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LECTURE-27. Direct Marketing: The Dialogue Builder . The New Direct-Marketing Model Growth and Benefits of Direct Marketing Customer Databases and Direct Marketing Forms of Direct Marketing. Topic Outline. Direct Marketing. Very Interactive. Lecture Perspective.

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slide2

The New Direct-Marketing Model

  • Growth and Benefits of Direct Marketing
  • Customer Databases and Direct Marketing
  • Forms of Direct Marketing

Topic Outline

lecture perspective

Direct Marketing

Very

Interactive

Lecture Perspective

A big advantage of Direct Marketing over Advertising and Sales Promotion:

Advertising and Sales Promotion

direct marketing
Direct Marketing

Direct marketing:An interactive, database-driven messaging system that uses a range of mediato motivate a response from customers and prospects

direct marketing1

2/3 of Americans Respond Every Year

4 Primary Media: Mail, Telephone, Email, Infomercials

Also Known As Direct Response: Because It Is Two-way in Nature

Direct Marketing

2/3 of Americans Respond Every Year

DirectMarketing

4 Primary Media: Mail, Telephone, Email, Infomercials

the new direct marketing model
The New Direct Marketing Model

Direct marketing

A marketing channel without intermediaries

An element of the promotion mix

Fastest-growing form of marketing

growth and benefits of direct marketing
Growth and Benefits of Direct Marketing

Convenience

Ready access to many products

Access to comparative information about companies, products, and competitors

Interactive and immediate

Benefits to Buyers

growth and benefits of direct marketing1
Growth and Benefits of Direct Marketing

Tool to build customer relationships

Low-cost, efficient, fast alternative to reach markets

Flexible

Access to buyers not reachable through other channels

Benefits to Sellers

customer databases and direct marketing
Customer Databases and Direct Marketing

Customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data

Customer Database

forms of direct marketing1
Forms of Direct Marketing

Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address

Personalized

Easy-to-measure results

Costs more than mass media

Provides better results than mass media

forms of direct marketing2
Forms of Direct Marketing

Catalog direct marketing involves printed and Web-based catalogs

forms of direct marketing3
Forms of Direct Marketing

Telephone direct marketing involves using the telephone to sell directly to consumers and business customers

Outbound telephone marketing sells directly to consumers and businesses

Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs

forms of direct marketing4
Forms of Direct Marketing

Direct-response television (DRTV) marketing involves 60- to 120-second advertisements that describe products or give customers a toll-free number or website to purchase and 30-minute infomercials such as home shopping channels

Less expensive than other forms of promotion and easier to track results

Direct-response television

forms of direct marketing5
Forms of Direct Marketing

Kiosk marketing

Digital direct marketing technologies

  • Mobile phone marketing
  • Podcasts
  • Vodcasts
  • Interactive TV
forms of direct marketing6
Forms of Direct Marketing

Podcasts and vodcast involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience

Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences

what are direct marketing s strategies

Front end strategies

Delivering the message

Back end strategies

Handling consumer responses and delivering the product

What Are Direct Marketing’s Strategies?
front back end components

The Offer

Targeted Databases

The Response

Fulfillment

Customer Service

Privacy Protection

Front & Back End Components

Front End Components

The Offer

Targeted Databases

The Response

Back End Components

Fulfillment

Customer Service

how can direct marketing efforts be evaluated

List Types

Offer Values

Frequency of Exposure

Creative Approach

Media Mix Used

How Can Direct Marketing Efforts Be Evaluated?

List Types

Offer Values

Testing

Creative Approach

Media Mix Used

ultimate test effectiveness

=

Number of responses

Number of offers mailed

Response Rate

5 / 100 = 20

Total cost of mailing

Number of sales made

=

Cost Per Sale

$1,000 / 5 = $200

Ultimate Test: Effectiveness
bibliography
Bibliography
  • Principles of Marketing by Philip Kotler & Gary Armstrong
  • Fifteenth Edition, Published by Prentice Hall
  • Marketing Management – A South Asian Perspective
  • by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
  • Mithileshwar Jha, 13th Edition, Published by Pearson
  • Education, Inc.
  •   Principles and Practices of Marketing by Jobber, D. 4th 
  • edition, McGraw Hill International.
  • Principles of Advertising & IMC by Tom Duncan 2nd
  • Edition, Published by McGraw-Hill Irwin.
the end
The End

“If you maintain politeness in authority & observe silence in anger, then be sure that nobody can break you or bend you.”