Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1 Direct Marketing Part 5: Integration and Evaluation Chapter 15

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-2 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

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice3 Definition: is the process that seller and customer deal with each other directly without intermediary involvement such as wholesaler, retailer For: Profit and non-profit organization GOAL : produce a sale and other actions (short-term results) Tools: direct mail, catalogue, telemarketing, direct- response ad Evaluation : easy to evaluate Direct marketing

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-4 The Direct-Marketing Process

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice5 Lead generation: provide basic information e.g. description of product, terms of sale, payment & delivery information Traffic generation: motivate customers to visit or come to seller place Purchase : order product and make payment Objectives

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-6 The offer - All direct marketing contains an offer, consisting of a description of the product, terms of sale, payment and delivery

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice7 Direct marketing Database (the heart of direct marketing) -To keep track of the customers and identify prospective consumers and as a segment tool for communicating offers to customers and prospects List: a database of prospects and customer’s contact information Type of lists House list: the marketer’s own customers e.g. customer receipt, credit card information, etc. Response list: are collection of customers who have responded to the direct-mail offer Complied list: are collections of names with some common interest. Rented from direct-mail list broker e.g. sports car owner, graduating lists, new homebuyers, subscribers to magazine, cable TV

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-8 Message and Media Strategy The message is often longer and detailed It contains more explanation

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-9 The Response/Order Direct marketing may include a promotional device such as a gift or limited-time-only price deal It aims at creating the immediate response, sales

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice1-10 Fulfillment and Customer Maintenance Getting the product to the customer who ordered it Maintaining the customer relationship Evaluation - Sales, number of visitors, etc.

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice11 Controllable media 1.Direct mail A print advertising message for a product or service that is delivered by mail Advantage: attention, personalized message Disadvantage: cost, mailing list is not update, low response rate Tools of direct marketing

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice Telemarketing: Ad that delivered through phone call Persuasive personal call e.g. software -It may be used with other tools such as catalogue, ad. Outbound-The co. pitches the product to the customer  high resistance Inbound- The customers sees the product and asks for more info. Tools of direct marketing (contd.)

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice Catalog : A multi-page direct-mail publication that shows a variety of merchandise Tools of direct marketing (contd.)

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice Direct response ads: Combines the characteristics of advertising with a contact element : Advertising that seeks to achieve an action-oriented objective. Toll free number, Coupon order form in newspaper and magazine Response card in magazine Bind-in (response card attached-> tear out when using) or Blow-in (response card not attached but inserted  less reliable (may fall out) Infomercial program in TV (demonstration of product) e.g TV Direct Sampling opportunity in internet Media: TV, newspaper, magazine, radio, internet, etc. Tools of direct marketing (contd.)

Wells, Moriarty, Burnett & Lwin - Xth EditionADVERTISING Principles and Effective IMC Practice15 Direct marketing Advantage & Disadvantage + -Data collection -Added value e.g. ease of purchase -Marketer control the product -Effective, easier to evaluate -Flexibility of form and timing - -Consumer may not be able to see the product before purchasing -Annoyance e.g. bulk of mails -Inability to reach everyone in the market (direct mail, telemarketing)