©2005 Pearson Education Canada Inc.6-1 Chapter 6 Direct Response Communications

©2005 Pearson Education Canada Inc.6-2 Direct Response Advertising Direct response advertising can be a component of a direct marketing campaign or a component of an integrated marketing communications campaign. Direct Marketing Developing an offer; communicating the offer; accepting orders; and delivering orders Direct Response Advertising Direct Response Advertising Ads placed in any medium that generate an immediate and measurable response.

©2005 Pearson Education Canada Inc.6-3 Direct Response Communications Blue chip marketing organizations effectively integrate direct response communications with traditional forms of communications. Direct Mail Direct Response Television (DRTV) Direct Response Print Telemarketing Catalogues

©2005 Pearson Education Canada Inc.6-4 Direct Response Planning Marketing Plan Marketing Plan Direct Response Plan Direct Response Plan Direct Response Message Strategy Direct Response Message Strategy Direct Response Media Strategy Direct Response Media Strategy Fulfillment Other IMC Plans Other IMC Plans

©2005 Pearson Education Canada Inc.6-5 Database Management It’s the list that makes or breaks the campaign!” 1.Lists are obtained from internal sources (house lists) and external sources (list brokers). 2.Data mining is the key to maximizing the potential of a customer list. 3.Continuous compiling and analysis of customer information is essential.

©2005 Pearson Education Canada Inc.6-6 Data Mining The analysis of information that establishes relationships between pieces of information; the uncovering of “nuggets” of information that leads to great offers and increases in sales. Data mining offers two benefits: 1.It provides a means of profiling the best and worst customers. 2.It provides a means of predicting future sales.

©2005 Pearson Education Canada Inc.6-7 List Brokers and Lists Brokers provide lists based on demographic characteristics that marketers are interested in. Lists go through a merge/purge process to eliminate duplicate names. Response List Circulation List Compiled List Online Database

©2005 Pearson Education Canada Inc.6-8 The Direct Mail Offer Direct mail offers are carefully planned based on historical experience. There are numerous components to an effective direct mail offer: Envelope Letter Leaflet or Folder Incentive Order Form Postage Paid Return Envelope Statement Stuffer

©2005 Pearson Education Canada Inc.6-9 Distribution Options An organization can go it alone (higher cost) or join forces with other organizations (to lower costs). Solo Direct Mail Solo Direct Mail Cooperative Direct Mail Cooperative Direct Mail Unique offers for unique customers by individual organizations. Offers from non-competing companies in one envelope.

©2005 Pearson Education Canada Inc.6-10 Direct Response Television DRTV is growing in popularity among traditional television advertisers. There options include: Infomercials 30- and 60-second direct response commercials Direct home shopping

©2005 Pearson Education Canada Inc.6-11 Infomercials The quality of infomercials has improved greatly. A good infomercial serves a variety of marketing communications objectives: Establish leads Build retail traffic Launch new products Create awareness Protect and enhance image A brand message can be combined with a direct response technique.

©2005 Pearson Education Canada Inc.6-12 Direct Response Print Print is a good alternative when targeting an audience based on geographic and psychographic characteristics. 1.Ads in newspapers and magazines 2.Inserts 3.Tip-ins

©2005 Pearson Education Canada Inc.6-13 Telemarketing Despite negative perceptions among consumers, telemarketing is very popular with marketers. The efficiency is incredible! Call Centre Inbound Calls Outbound Calls Offers from TV, Mail or Print Offers from TV, Mail or Print Offers for Specific Targets Offers for Specific Targets

©2005 Pearson Education Canada Inc.6-14 Roles of Telemarketing To be effective the telemarketing call must be carefully planned, and the representative must be thoroughly trained. Telemarketing is effective for: Fundraising Sales Support Personal Selling Fulfillment Customer Service

©2005 Pearson Education Canada Inc.6-15 Catalogues Catalogue marketing involves the merchandising of products through catalogue sales. 1.Leaders such as Sears and Canadian Tire see the value of integrated marketing communications: catalogues, 1-800, , and traditional forms of media advertising. 2.U.S cataloguers now offer CD versions.

©2005 Pearson Education Canada Inc.6-16 Catalogues to Grow There are several factors that will continue to influence growth in catalogues: 1.Catalogues offer convenience, a top priority among busy shoppers. 2.Consumers are into “multi-channel” shopping. 3.Companies are producing their own magazines to stay in touch with customers (CRM).