1. Offline and Online Direct Advertising 14

2. Direct Advertising The use of one or more advertising media to transmit messages that encourage purchases of the advertiser’s brands.

3. Growth of Direct Advertising Computer technology and database management Niche marketing

4. Database Marketing Collecting and electronically storing information about present, past, and prospective customers. Using data to profile customers and develop effective, efficient marketing programs by individual communication and relationship building.

5. The Role of Databases Databases allow a company to: Target best prospects for offering Offer varied messages Create long-term relationships with customers Enhance ad productivity Calculate the lifetime value of a prospect

6. Lifetime Value Analysis Customer Lifetime Value

7. Lifetime Value Anaysis Customer Lifetime Value

8. Lifetime Value Analysis

9. Two types of Mailing Lists Two types of Mailing Lists Based on a company’s own internal list of present or prospective customers Methods to obtain database information: » House listsExternal lists

10. Two types of Mailing Lists Two types of Mailing Lists House lists of other companiesHouse lists of other companies Compiled listsCompiled lists: Lists compiled by a company for its own purposes or lists purchased from another company that specializes in list compilation »Compiled lists are not as desirable. Why? House listsExternal lists

11. P-Mail Advertising Refers to any advertising matter sent directly to the person whom the marketer wishes to influence

12. P-Mail’s Distinctive features

13. Saab 9-5 P-Mail Questionnaire Direct mail questionnaire

14. Saab 9-5 P-Mail Response to Questionnaire Response to direct mail questionnaire

15. Trend Toward P-Mailing Rising expense of television advertising and increased audience fragmentation Unparalleled targeting of messages to desired prospects Increased emphasis on measurable advertising results Consumers are responsive and like p- mail (survey results)

16. Special P-Mail Case: Catalog Marketing Retail Catalog Full-line merchandise Consumer specialty Industrial specialty

17. Why Catalog Shopping? The Consumer’s Perspective Saves time Appeals to consumers who are fearful of shopping due to concerns about crime Leisurely decisions Toll-Free numbers Comparable quality and prices Guarantees are attractive

18. Where is catalog marketing? Catalog marketing has reached the mature life-cycle stage: »

19. See Text Data Mining E-Mail Advertising »Opt-in versus Spam »Virtues: Similar to P-Mail »Wireless E-Mail Advertising