Direct Response Chapter 15

Part Five: Integration and Evaluation Part 5 deals with the complexities of marketing communications

Chapter Outline Chapter Key Points The Practice of Direct Marketing Database Marketing The Key Players The Tools of Direct Marketing Integrated Direct Marketing Global Considerations in Direct Marketing

Key Points Define and distinguish between direct marketing and direct-response advertising Explain the types of direct marketing Name the players in direct marketing Evaluate the various media that direct-response programs can use Explain how databases are used in direct marketing Discuss the role of direct marketing in integrated marketing programs

The Echo Awards: Celebrating Great Direct Marketing Visit the Site

The Practice of Direct Marketing Figure 15.1 – The Direct-Marketing Industry

The Practice of Direct Marketing Video Snippet Ogilvy & Mather: the first direct marketing company

Advantages of Direct Marketing Collection of relevant customer information Purchase not restricted to location Marketer controls product until delivery Easier to evaluate Flexibility in form and timing

Disadvantages of Direct Marketing Consumers reluctant to purchase Annoyances associated with direct marketing Unable to reach everyone in marketplace

The Direct-Marketing Process Figure 15.2

Database Marketing Objectives Record names of customers Store and measure ad results Store and measure purchasing performance Vehicle for continuing direct communication

The Database Marketing Process Figure 15.3

Database Marketing Lists Data-driven communication Customer Relationship Management

The Principles of Data-driven Relationships Visit the Site

The Key Players: Advertisers Companies whose primary business is selling products and services by mail or phone Retail stores who use direct marketing as a supplement

The Key Players: Agencies Advertising agencies Independent agencies Service firms Fulfillment houses

The Key Players: Media Companies The media that deliver messages by phone, mail, or the Web

The Key Players: Customers Recipients of the information and sometimes the initiator of the contact Push-button shopper Mouse-clicking shopper

The Tools of Direct Marketing: Direct Mail A print advertising message for a product or service delivered by mail Outer envelope Letter Brochure Supplemental flyers Reply card Return envelope

Direct Mail Solutions from Anderson Visit the Site

Advantages of Direct Mail Tells a story Engages attention Personalizes message Builds in feedback Reaches the unreachable

Disadvantages of Direct Mail Negative perceptions Cost Mailing list Response rate Vulnerability

The Tools of Direct Marketing: Catalogs A multipage direct-mail publication that shows a variety of merchandise

Tools of Direct Marketing: Catalogs Catalogs are viewed as junk mail by many recipients. The cost per thousand of catalogs is higher than mass media. The response is relatively low at 3 to 4 percent. Databases must be consistently maintained. Negative perceptions Costs Response rate Mailing list Description Disadvantages Can be directed at specific market segments. Employs high-quality design and photography (see Alsto’s cover). Extensive product information and comparisons are provided. Offer a variety of purchase options. Targeted Engages attention Complete information Convenience Advantages Advantages and Disadvantages of Catalogs Table 15.2

Tools of Direct Marketing: Telemarketing Types of telemarketing Criticisms of telemarketing Telemarketing messaging design

Do Not Call Registry: Keeping Telemarketers at Bay Visit the Site

The Tools of Direct Marketing: Direct-Response Advertising Combines the characteristics of advertising with a contact element All direct-response advertising moves consumer to action

The Internet and Direct Response Same components as direct mail and telemarketing Greater sampling opportunities New ways to gather info

USA Mail Now: Making Direct-Mailing Easier

Integrated Direct Marketing Challenge is to integrate direct mail, catalogs, telemarketing, Web sites, e-mail, text messaging, and instant messaging with other marketing communication

Global Considerations in Direct Marketing Fueled by the same technological forces as the U.S. Particularly important in countries with tight restrictions on advertising Privacy issues more intense Governmental regulation of postal service