slide1
Download
Skip this Video
Download Presentation
Direct Marketing

Loading in 2 Seconds...

play fullscreen
1 / 17

Direct Marketing - PowerPoint PPT Presentation


  • 445 Views
  • Uploaded on

Chapter 19 Direct Marketing © 2006 Thomson/South-Western Introductory Scenario: Don’ Mess With Less Who was Les Wunderman? He created the Columbia House record club and “invented” the modern era of direct marketing

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Direct Marketing' - adamdaniel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Chapter 19

Direct Marketing

© 2006 Thomson/South-Western

introductory scenario don mess with less
Introductory Scenario: Don’ Mess With Less
  • Who was Les Wunderman?
  • He created the Columbia House record club and “invented” the modern era of direct marketing
  • The genius of his idea was creating a dialogue (monthly response) with consumers which led to a building

a relationship

Ch 19: Direct Marketing 2

© 2006 Thomson/South-Western

direct marketing
Direct Marketing
  • Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location
  • Common purposes of direct marketing
    • Close the sale
    • Identify prospects for future contacts
    • Provide in-depth information
    • Seek information from consumers
    • Foster brand loyalty

Ch 19: Direct Marketing 3

© 2006 Thomson/South-Western

direct marketing a look back
Direct Marketing: A Look Back
  • L.L. Bean founded in 1912
  • Fundamental strategy:
    • Commitment to quality
    • Descriptive copy that was informative, factual, low-key
    • Satisfaction guarantee
  • Bean built a good mailing list
  • By 1990 Bean’s sales were $600 million; by 2004, about $1.2 billion

Ch 19: Direct Marketing 4

© 2006 Thomson/South-Western

direct marketing milestones
Direct Marketing: Milestones
  • 1450–-Invention of movable type
  • 1667—First gardening catalog
  • 1744–-Franklin formulates mail-order concept of “satisfaction guaranteed”
  • 1872---Montgomery Ward catalog
  • 1886---Sears starts mail-order business
  • 1917 Direct Marketing Advertising Association founded

Ch 19: Direct Marketing 5

© 2006 Thomson/South-Western

direct marketing milestones6
Direct Marketing: Milestones
  • 1928–-Third-class bulk mail introduced
  • 1950—First credit card
  • 1951–-Lillian Vernon places first ad
  • 1953–-Publishers Clearing House founded
  • 1967–-AT&T introduces toll-free 800
  • 1992–-Over 100 million in U.S. shop at home

Ch 19: Direct Marketing 6

© 2006 Thomson/South-Western

direct marketing today
Direct Marketing Today
  • More than just mail-order
  • A tool used by organizations throughout the world
  • Direct marketing often is not integrated with other advertising efforts
  • Three Principle Purposes
    • close a sale with a customer
    • ID prospects and develop customer info.
    • Engage customers, seek their advice and

generate brand loyalty

Ch 19: Direct Marketing 7

© 2006 Thomson/South-Western

what s driving direct marketing
What’s Driving Direct Marketing?
  • CONVENIENCE! for today’s dual income and single parent households.
  • More liberal attitudes toward using credit
  • Greater access to toll-free calling
  • Computer technology to facilitate transactions
  • On-line shopping
  • Cost per inquiry (CPI) and cost per order (CPO) advantages of direct marketing

Ch 19: Direct Marketing 8

© 2006 Thomson/South-Western

database marketing
Database Marketing
  • Knowing who the best customers are as well as what and how often they buy
  • Mailing lists
    • Internal lists
    • External lists

Ch 19: Direct Marketing 9

© 2006 Thomson/South-Western

list enhancement
List Enhancement
  • Augmenting lists with externally provided lists
  • Incorporating information from external databases
    • Demographic data
    • Geodemographic data
    • Psychographic data
    • Behavioral data

Ch 19: Direct Marketing 10

© 2006 Thomson/South-Western

the marketing database
The Marketing Database
  • Includes data collected directly from individual customers
  • Goal: Develop cybernetic intimacy
  • Marketing database applications
    • RFM analysis
    • Frequency-marketing programs
    • Cross-selling
  • Privacy concerns

Ch 19: Direct Marketing 11

© 2006 Thomson/South-Western

media applications in direct marketing
Media Applications in Direct Marketing
  • Direct response advertising
  • Direct Mail
  • Telemarketing
  • E-mail
  • Other media
    • Magazines
    • Newspapers
    • Infomercials

Ch 19: Direct Marketing 12

© 2006 Thomson/South-Western

direct mail
Direct Mail
  • Advantages
    • Selective, flexible, little waste, lends itself to testing, uses many formats
  • Disadvantages
    • Direct mail is expensive
      • May cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial
    • Mail lists can be plagued with bad addresses
    • Mail delivery dates can be unpredictable

Ch 19: Direct Marketing 13

© 2006 Thomson/South-Western

e mail
E-Mail
  • Bulk e-mail is known as “spam”
  • However e-mail is an increasingly popular tool for marketers
  • Advantages
    • Cheap
    • Good response rates
  • Netiquette suggests getting consumer permission to send product information
  • Avoid bulk e-mailings

Ch 19: Direct Marketing 14

© 2006 Thomson/South-Western

direct response advertising
Direct Response Advertising
  • Multiple media can be deployed to generate an immediate, measurable response.
  • Most common media used are direct mail and telemarketing
  • However all conventional media can be used

Ch 19: Direct Marketing 15

© 2006 Thomson/South-Western

direct response advertising in other media
Direct Response Advertising in Other Media
  • Magazines use bind-in insert card
  • Toll-free 800 numbers are vital to direct marketers using ads in newspapers and magazines
  • Infomercial
    • Long television advertisement
    • Range in length from 3 to 60 minutes
    • Keys to success
      • Testimonials
      • Frequent call to actions
      • Ensure same-day response

Ch 19: Direct Marketing 16

© 2006 Thomson/South-Western

coordination challenge
Coordination Challenge
  • Functional specialists across several media need to work together
  • Marketing databases can lead to interdepartmental rivalries
  • Growth of direct marketing often means cuts in other promotional budgets
  • One solution: the marcom manager

Ch 19: Direct Marketing 17

© 2006 Thomson/South-Western

ad