Direct Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Radio Direct Selling Magazine and Newspaper Direct Mail Telemarketing TV Selling Radio TV Selling Direct Mail Magazine and Newspaper Direct Selling Direct Marketing Defined © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin “The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a prospective customer.”

Database Marketing: How It Works © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Comprehensive Consumer Data Base © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Name Address/ Zip Code Telephone Number Length of Residence Age Gender Marital Status Family Data Education Income Occupation Transaction History Promotion History Inquiring History Unique Identifier Name Address/ Zip Code Telephone Number Length of Residence Age Gender Marital Status Family Data Education Income Occupation Transaction History Promotion History Inquiring History

Improve Selection of Market Segments Stimulate Repeat Purchases Cross-selling Other Products Customer Relationship Management Cross-selling Other Products Stimulate Repeat Purchases Improve Selection of Market Segments Objectives of Database Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objectives

List Services Direct Marketing Association Direct Marketing Association Standard Rate & Data Service (SRDS) Standard Rate & Data Service (SRDS) U.S. Postal Service Simmons Market Research Bureau Simmons Market Research Bureau U.S. Census Bureau Direct Marketing Association Direct Marketing Association U.S. Postal Service Standard Rate & Data Service (SRDS) Standard Rate & Data Service (SRDS) List Services Developing a Database © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sources

Direct Mail Catalogs Broadcast Media TV Spots Infomercials Homeshopping Print Media Telemarketing Print Media Homeshopping Infomercials TV Spots Broadcast Media Catalogs Direct Mail Direct-Marketing Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media

Porsche Targets Prospects with Direct Mail © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Direct Response Print Ad © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Effective Databases RFM Scoring Frequency Recency Monetary transactions 14-10

Success with Catalogs 14-11

Outbound and Inbound Telemarketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Inbound Telephone calling by the marketer or marketer’s agent to individual prospects, seeking purchase, subscription, membership, or participation by the call recipient. Marketers’ facilities and invitations to prospects to call a central location or long distance number or by toll-free, 800 or fixed cost 900 number. Outbound

The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2005 – Internet advertising exceeds $10 billion 1993 – World Wide Web 1994 – Advertisements on HotWired ARPANET 1994 – Advertisements on HotWired 1993 – World Wide Web ARPANET Growth in Advertising Expenditures on the Internet © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 2011: 70 Billion+

Quarterly Internet Ad Revenues (in Millions)

October 11, 2011 Forecast

Internet Advertising Spending _release_archive/press_release/pr Newest Information (Sept. 28, 2011)

Create Awareness Create an Image Generate Interest Disseminate Information Stimulate Trial Create a Strong Brand Create an Image Disseminate Information Generate Interest Create Awareness Internet Communications Objectives © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objectives

Kellogg’s Uses the Internet to stimulate sales and gather data © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Typical Banner Ads © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Podcasting Really Simple Syndication (RSS) Additional Internet Advertising Forms © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Latest Media Blogs

Trend toward Customized Advertising or Individualized Targeting Google: Personalized Ads tab=tab2http:// tab=tab2 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

REAL Personalized Targeting What are the possibilities? Imagine the following Banner Ad:

What are the possibilities? Hey John Stockmyer, how would you like to be behind the wheel of a new 370 Z?

What are the possibilities? Bender Nissan will offer you $3000 right now for your old 2000 Sentra….

What are the possibilities? Don’t wait! In 2 months, your car will only be worth $2000.

What are the possibilities? Act within 30 minutes for a $3500 trade-in PLUS a free set of floormats! Click Here To Arrange a Test-Drive