214 215
HOW SALES AND MARKETING WORKS
Outbound marketing
46%
of e-commerce sales in 2014
came from the Asia–Pacific region
Online advertising channels
Offers opportunity to
reach millions of potential
customers, especially
with bulk emailing
(see pp.216–217)
Recipient may delete
email without reading it,
and is more likely to do so
if feeling bombarded
Cheaper to develop
content for mobiles than
for computers; easy
to track ad effectiveness
Different screen sizes and
systems can distort ad
layout; user may feel
annoyed by interruption
Attention-grabbing; if ad
is clicked on, success can
be tracked with pay-per-
click system
Hard to target consumer
precisely; internet users
suffer ad fatigue and
ignore advertisements
Good for targeting
consumers, as search user
keywords are matched
to advertiser keywords
(see pp.230–231)
Potentially expensive
if using premium
keywords; can take
time to see results
Pros Cons
Easy to target specific
audience; offers chance
of ad going viral and
achieving many views
(see pp.228–229)
Continual posts and
updates can easily distract
user’s attention away
from placed ad
Search
advertising
Email
Mobile
Display
advertising
Social media
Clickstream User activity
profile that summarizes what
an individual has clicked on
Behavioral targeting Process
whereby websites capture data
from landing page visitors and
use it to improve ad effectiveness
Interstitials Ads that precede
the content page a user expects
to land on, or appear right after it
NEED TO KNOW
Click fraud and botnets
With pay-per-click (PPC) advertising,
a business pays a website for every
click made on one of its ads, but click
fraud has become a serious issue.
Fraudsters set up a website and sell
PPC advertising, then infiltrate the
computers of unsuspecting users
with a computer virus known as
a “botnet” to generate fake traffic
to the website. Advertisers on the
site end up paying the fraudsters for
the large number of clicks received.
In 2013, one London company
uncovered a botnet that was
generating nine billion fake clicks
per month.
CASE STUDY
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Direct mail
Group A
Responds with two clicks
on the company’s
website
WEEKDAY
MAILING
See response
from email hit
on Monday
WEEKEND
MAILING
See response
from email hit
on Saturday
Group B
Responds with
20 clicks on the
company’s website
Direct mail and email—A/B testing
A/B testing compares the effectiveness of two versions of a marketing email
or direct mail copy. The two versions are sent to different groups of potential
customers, and the response to each is measured.
APPROACH A
APPROACH B
3.42%
was the average response rate to
direct-mail marketing in the US in 2010
How it works
Direct mail is one of the oldest
forms of marketing. It works on
the basis of sending a product
offer to a large group of consumers
in the knowledge that at least
some will take up the offer and
become customers. Direct mail
relies on lists of names and
addresses, which could be a
company’s existing clients or a
list bought from a specialist agency.
Almost any business, from a small
company to a corporation, may
use direct mail to sell. Typical
companies that sell through direct
mail include mail-order companies,
financial institutions, and nonprofit
organizations seeking donations.
The percentage of people who
respond to direct mail, take up
the offer, make a purchase, and
become customers—a category
known as the conversion rate—is
extremely low, but nevertheless
proves to be profitable.
By targeting a large number of potential customers via mail or email,
marketers hope to convert some into actual customers. This is
achieved through the timing, design, and wording of the message.
Cleaning Correcting name and
address details on mailing lists
Lettershop Company that
specializes in printing and mailing
out letters and catalogs
Merge/purge Software system
that pulls together different
mailing lists, searches for
duplicates, and makes corrections
NEED TO KNOW
Acquire names
Set size of sample and
split in half
Send mail
@
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216 217
How sales and marketing works
Outbound marketing
Evaluate effectiveness
Full email blast reveals that
approach B yields the
best response
Data analysis
Comparison of results shows
that Saturday time slot is
more effective
Acquire
names
Buy in mailing lists
or trade with other
companies.
Prepare direct-
mail copy
Write offer/response
instructions; include
prepaid envelope.
Send letters or
emails
Send mail (staggered
dispatch controls
flow of response).
Work out
response rate
Calculate responses
as percentage
of mail sent out.
Evaluate
effectiveness
Assess performance
of campaign
compared to others.
Campaign B
Send emails to remainder
of the group on Saturday
1 2 3 4 5
HOW TO SEND DIRECT MAIL
a
B
a
B
US_216-217_Direct_mail.indd 217 21/11/2014 16:40
216 217
How sales and marketing works
Outbound marketing
Evaluate effectiveness
Full email blast reveals that
approach B yields the
best response
Data analysis
Comparison of results shows
that Saturday time slot is
more effective
Acquire
names
Buy in mailing lists
or trade with other
companies.
Prepare direct-
mail copy
Write offer/response
instructions; include
prepaid envelope.
Send letters or
emails
Send mail (staggered
dispatch controls
flow of response).
Work out
response rate
Calculate responses
as percentage
of mail sent out.
Evaluate
effectiveness
Assess performance
of campaign
compared to others.
Campaign B
Send emails to remainder
of the group on Saturday
1 2 3 4 5
HOW TO SEND DIRECT MAIL
a
B
a
B
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Telemarketing
Call center
Agents in the call center receive
inbound calls and make
outbound calls.
Outbound and inbound
telemarketing process
Telemarketers usually refer to a list of telephone numbers
retrieved from a database to contact new or existing customers.
Call center agents have access to product information to help
them deal with questions and complaints.
60%
of all call centre
staff in France
and India have
college degrees
Customer inquiry
The customer may have a
question about service
or billing.
INBOUND
Customer
telephones
call center
WARM OUTBOUND
Call made to promote
new products/offers
to existing customer
Businesses use telemarketing to initiate direct contact with existing and
potential customers. Customers can also contact the company directly.
Telemarketing offers businesses a way to retain and acquire customers.
How it works
Telemarketing works in
two directions: inbound and
outbound. A customer making a
call to a business (with a question
or complaint, for example) is
referred to as an inbound call.
It gives the business a chance
to retain a customer who may
be dissatisfied with a product
or service, or to win over a new
customer contacting the company
for the first time. When a business
makes an outbound call,
it is to sell additional products or
services to an existing customer, or
to entice a new customer to make a
purchase. Telemarketing sales can
be monitored in orders per hour;
for example, agent A may make
140 calls per hour and generate
$400. A more effective measure is
revenue per call—if agent B makes
60 calls per hour but $450 worth of
sales, the conversion rate per call is
higher for agent B than agent A.
COLD OUTBOUND
Call made to establish
first-time contact with
prospective customer
US_218-219_Telemarketing_Steve.indd 218 21/11/2014 16:26
218 219
Customer
The person who decides
whether to buy
a product.
how sales and marketing works
Outbound marketing
Gatekeeper
The person who answers
the call and decides to
pass it on.
Evaluate effectiveness
Telemarketers constantly evaluate the
effectiveness of calls.
Outcome
At the conclusion of a marketing drive,
telemarketers appraise strategies and styles
to help them decide on future campaigns.
The Philippines is the top call center location for US firms, followed by India.
This is because of the high number of Filipinos who have a US education and
knowledge of American culture.
TOP FIVE CALL CENTER LOCATIONS
After-call work (ACW) Tasks
the agent has to complete after
making a call, such as processing
sales forms
Average handling time (AHT)
Typical length of calls made
to customers
Automatic call distributor (ACD)
Computerized telephone system
that connects each call to the
correct agent
Average speed of answer (ASA)
Measure of the time it takes
to answer inbound calls
NEED TO KNOW
Agent A
May adopt a
particular sales
strategy or have a
personal approach.
Agent B
May use a different
communication or
selling technique.
AGENT A
AGENT B
Philippines
Ireland
China
India
Poland
a
B
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218 219
Customer
The person who decides
whether to buy
a product.
how sales and marketing works
Outbound marketing
Gatekeeper
The person who answers
the call and decides to
pass it on.
Evaluate effectiveness
Telemarketers constantly evaluate the
effectiveness of calls.
Outcome
At the conclusion of a marketing drive,
telemarketers appraise strategies and styles
to help them decide on future campaigns.
The Philippines is the top call center location for US firms, followed by India.
This is because of the high number of Filipinos who have a US education and
knowledge of American culture.
TOP FIVE CALL CENTER LOCATIONS
After-call work (ACW) Tasks
the agent has to complete after
making a call, such as processing
sales forms
Average handling time (AHT)
Typical length of calls made
to customers
Automatic call distributor (ACD)
Computerized telephone system
that connects each call to the
correct agent
Average speed of answer (ASA)
Measure of the time it takes
to answer inbound calls
NEED TO KNOW
Agent A
May adopt a
particular sales
strategy or have a
personal approach.
Agent B
May use a different
communication or
selling technique.
AGENT A
AGENT B
Philippines
Ireland
China
India
Poland
a
B
US_218-219_Telemarketing_Steve.indd 219 21/11/2014 16:26
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