Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 1 Chapter Two Segmentation through list selection and database management

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 2 The Importance of Good Lists Mailing lists –Response lists –Compiled lists –Business lists Standard industry classification House lists

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 3 List Management The role of list managers List rental sources

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 4 Placing a List Order Checklist of information List description Quantity/selectivity Coding applications Rental rates Deliverability guarantee List formats List usage Delivery instructions

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 5 List Rental Procedures Thirteen steps to successfully renting and using a mailing list

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 6 Step One You approach the rental contact to discuss the list and confirm your desire to rent it Step Two The rental contact requests a sample of your mailing package

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 7 Step Three You provide a sample of your mailing package Step Four The list owner approves the sample

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 8 Step Five The rental contact prepares and sends the list rental agreements to you, the renter Step Six You check, sign and return the list rental agreement to the rental contact

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 9 Step Seven The rental contact orders your list selections Step Eight The ordered address diskette is sent or data ed to the mailing house or list manager/broker

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 10 Step Nine You dispatch the components of your mailing package to the mailing house Step Ten The mailing house assembles and addresses the mailing packages and lodges them with Australia Post or an alternative carrier

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 11 Step Eleven The mailing house invoices you for the processing and postage Step Twelve The rental contact invoices you for the list rental charges

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 12 Step Thirteen You return the undeliverables — dead mail — to the rental contact

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 13 List Rental Costs, Terms,Conditions Rates higher are for names of proven mail order buyers Rates are lower for inquirers or inactive names Rates for high profile personalised contacts may fetch as much as 30% above normal Tapes Floppy disks Sheet listings (hard copy)

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 14 Mailing List Security Storage Seeding Safeguards against misuse General

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 15 List Processing Issues to consider when using lists: Merge/purge List suppression

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 16 Mailing List Maintenance Coding mailing list data into variables Mailing lists in Australia Problems For other list considerations, see Application snapshot, p 41

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 17 Introducing Databases A database is any collection of data organised for storage in a computer memory and designed for easy access by authorised users The data may be in the form of text, numbers, or encoded graphics

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 18 A Customer Database More than a mailing list Evolves over time Best way to talk to existing customers Means for building relationships with customers Ideal for loyalty marketing Relevancy—information and customers Right messages for the right people

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 19 What is Database Marketing? Creating data records about customers Using this data to analyse customer patterns Then promote them benefit of brand loyalty Use in low cost sales methods (telemarketing etc) Subdivide into special segments Tailor offers to individuals or businesses Compare customers with non-customers Identify prospects most likely to become customers

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 20 Database Characteristics Potential & actual customers all become identified as records Records contain marketing information All information is accessible during communications It records responses to all initiatives Information is critical for marketers Used to ensure approach is coordinated It can often replace some market research Automatic processing & assessing

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 21 Database Design Optimum field size must be determined All data to conform to consistent rules Data must include postcodes Data should include account coding Data should always be verified Data should be updated regularly

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 22 Other Database Information Relational databases Use of databases Selection of market segments Cross selling Competitive superiority Recency, frequency & monetary values

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 23 Database Strengths The strengths of database marketing It is measurable It can be tested It is selective It can be personalised It is flexible

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 24 Databases Weaknesses The weaknesses of database marketing Expense associated with establishing and managing databases Difficult and time consuming to keep records up to date Strengths outweigh weaknesses

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 25 Forms of Segmentation Geographic Demographic Geo-demographic Psychographic Attitudinal Behavioural

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 26 Geo-demographics Geo-demographics is a form of segmentation based on the premise that a blend of socio- economic characteristics lead to attitudes which lead to consumer behaviours

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 27 Geo-demographics Census Collection District (CCD) Objectives: Profiling Selections Targeting Site location planning Modelling

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 28 Geo-demographics Must also consider advantages and disadvantages of geo-demographics Geo-demographics in predictive modelling When to use them and not to use geo- demographics