1. Direct marketing / response ads Direct response ads developed with computer databases Led to focus on relationship with customer  CRM Pareto principle  approx 80% of business generated by 20% of customers Suggestion that it costs 5 to 10 times as much to get a new customer as to keep one  Retention Objective: get profitable customers  true value concept

2. One-to-one marketing Includes direct response ads, direct mail, Internet, interactive digital TV...  Develop & maintain dialogue with customer based on knowledge gathered in data warehouse Mostly relevant to service businesses Difficult to apply to FMCG (cf. Heinz)... Permission Marketing

3. Principles Drayton Bird  3 Graces:  Ability to isolate the individual customer  Continuity, or potential continuity, of contact  Ability to test Testing thru measuring results by what you get back (orders, enquiries and their conversion into cash)

4. Direct mail  ad letter with long copy, detailed info Press  large size with response coupon Broadcast ad  spots longer spots (60, 90 secs, infomercials) often with demonstration + phone number Telemarketing  inbound phone (toll free) for placing order or outbound (to close a sale or make an offer) Interactive media (digital TV, Internet)

5. Recency Frequency Value