© 2005 McGraw-Hill Ryerson Limited Chapter Objectives To recognize the purpose of direct marketing as a communications tool. To appreciate the strategies and tactics involved in direct marketing. To demonstrate the use of direct marketing media. To determine the scope and effectiveness of direct marketing. © 2005 McGraw-Hill Ryerson Limited

Direct Marketing “Any medium where a seller can contact prospective customers and then accept the orders” Catalog Selling Direct Selling Telemarketing TV Selling Direct Action Advertising Direct Mail TV Selling Catalog Selling Direct Mail Direct Selling Direct Action Advertising © 2005 McGraw-Hill Ryerson Limited

© 2005 McGraw-Hill Ryerson Limited

© 2005 McGraw-Hill Ryerson Limited

© 2005 McGraw-Hill Ryerson Limited

© 2005 McGraw-Hill Ryerson Limited

Growth of Direct Marketing Consumer Credit Cards Consumer Credit Cards Changing Structure of Society Changing Structure of Society Direct Marketing Syndicates Direct Marketing Syndicates Technical Advances Technical Advances Miscellaneous factors © 2005 McGraw-Hill Ryerson Limited

Direct Marketing in the IMC Program Public Relations Public Relations Advertising Advertising Personal Selling Personal Selling IMC Program Direct Marketing Sales Promotion Sales Promotion © 2005 McGraw-Hill Ryerson Limited

Direct Marketing Program Plan Companies must determine: What program’s objectives will be. Who to target by using a database. What direct marketing strategy will be employed. How to measure direct marketing effectiveness. © 2005 McGraw-Hill Ryerson Limited

1. Direct Marketing Objectives Behavioural Response Behavioural Response Build an Image Build an Image Objectives Inform and/or Educate Customer Relationship Management Inform and/or Educate © 2005 McGraw-Hill Ryerson Limited

2. Database Marketing – How It Works © 2005 McGraw-Hill Ryerson Limited

2. Sources of Database Information Statistics Canada Canada Post List Services Info Canada Marketing Research Houses © 2005 McGraw-Hill Ryerson Limited

3. Direct Marketing Media Strategy One Step One Step Two Step The medium is used directly to obtain an order. Often use 800 number phone orders and credit card payment. Use one medium to obtain inquiry, qualify prospect. Typically follow up with another medium to complete sale. © 2005 McGraw-Hill Ryerson Limited

Strengths and Limitations Selective Reach Selective Reach Image Factors Image Factors Segmentation Capability Segmentation Capability Accuracy Accuracy Frequency Potential Frequency Potential Content Support Content Support Flexibility Flexibility Rising Costs Timing Timing Personalization Personalization Economy Economy Measurement of Effectiveness Measurement of Effectiveness © 2005 McGraw-Hill Ryerson Limited