Direct Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Radio Direct Selling Magazine and Newspaper Direct Mail Telemarketing TV Selling Radio TV Selling Direct Mail Magazine and Newspaper Direct Selling 1. Direct Marketing Defined © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin “The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a prospective customer.”

Miscellaneous factors Technological Advances Direct Marketing Syndicates Changing Structure of Society Consumer Credit Cards Technological Advances Changing Structure of Society Direct Marketing Syndicates Consumer Credit Cards 2. Growth of Direct Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising Sales Promotion Public Relations Personal Selling Internet Support Media Sales Promotion Personal Selling Public Relations Advertising 3. Role of DM in IMC Direct Marketing Combines With... © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Direct Marketing

List Services Direct Marketing Association Direct Marketing Association Standard Rate & Data Service (SRDS) Standard Rate & Data Service (SRDS) U.S. Postal Service Simmons Market Research Bureau Simmons Market Research Bureau U.S. Census Bureau Direct Marketing Association Direct Marketing Association U.S. Postal Service Standard Rate & Data Service (SRDS) Standard Rate & Data Service (SRDS) List Services 4. Developing a Database © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sources

A Comprehensive Consumer Data Base © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Name Address/ Zip Code Telephone Number Length of Residence Age Gender Marital Status Family Data Education Income Occupation Transaction History Promotion History Inquiring History Unique Identifier Name Address/ Zip Code Telephone Number Length of Residence Age Gender Marital Status Family Data Education Income Occupation Transaction History Promotion History Inquiring History

Comp. Contact or Decision Makers Title of Contact Telephone Number Source of Order/inquiry or Referral Credit History Industrial Classification Size of Business Revenues Number of Employees Time in Business Headquarter, Multiple Location Purchase History Promotional History Inquiry History Promotional History Purchase History Headquarter, Multiple Location Time in Business Number of Employees Revenues Size of Business Industrial Classification Credit History Source of Order/inquiry or Referral Telephone Number Title of Contact Comp. Contact or Decision Makers A Comprehensive Business to Business Data Base © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Unique Identifier

Improve Selection of Market Segments Stimulate Repeat Purchases Cross-selling Other Products Customer Relationship Management Cross-selling Other Products Stimulate Repeat Purchases Improve Selection of Market Segments Objectives of Database Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objectives

One-Step Two-Step One-Step The medium is used directly to obtain an order Often use 800 number phone orders and credit card payment May use one medium to obtain inquiry and qualify prospect Typically follow up with a second medium to complete the sale 5. DM strategies (approaches) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Catalogs Broadcast Media TV Spots Infomercials Homeshopping Print Media Telemarketing Print Media Homeshopping Infomercials TV Spots Broadcast Media Catalogs Direct Mail 6. Direct-Marketing Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media

Outbound and Inbound Telemarketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Inbound Telephone calling by the marketer or marketer’s agent to individual prospects, seeking purchase, subscription, membership, or participation by the call recipient. Marketers’ facilities and invitations to prospects to call a central location or long distance number or by toll-free, 800 or fixed cost 900 number. Outbound

Three Forms of Direct Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Direct Selling Direct Selling Party Plans Party Plans Repetitive person- to-person selling Nonrepetitive person- to-person selling Repetitive person- to-person selling Nonrepetitive person- to-person selling

Direct Response Advantages © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin No store is required and customers can buy from their own homes Response options enable audience to act right after exposure occurs Customers are served with a greater selection from a central inventory Advertisers acquire or enhance a data base of individual customers Response options enable audience to act right after exposure occurs Customers are served with a greater selection from a central inventory Advertisers acquire or enhance a data base of individual customers

Customers can’t handle or inspect the product before purchasing Merchandise returns and subscription cancellations may be numerous Seller reputation and prestige may be compromised by method’s poor image Merchandise returns and subscription cancellations may be numerous Customers can’t handle or inspect the product before purchasing Direct Response Disadvantages © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Disadvantages

7. Overall Direct Marketing Pros & Cons © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Accuracy Rising Costs Image Factors Content Support Selective Reach Segmentation Capability Frequency Potential Flexibility Timing Personalization Economy AdvantagesDisadvantages Measurement of Effectiveness Accuracy Image Factors Content Support Selective Reach Segmentation Capability Frequency Potential Flexibility Timing Personalization Economy Measurement of Effectiveness