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Direct Response

Direct Response. Chapter 15. Part Five: Integration and Evaluation. Part 5 deals with the complexities of marketing communications. Chapter Outline. Chapter Key Points The Practice of Direct Marketing Database Marketing The Key Players The Tools of Direct Marketing

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Direct Response

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  1. Direct Response Chapter 15

  2. Part Five:Integration and Evaluation • Part 5 deals with the complexities of marketing communications

  3. Chapter Outline • Chapter Key Points • The Practice of Direct Marketing • Database Marketing • The Key Players • The Tools of Direct Marketing • Integrated Direct Marketing • Global Considerations in Direct Marketing

  4. 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 direct-response programs can use • Explain how databases are used in direct marketing • Discuss the role of direct marketing in integrated marketing programs

  5. Visit the Site The Echo Awards: Celebrating Great Direct Marketing

  6. Figure 15.1 – The Direct-Marketing Industry The Practice of Direct Marketing

  7. Video Snippet Ogilvy & Mather: the first direct marketing company The Practice of Direct Marketing

  8. Advantages of Direct Marketing • Collection of relevant customer information • Purchase not restricted to location • Marketer controls product until delivery • Easier to evaluate • Flexibility in form and timing

  9. Disadvantages of Direct Marketing • Consumers reluctant to purchase • Annoyances associated with direct marketing • Unable to reach everyone in marketplace

  10. Figure 15.2 The Direct-Marketing Process

  11. Database Marketing Objectives • Record names of customers • Store and measure ad results • Store and measure purchasing performance • Vehicle for continuing direct communication

  12. Figure 15.3 The Database Marketing Process

  13. Database Marketing • Lists • Data-driven communication • Customer Relationship Management

  14. Visit the Site The Principles of Data-driven Relationships

  15. The Key Players:Advertisers • Companies whose primary business is selling products and services by mail or phone • Retail stores who use direct marketing as a supplement

  16. The Key Players:Agencies • Advertising agencies • Independent agencies • Service firms • Fulfillment houses

  17. The Key Players:Media Companies • The media that deliver messages by phone, mail, or the Web

  18. The Key Players:Customers • Recipients of the information and sometimes the initiator of the contact • Push-button shopper • Mouse-clicking shopper

  19. The Tools of Direct Marketing:Direct Mail • A print advertising message for a product or service delivered by mail • Outer envelope • Letter • Brochure • Supplemental flyers • Reply card • Return envelope

  20. Visit the Site Direct Mail Solutions from Anderson

  21. Advantages of Direct Mail • Tells a story • Engages attention • Personalizes message • Builds in feedback • Reaches the unreachable

  22. Disadvantages of Direct Mail • Negative perceptions • Cost • Mailing list • Response rate • Vulnerability

  23. The Tools of Direct Marketing:Catalogs • A multipage direct-mail publication that shows a variety of merchandise

  24. Advantages and Disadvantages of Catalogs Advantages Description Targeted Engages attention Complete information Convenience Can be directed at specific market segments. Employs high-quality design and photography (see Alsto’s cover). Extensive product information and comparisons are provided. Offer a variety of purchase options. Disadvantages Description Negative perceptions Costs Response rate Mailing list Catalogs are viewed as junk mail by many recipients. The cost per thousand of catalogs is higher than mass media. The response is relatively low at 3 to 4 percent. Databases must be consistently maintained. Table 15.2 Tools of Direct Marketing:Catalogs

  25. Tools of Direct Marketing:Telemarketing • Types of telemarketing • Criticisms of telemarketing • Telemarketing messaging design

  26. Visit the Site Do Not Call Registry:Keeping Telemarketers at Bay

  27. The Tools of Direct Marketing:Direct-Response Advertising • Combines the characteristics of advertising with a contact element • All direct-response advertising moves consumer to action

  28. The Internet and Direct Response • Same components as direct mail and telemarketing • Greater sampling opportunities • New ways to gather info

  29. USA Mail Now:Making Direct-Mailing Easier

  30. Integrated Direct Marketing • Challenge is to integrate direct mail, catalogs, telemarketing, Web sites, e-mail, text messaging, and instant messaging with other marketing communication

  31. Global Considerations in Direct Marketing • Fueled by the same technological forces as the U.S. • Particularly important in countries with tight restrictions on advertising • Privacy issues more intense • Governmental regulation of postal service

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