (Independent Grocer's Alliance); Topmost; Sears Kenmore; JCPenny's Arizona |
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generic brands
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indicate only the product category and do not include the company name or other identifying terms
-reason why private brands got in trouble during Consumerist Movement: generic using lower quality so people's perception of generic got bad name -used for a brand name that lost its trademark: Aspirin by Behr, Styrofoam: in trouble of--Band Aid, Kleenex, Jello |
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selecting a brand name
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no bad connotation
indicate benefits easy to say created internally service brands: brand name ex: SouthWest Airlines does not encompass all |
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protecting a brand
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fanciful- Exxon
arbitrary- Dr. Pepper suggestive- Spray n' Wash descriptive- Minute Rice generic- aluminum foil trademark- 10 year, must make sure brand doesn't infringe on others to protect should use brand in the name and capitalize brand counterfeiting: Sony, Gucci, Rolex |
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individual branding
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a policy of giving each product a different name
ex: Sara Lee with Hanes and Ball Park; P&G --introduces a poor product won't contaminate others --market segmentation |
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family branding
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branding of a firm's products with the same name or poart of the name
-promotion of one promotes others ex: Kellogg's, Arm and Hammer, Mitsubishi, Kodak **not a good idea for BMW to make a lower end product |
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brand extension
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a firm uses one of its existing brands to brand a new product in a different product category
ex: Kellogg's and Special K protein water -can price higher because less risk for consumers -not line extension -too many can confuse customers and cause brand switching ex: Miller Brewing Company; Tylenol and Tylenol PM; |
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co-branding
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the use of two or more brand on one product
-to capitalize on brand equity of multiple brands ex: American Express with airlines; Hershey's Choc and General Mills with Reese's Puffs -should be clear which is main brand -both brands are implicated in product failure -most often seen in packaged products (cruises) -make sure fit together |
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brand licensing
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an agreement in which a company permits another organization to use its brand on other product for licensing fee
-licensee fully responsible for failure -very profitable ex: Walt Disney, NFL, NCAA, Nascar, MLB, Dallas Cowboys disadvantage: lack of manufacturing control which could hurt company's name |
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integrated marketing communication (IMC)
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coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers; synchronization of promo elements
-broad perspective -consistent message to customer -reduce spending on items that bring smaller ROI -more accepted: mass marketing is high priced; more outlets (mags, cellphones, etc.) -database marketing: target more individual customers (unlimited info) |
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communication
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sharing of meaning, transmission of info.
both sender and receiver must share common ground circular process |
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source
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a person, group, organization with a meaning it attempts to share with an audience
ex: salesperson -strategy |
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receiver
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the individual, group, organization that decodes a coded message; decides if get info
**audience= two or more receivers |
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coding process / encoding
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converting meaning into a series of signs or symbols representing ideas or concepts
important to know target market -avoid words with several meanings (ex: soda) |
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communication channel
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the medium of transmission that carries the coded message from the source to the receiver or audience
ex: ink on paper, air wave vibrations, chalk marks on chalkboard, electronic vibrations -may reach wrong receiver or be incomplete (radio) |
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decoding process
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signs or symbols are converted into concepts or ideas
-rare receiver decodes exactly same meaning coded |
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noise
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anything that reduces the clarity and accuracy of the communication
-many sources -affect any or all parts of process -symbols used different from meaning intended -may originate in the receiver within communication channel itself: radio static ex: TEVOing; Vail with magazine |
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feedback
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receiver's response to decoded message
ex: does it produce sales (but 50% of advertising is useless, don't know how to tie together) -not immediate except for face-to-face -mass communication: -original receiver becomes new source |
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channel capacity
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limit of the volume of information a communication channel can handle effectively
-least efficient component ex: numbers word speak per minute and understandable |
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promotion
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communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and accepts its products
-some directed toward specific groups of target market ex: Yoplait and Susan G. Komen -responsible use of alcohol -depends on quality of info it receives -IMC that can be managed |
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objectives of promotion
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1. Create awareness
-introducing a new product or line extension for product adoption; try to generate quickly for new products with high costs -for existing brands 2. Stimulate demand -primary demand: f through pioneer promotion -selective demand: specific brand 3. Encourage product trial -stall during evaluation stage, lower risk ex: free samples, coupons 4. Identify prospects -direct response or toll free number 5. Retain loyal customers cost of retaining customers lower than acquiring them; reinforcement advertising ex: frequent flier miles 6. Facilitate reseller support advertises product = support of resellers pay part of resellers advertising fees or discounts 7. Combat competitive promotional efforts -not necessarily increase own sales or market share ex: Volvo and auto industry--crash test 8. Reduce sales fluctuations business can't operate at peak efficiency with fluctuations generate sales during slow periods or less advertising during peak periods ex: promotions for restaurants at slow periods |
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primary demand
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create demand in category mainly for new products, but also existing
through pioneer promotion |
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pioneer promotion
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informs consumers about a new product
-in beginning of product life cycle-- no emphasis on of brand names nor compare brands |
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selective demand
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demand for a specific brand, point out strengths and benefits of brand, singling out attributes, increasing number of product uses; encourage existing customers to use more of product
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promotion mix
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a combination of promotional methods used to promote a specific product (not all have to be used at once)
1. Advertising: paid nonpersonal communication to target audience -large target audience or small, precisely defined segment -cost efficient--high number people at low cost per person; expensive -repetition good for brand name extensions beyond original product category -not rapid feedback 2. Personal Selling: paid personal communication -reaching one person costs more than advertising but greater impact -immediate feedback -kinesic communication vs. proxemic communication vs. tactile comm 3. Public Relations maintain a favorable relationship between company and stakeholders -event planning, sponsorship of socially responsible programs, etc. ex: Nintendo and superbowl parties **publicity = nonpersonal comm transmitted through mass media at no cost (articles, press conferences, etc.) ex: give clothes to celebrities ***not just for times of crisis 4. Sales Promotion direct inducement, value added -more spent on sales promotion and faster growing than advertising -significant affect on sales |
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kinesic communication
proxemic communication tactile communication |
communication through the movement of eyes, arms, hands, legs, or torso
either person varies the physical distance separating them -less obvious touching, less popular in U.S. (handshaking) |
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push vs. pull policy
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push: producer only promotes the product to the next institution down the supply chain
-stresses personal selling -typical of INDUSTRIAL products producer-wholesaler-retailer-consumer pull: promotes directly to consumers to develop strong consumer demand for its products to pull goods through supply chain by creating demand at consumer level -primarily through advertising and sales promotion **not mutually exclusive, can have both simultaneously |
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word of mouth communications
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personal, informal, esp. personal services; opinion leaders; online word of mouth (Reviews.com)
effective only in new to market and more expensive products |
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buzz marketing
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an attempt to incite publicity and public excitement surrounding a product through a creative event
-uses promotion mix ex: A&M and Johnny Manziel |
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viral marketing
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a strategy to get consumer to share a marketer's message often through email or online video, in a way that spreads dramatically and quickly
--PUBLIC determines if something is interesting |
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product placement
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form of advertising that strategically locates products or product promotions within entertainment media to reach the product's target markets
-especially important because people are skipping through commercial with TEVO |
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institutional vs. product advertising
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1. institutional: promotes organizational images, ideas, and political issues
-advocacy advertising -promote socially approved behavior (recycling) 2. product: promotes the uses, features, and benefits or products TWO TYPES: a. pioneer advertising b. |
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advocacy advertising
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TYPE OF INSTITUTIONAL advertising
when a company promotes its position on a public issue--tax increase, abortion, gun control, or international trade ex: Chick fil a against gay marriage |
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two types of product advertising
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pioneer advertising: stimulating demand for a product category (rather than a specific brand) by informing potential customers about the product's features, uses, and benefits
-introductory stage Competitive advertising: attempts to stimulate demand for a specific brand by promoting the brand's features, uses, and advantages, sometimes through indirect or directs comparisons with competing brands a. comparative advertising b. reminder advertising c. reinforcement advertising |
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comparative advertising
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TYPE OF COMPETITIVE advertising:
compares the sponsored brand with one or more identified competing brands on the basis of one or more product characteristics - ones with low market shares compared to high market share to get mo money -under Trademark Law Revision Act: can't misrepresent other brands ex: Ford vs. Chevy |
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reminder advertising
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tells customer that an established brand is still around and still offers certain characteristics, uses, and advantages
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reinforcement advertising
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assures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand
-cut down on cognitive dissonance (buyer's remorse) ex: why Coke still advertises |
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advertising campaign
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involves designing a series of advertisements and placing them in various advertising media to reach a particular target audience
-steps may vary |
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STEPs in advertising campaign
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1. Identifying and Analyzing the Target Audience
-helps determine rest of steps -location, geographic distribution, lifestyle ex: American Airlines and hispanics 2. Defining the Advertising Objectives determine what the firm hopes to accomplish with the campaign -clearly, precisely, and in measurable terms: determine at end of campaign if met -benchmarks: increase sales, specific period of time, increase market share, increase awareness (in terms of communication), heighten knowledge 3. Creating the Advertising Platform -points but not indicated how to present them -should consist of issues important to customers and strongly competitive -research is expensive--so use opinions of firm 4. Determining the Advertising Appropriation -objective and task -percentage of sales -competition matching -arbitrary 5. Developing the Media Plan 6. Creating the Advertising Message -product features, uses benefits -target audience gender, age, education -objectives: if high sales use high impact words; if increase awareness use repetition of brand name -platforms- foundation -geographic location -type of media 7. Executing the campaign: quality and correction 8. Evaluating Advertising Effectiveness |
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target audience
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group of people at whom advertisements are aimed
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advertising platform
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consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign
-does not indicate how to present them |
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advertising appropriation
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the total amount of money a marketer allocates for advertising for a specific time period
-consumer convenience have large expenditures while business products are small |
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objective and task
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marketers determine the objectives a campaign is to achieve and then attempt to list the tasks required to accomplish them, then added to find total
problem: marketers have trouble accurately estimating the level of effort needed to attain certain objectives **most preffered |
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percent of sales
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marketers simply multiply the firm's past sales, plus a factor for planned sales growth decline, by a standard percentage based on both what the firm traditionally spends on advertising and the industry average
problem: assumption that sales create advertising when its reversed **most frequently used |
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competition matching
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marketers follow this approach try to match their major competitors' appropriations in absolute dollars or to allocate the same percentage of sales for advertising that their competitors do
-should not be used alone since other firms have different objectives and resources |
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arbitrary approach
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usually means a high level executive in the firms states how much to spend on advertising for a certain period
-leads to over or underspending **worst method |
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media plan
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sets forth the exact media vehicles to be used (magazines, tv) and the dates and times the advertisements will appear
-determines how many of target audience will be exposed 1. select media and prepare a time schedule-- most people for advertising budget 2. achieve the appropriate message reach and frequency for the target audience while staying within budget **internet is most expensive and least regulated -print media good for complex issues -colors: magazines instead of newspapers (food) |
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Reach vs. Frequency
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reach: the percentage of consumers in the target audience actually exposed to a particular advertisement in a state period
frequency: the number of times these targeted consumers are exposed to the advertisement |
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cost comparison indicator
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lets an advertiser compare the costs of several vehicles within a specific medium
CPM = cost per thousand |
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types of media schedules
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1. continuous: constant level with little variation
2. flighting: advertising runs for set periods, alternating with periods in which no ads run ex: run for weeks, break for two weeks 3. pulsing: combines continuous and flighting--during the campaign, a certain portion of advertising runs continuously, and during specific time periods of the campaign, additional advertising is used to intensify the level of communication |
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regional issues
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versions of a magazine that differ across geographic regions
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ad elements
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copy: verbal portion
-body copy -signature: advertisements sponsor tv: words not overpower visual radio: short and impactful artwork: illustrations (communicate idea) and layout -consumers recall visual more than verbal |
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storyboard
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depicts a series of miniature television screens showing the sequence of major scenes in the commercial
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Evaluating a campaign
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1. pretest: evaluation before campaign begins
-usually element of message -use consumer jury: panel of new or existing customers 2. during: rely on inquiries given on advertising internet: how many times clicked 3. posttest: after the campaign -advertising objectives change in sales or awareness -recognition and recall -single source data |
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recognition and recall
types |
respondents are shown the actual advertisements and asked whether they recognize it, if so what they remember about it
-posttest a. unaided recall test- respondents identify advertisements they have seen recently but are not shown any clues to help them remember (most difficult measure) b. aided recall test- respondents are shown a list of products, brand, company names , or trademarks to jog their memories -people are more likely to buy it if they can remember advertisement |
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publicity
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communication in news story form about the organization, its products, or both, transmitted through a mass medium at no charge
-news release -feature article: up to 3000 words for a specific publication more truthful than an advertisement sometimes changed and distributed at media's discretion -have a plan for unfavorable |
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news release (press release)
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most common
a single page of typewritten copy containing fewer than 300 words and describing a company event or product |
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captioned photograph
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a photograph with a brief description explaining its contents
new products with many features |
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press conference
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a meeting called to announce major news events
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personal selling process
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1. Prospecting: developing a list of potential customers, especially referrals, ranked on desirability and potential
-most successful at Liberty Mutual spend hours on internet **referral are worth 12 cold calls 2. Preapproach: finds and analyze what is most important -people most successful are thorough in this 3. Approach: the manner in which a salesperson contact a potential customer (calling) **cold canvassing: call on potential customers without prior consent 4. Making the presentation: attract and hold attention and spark a desire for the product; must also listen to needs 5. Overcoming objections: seeks them out in order to address them, can bring up objections to counter 6. Closing the sale: salesperson ask prospect to buy the product **may use a trial close = asking questions that assume the prospect will buy-- indicate how close to buying (do you want to pay with cash or credit?) not a good sales person unless you get a sign on the dotted line -uncover hidden objections 7. Following up: after successful closing |
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straight salary compensation plan
straight commission compensation plan combination compensation plan |
-specified amount per time period, regardless of sales until pay increase or decrease; little incentive to boost sales
- determined solely by sales for a given period, offers little financial security, managers have little control (pay more attention to some customers than other based solely on looks) -receive a fixed salary plus a commission based on sales volume |
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Newspaper
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Advantages: large audience, purchased to read, geographic flexibility, short lead time
Disadvantages: not selective for socioeconomic groups or target market, short life, volume limits, limited reproduction |
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Magazines
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Advantages: demographic selectivity, good reproduction, long life, prestige, regional issues
Disadvantages: high costs, 30-90 day average lead time, high levels of competition, limited reach, communicates less frequently |
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Direct mail
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Advantages: limited wasted circulation, highly selective, controlled by advertiser, few distractions, easy to measure performance, hidden from competitors
Disadvantages: very expensive, lack editorial content, often throw away, invasion of privacy, must choose to read ad |
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Radio
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Advantages: reaches 95 percent of consumers, highly mobile and flexible, very low relative costs, ad can change quickly, selectivity, imagination
Disadvantages: lack visual imagery, short life message, listener limited by other activities, market fragmentation, difficult buying procedures |
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TV
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Advantages: reaches large audience, high frequency, dual impact of audio and visual, high prestige, selectivity, difficult to ignore
Disadvantages: very expensive, highly perishable messages, size of audience not guaranteed, lack of selectivity in target market |
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Internet
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Advantages: immediate response, precisely targeted audience, ability to track customers and build databases, highly interactive medium
Disadvantages: cost of price targeting are high, inappropriate placement, effects difficult to measure, concerns about privacy and security |
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Yellow Pages
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Advantages: wide availability, action and product category oriented, low relative costs, ad frequency and longevity
Disadvantages: market fragmentation, extremely localized, slow updating, lack of creativity, long lead times |
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Outdoor
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Advantages: frequent repetition, low cost, closed to point of sale, 24 hours a day, high creativity and effectiveness
Disadvantages: must be short and simple, no demographic selectivity, no full attention, traffic hazard, much wasted coverage |
