Transcript Direct Marketing - McGraw Hill Higher Education

14
Direct Marketing
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Direct Marketing Defined
…an interactive system of marketing which
uses one or more advertising media to effect
a measurable response and/or transaction
at any location
Print
Interactive TV
Telemarketing
The Internet
Direct Mail
Other Media
14-2
Growth of Direct Marketing
Miscellaneous
factors
Consumer
Credit Cards
Catalogs
Changing
Structure of
Markets
Changing
Structure of
Society
Technological
Advances
14-3
Direct Marketing Combines With…
Public
Relations
Advertising
Direct
Marketing
Support
Media
Personal
Selling
Sales
Promotions
14-4
Promotional Offers Through the Mail
14-5
How Database Marketing Works
14-6
A Comprehensive Consumer Database
Name
Gender
Occupation
Address/
Zip Code
Marital
Status
Transaction
History
Telephone
Number
Family
Data
Promotion
History
Length of
Residence
Education
Inquiry
History
Age
Income
Unique
Identifier
14-7
A Business-to-Business Database
Contact Info
Industrial
Classification
Headquarters
Location
Contact
Title
Size of
Business
Purchase
History
Telephone
Number
Revenues
Promotion
History
Source of
order, inquiry,
referral
Number of
Employees
Inquiry
History
Credit
History
Time in
Business
Unique
Identifier
14-8
Test Your Knowledge
For market segmentation and targeting, direct
marketers rely most heavily on:
A) Primary qualitative research
B) Census data
C) A database
D) Survey responses
E) Focus groups
14-9
Objectives of Database Marketing
Improve Selection of
Market Segments
Stimulate Repeat
Purchases
Objectives
Cross-selling Other
Products
Customer Relationship
Management
14-10
Developing a Database
List Brokers
Experion
Simmons Market
Research Bureau
Standard Rate &
Data Service
Sources
U.S. Census
Bureau
U.S. Postal
Service
Direct Marketing
Association
14-11
Effective Databases
RFM Scoring
Recency
Monetary
transactions
Frequency
14-12
Direct Marketing Strategies
One-Step
Two-Step
• The medium is used
directly to obtain an
order
• May use one medium
to obtain inquiry and
qualify prospect
• Often uses toll-free
phone orders and
credit card payments
• Follow-up with a
second medium to
complete the sale
14-13
Porsche Targets Prospects
• Target Criteria
• Physicians in specialties
• Highest income levels
• Demographics of Porsche buyers
• Specific geographic areas
• Hooks
• Use X-ray of a Porsche 911 Carrera 4
• Use medical terminology
14-14
Success with Catalogs
14-15
Test Your Knowledge
Which of the following statements about the use of
catalogs in the direct-marketing industry is true?
A) The emotional appeal of Internet catalogs
exceeds that of print catalogs.
B) The number of catalogs being mailed
each year has decreased significantly.
C) Many companies use catalogs in
conjunction with their more traditional
sales and promotional strategies.
D) No company in business today relies solely
on catalog sales.
14-16
TV Spots, Infomercials, Home Shopping
14-17
Direct-Response versus Support Ads
Directresponse
advertising
Product/service offered
Sales response solicited
Toll-free numbers included
TV spots, infomercials,
home shopping shows
Support
advertising
Reader’s Digest asks you to watch
mailbox for sweepstakes entry
Supports other advertising
14-18
Direct Marketing via Print Media
14-19
Telemarketing
Used by
for-profit &
charitable
organizations
Supports
one- and
two-step
marketing
Big industry,
but
decreasing
sales
Potential for
fraud and
deception
Annoys
consumers
Impacted by
Do Not Call
lists
14-20
Forms of Direct Selling
Repetitive
person-to-person
Nonrepetitive
person-to-person
Party Plans
14-21
Measuring Effectiveness
Cost per Order (CPO)
14-22
Direct Marketing Advantages
Selective reach
Segmentation
Frequency potential
Testing
Timing
Personalization
Costs
Measures of effectiveness
14-23
Direct Marketing Disadvantages
Accuracy
Image
factors
Do Not
Contact lists
Content
support
Rising
costs
14-24