Transcript Chapters 14 and 15

Direct Marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct Marketing Defined
“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.”
TV Selling
Radio
Telemarketing
Direct Selling
Direct Mail
Magazine and Newspaper
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Database Marketing: How It Works
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Comprehensive Consumer Data Base
Name
Gender
Occupation
Address/
Zip Code
Marital
Status
Transaction
History
Telephone
Number
Family
Data
Promotion
History
Length of
Residence
Education
Inquiring
History
Age
Income
Unique
Identifier
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objectives of Database Marketing
Improve Selection of
Market Segments
Stimulate Repeat
Purchases
Objectives
Cross-selling Other
Products
Customer Relationship
Management
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing a Database
List Services
Standard Rate &
Data Service
(SRDS)
Simmons Market
Research Bureau
Sources
U.S. Census
Bureau
U.S. Postal
Service
Direct Marketing
Association
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct-Marketing Media
Direct Mail
Catalogs
Broadcast
Media
Telemarketing
Media
Print Media
TV Spots
Homeshopping
Infomercials
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Recency
Monetary
transactions
Frequency
14-10
Success with Catalogs
14-11
Outbound and Inbound Telemarketing
Outbound
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.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Internet and
Interactive Media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Growth in Advertising Expenditures on the Internet
1969 - ARPANET
1993 – World Wide Web
1994 – Advertisements on HotWired
2005 – Internet advertising exceeds
$10 billion
2011: 70 Billion+
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Quarterly Internet Ad Revenues
(in Millions)
http://www.iab.net/news/pr_2006_11_14.asp
October 11, 2011 Forecast
Internet Advertising Spending
Newest Information (Sept. 28, 2011)
http://www.iab.net/about_the_iab/recent_press_releases/press
_release_archive/press_release/pr-092811
Internet Communications Objectives
Create
Awareness
Generate
Interest
Stimulate Trial
Objectives
Disseminate
Information
Create a Strong
Brand
Create an Image
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Additional Internet Advertising Forms
Latest Media
Really Simple
Syndication (RSS)
Podcasting
Blogs
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Trend toward Customized Advertising
or Individualized Targeting
• Google: Personalized Ads
• http://www.google.com/adwords/watchthisspace/index.html#
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
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What are the possibilities?
• Don’t wait! In 2 months, your car
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What are the possibilities?
• Act within 30 minutes for a $3500
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