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Direct Marketing

Direct Marketing. Any form of marketing communication which allows marketers to talk directly to existing or potential customers and/or to obtain a direct response from them (Gross 1992) Direct response advertising Direct communications methods Database marketing. A direct marketing system.

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Direct Marketing

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  1. Direct Marketing Any form of marketing communication which allows marketers to talk directly to existing or potential customers and/or to obtain a direct response from them (Gross 1992) • Direct response advertising • Direct communications methods • Database marketing

  2. A direct marketing system Existing Customers Direct Response Advertising ACORN + TGI Selective Mailing Blanket Mailing Mailing list Database Geodemographic profile Door-to-door Electoral Roll Addressed Mail Potential Customers

  3. How to get a mailing list • Direct response advertising • Competitions and sales promotions • Yellow Pages and trade directories • Lifestyle selector lists • Buy or rent from a list broker • Database analysis (ACORN etc)

  4. AClassification Of ResidentialNeighbourhoods • Geo-demographic plus lifestyle segmentation • 17 groups, six success/life-stage categories • Thriving • Expanding • Rising • Settling • Aspiring • Striving for full detailshttp://www.caci.co.uk/pdfs/acorn2001.pdf

  5. Distribution methods • Addressed mail (bulk discounts) • Household Delivery Service • see www.royalmail.co.uk • Door to door (eg with freepapers or milk) • Fliers • Inserts • email, txt, telesales

  6. The Direct Mail Package Envelope (plain or branded?) A Personalised letter I Brochure, samples etc D Reply coupon, S.A. Envelope A ‘Anything you can get into an envelope!’

  7. Advantages over media advertising • More targeted • Read at the POD - home or office • Solus on doorstep (less than one a day) • Can be retained longer • More detailed information • Creative possibilities • Free and easy reply mechanism

  8. Initial cost is higher Postage is only 45% of the total cost (DMIS 2000) • Higher response rate Average 10-11% • Less wastage • Lower cost per response

  9. Database = relationship? Relationships Retention Recovery ‘Would you want a relationship from someone who keeps pestering you without being invited?’ Permission Marketing

  10. Legal restraints on DM • Data Protection Act • Mail Preference Service/TPS • Proposed ‘opt-out’ box on Electoral Registration form • recent court case

  11. 283 television channels • 292 radio stations • 8500 magazines • 2 million websites • Only one letter box

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