Chapter 11: Database and Direct Response Marketing and Personal Selling Flashcards
(22 cards)
What is a data warehouse
A data warehouse holds all customers data this includes -
1) the operational database: which contains the transactions individuals have with the firm and follows accounting principles
2) the marketing database: which contains information about current customers, former customers and prospects
What comprises of the marketing data warehouse
- customer names and addresses
- email address
- records of visits to the company’s website
- customer history
What are the tasks in database marketing
- building a data warehouse
- database coding and analysis
- data mining
- data driven marketing communications
- data driven marketing programs
What are the elements in a database driven marketing program
- Permission marketing
- Frequency programs
- Customer relationship management
Explain frequency programs
A company offers free or discounted merchandise or services for a series of purchases in a frequency or loyalty program
What are the benefits of loyalty programs
- Discounts and savings
- Better deals and offers
- Free products
- Cashback
- Individualised attention and recognition
What are the goals of frequency or loyalty programs
- Maintain or increase sales, margins, or profits
- Increase loyalty of existing customers
- Differentiate the brand
- Discourage entry of a new brand
What are the two principles of frequency or loyalty programs
It is added value and reciprocity - participants should feel value accrues from belonging to the loyalty program
Explain customer relationship management (CRM)
Programs that make it possible to employ databases that customise products and communications with customers, with the goals of higher sales and profits
Built on two primary metrics:
– Lifetime value
– Share of customer
Explain direct response marketing
Targeting of products to customers without the use of other channel members
List the different methods to carry out direct marketing
- Direct mail (types of commercial lists: response list, hot list, compiled list)
- Catalogs
- Internet
- Direct sales
- telemarketing (inbound & outbound)
Explain personal selling
Personal selling offer a face-to-face opportunity to build relationship with customers
What are the steps in the selling process
- Generating leads: information regarding potential customers is collected
- Qualifying prospects: not every lead or prospect is viable or hold equal value. This means that we evaluate our leads (evaluate in two dimensions: the potential income the lead can generate and the probability of acquiring the prospect as a customer)
- Knowledge acquisition: the sales people or other members of the sales department gather materials about the prospect
- Sales presentation: designed to gather information, discuss bid specifications, answer questions or to close the deal with the final pitch or offer
- Handling objections: salesperson should anticipate objections and carefully answer them
- Sales closing: it is the most important but also most difficult part
- Follow-up: keeping a customer happy after a purchase, which results in repeat business, customer loyalty and positive referrals
What are the types of referral
- Experience referrals: results directly from a company’s work and typically come from current or former customers
- Expertise referrals: made by a non-client, it occurs when an individual learns about a company’s expertise, quality of work, or a particular specialty through a third person
- Reputation referrals: leads come from the reputation a company holds in a community or industry
- Network referrals: generated when a company employee makes contact during a social gathering with a business organisation or through social media
Examples of qualifying leads
- Not all leads are viable
- Not all leads are equal in value
- Two dimensions (potential income & probability of acquiring)
- Categorize prospects
Examples of how to generate leads
- Referrals
- Database-generated leads (trawling, analytical techniques, data mining)
- Networking
- Directories
- Cold calls
Explain the types of sales presentation
- Stimulus-response: canned sales pitch of specific statements/stimuli designed to elicit specific responses from customers
- Need-satisfaction: target customer needs during the first part of the sales presentation
- Problem-solution: requires employees from the organisation to analyse the buyers business
- Mission-sharing: team-up with other company and share resources.
What are the common methods for handling objections
- Head-on method: sales person answers the objection directly
- Indirect method: sales person sympathises with the customer
- Compensation method: yes, but.. and then explains
- “Feel, felt, found” address customer fears
Methods of closing sales
- Direct close: the salesperson asks for the order outright
- Trial close: a sales person tries to get feedback that provides information, without asking directly for the sale
- Summarisation close: summarise the product benefits and how it meets the customers needs prior to asking for the order
- Continuous “yes” close: by answering yes to smaller questions about the benefits of a product, when it comes time to ask for the order, the customer may be more likely to respond with a yes
- Assumptive close: assumes the customer will say yes, for example by asking how would you like this to be shipped
Differentiate between referral marketing and relationship marketing
Referral marketing refers to relying heavily on personal selling to generate sales and relationship marketing seeks to create a customer for life not just a single transaction
Define database marketing
Involves collecting and utilizing customer data for the purpose of enhancing interactions with customers and developing customer loyalty
What is the knowledge acquisition information that salespeople need to know
- understand the prospects business
- know and understand the prospects customers
- identify the prospects needs
- evaluate the risk factors and costs in switching vendors
- identify the decision makers and influencers
