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Direct Marketing Part 5: Integration and Evaluation Chapter 15 Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1 Key Points Define and distinguish between direct marketing and direct-response advertising Explain the types of direct marketing Name the players in direct marketing Evaluate the various media that directresponse programs can use Explain how databases are used in direct marketing Discuss the role of direct marketing in integrated marketing programs Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-2 Direct marketing the process that seller and customer deal with each other directly without intermediary involvement such as wholesaler, retailer For: Profit and non-profit organization GOAL: produce a sale and other actions (short-term Definition: is results) Tools: direct mail, catalogue, telemarketing, directresponse ad Evaluation: easy to evaluate Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 3 The Direct-Marketing Process Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-4 Objectives Lead generation: provide basic information e.g. description of product, terms of sale, payment & delivery information Traffic generation: motivate customers to visit or come to seller place Purchase : order product and make payment Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 5 The offer - All direct marketing contains an offer, consisting of a description of the product, terms of sale, payment and delivery Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-6 Direct marketing Database (the heart of direct marketing) -To keep track of the customers and identify prospective consumers and as a segment tool for communicating offers to customers and prospects List: a database of prospects and customer’s contact information Type of lists House list: the marketer’s own customers e.g. customer receipt, credit card information, etc. Response list: are collection of customers who have responded to the direct-mail offer Complied list: are collections of names with some common interest. Rented from direct-mail list broker e.g. sports car owner, graduating lists, new homebuyers, subscribers to magazine, cable TV Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 7 Message and Media Strategy The message is often longer and detailed It contains more explanation Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-8 The Response/Order Direct marketing may include a promotional device such as a gift or limited-time-only price deal It aims at creating the immediate response, sales Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-9 Fulfillment and Customer Maintenance Getting the product to the customer who ordered it Maintaining the customer relationship Evaluation - Sales, number of visitors, etc. Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-10 Tools of direct marketing Controllable media 1. Direct mail A print advertising message for a product or service that is delivered by mail Advantage: attention, personalized message Disadvantage: cost, mailing list is not update, low response rate Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 11 Tools of direct marketing (contd.) 3. Telemarketing: Ad that delivered through phone call Persuasive personal call e.g. software - It may be used with other tools such as catalogue, ad. Outbound-The co. pitches the product to the customer high resistance Inbound- The customers sees the product and asks for more info. Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-12 Tools of direct marketing (contd.) 2. Catalog : A multi-page direct-mail publication that shows a variety of merchandise Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-13 Tools of direct marketing (contd.) 4. Direct response ads: Combines the characteristics of advertising with a contact element : Advertising that seeks to achieve an action-oriented objective. Toll free number, Coupon order form in newspaper and magazine Response card in magazine Bind-in (response card attached-> tear out when using) or Blow-in (response card not attached but inserted less reliable (may fall out) Infomercial program in TV (demonstration of product) e.g TV Direct Sampling opportunity in internet Media: TV, newspaper, magazine, radio, internet, etc. Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-14 Direct marketing Advantage & Disadvantage + -Data collection -Added value e.g. ease of purchase -Marketer control the product -Effective, easier to evaluate -Flexibility of form and timing Wells, Moriarty, Burnett & Lwin - Xth Edition -Consumer may not be able to see the product before purchasing -Annoyance e.g. bulk of mails -Inability to reach everyone in the market (direct mail, telemarketing) ADVERTISING Principles and Effective IMC Practice 15