Chapter Objectives To recognize the purpose of direct marketing as a communications tool. To appreciate the strategies and tactics involved in direct marketing. To demonstrate the use of direct marketing media. To determine the scope and effectiveness of direct marketing.

Direct Marketing Catalog Selling Direct Selling Direct Action Advertising Direct Mail Telemarketing TV Selling Catalog Selling TV Selling Direct Mail Direct Action Advertising Direct Selling “Any medium where a seller can contact prospective customers and then accept the orders”

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Growth of Direct Marketing Miscellaneous factors Technical Advances Direct Marketing Syndicates Changing Structure of Society Consumer Credit Cards Technical Advances Direct Marketing Syndicates Changing Structure of Society Consumer Credit Cards

Direct Marketing in the IMC Program Public Relations Public Relations Personal Selling Personal Selling Sales Promotion Sales Promotion Direct Marketing Direct Marketing Advertising Sales Promotion Sales Promotion Personal Selling Personal Selling Public Relations Public Relations Advertising IMC Program

Direct Marketing Program Plan Companies must determine: 1.What program’s objectives will be. 2.Who to target by using a database. 3.What direct marketing strategy will be employed. 4.How to measure direct marketing effectiveness.

1. Direct Marketing Objectives Behavioural Response Build an Image Inform and/or Educate Customer Relationship Management Inform and/or Educate Build an Image Behavioural Response Objectives

2. Database Marketing – How It Works

2. Sources of Database Information Info Canada Marketing Research Houses List Services Canada Post Statistics Canada

3. Direct Marketing Media Strategy One Step Two Step One Step The medium is used directly to obtain an order. Often use 800 number phone orders and credit card payment. Use one medium to obtain inquiry, qualify prospect. Typically follow up with another medium to complete sale.

Strengths and Limitations Accuracy Rising Costs Image Factors Content Support Selective Reach Segmentation Capability Frequency Potential Flexibility Timing Personalization Economy StrengthsLimitations Measurement of Effectiveness Accuracy Image Factors Content Support Selective Reach Segmentation Capability Frequency Potential Flexibility Timing Personalization Economy Measurement of Effectiveness