1. Database Marketing and Direct Response Marketing
Chapter – Eleven (11)
Lecturer – Md Shahedur Rahman

2. Remember this !!
IMC program relies heavily on the employees who have the most interactions with customers.
These individuals are the face of the company.
A positive experience may cause the buyer to provide positive WOM to as many as 6 other people, while a negative experience will result in another 11 people knowing about it.

3. Personal Selling

4. Personal Selling The “last 3 feet” of marketing
A bond of partnership between a sales rep and a client is a valuable asset.
Personal selling can be classified into:
Retail sales
Selling in retail outlets
Selling services
Telemarketing
Business to Business selling

5. Retail Sales Selling in retail outlets Selling services Telemarketing
Single transaction
Order-takers – only filling orders, or order taking and cashier
Selling services
Sales representatives – driving the relationship. Single, repeat or problem solving ( Insurance Selling )
Selling and providing services – selling car oil and provide oil change service
Telemarketing
In-bound telemarketing
Out-bound telemarketing

6. Cross Selling
Cross-selling involves the marketing of other items following the purchase of a good or service
Banks selling insurance, loans and other financial solutions

7. Database Marketing

8. Database Marketing
Database development and database marketing programs are often used to supplement personal selling activities.
Database development refers to the creation of a database to support the overall company, IMC program and the total marketing effort.

9. Database Marketing Steps of developing such a database are:
Determine objectives
Collect data
Build the data warehouse
Mine data for information
Develop marketing programs
Evaluate marketing programs and data warehouses

10. Determining Objectives
What kinds of data are currently available?
When (or how often) will information be collected?
What additional data are needed?
Where will the data be located or stored?
Why do we need certain data and not other types?
How will the data be used and who will use it?

11. Typical Objectives for an IMC Database
Provide useful information about a firm’s customers
Create information about why customers purchase the products
Share information about customers with creatives as they prepare advertisements and promotional materials
Reveal contact points to be used in direct-marketing programs
Yield information about members of various buying centers in B2B operations
Track changes in purchasing behaviors and purchasing criteria used by customers

12. Collecting Data
Internal customer data – customers and survey data collected from customers
More than just name and address
Scanning technology allows us to track purchasing behavior of buyers
Helps marketing team identify and profile company’s best customers
Helps them develop ways to cross-sell and create profiles of prospects

13. Collecting Data
External data – psychographic, lifestyle, and attitudinal information
Secondary data like commercial database services
Information collected from channel members (wholesalers and retailers)
Government data sources

14. Building a Data Warehouse
Developing a useful data warehouse requires an understanding of all the various ways members of the organization might use data.
Some typical uses can be:
Targeting customers for a direct marketing program
Salespeople have access to important customer information while making sales calls
Giving the service department and customer relations department access to customer data as they deal with inquiries and complaints

15. Data Mining
Data mining usually has either of the following 2 approaches:
Building profiles of customer groups
Preparing models that predict future purchase behaviors based on past purchases

16. Developing Marketing Programs
Once the data have been mined for information, individual marketing programs can be designed
The data provides clues about the best approach for each customer group ( What appeal or message strategy to use ?)

17. A Quality database helps
Marketing team decide on types of sales promotions to be used
Advertising media to be selected
Type of information that will spark the interest of a particular group of customers

18. Evaluating Marketing Programs and Data Warehouses
A high-quality database will contain information about as many customers as possible, where each transaction will be recorded.
This allows for the analysis of various purchasing trends among customer groups and even individual customers.

19. Evaluating Marketing Programs and Data Warehouses
Questions to be answered can be like the following:
Do our customers know our overall theme and image?
Have we moved toward greater brand equity in the past year?
Which items are our customers most inclined to buy?
Which are not selling well? Do we know why?
Is our customer base changing? Is it because we have changed, or is it because the new group is better suited to our products?

20. Direct Marketing

21. Direct Marketing
Direct marketing is vending products to customers without the use of other channel members.
60% of the direct marketing budget is used for prospecting
40% is directed towards retaining current customers
Typical forms of direct marketing include:
Mail
Mail-order Catalogs
Mass Media – TV, radio, magazines and newspapers
Alternative Media

22. Mail

23. Catalogue

24. Mass Media

25. Alternative Media

26. Internet

28. Permission Marketing A relatively new form of direct marketing
Here, information is only sent to consumers who give the company permission to do so.
Can be offered on the internet, over phone, or through direct mail
Response rates tend to be higher, because consumers are receiving only marketing materials they have asked for

29. Permission Marketing
Steps to a successful permission marketing program are:
Obtain permission from customer
Offer the customer an ongoing curriculum that is meaningful
Reinforce the incentive to continue the relationship
Increase the level of permission
Leverage the permission to benefit both the parties

30. Customer Relationship Marketing

31. Customer Relationship Management
These programs are designed to build long-term loyalty and bonds with customers through the use of a personal touch facilitated by technology
CRM programs go beyond database management and regular selling tactics

33. CRM has 3 technological underpinnings:
Database technology, including the ability to analyze and map data
Interactivity through web sites, call centers, and other means of contacting customers
Mass customization technology, or the ability to customize a good or service to better meet a customer’s needs

34. Steps in Customer Relationship Management
Identify the firm’s customers – using standard data collection techniques and the firm’s database
Differentiate customers in terms of their needs and their value to the selling company
Lifetime value of the customer
Share of customer
Interact with customers in ways that improve the cost efficiency and the effectiveness of these contacts
Customize some aspects of the goods and services being offered to the customer

35. Instead of trying to find customers for the products you have got, you find new products for the customers you have already got.
Seth Godin