Direct Response and Personal sales

Direct Response andPersonal sales Presented By: Maksim Feofanov Chris Njunge

Direct Marketing • Delivery of goods and services to consumers via direct channels • Seeks out most suitable consumer • Direct sales to consumers comprise 53% of total direct sales • In 2001 total direct marketing spending was $421 billion

DM channels • direct mail: • regular mail, catalogs and information materials, CDs and videos, fax mail, e-mail, voice mail • personal selling: • telemarketing, 1-800 number, follow up calls etc • interactive marketing : • (web-site with Q&A section, e-mail for communication, phone number listed etc.)

Personal Selling • Trade fairs and exhibitions involve selling to consumers • Distribution of Partners’ brochures and pamphlets for a fee • Presentations to top producing travel agencies

Direct Marketing • Characterized by call to action • Aims to get consumer to respond while idea is still fresh • Utilized with other Marketing Communications

Objectives of Direct Marketing • To generate qualified responses • To convert and retain prospects • To build customer relationships • To develop and leverage a customer database

Elements of a Direct Response Campaign • Creative-Dealing with the advertisements consistency with IMC and clarity • Media-Most suitable media to use • Fulfillment-Readiness for consumers response to call to action

Advantages • Cost reduction by eliminating middlemen • Better response rate • Ability to retain and build strong and lasting relationships with consumers • Hides marketing strategy from competitors

DM and Florida • DM - ideal for products with unique audience and lifetime value • Factors Affecting Direct Marketing Success: • the right products or services • the right media • the right offer • the right format • the right test • the right analyses

DM and Florida • Florida – lifetime value product; strong customer loyalty • Travelers (Florida visitors)– a separate target market, personal preferences • DM – right media, personalized offer.

Challenges • Competitors adopt same strategy • Ethical/Legal issues on sending personal messages (Telemarketing) • Spam? • “Do not call” lists • “Do not e-mail” lists

DM within ICM (Recommendations) • Target markets are scanned using R-F-M • R-Recency; F-Frequency; M-Monetary amount • DM and target markets: 1. One stage, multivehicle (DM): • - repeat visitors, • - “heavy traveling” visitors (prime target), 2. Multistage, multivehicle (Traditional media DM) - new/potential visitors

Use of Media • Use letters/e-mails and postcards to users • Use of colorful and printed images on postcards • Toll free number and website information should be provided • Telemarketing

Catchy phrases • Where not to go on vacation (North Pole, Sahara Desert). • We have been missing you in Florida • Let’s meet. Florida • Hope to see you soon. Florida

Respondents • Follow up direct mail and telephone calls • Representative should have conversation with respondent • Obtain information, answer questions and encourage (teleprospecting) • Provide further materials

Other Media • Use of visual media such as CDs and Video • Questionnaires • E-mail interaction • Newsletter • Use travel agents

Cultural Tourism Experience • Joint venture with American Express and Florida Department of State/Division of Cultural Affairs • Targeting travelers who prefer arts and cultural experiences • Database of American Express cardholders • $46 million in expenditure via American Express cards (Florida only) • 59% Response rate requesting more information on cultural activities

Flagler Awards • Statewide awards for tourism Marketing achievement • Finalists recognized in Governor's Conference on Tourism • Awards in all areas of Marketing Communication

Publications • VISIT FLORIDA Vacation Guide • Florida Official Meeting planners guide • Official Florida Travel Industry Guide • Florida International Travel Planner • Travel Agent Florida Specialist (Certified) E-newsletter

Questions?

Direct Response and Personal sales