Marketing Management, Millenium Edition - epiheirimatikotita.gr

324 CHAPTER 17 MANAGING DIRECT AND ON-LINE MARKETINGbuild its brand over the Internet, Seattle-based casual apparel maker Eddie Bauer(www.eddiebauer.com) is letting customers enter a “virtual dressing room.” Althoughvisitors to Eddie bauer.com will find the same apparel that is shown in the catalog andin the stores, the site is more than just an electronic sales flyer: Customers can justclick and drag different items to see how they look together. Because half of the consumerswho visit the Web site have never shopped at Eddie Bauer before, their experienceon-line is an important first contact with the company. 11TelemarketingTelemarketing describes the use of telephone operators to attract new customers, to contactexisting customers to ascertain satisfaction levels, or to take orders. In the case ofroutinely taking orders, it is called telesales. Many customers routinely order goodsand services by telephone. The telephone has also spawned home banking. First Direct,set up by Britain’s Midland Bank, operates entirely by telephone (as well as fax andInternet at www.firstdirect.com), with no branches to serve customers. 12Telemarketing has become a major direct-marketing tool, and is responsible forannual sales of $482 billion worth of products and services to consumers and businesses.The average household receives 19 telemarketing calls each year and makes 16calls to place orders, although businesses are placing and receiving more telemarketingcalls, as well. For example, Raleigh Bicycles uses telemarketing to reduce the amount ofpersonal selling needed for contacting its dealers. In the first year, sales force travelcosts were reduced by 50 percent and sales in a single quarter went up 34 percent.Effective telemarketing depends on choosing the right telemarketers, trainingthem well, and providing performance incentives. Telemarketers should have pleasantvoices and project enthusiasm; after initial training with a script, they should movetoward more improvisation. The call should be made at the right time, which is latemorning and afternoon to reach business prospects, and evening hours between 7 and9 P.M. to reach households. Given privacy issues and the higher cost per contact, preciselist selection is critical.Direct-Response Television MarketingAlthough magazines, newspapers, and radio are all used to make direct offers topotential buyers, two forms of direct-response television marketing have becomeprominent in recent years:1. Direct-response TV advertising: Some companies have been successful with 30- and 60-minute infomercials, which resemble documentaries and include testimonials and atoll-free number for ordering or getting further information. One example is the“Chrysler Showcase,” a 30-minute infomercial touting Chrysler’s brand heritage andthe exterior design, performance, handling, and premium features of selected newmodels. This infomercial aired on national cable networks as well as United AirlinesSkyTV. Infomercials generate an estimated $1.5 billion in annual sales. 132. Home shopping channels: Several television channels are dedicated to selling goods andservices. For example, on the 24-hour Home Shopping Network (HSN), hosts offerbargain prices on such products as jewelry, lamps, collectible dolls, and power tools.Viewers call in their orders on a toll-free number and receive delivery within 48 hours.Kiosk MarketingSome companies have designed “customer-order-placing machines” called kiosks (incontrast to vending machines, which dispense actual products) and placed them in