Transcript Chapter 1: Where Marketing Communication Began

Chapter 13
Direct marketing and
communication
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Learning objectives
1. To examine the development and reasons for
growth of direct marketing communication.
2. To define the role and relationships of direct
marketing, the internet and interactive media in
an IMC program.
3. To identify the advantages and disadvantages of
direct marketing communication.
4. To evaluate the effectiveness of communication
through direct marketing communication.
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Advantages
Limitations
Growth
Direct
marketing
Part of IMC
Objectives
Advertising
PR
Measuring
effectiveness
Media
Mail and print
Catalogues
Personal
Selling
Broadcast
Support
Telephony
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Guide Dogs Australia
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Direct marketing defined
Techniques
DM media
Direct marketing is a system by which organisations
communicate directly with target customers to generate a
response or transaction.
Interpersonal
Telephone
Direct selling
Catalogues
TV, Radio & Print
Telemarketing
Direct response
Mail
Direct mail
Internet & email
SMS
Electronic home shopping
Electronic interactive marketing
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Anthony Hordens’ mail-order
catalogue
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Growth of direct marketing
Consumer credit cards
Direct marketing syndicates
Changing structure of society
Technological advances
Miscellaneous factors
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Direct marketing: roles and
relationships
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Direct marketing combines with . . .
Advertising
Internet
Public relations
Direct
marketing
Support media
Personal selling
Sales promotion
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Dirt Action direct marketing
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Advantages
Limitations
Growth
Direct
marketing
Part of IMC
Objectives
Advertising
PR
Measuring
effectiveness
Media
Mail and print
Catalogues
Personal
Selling
Broadcast
Support
Telephony
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Developing a database
Improve selection of market
segments
Stimulate repeat purchases
Objectives
Cross-selling other
products
Customer relationship
management
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Sources of information for
developing a database
List services
Online search
behaviours
Syndicated
research
Retail transaction
histories
Info
sources
Credit bureaux
Postal services
Bureaux of
statistics
Direct marketing
associations
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A comprehensive consumer
database
Name
Gender
Occupation
Address/
postcode
Marital
status
Transaction
history
Telephone
number
Family
data
Promotion
history
Length of
residence
Education
Inquiring
history
Age
Income
Unique
identifier
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Direct marketing and customer
loyalty
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Advantages
Limitations
Growth
Direct
marketing
Part of IMC
Objectives
Advertising
PR
Measuring
effectiveness
Media
Mail and print
Catalogues
Personal
Selling
Broadcast
Support
Telephony
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Direct marketing media strategies
One-step
approach
•
The medium is used to
obtain an order
•
Goal is to generate an
immediate sale
Two-step
approach
•
The medium is used for
inquiry and to qualify
prospects
•
Follow up with a second
medium to complete the
sale
•
Also known as permission
marketing
Examples:
•
Reply paid coupons
•
1-800 numbers
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DM Media: mail
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DM Media: catalogues
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DM Media: unwrapped catalogue
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DM Media: catalogue websites
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Direct selling
Repetitive
personto-person selling
Non-repetitive
personto-person selling
Direct
selling
Party
plans
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Evaluating DM effectiveness
Measures
Non-behavioural
objective
Traditional measures
• Brand awareness
• Brand attitude
Behavioural objective
DM specific measures
• Cost per order (CPO)
• Other measures of brand
health
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Direct marketing advantages
and disadvantages
Advantages
Selective reach
Segmentation capability
Disadvantages
Image factors
Accuracy
Frequency potential
Flexibility
Timing
Content support
Rising costs
Personalisation
Economy
Measurement of effectiveness
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Summary and conclusions
 As advertisers search for more cost efficient
means of reaching markets, direct marketing
and direct response media continue to grow.
 Advantages of direct marketing include the
ability to tightly segment, high level of
message personalisation as well as excellent
cost efficiency.
 Advantages of the internet include its
versatility, interactivity and its use in building
customer relationships.
 This chapter also considers means of
evaluating the performance of DM and the
internet.
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