Direct Marketing

15-2 What is Direct Marketing?

15-3 Advantages of Direct Marketing? Database driven marketing provides relevant customer information Purchase not restricted to location or time No channel intermediaries Easy to monitor and measure

15-4 Disadvantages of Direct Marketing “No, you’re not bothering me, I love to be called by a stranger during dinner.” Annoyances associated with some direct marketers and the tools they use Some consumers are reluctant to purchase via mail order Privacy issues

What ’ s the main difference between conventional advertising and direct response?

15-6 Direct Response Combines the conventional characteristics of advertising with a contact now element The goal of direct response advertising is to move the consumer to immediate action

15-7 The Direct- Marketing Process

15-8 Players in Direct Marketing Advertisers Agencies Fulfillment Media Customers

15-9 Direct Response Advertisers Companies who sell products and services solely by mail Retail stores who use direct marketing to supplement brick and mortar sales

15-10 Advertising Agencies Creative development Media contacts Media purchasing

15-11 Media Companies The medium by which the marketing message in delivered

15-12 Customers Recipients of direct marketing message Via the Media

15-13 Fulfillment Companies Perform a variety of functions Receive orders Process orders Inventory product Ship orders

15-14 Importance of Databases Keep track of customers Store, measure and analyze ad results Measure purchasing performance Vehicle for continuing direct communication

15-15 Database Marketing What kinds of data and information are collected and analyzed? B to C Demographics Lifecycle Geographics Psychographics Behavior RFM B to B NAICS Revenue # of employees Usage Geography

15-16 Direct Marketing Tools

15-17 Direct Mail A print advertising message delivered by mail Components: Outer envelope Letter Brochure Supplemental Reply card Return envelope What is the most important part of a direct mail package? What is the second most important part?

15-18 The All Important List Three kinds Combined Response Customer Three kinds Combined Response Customer Is a list purchased or rented? Clean Merge & Purge

15-19 Advantages of Direct Mail Tells a story Engages attention Personalizes message Reaches hard to access customers Dear Fred Smith

15-20 Disadvantages of Direct Mail Perceived as junk mail Expensive Response rates can be low

15-21 Periodicals A publication that comes out based on periodicity Examples Magazines Newspapers True or False Text intensive ads aren’t read One of the all time direct response pulling ads

15-22 Catalogs A publication that shows a variety of merchandise High quality photography and graphics Can be print or on-line

15-23 Telemarketing Types of telemarketing Out bound In bound

15-24 Do Not Call Registry: Keeping Telemarketers at Bay

15-25 Infomercial One of the keys to Infomercial success Ultimate Pitch Men Price vs Offer? What are the product categories? Which one lends itself best to DR? Warranty vs Guarantee

15-26 The Internet What’s the main difference between direct mail and the Internet? Internet adds –Multi-media –Interactive –Lots of info

15-27 Global Direct Marketing Internet has enabled instant global exposure Potential challenges Culture Language Legal Exchange rates

15-28 Discussion Question Your marketing research shows that telemarketing is the best way to effectively reach your target market of denture wearers to sell a new technological breakthrough in denture comfort and performance. How would you develop a telemarketing program? What kind of list would you procure? What would be a sample script? Given your target market, what would be the best way to close the sale and receive payment?

15-29 Discussion Question Personal privacy issues confront the direct marketing industry House would you design a campaign that would maximize the benefits of database marketing while minimizing infringing on personal privacy