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
How Database Marketing Works
14-5
Objectives of Database Marketing
Improve Selection of
Market Segments
Stimulate Repeat
Purchases
Objectives
Cross-selling Other
Products
Customer Relationship
Management
14-6
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
14-7
Effective Databases
RFM Scoring
Recency
Monetary
transactions
Frequency
14-8
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
14-9
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
14-10
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
14-11
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
14-12
Forms of Direct Selling
Repetitive
person-to-person
Nonrepetitive
person-to-person
Party Plans
14-13
Direct Marketing Advantages
Selective reach
Segmentation
Frequency potential
Testing
Timing
Personalization
Costs
Measures of effectiveness
14-14
Direct Marketing Disadvantages
Accuracy
Image
factors
Do Not
Contact lists
Content
support
Rising
costs
14-15