Direct Response Part 5: Integration and Evaluation Chapter 15

Chapter Outline I.Chapter Key Points II.The Practice of Direct Marketing III.Database Marketing IV.The Key Players V.The Tools of Direct Marketing VI.Integrated Direct Marketing VII.Global Considerations in Direct Marketing

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

The Practice of Direct Marketing Occurs when a seller and customers deal with each other directly Four tools of direct marketing –Catalog –Direct mail –Telemarketing –Direct response advertising

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

Disadvantages of Direct Marketing Consumers are still reluctant to purchase a product they have not seen or touched Annoyances associated with direct marketing Unable to reach everyone in the marketplace

Direct-Response Advertising Combines the characteristics of advertising with a contact element The direct-marketing process –Objectives and strategies –The offer –Message and media strategy –The response/order –Fulfillment and customer maintenance –Evaluation

Database Marketing A practice that uses databases to predict trends and monitor consumers Four primary objectives 1.Record names of customers 2.Store and measure results of advertising 3.Store and measure purchasing performance 4.Vehicle for continuing direct communication

The Database Marketing Process 1.Collection point 2.Data entry 3.Data assessment 4.Data clustering 5.Data application 6.Data sharing 7.Data refinement

The Key Players Advertisers Agencies Media Companies Customers Companies whose primary business is selling products and services by mail or telephone Retail stores who use direct marketing as a supplement to other forms of marketing communication

The Key Players Advertisers Agencies Media Companies Customers Advertising agencies Independent agencies Service firms Fulfillment houses

The Key Players Advertisers Agencies Media Companies Customers The media that deliver messages by phone, mail, or the Web

The Key Players Advertisers Agencies Media Companies Customers Recipients of the information and sometimes the initiator of the contact –Push-button shopper –Mouse-clicking shopper

The Tools of Direct Marketing: Direct Mail A print advertising message for a product or service that is delivered by mail Practical Tips Get attention Create a need Answer questions Provide critical information Inspire confidence, minimize risks Make the sale Use an incentive

The Tools of Direct Marketing: Direct Mail Advantages Tells a story Engages attention Personalizes message Builds in feedback Reaches the unreachable Disadvantages Negative perceptions Cost Mailing list Response rate Vulnerability

The Tools of Direct Marketing: Catalogs A multi-page direct-mail publication that shows a variety of merchandise Growth in this field is in the area of specialty catalogs Video catalogs provide more information about products

The Tools of Direct Marketing: Catalogs Advantages Targeted Engages attention Complete information Convenience Disadvantages Negative perceptions Costs Response rate Mailing list

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

The Tools of Direct Marketing: Direct-Response Advertising All direct-response advertising moves the consumer to action Well-targeted Reaches prime audience

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

Integrated Direct Marketing The challenge is to integrate direct mail, catalogs, telemarketing, Web sites, , text messaging, and instant messaging with other marketing communication –Integrated direct marketing (IDM)

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