1. Direct Marketing: The Dialogue Builder LECTURE-22

2. Chapter Questions  What are the strengths of direct marketing?  What is the biggest strength of direct mail? The biggest limitation?  What are the strengths and weaknesses of telemarketing?  How can direct marketing efforts be evaluated?  What are the major issues and concerns related to direct marketing?

3. Advertising and Sales Promotion Chapter Perspective A big advantage of Direct Marketing over Advertising and Sales Promotion: Direct Marketing Very Interactive

4. Opening Case: Orange Glo

5. The use of a direct marketing program featuring: On-air demonstrations and direct selling on Home Shopping Network 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson The use of a direct marketing program featuring: On-air demonstrations and direct selling on Home Shopping Network 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson Expanding Orange Glo’s distribution and profit One of the fastest-growing private companies $250 million in annual sales One of the fastest-growing private companies $250 million in annual sales Opening Case: Orange Glo Challenge: Answer: Results:

6. Direct Marketing Direct marketing: An interactive, database- driven messaging system that uses a range of media to motivate a response from customers and prospects

7. Direct Marketing 2/3 of Americans Respond Every Year 4 Primary Media: Mail, Telephone, Email, Infomercials Also Known As Direct Response: Because It Is Two-way in Nature 4 Primary Media: Mail, Telephone, Email, Infomercials 2/3 of Americans Respond Every Year Direct Marketing

8. Direct Marketing Flowchart

9. Interactive Measurable Fast and Flexible Measurable Interactive Direct Marketing’s Strengths Direct Marketing Strengths

10. What Are Direct Marketing’s Strategies? Front end strategies Delivering the message Back end strategies Handling consumer responses and delivering the product

11. The Offer Targeted Databases The Response Fulfillment Customer Service Privacy Protection The Offer Targeted Databases Fulfillment Customer Service Front & Back End Components Front End Components Back End Components The Response

12. The Offer The offer: Everything, both tangible and intangible, promised by a company in exchange for money or some other desired behavior

13. IMC In Action: 1-800-Flowers

14. Promoting and delivering flowers nationwide The use of an IMC program featuring: TV, radio, and direct mail messages delivering the offer 1-800-FLOWERS; web site, handling responses 2,500 local florists fulfilling orders The use of an IMC program featuring: TV, radio, and direct mail messages delivering the offer 1-800-FLOWERS; web site, handling responses 2,500 local florists fulfilling orders The use of an IMC program featuring: TV, radio, and direct mail messages delivering the offer 1-800-FLOWERS; web site, handling responses 2,500 local florists fulfilling orders The use of an IMC program featuring: TV, radio, and direct mail messages delivering the offer 1-800-FLOWERS; web site, handling responses 2,500 local florists fulfilling orders Promoting and delivering flowers nationwide Named “top gift site on the web” IMC In Action: 1-800-Flowers Challenge: Answer: Results:

15. Direct Mail Direct mail: One form of direct response advertising that uses mail rather than other media to deliver a brand offer

16. An Example Of a Set Of Materials In a Mail Package + +

17. Vs. Strengths Addressability Can receive more attention than advertising Not as much clutter as advertising Message can be tailored to any size or shape Addressability Can receive more attention than advertising Not as much clutter as advertising Message can be tailored to any size or shape Strengths Addressability Can receive more attention than advertising Not as much clutter as advertising Message can be tailored to any size or shape Addressability Can receive more attention than advertising Not as much clutter as advertising Message can be tailored to any size or shape Strengths And Limitations Of Direct Mail Limitations Postage can be costly Some offers can be costly to produce Complex offers can require long lead times Postage can be costly Some offers can be costly to produce Complex offers can require long lead times

18. Telemarketing Telemarketing: The practice of using the telephone to deliver a brand message designed to create a sale or sales lead Controversial… … but Big Business 43 Billion

19. A Range of Automated Phone System Options

20. Vs. Strengths And Limitations Of Telemarketing Strengths Personal Addressability Interactive Personal Addressability Interactive Strengths Personal Addressability Interactive Personal Addressability Interactive Limitations Human callers can be costly Intrusive (unwanted calls) Human callers can be costly Intrusive (unwanted calls)

21. Media Mix Used Creative Approach List Types Offer Values Frequency of Exposure Media Mix Used Creative Approach Offer Values List Types How Can Direct Marketing Efforts Be Evaluated? Testing

22. Ultimate Test: Effectiveness Response Rate Number of responses Number of offers mailed Number of responses Number of offers mailed= Cost Per Sale Total cost of mailing Number of sales made Total cost of mailing Number of sales made= 5 / 100 = 20 RS.1,000 / 5 = Rs.200

23. Insight: Tracking Customer Costs/Profits Direct marketers are very proficient tracking their costs and profits because the medium is the easiest to measure in terms of cost per sale. One rule of thumb: in most direct-marketing programs, a customer isn’t profitable until the third time he or she buys.

24. Think About It Email Campaign If you had to design an e-mail campaign for your organization, how would you make it appealing and not just annoying spam? Email Campaign If you had to design an e-mail campaign for your organization, how would you make it appealing and not just annoying spam?

25. Tales From the Real World The public often wonders: “how did they get my name (or address, phone number, or email account)?” In the real world, it’s fairly easy to acquire a database list of many different types of individuals. In fact, it’s amazing how specific some of the lists can be. Some examples of lists offered for sale by a list broker in their catalog: “accupuncturists,” “golfers,” and “nuclear physicists.”

26. Final Note: The increasing amount of clutter and privacy concerns suggests that the Direct Marketing winners will be those organizations who: Are creative in making their appeals stand out Are sensitive to consumer privacy concerns

27.  Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.  Strategic Marketing Management – Meeting The Global Marketing Challenges by Carol H. Anderson & Julian W. Vincze Published by Houghton Mifflin Company.  Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.  Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall Bibliography

28. The End: “Relations does not need cute voice or lovely face It just need a beautiful and responsible heart with total attention & affection”