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Direct Response

Direct Response. Part 5: Integration and Evaluation Chapter 15. Chapter Outline. Chapter Key Points The Practice of Direct Marketing Database Marketing The Key Players The Tools of Direct Marketing Integrated Direct Marketing Global Considerations in Direct Marketing. Key Points.

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Direct Response

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  1. Direct Response Part 5: Integration and Evaluation Chapter 15

  2. Chapter Outline • Chapter Key Points • The Practice of Direct Marketing • Database Marketing • The Key Players • The Tools of Direct Marketing • Integrated Direct Marketing • Global Considerations in Direct Marketing

  3. Key Points • Define and distinguish between direct marketing and direct-response advertising • Explain the types of direct marketing • Name the players in direct marketing • Evaluate the various media that direct-response programs can use • Explain how databases are used in direct marketing • Discuss the role of direct marketing in integrated marketing programs

  4. Occurs when a seller and customers deal with each other directly Four tools of direct marketing Catalog Direct mail Telemarketing Direct response advertising The Practice of Direct Marketing

  5. Advantages of Direct Marketing • Collection of relevant customer information • Purchase not restricted to a location • The marketer controls product until delivery • Easier to evaluate • Flexibility in form and timing

  6. Disadvantages of Direct Marketing • Consumers are still reluctant to purchase a product they have not seen or touched • Annoyances associated with direct marketing • Unable to reach everyone in the marketplace

  7. Direct-Response Advertising • Combines the characteristics of advertising with a contact element • The direct-marketing process • Objectives and strategies • The offer • Message and media strategy • The response/order • Fulfillment and customer maintenance • Evaluation

  8. A practice that uses databases to predict trends and monitor consumers Four primary objectives Record names of customers Store and measure results of advertising Store and measure purchasing performance Vehicle for continuing direct communication Database Marketing

  9. The Database Marketing Process • Collection point • Data entry • Data assessment • Data clustering • Data application • Data sharing • Data refinement

  10. Advertisers Agencies Media Companies Customers Companies whose primary business is selling products and services by mail or telephone Retail stores who use direct marketing as a supplement to other forms of marketing communication The Key Players

  11. Advertisers Agencies Media Companies Customers Advertising agencies Independent agencies Service firms Fulfillment houses The Key Players

  12. Advertisers Agencies Media Companies Customers The media that deliver messages by phone, mail, or the Web The Key Players

  13. Advertisers Agencies Media Companies Customers Recipients of the information and sometimes the initiator of the contact Push-button shopper Mouse-clicking shopper The Key Players

  14. A print advertising message for a product or service that is delivered by mail Practical Tips Get attention Create a need Answer questions Provide critical information Inspire confidence, minimize risks Make the sale Use an incentive The Tools of Direct Marketing:Direct Mail

  15. Advantages Tells a story Engages attention Personalizes message Builds in feedback Reaches the unreachable Disadvantages Negative perceptions Cost Mailing list Response rate Vulnerability The Tools of Direct Marketing:Direct Mail

  16. The Tools of Direct Marketing:Catalogs • A multi-page direct-mail publication that shows a variety of merchandise • Growth in this field is in the area of specialty catalogs • Video catalogs provide more information about products

  17. Advantages Targeted Engages attention Complete information Convenience Disadvantages Negative perceptions Costs Response rate Mailing list The Tools of Direct Marketing:Catalogs

  18. Tools of Direct Marketing:Telemarketing • Types of telemarketing • Criticisms of telemarketing • Telemarketing messaging design

  19. The Tools of Direct Marketing:Direct-Response Advertising • All direct-response advertising moves the consumer to action • Well-targeted • Reaches prime audience

  20. The Internet and Direct Response • Same components as direct mail and telemarketing • Greater sampling opportunities • New ways to gather info

  21. Integrated Direct Marketing • The challenge is to integrate direct mail, catalogs, telemarketing, Web sites, e-mail, text messaging, and instant messaging with other marketing communication • Integrated direct marketing (IDM)

  22. Global Considerations in Direct Marketing • Fueled by the same technological forces as in the U.S. • Particularly important in countries with tight restrictions on advertising • Potential restrictions on direct marketing • Privacy issues more intense • Governmental regulation of postal service

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