Direct Marketing. 15-2 What is Direct Marketing?

Direct Direct MarketingMarketing

15-2

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

38%

25%

11%

10%

8%

5%3%

Magazine Radio

Telephone

Direct Mail

Television

Newspaper

Other

What is What is Direct Direct

Marketing?Marketing?

15-3

Advantages of Direct Marketing?Advantages of Direct Marketing?

• Database driven marketing provides relevant customer information

• Purchase not restricted to location or time

• No channel intermediaries

• Easy to monitor and measure



15-4

Disadvantages of Direct MarketingDisadvantages of Direct Marketing

“No, you’re not bothering me, I love to be called by a stranger during dinner.”

• Annoyances associated with some direct marketers and the tools they use

• Some consumers are reluctant to purchase via mail order

• Privacy issues

What’s the main difference What’s the main difference between conventional between conventional advertising and direct advertising and direct

response?response?

15-6

Direct ResponseDirect Response• Combines the

conventional characteristics of advertising with a contact now element

• The goal of direct response advertising is to move the consumer to immediate action



15-8

Players in Direct MarketingPlayers in Direct Marketing

• Advertisers

• Agencies

• Fulfillment

• Media

• Customers

15-9

Direct Response AdvertisersDirect Response Advertisers• Companies

who sell products and services solely by mail

• Retail stores who use direct marketing to supplement brick and mortar sales





15-10

Advertising Advertising AgenciesAgencies

• Creative development

• Media contacts

• Media purchasing





http://www.youtube.com/watch?v=Dmbz8LpQry0

http://youtube.com/watch?v=O-EZf56AfYc

15-11

Media CompaniesMedia Companies• The medium by which

the marketing message in delivered





15-12

CustomersCustomersRecipients of direct marketing messageVia the Media









15-13

Fulfillment Fulfillment CompaniesCompanies

Perform a variety

of functions

• Receive orders

• Process orders

• Inventory product

• Ship orders



15-14

Importance of Importance of DatabasesDatabases

• Keep track of customers• Store, measure and

analyze ad results• Measure purchasing

performance• Vehicle for continuing

direct communication







15-15

Database MarketingDatabase MarketingWhat kinds of data and information are collected and analyzed?

B to C• Demographics

• Lifecycle

• Geographics• Psychographics• Behavior• RFM

B to B• NAICS• Revenue• # of employees• Usage• Geography

15-16

Direct Direct Marketing Marketing

ToolsTools

15-17

Direct MailDirect Mail• A print advertising

message delivered by mail

• Components:• Outer envelope• Letter• Brochure• Supplemental • Reply card• Return envelope

What is the most important part of a direct mail package?What is the second most important part?

15-18

The All Important ListThe All Important List

Three kinds•Combined•Response•Customer

Three kinds•Combined•Response•Customer

Is a list purchased or rented?

CleanClean

Merge &

Purge

Merge &

Purge

15-19

Advantages of Direct MailAdvantages of Direct Mail

• Tells a story• Engages attention• Personalizes

message• Reaches hard to

access customers


are needed to see this picture.QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.QuickTime™ and aTIFF (Uncompressed) decompressor


Dear Fred Smith

15-20

Disadvantages of Direct MailDisadvantages of Direct Mail

• Perceived as junk mail

• Expensive

• Response rates can be low



15-21

PeriodicalsPeriodicals

A publication

that comes out

based on

periodicity

Examples

•Magazines

•Newspapers





True or FalseText intensive ads aren’t read

One of the all time direct response pulling ads

15-22

CatalogsCatalogs

• A publication that

shows a variety of

merchandise

• High quality

photography and

graphics

• Can be print or on-line

15-23

TelemarketingTelemarketingTypes of telemarketing

• Out bound• In bound







15-25

InfomercialInfomercial





One of the keys to Infomercial successUltimate Pitch Men

Price vs Offer?

What are the product categories?Which one lends itself best to DR?

Warranty vs Guarantee

http://www.youtube.com/watch?v=LAE-r0fhiJE&feature=related

http://youtube.com/watch?v=B0NS44D7MYo&feature=related

15-26

The InternetThe Internet• What’s the

main difference between direct mail and the Internet?

• Internet adds–Multi-media– Interactive– Lots of info

15-27

Global Direct MarketingGlobal Direct Marketing



Internet has enabled instant global exposure

Potential challenges• Culture• Language• Legal• Exchange

rates

15-28

Discussion Question Discussion Question

Your marketing research shows that telemarketing is the best way to effectively reach your target market of denture wearers to sell a new technological breakthrough in denture comfort and performance.• How would you develop a telemarketing program?• What kind of list would you procure?• What would be a sample script?• Given your target market, what would be the best

way to close the sale and receive payment?

Direct Marketing. 15-2 What is Direct Marketing?

Documents

Transcript of Direct Marketing. 15-2 What is Direct Marketing?