1. Copyright © 2007 Pearson Education Canada 15-1 Direct Response Communications Messages communicated directly to prospects that generate a measurable response.  Accountability for $ invested  Results are immediate  Natural extension of database marketing Direct response is growing in popularity among traditional marketing organizations.

2. Copyright © 2007 Pearson Education Canada 15-2 DR Alternatives A variety of options are available to communicate directly with a target audience or an audience of one. Direct Mail DRTV Catalogues Telemarketing Online and Interactive

3. Copyright © 2007 Pearson Education Canada 15-3 Direct Mail Direct mail delivers detailed messages in a personal manner. Sales Letters Leaflets & Flyers Folders Statement Stuffers Sales Letters Leaflets & Flyers Folders Statement Stuffers The above elements are often combined in one mailing.

4. Copyright © 2007 Pearson Education Canada 15-4 Direct Mail Strategy Solo Direct Mail Solo Direct Mail Cooperative Direct Mail Cooperative Direct Mail Personalized mail delivered to individual prospects. General mailing containing offers of non-competing goods and services.

5. Copyright © 2007 Pearson Education Canada 15-5 Information is Key to Success The “list” is the backbone of a direct mail campaign. Internal Sources Internal Sources External Sources External Sources House List Database List Broker Merge/Purge

6. Copyright © 2007 Pearson Education Canada 15-6 The List Business As a request for names becomes more specialized (quality) the cost increases. Lists are rented on a CPM basis. Response List Circulation List Compiled List Proven buyers Lists of subscribers Prepared from public sources

7. Copyright © 2007 Pearson Education Canada 15-7 Direct Response Television A “sales-oriented” broadcast message that encourages immediate action. Traditional Corporate/Brand Rapid pace, buy now style. Detailed communications in a lengthy format. Lengthier formats are called infomercials.

8. Copyright © 2007 Pearson Education Canada 15-8 Catalogues Reference publications distributed by large retail outlets and direct market retailers General and specialized formats Most catalogues now online Catalogues play a key role in the marketing strategies of Sears and Canadian Tire. Sears delivers 4.1 million catalogues annually.

9. Copyright © 2007 Pearson Education Canada 15-9 Telemarketing Call Centre Inbound Outbound Telemarketing completes the sale at much lower cost than personal selling or mass advertising.

10. Copyright © 2007 Pearson Education Canada 15-10 Interactive Communications Interactive communications now play an increasingly important role. Options: 1.Online communications 2.Text and video messaging through cell phones Benefits: 1.Personalization 2.Relationship-oriented 3.Complements traditional media

11. Copyright © 2007 Pearson Education Canada 15-11 Online Advertising People are watch (TV), listening to (radio), and reading (print) less. What choice does an advertiser have but to consider online advertising. 1.Traditional media are passive in nature, online communications are interactive. 2.Online advertising can achieve the same objectives as offline advertising.

12. Copyright © 2007 Pearson Education Canada 15-12 Online Measurements Some key measures of a successful online campaign include:  Impressions or page views  Clicks  Clickthrough Rate Clickthrough Rate = Clicks / Impressions

13. Copyright © 2007 Pearson Education Canada 15-13 Banner Advertising Standard Banner Skyscraper Rectangle Bigger is better!!

14. Copyright © 2007 Pearson Education Canada 15-14 Other Forms of Online Advertising Online advertising is becoming more polished and video ads are much like TV-style ads.  Animated banners  Interstitials (rich media)  Superstitials (rich media) Superstitials resemble TV ads so they are attractive to traditional media advertisers.

15. Copyright © 2007 Pearson Education Canada 15-15 Online Sponsorships Web content attracts an audience. The homogeneous characteristics of the audience attracts potential sponsors. TSN.ca attracts young males and is therefore attractive to beer, fast food and automotive companies.

16. Copyright © 2007 Pearson Education Canada 15-16 E-Mail Advertising Database marketing technology has spurred growth in e-mail advertising. 1.Permission-based (Opt-in) 2.Sponsored e-mail (messages from other advertisers with e-mail) A majority of Internet users agree to receive e-mail advertising.

17. Copyright © 2007 Pearson Education Canada 15-17 Text and Video Messaging Communicating text, video, and music over cell phones will create new advertising opportunities. Cell phones are: Popular with youth (52% ownership) Person-to-person link Phone spam will be an issue to deal with

18. Copyright © 2007 Pearson Education Canada 15-18 Web Sites An opportunity to “tell a story.” Information and more information is what visitors are looking for.  Other forms of advertising should drive traffic to the Web site.  50% of B2B decision-makers consult Web sites prior to making buying decisions.  Webcasting is starting to take hold.

19. Copyright © 2007 Pearson Education Canada 15-19 Benefit of Online Advertising Database opportunities are available from site registrations, questionnaires, contest entries and customer feedback. 1.Ability to target audiences 2.Messages can be personalized 3.Customers seek you rather than you seeking customers 4.One-to-one relationships form and build