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Direct Response Chapter 15.

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Presentation on theme: "Direct Response Chapter 15."— Presentation transcript:

1 Direct Response Chapter 15

2 Part Five: Integration and Evaluation
Part 5 deals with the complexities of marketing communications

3 Chapter Outline Chapter Key Points The Practice of Direct Marketing
Database Marketing The Key Players The Tools of Direct Marketing Integrated Direct Marketing Global Considerations in Direct Marketing

4 Key Points Define and distinguish between direct marketing and direct-response advertising Explain the types of direct marketing Name the players in direct marketing Evaluate the various media that direct-response programs can use Explain how databases are used in direct marketing Discuss the role of direct marketing in integrated marketing programs

5 The Echo Awards: Celebrating Great Direct Marketing
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6 The Practice of Direct Marketing
Figure 15.1 – The Direct-Marketing Industry

7 The Practice of Direct Marketing
Video Snippet Ogilvy & Mather: the first direct marketing company

8 Advantages of Direct Marketing
Collection of relevant customer information Purchase not restricted to location Marketer controls product until delivery Easier to evaluate Flexibility in form and timing

9 Disadvantages of Direct Marketing
Consumers reluctant to purchase Annoyances associated with direct marketing Unable to reach everyone in marketplace

10 The Direct-Marketing Process
Figure 15.2

11 Database Marketing Objectives
Record names of customers Store and measure ad results Store and measure purchasing performance Vehicle for continuing direct communication

12 The Database Marketing Process
Figure 15.3

13 Database Marketing Lists Data-driven communication
Customer Relationship Management

14 The Principles of Data-driven Relationships
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15 The Key Players: Advertisers
Companies whose primary business is selling products and services by mail or phone Retail stores who use direct marketing as a supplement

16 The Key Players: Agencies
Advertising agencies Independent agencies Service firms Fulfillment houses

17 The Key Players: Media Companies
The media that deliver messages by phone, mail, or the Web

18 The Key Players: Customers
Recipients of the information and sometimes the initiator of the contact Push-button shopper Mouse-clicking shopper

19 The Tools of Direct Marketing: Direct Mail
A print advertising message for a product or service delivered by mail Outer envelope Letter Brochure Supplemental flyers Reply card Return envelope

20 Direct Mail Solutions from Anderson
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21 Advantages of Direct Mail
Tells a story Engages attention Personalizes message Builds in feedback Reaches the unreachable

22 Disadvantages of Direct Mail
Negative perceptions Cost Mailing list Response rate Vulnerability

23 The Tools of Direct Marketing: Catalogs
A multipage direct-mail publication that shows a variety of merchandise

24 Tools of Direct Marketing: Catalogs
Catalogs are viewed as junk mail by many recipients. The cost per thousand of catalogs is higher than mass media. The response is relatively low at 3 to 4 percent. Databases must be consistently maintained. Negative perceptions Costs Response rate Mailing list Description Disadvantages Can be directed at specific market segments. Employs high-quality design and photography (see Alsto’s cover). Extensive product information and comparisons are provided. Offer a variety of purchase options. Targeted Engages attention Complete information Convenience Advantages Advantages and Disadvantages of Catalogs Table 15.2

25 Tools of Direct Marketing: Telemarketing
Types of telemarketing Criticisms of telemarketing Telemarketing messaging design

26 Do Not Call Registry: Keeping Telemarketers at Bay
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27 The Tools of Direct Marketing: Direct-Response Advertising
Combines the characteristics of advertising with a contact element All direct-response advertising moves consumer to action

28 The Internet and Direct Response
Same components as direct mail and telemarketing Greater sampling opportunities New ways to gather info

29 USA Mail Now: Making Direct-Mailing Easier

30 Integrated Direct Marketing
Challenge is to integrate direct mail, catalogs, telemarketing, Web sites, , text messaging, and instant messaging with other marketing communication

31 Global Considerations in Direct Marketing
Fueled by the same technological forces as the U.S. Particularly important in countries with tight restrictions on advertising Privacy issues more intense Governmental regulation of postal service

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