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Database and Direct Response Advertising

Database and Direct Response Advertising. MKTG 340 Maureen O’Connor. Classic advertising/marketing adage. It’s cheaper to retain a customer than to find a new one. Database technology gives marketers the opportunity to…. Meet several key objectives -- better recognize their customers

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Database and Direct Response Advertising

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  1. Database and Direct Response Advertising MKTG 340 Maureen O’Connor

  2. Classic advertising/marketing adage • It’s cheaper to retain a customer than to find a new one

  3. Database technology gives marketers the opportunity to… Meet several key objectives -- better recognize their customers a. identify good customers through purchase patterns b. better profile good customers c. identify new target segments

  4. Also… • Develop better relationships with customers to build loyalty • Better predict future purchases • Stave off competition • Increase the amount of purchases • Build cross selling opportunities • Add differentiation to a maturing or parity brand

  5. Database Marketing relies on… • Effective use of customer data • Using transactional history to cultivate the marketing relationship • Examples of key info for a database • Contact info • Purchase history • Record of any contacts • Preferences and survey info • Response to any promo offers • Demographics or psychographic info • Customer coding, i.e. Lifetime Value Analysis (what will this consumer contribute to sales over their lifetime)

  6. How can marketers use database information for better customer relationships? • Develop specific customer profiles for tailored communications • Recognize certain events, i.e. birthdays or special promotions • Tailor communications based on past purchase history • Trawl for customers who are ready to re-purchase (a customer who purchased a car online may be ready to buy new in five years) • Identify Lifetime Value Segments • Who are my best customers and how can I treat them well? • How can I elevate good customers into better customers? (Benefit structures)

  7. Also… • Develop loyalty programs, i.e. frequent flier miles • Develop opt in or permission marketing programs to give the customer incentive to stay in contact with the company • Develop direct response marketing campaigns based on specific customer profiles and segments

  8. What are Direct Response marketing Programs? • Any marketing initiative that bypasses the intermediary or the channel to sell directly to the consumer. Includes • Direct mail (easily quantifiable) • Direct response broadcast or print, .i.e. QVC shopping channel, call now to order offers, etc. • Infomercials • Search engine or display ads targeted to prospects • Email programs with links to purchase

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