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Direct marketing / response ads

Direct marketing / response ads. Direct response ads developed with computer databases Led to focus on relationship with customer  CRM Pareto principle  approx 80% of business generated by 20% of customers

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Direct marketing / response ads

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  1. Direct marketing / response ads • Direct response ads developed with computer databases • Led to focus on relationship with customer CRM • Pareto principle  approx 80% of business generated by 20% of customers • Suggestion that it costs 5 to 10 times as much to get a new customer as to keep one  Retention • Objective: get profitable customers  true value concept

  2. One-to-one marketing • Includes direct response ads, direct mail, Internet, interactive digital TV... • Develop & maintain dialogue with customer based on knowledge gathered in data warehouse • Mostly relevant to service businesses • Difficult to apply to FMCG (cf. Heinz) • ... Permission Marketing

  3. Principles • Drayton Bird  3 Graces: • Ability to isolate the individual customer • Continuity, or potential continuity, of contact • Ability to test • Testing thru measuring results by what you get back (orders, enquiries and their conversion into cash)

  4. Direct mail ad letter with long copy, detailed info • Press  large size with response coupon • Broadcast ad  spots longer spots (60, 90 secs, infomercials) often with demonstration + phone number • Telemarketing  inbound phone (toll free) for placing order or outbound (to close a sale or make an offer) • Interactive media (digital TV, Internet)

  5. Recency • Frequency • Value

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