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Direct Marketing. 15-2 What is Direct Marketing?

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Presentation on theme: "Direct Marketing. 15-2 What is Direct Marketing?"— Presentation transcript:

1 Direct Marketing

2 15-2 What is Direct Marketing?

3 15-3 Advantages of Direct Marketing? Database driven marketing provides relevant customer information Purchase not restricted to location or time No channel intermediaries Easy to monitor and measure

4 15-4 Disadvantages of Direct Marketing “No, you’re not bothering me, I love to be called by a stranger during dinner.” Annoyances associated with some direct marketers and the tools they use Some consumers are reluctant to purchase via mail order Privacy issues

5 What ’ s the main difference between conventional advertising and direct response?

6 15-6 Direct Response Combines the conventional characteristics of advertising with a contact now element The goal of direct response advertising is to move the consumer to immediate action

7 15-7 The Direct- Marketing Process

8 15-8 Players in Direct Marketing Advertisers Agencies Fulfillment Media Customers

9 15-9 Direct Response Advertisers Companies who sell products and services solely by mail Retail stores who use direct marketing to supplement brick and mortar sales

10 15-10 Advertising Agencies Creative development Media contacts Media purchasing

11 15-11 Media Companies The medium by which the marketing message in delivered

12 15-12 Customers Recipients of direct marketing message Via the Media

13 15-13 Fulfillment Companies Perform a variety of functions Receive orders Process orders Inventory product Ship orders

14 15-14 Importance of Databases Keep track of customers Store, measure and analyze ad results Measure purchasing performance Vehicle for continuing direct communication

15 15-15 Database Marketing What kinds of data and information are collected and analyzed? B to C Demographics Lifecycle Geographics Psychographics Behavior RFM B to B NAICS Revenue # of employees Usage Geography

16 15-16 Direct Marketing Tools

17 15-17 Direct Mail A print advertising message delivered by mail Components: Outer envelope Letter Brochure Supplemental Reply card Return envelope What is the most important part of a direct mail package? What is the second most important part?

18 15-18 The All Important List Three kinds Combined Response Customer Three kinds Combined Response Customer Is a list purchased or rented? Clean Merge & Purge

19 15-19 Advantages of Direct Mail Tells a story Engages attention Personalizes message Reaches hard to access customers Dear Fred Smith

20 15-20 Disadvantages of Direct Mail Perceived as junk mail Expensive Response rates can be low

21 15-21 Periodicals A publication that comes out based on periodicity Examples Magazines Newspapers True or False Text intensive ads aren’t read One of the all time direct response pulling ads

22 15-22 Catalogs A publication that shows a variety of merchandise High quality photography and graphics Can be print or on-line

23 15-23 Telemarketing Types of telemarketing Out bound In bound

24 15-24 Do Not Call Registry: Keeping Telemarketers at Bay

25 15-25 Infomercial One of the keys to Infomercial success Ultimate Pitch Men Price vs Offer? What are the product categories? Which one lends itself best to DR? Warranty vs Guarantee

26 15-26 The Internet What’s the main difference between direct mail and the Internet? Internet adds –Multi-media –Interactive –Lots of info

27 15-27 Global Direct Marketing Internet has enabled instant global exposure Potential challenges Culture Language Legal Exchange rates

28 15-28 Discussion Question Your marketing research shows that telemarketing is the best way to effectively reach your target market of denture wearers to sell a new technological breakthrough in denture comfort and performance. How would you develop a telemarketing program? What kind of list would you procure? What would be a sample script? Given your target market, what would be the best way to close the sale and receive payment?

29 15-29 Discussion Question Personal privacy issues confront the direct marketing industry House would you design a campaign that would maximize the benefits of database marketing while minimizing infringing on personal privacy

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