Offline and Online Direct Advertising 14

Direct Advertising The use of one or more advertising media to transmit messages that encourage purchases of the advertiser’s brands.

Growth of Direct Advertising Computer technology and database management Niche marketing

Database Marketing Collecting and electronically storing information about present, past, and prospective customers. Using data to profile customers and develop effective, efficient marketing programs by individual communication and relationship building.

The Role of Databases Databases allow a company to: Target best prospects for offering Offer varied messages Create long-term relationships with customers Enhance ad productivity Calculate the lifetime value of a prospect

Lifetime Value Analysis Customer Lifetime Value

Lifetime Value Anaysis Customer Lifetime Value

Lifetime Value Analysis

Two types of Mailing Lists Two types of Mailing Lists Based on a company’s own internal list of present or prospective customers Methods to obtain database information: » House listsExternal lists

Two types of Mailing Lists Two types of Mailing Lists House lists of other companiesHouse lists of other companies Compiled listsCompiled lists: Lists compiled by a company for its own purposes or lists purchased from another company that specializes in list compilation »Compiled lists are not as desirable. Why? House listsExternal lists

P-Mail Advertising Refers to any advertising matter sent directly to the person whom the marketer wishes to influence

P-Mail’s Distinctive features

Saab 9-5 P-Mail Questionnaire Direct mail questionnaire

Saab 9-5 P-Mail Response to Questionnaire Response to direct mail questionnaire

Trend Toward P-Mailing Rising expense of television advertising and increased audience fragmentation Unparalleled targeting of messages to desired prospects Increased emphasis on measurable advertising results Consumers are responsive and like p- mail (survey results)

Special P-Mail Case: Catalog Marketing Retail Catalog Full-line merchandise Consumer specialty Industrial specialty

Why Catalog Shopping? The Consumer’s Perspective Saves time Appeals to consumers who are fearful of shopping due to concerns about crime Leisurely decisions Toll-Free numbers Comparable quality and prices Guarantees are attractive

Where is catalog marketing? Catalog marketing has reached the mature life-cycle stage: »

See Text Data Mining Advertising »Opt-in versus Spam »Virtues: Similar to P-Mail »Wireless Advertising