Direct response is growing in popularity among traditional marketing

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Transcript Direct response is growing in popularity among traditional marketing

Direct Response Communications
Messages communicated directly to prospects that generate
a measurable response.
 Accountability for $ invested
 Results are immediate
 Natural extension of database marketing
Direct response is growing in popularity among traditional
marketing organizations.
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DR Alternatives
A variety of options are available to communicate directly
with a target audience or an audience of one.
 Direct Mail
 DRTV
 Catalogues
 Telemarketing
 Online and Interactive
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Direct Mail
Direct mail delivers detailed messages in a personal
manner.
• Sales Letters
• Leaflets & Flyers
• Folders
• Statement Stuffers
The above elements are often combined in one
mailing.
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Direct Mail Strategy
Solo
Direct Mail
Personalized mail
delivered to individual
prospects.
Cooperative
Direct Mail
General mailing
containing offers of
non-competing goods
and services.
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Information is Key to Success
The “list” is the backbone of a direct mail campaign.
Internal
Sources
External
Sources
 House List
 Database
 List Broker
 Merge/Purge
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The List Business
As a request for names becomes more specialized (quality)
the cost increases. Lists are rented on a CPM basis.
Proven buyers
Response List
Circulation List
Lists of subscribers
Compiled List
Prepared from public
sources
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Direct Response Television
A “sales-oriented” broadcast message that encourages
immediate action.
Traditional
Rapid pace, buy now style.
Corporate/Brand
Detailed communications in
a lengthy format.
Lengthier formats are called infomercials.
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Catalogues
Reference publications distributed by large retail outlets and
direct market retailers
General and specialized formats
Most catalogues now online
Catalogues play a key role in the marketing strategies of
Sears and Canadian Tire. Sears delivers 4.1 million
catalogues annually.
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Telemarketing
Call Centre
Inbound
Outbound
Telemarketing completes the sale at much lower cost
than personal selling or mass advertising.
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Interactive Communications
Interactive communications now play an increasingly
important role.
Options:
Benefits:
1. Online communications
1. Personalization
2. Text and video messaging
through cell phones
2. Relationship-oriented
3. Complements
traditional media
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Online Advertising
People are watch (TV), listening to (radio), and reading
(print) less. What choice does an advertiser have but to
consider online advertising.
1. Traditional media are passive in nature,
online communications are interactive.
2. Online advertising can achieve the same
objectives as offline advertising.
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Online Measurements
Some key measures of a successful online campaign
include:
 Impressions or page views
 Clicks
 Clickthrough Rate
Clickthrough Rate = Clicks / Impressions
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Banner Advertising
Standard Banner
Bigger is
better!!
Skyscraper
Rectangle
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Other Forms of Online Advertising
Online advertising is becoming more polished and video
ads are much like TV-style ads.
 Animated banners
 Interstitials (rich media)
 Superstitials (rich media)
Superstitials resemble TV ads so they are attractive to
traditional media advertisers.
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Online Sponsorships
Web content attracts an audience. The homogeneous
characteristics of the audience attracts potential
sponsors.
TSN.ca attracts young males and is therefore
attractive to beer, fast food and automotive
companies.
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E-Mail Advertising
Database marketing technology has spurred growth
in e-mail advertising.
1. Permission-based (Opt-in)
2. Sponsored e-mail (messages from
other advertisers with e-mail)
A majority of Internet users agree to receive e-mail
advertising.
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Text and Video Messaging
Communicating text, video, and music over cell phones
will create new advertising opportunities.
Cell phones are:
• Popular with youth (52% ownership)
• Person-to-person link
• Phone spam will be an issue to deal with
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Web Sites
An opportunity to “tell a story.” Information and more
information is what visitors are looking for.
 Other forms of advertising should drive
traffic to the Web site.
 50% of B2B decision-makers consult Web
sites prior to making buying decisions.
 Webcasting is starting to take hold.
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Benefit of Online Advertising
Database opportunities are available from site registrations,
questionnaires, contest entries and customer feedback.
1. Ability to target audiences
2. Messages can be personalized
3. Customers seek you rather than you
seeking customers
4. One-to-one relationships form and build
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