1. 10-1
Chapter 10
Direct Marketing

2. Identify purposes served by direct marketing.
10-2
Identify purposes served by direct marketing.
Explain the popularity of direct marketing.
Distinguish a mailing list from a marketing database, and review the applications of each.
Describe the media used by direct marketers in delivering messages to consumers.

3. Direct Marketing Today
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Direct Marketing Today
Direct marketing has its roots in catalog companies such as L.L.Bean.
Many types of organizations are increasing their expenditures on direct marketing. These expenditures serve three primary purposes:
Closing sales with customers
Identifying prospects for future contacts
Offering information and incentives to foster brand loyalty

4. Direct Marketing Today, Continued
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Direct Marketing Today, Continued
Exhibit 10.1 Some Direct Marketing Milestones

5. 10-5
Growing Popularity
The growing popularity of direct marketing can be attributed to several factors.
Convenience—credit cards, 800 numbers, and the Internet
Computer power—building and mining large customer information files
Tracking—lends itself to current emphasis on measurable outcomes

6. Growing Popularity, Continued
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Growing Popularity, Continued
Finding that waterfall in Wyoming will take some planning, and Wyoming’s offices of Travel & Tourism is happy to help. The adventure begins with a request for a vacation packet. This ad provides two options: calling a toll-free number or visiting the tourism office’s website.

7. 10-7
Database Marketing
A mailing list is a file of names and addresses of current or potential customers, such as lists that might be generated by a credit card company or a catalog retailer.
Internal lists—valuable for creating relationships with current customers
External lists—useful in generating new customers
List enhancement—adding demographic, geodemographic, psychographic, or behavioral data

8. Database Marketing, Continued
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Database Marketing, Continued
A marketing database is a natural extension of the internal list, but it also includes information about individual customers and their specific preferences and purchasing patterns.
A marketing database allows organizations to identify and focus their efforts on their best customers using a recency, frequency, and monetary (RFM) analysis.
Recognizing and reinforcing preferred customers helps build loyalty:
Follow-up letters, discounts, coupons
Frequency-marketing programs—database, benefit package, communications strategy
Cross-selling opportunities also emerge once a database is in place.
One can gain keener information about the motivations of current best customers, and insights usually emerge about how to attract new customers.
However companies must be sensitive to consumer’s rights and wishes to protect their privacy.

9. Database Marketing, Continued
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Database Marketing, Continued
Exhibit What Makes a Marketing Database

10. Media Used in Direct Marketing
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Media Used in Direct Marketing
Direct-marketing programs emanate from mailing lists and databases, but there is still a need to deliver a message to the customer.
Direct mail, telemarketing, and are the most common means used in executing direct marketing programs. is most successful when it avoids spam and uses opt-in lists.
Because the advertising done as part of direct-marketing programs typically requests an immediate response from the customer, it is known as direct-response advertising.
Conventional media such as newspapers, magazines, and radio also can be used to request a direct response by offering an 800 number or a Web address to facilitate customer contact.
Television makes use of the infomercial for direct-response advertising. Successful infomercials require:
a same-day response
frequent closes
testimonials (celebrities do no harm, but are not essential)

11. Media Used in Direct Marketing, Continued
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Media Used in Direct Marketing, Continued

12. Media Used in Direct Marketing, Continued
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Media Used in Direct Marketing, Continued
Exhibit Elements of a Successful Infomerical