1. Direct Response Marketing
Chapter 11

2. The Importance of Databases in IMC Planning
Can be used for identifying and building relationships with customers through:
Data-driven Programs
Data-driven communications
Direct response offers

3. Types of Databases Operational database Marketing database
Customer transactions
Follows accounting rules
Marketing database
Current customer information
Former customer information
Prospect information

4. F I G U R E 1 1 . 1 4 Mail Catalogs Telemarketing Mass media
Methods of Direct Response Marketing
Mail
Catalogs
Telemarketing
Mass media
Alternative media
Internet

5. F I G U R E
Methods of Direct Marketing

6. What’s Happening?
Hey Denton this company is really cool. The only have 2 products; One is green product and the other is super innovative.
Watch the video on there as well.

7. Direct Marketing
Direct connections with carefully targeted individual consumers
Message must appeal to target group
Major problem is large volume of direct mail received by both consumers and businesses.
Intended to cultivate lasting customer relationships
Immediate and interactive in many cases
A strong database allows precise targeting of small groups

8. Direct Marketing, con’t
Can be used as a supplement to existing channels of communication or stand-alone
Fastest growing form of marketing

9. Database Driven Marketing Programs
Permission marketing
Frequency/loyalty programs
Customer relationship management

10. Steps in Developing a Permissions Marketing Program
Obtain permission from the customer.
Offer the consumer a curriculum over time.
Reinforce the incentive to continue the relationship.
Increase the level of permission.
Leverage the permission to benefit both parties.
Source: Seth Godin, “Permission Marketing: The Way to Make Advertising Work
Again, Direct Marketing, (May 1999), Vol. 62, No. 1, pp

11. F I G U R E 1 1 . 9 Maintain sales, margins, or profits.
Frequency Program Objectives
Maintain sales, margins, or profits.
Increase loyalty of existing customers.
Induce cross-selling to existing customers.
Differentiate a parity brand.
Preempt the entry of a new brand.
Preempt or match a competitor’s frequency program.
Source: Grahame R. Dowling and Mark Uncles, “Do Customer Loyalty Programs
Really Work?” Sloan Management Review, (Summer 1997), Vol. 38, No. 4, pp

12. Reasons Retailers Develop Loyalty Programs
Reason for program Indication %
Promotes consumer loyalty 90%
Increases “best shopper” sales 65%
Gain consumer information 65%
Maintain market share 42%
Enhance image %
Respond to competition 10%
Source: A.C. Nielson, Santella & Associate

13. F I G U R E
Reasons Consumers Opt into an Frequency Program

14. Customer Relationship Management
Foundations:
Customer Driven
Database Technology
Interactivity through websites, call centers, and other means of contacting customers
Mass customization technology

15. Customer Relationship Management
Two measures of CRM include
Lifetime value
Share of the customer
CRM can be successful if:
Firms differentiate customers in terms of their needs and their value to the selling company
Focus on relationships, not sales
Be customer-driven, not technology-driven
Customize some aspects of the goods or services being offered to the customer