1. DIRECT MARKETING Chapter 19 with Duane Weaver

2. DM (Direct Marketing) Defined Direct Marketing …an interactive system of marketing, which uses one or more advertising media to effect a measurable response and/or transaction at any location. O’Guinn, Allen, Semenik, 4E, p. 673 CHARACTERISTICS OF DM : 1.Interactive…creates dialogue towards action with consumer over time 2.Usually produce immediate measurable response 3.Takes place anywhere, follow ups by mail, phone, visit to store, internet…

3. Database (Direct) Marketing Direct Marketers use Databases and Database Warehouses to accumulate knowledge about their consumer to facilitate more effective DM Campaigns: –Who is the Best Customer for a product or service? –What do they buy? –How often do they buy? –E.G.’s: Simple mailing list Customer list with characteristic detail: buying habits, preferences, psychographics, geographics, demographics, behavioural graphics, sites visited, information search path, buying path, promotion sensitivity, information source points, leisure style and habits, political orientations, relationships …

4. Database Applications: Frequency-marketing programs (customer loyalty programs): –Have a database –Have a benefit package –Have a communications strategy/curriculum with the customer Cross-selling: –Targeting current customers for alternate/related products and services based on buyer profiles.

5. Database Marketing and Privacy New Privacy Laws Permission based Marketing

6. Media Applications of DM Direct Mail Telemarketing E-mail Informercials

7. Discussion Questions Question 3 Question 7 Question 8