Chapter 6 Planning for Direct Response Communications Copyright © 2008 Pearson Education Canada
6-2 Learning Objectives 1) Describe the direct response marketing communications planning process 2) Describe the various forms of direct response communications 3) Assess the role of database management techniques in the design and implementation of direct response strategies (continued)
Copyright © 2008 Pearson Education Canada6-3 Learning Objectives (Continued) 4) Evaluate various external sources of list information and evaluate the role of these lists in building an effective direct response campaign 5) Explain the advantages and disadvantages of the various forms of direct response communications
Copyright © 2008 Pearson Education Canada6-4 Direct Response Communications Mass marketing is being combined with micro-marketing techniques Quality information is the backbone of a direct response strategy Allows for lifetime value analysis Communications are much more personalized
Copyright © 2008 Pearson Education Canada6-5 Importance of Direct Response Direct mail alone accounts for 13% of net advertising revenues Direct mail is the third most utilized advertising medium after television and newspapers This doesn’t include other direct response media forms
Copyright © 2008 Pearson Education Canada6-6 Growth of Direct Response 1) Increased accountability 2) Ability to nurture relationships at a personal level 3) Advances in database management technologies
Copyright © 2008 Pearson Education Canada6-7 Types of Direct Response Direct Marketing Direct Marketing Developing an offer; communicating the offer; accepting orders; and delivering orders Direct Response Advertising Direct Response Advertising Ads placed in any medium that generate an immediate and measurable response
Copyright © 2008 Pearson Education Canada6-8 Direct Response Planning Process Marketing Plan Marketing Plan Direct Response Plan Direct Response Plan Direct Response Message Strategy Direct Response Message Strategy Direct Response Media Strategy Direct Response Media Strategy Fulfillment Other IMC Plans Other IMC Plans
Copyright © 2008 Pearson Education Canada6-9 Traditional Forms of Direct Response Direct Mail Direct Response Television (DRTV) Direct Response Print Telemarketing Catalogues
Copyright © 2008 Pearson Education Canada6-10 Database Management It’s the list that makes or break the campaign A good system collects and maintains relevant customer information
Copyright © 2008 Pearson Education Canada6-11 Database Management: Internal Sources Collecting Data List information Purchasing behaviour Acquisition of external information Demographics Psychographics Accessing Data Instant, accessible storage system Data mining Allows profiling Prediction of future sales
Copyright © 2008 Pearson Education Canada6-12 Database Management: External Sources Lists can be purchased from a list broker and through a merge/purge process integrated into the database Three types of lists available 1. Response lists 2. Circulation lists 3. Compiled lists
Copyright © 2008 Pearson Education Canada6-13 Database Management: Online Sources Online Database – an information database accessible to anyone with adequate communications facilities Directory Database – provides a quick picture of a company and its products
Copyright © 2008 Pearson Education Canada6-14 Direct Mail Components Envelope Letter Leaflets and Folders Order Form Postage-paid Return Envelope Statement Stuffers
Copyright © 2008 Pearson Education Canada6-15 Direct Mail Components Example
Copyright © 2008 Pearson Education Canada6-16 Direct Mail Strategies Solo Direct Mail Solo Direct Mail Unique offers for unique customers by individual organizations Cooperative Direct Mail Cooperative Direct Mail Offers from non- competing companies in one envelope
Copyright © 2008 Pearson Education Canada6-17 Consumer Receptiveness
Copyright © 2008 Pearson Education Canada6-18 Advantages of Direct Mail
Copyright © 2008 Pearson Education Canada6-19 Disadvantages of Direct Mail
Copyright © 2008 Pearson Education Canada6-20 Direct Response Television DRTV is growing in popularity among traditional television advertisers Three types include Infomercials 30- and 60-second direct response commercials Direct home shopping
Copyright © 2008 Pearson Education Canada6-21 Direct Response Print Media Print is a good alternative when targeting an audience based on geographic and psychographic characteristics Two options include Ads in newspapers and magazines Inserts Tip-ins
Copyright © 2008 Pearson Education Canada6-22 Insert Example
Copyright © 2008 Pearson Education Canada6-23 Telemarketing Call Centre Inbound Calls Outbound Calls Offers from TV, Mail, or Print Offers from TV, Mail, or Print Offers for Specific Targets Offers for Specific Targets
Copyright © 2008 Pearson Education Canada6-24 Roles of Telemarketing To be effective, the telemarketing call must be carefully planned and the representative must be thoroughly trained Telemarketing is effective for Fundraising Sales Support Personal Selling Fulfillment Customer Service
Copyright © 2008 Pearson Education Canada6-25 Analysis of Telemarketing Advantages Cost offers considerable savings Response rates are 100 times higher than direct mail Disadvantages Negative image Calls unwelcome and intrusive Least-liked sales technique
Copyright © 2008 Pearson Education Canada6-26 Catalogues Catalogue marketing involves the merchandising of products through catalogue sales Leaders such as Sears and Canadian Tire see the value of integrated marketing communications
Copyright © 2008 Pearson Education Canada6-27 Catalogue Growth Catalogues offer convenience, a top priority among busy shoppers Consumers are into “multi-channel” shopping Companies are producing their own magazines to stay in touch with customers (CRM)
Copyright © 2008 Pearson Education Canada6-28 Chapter Review 1) Describe the direct response marketing communications planning process 2) Describe the various forms of direct response communications 3) Assess role of database management techniques in the design and implementation of direct response strategies (continued)
Copyright © 2008 Pearson Education Canada6-29 Chapter Review (Continued) 4) Evaluate various external list information sources and evaluate the role of these lists in building an effective direct response campaign 5) Explain the advantages and disadvantages of the various forms of direct response communications