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STANFORD UNIVERSITY — Like politicians who adopt regional accents to appeal to local audiences, the manufacturers of potato chips vary the wording on their bags to convey their products’ authenticity in different ways to different buyers. Stanford researchers have analyzed the marketing language on bags of potato chips and found that whether you crunch an [...]

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STANFORD GRADUATE SCHOOL OF BUSINESS  — Accent the positive; eliminate the negative. Besides being the lyrics of an old Bing Crosby song, that phrase has been conventional wisdom for generations of marketers. After all, why would you want consumers to hear anything negative about your product? But like a lot of conventional wisdom, it doesn’t [...]

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STANFORD GRADUATE SCHOOL OF BUSINESS —How do you pay your sales force in a way that motivates them to do the best job possible? The U.S. economy spends an estimated $800 billion annually compensating sales forces, almost three times the amount devoted to advertising, yet sales force compensation remains a troubling question. Many firms offer [...]

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Lack of Information Skews Sales

Rock groups can lose as much as 40% of their potential sales because consumers don’t know enough about them, says the Stanford Business School’s Alan Sorensen. There are lots of crowded markets out there where lack of information skews sales. STANFORD GRADUATE SCHOOL OF BUSINESS — You won’t see anything written about bands like the [...]

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By Marguerite Rigoglioso STANFORD GRADUATE SCHOOL OF BUSINESS—Getting a product from the back of a napkin to the customer is the dream of every entrepreneur. Yet young companies typically go to market and ramp up a sales force before they are really ready, which means they inevitably burn through cash, fail to meet revenue expectations, [...]

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