Direct

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Direct Database Marketing Week 10 11

• MKT329J2

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Revision Week 11

• As tutorials have concluded the time in week 11
  will be given over to revision for the
  examination.
• Students should note that no specific topics will
  be singled out, rather revision time will focus
  on all the topics covered in the module as all
  have an equal chance of appearing on the exam.

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Direct marketing is an interactive system of
marketing which uses one or more advertising
media to effect a measurable response and/or
transaction at any location Direct Marketing
Association (2002)
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Direct Marketing Media Tools
1. Direct Mail 2. Catalogues retail, full-line
merchandise, business to business and consumer
speciality. 3. Mass Media Direct Marketing
television, radio, magazines and
newspapers. 4. Infomercials documentary style
30-60 min commercial 5. Interactive Media
internet, videotext, cable television. 6. Telemark
eting combines telecommunication technology,
marketing strategies and systems. 7.Door to Door
Selling field, pyramid etc. 8. Miscellaneous
leaflet drops, inserts etc.
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Key Elements of Direct Marketing

• Interactive system - two way.
• Opportunity to respond - decision up to
  individual target.
• Any location totally flexible.
• Measurable - which communication the prospect
  responded to.

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Key Differences Between Direct Marketing and
General Marketing
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Direct Marketings Special Competencies
1. Precision targeting - Well defined. 2. Cost
effective - Reduces distributor and retail
margins. 3. Immediate and flexible - Ability to
react quickly to customer needs. 4. Personalised
Name, address, areas, months, links to previous
purchases. 5. Measurability Facilitates
continuous improvements. 6. Opportunity to test
and retest Any variable. 7. International
Alternative route to new market.
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Disadvantages of Direct Marketing

• Upset middleman
• Image - Junk mail, environmental pressure groups.
• Invasion of privacy
• Initial Costs
• Low response rates
• Development costs in database acquisition/developm
  ent.
• Risk - Bad Mailing
• 80 unopened
• 63 partially read.

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Databases
Lists of consumers with information that helps
target and segment those who are highly likely to
be in the market for a certain product.
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The Ladder of Loyalty (Smith 2000)
ADVOCATES
CLIENTS
CUSTOMERS
PROSPECTS
SUSPECTS
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Databases

• Electronic card index
• Store information and then rearrange it
• Every record has a number of fields
• text fields - clients name and address,
  business etc number fields - different branches
  of the business date fields - date of last
  order etc

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Databases

• Identify most profitable customers
• Obtain additional business
• Reactivate past customers
• Identify new market opportunities
• Reduce waste and increase productivity

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Getting the Most from a Database

• Concise information
• Kept up to date - amend immediately
• One person responsible for the database
• Need to register with the Data Protection
  Registrar
• The most sophisticated database program in the
• world is only as good as the information put into
  it.

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• Database Marketing
• Customer Acquisition is the Immediate Goal
• Customer Retention is the Long Term Goal
• Sequence selling via a series of
  communications
• Welcome cycles to welcome a customer or to
  increase awareness.
• Upselling to sell more of more of the firms
  products/service to existing customers
• Cross selling could be in alliance with another
  firm.
• Reactivation to gain back a lost customer.

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Database Marketing Spiral of Prosperity More
investment, more profit Identify
Prospects Analyse database Target
Media Increase Customer Value Sell
Products Cross Sell/Up Sell Get Customer
Information Talk to key Customers
Regularly Build Analyse Database