MARK2038 Data Base Marketing Strategies II. Week 1 Instructor: Santo Ligotti Email: firstname.lastname@example.org. Today’s Agenda. Introductions Housekeeping Course outline, evaluation Lecture Direct & Database Marketing-Review List Management Handout Assignment #1.
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Instructor: Santo Ligotti
The Direct Marketing Association (DMA)
Mass Marketing: A method of reaching millions of people to tell them about available products and services.
Targeting to ‘One’
Targeting to Many
Directed at many via mass media
Highly visible to competition
In general, no clear action communicated: designed to drive awareness, change attitudes, behaviour
Effectiveness tough to measure
“Noise” reduces effectiveness
Targeted to individual, valuable customers via direct marketing
Less visible to the competition
Clear ‘call-to-action’ requested
Results are measurable
Almost “noise-free”Key Differences - Mass vs. Direct Marketing
Do you think mass marketing will eventually “cease to exist”?
Five typical applications:
1. ‘Stand alone’
Can you think of some examples from each industry?
Relationship marketing uses customer databases
to record individual characteristics and preferences.
Targets individual customers according to
their specific needs, and building customer loyalty.
Marketers find or create products and experiences tailored
to delight individual customers (rather than the opposite).
Some are affinity channels, some are not.
Offer: the promise of the transaction, communicating the benefits of purchase in terms of:
Where, when and how promotional expenditures will be made
Marketing Plan:A document that communicates marketing objectives, activities and resources.
2. Executive Summary
3. Situation Analysis (SWOT)
A Segment is:
Purchase behaviour data
Principles of Direct and Database Marketing, 3rd Ed., Alan Tapp, pg 58.
Segment by customer value
Lifetime Value (LTV)
Spend Service Dollars Here
Spend Marketing Dollars Here
for new GOLD customers
Objective: Drop or make Profitable
Reprice, move up, lose
Source: Strategic Database Marketing, A. Hughes
Segment by customer need
Various ways to create customer profiles, e.g.:
What are Demographics?
Applications - e.g.:
Relationship (1-to-1) marketing:
Marketing objectives are usually classified in terms of:
bought an identical product by mail
bought a similar product by mail
inquired about your product
bought within the category
bought something by mail
any other action by mail