Marketing Communications Week 10

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Marketing Communications Week 10

• Direct and Database Marketing

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Direct and Database Marketing

• Advantages and Disadvantages
• Development of a fully integrated database
• Driving forces in Direct Marketing
• Consumers response positive and negative
• Ethical issues in Database Marketing.

See www.draytonbird.com
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Example
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Database acquisition

• Centaur Engineering Data Marketing (CEDM)
  provides you with the answer to your direct
  marketing plans. Accurate, up-to-date contacts
  are essential to the success of your direct
  marketing campaign. Our list comprises over
  22,000 engineers who have beenPersonally
  contacted and have expressed an interest in
  knowing about the Latest developments in
  engineering products and services. Verified for
  accuracy in the last 12 months Guaranteed
  acceptable under the terms of the Data Protection
  Act.On top of accuracy, CEDM gives you the
  correct targets through scrupulous quality
  control. Every direct marketing campaign is
  different. Contact the CEDM team and use their
  detailed knowledge of the database to refine your
  selections to deliver great results.

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• Direct Marketing
• Direct connections with individual customers to
  obtain an immediate response and generate lasting
  customer relationships
• Database Marketing
• A refinement of Direct Marketing which enables
  customers to be profiled and targeted in a
  structured and appropriate manner, improving
  relevance and response

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Direct Marketing

• Developed in association with the postal system
• Appropriate for countries with high rural
  populations
• Can be a way to offer credit
• Mail order commission-based models
• Mailshots (junk mail) can cause resentment
• Lists can be purchased, developed, grown or
  extracted

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Impact of Technology

• Addressability
• Measurability
• Flexibility
• Accountability
• More processing power
• Improved analysis
• Desktop Publishing
• Telephone developments
• EPOS
• Smart Cards
• Consumer Research interactive TV

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Databases

• Hierarchical card index
• Network tagged
• Relational Two Dimensional

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Errors

• Incorrect Name
• Titles, Gender
• Duplication
• Inappropriate
• Gone away, died
• Source?

Direct Marketing usually has a poor response it
can be improved by better databases
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Stages in Database Development

• Mystery Lists
• Buyer Databases
• Co-ordinated customer communication
• Integrated Marketing

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Customer Retention

• Detailed analysis of customer databases
• Loyalty measurement
• Targeting campaigns at loyal customers
• Its cheaper to keep existing customers than to
  get new ones

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Loyalty Rules!
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Loyalty

• No Loyalty petrol, bread
• Spurious Loyalty bespoke programmes, promotions
• Latent Loyalty Positive Brand associations not
  resulting in patronage
• Loyalty High relative attitude, high patronage

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Loyalty Rules!
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Targeted Direct Marketing
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Database Marketing Objectives

• To treat the customer as an individual
• To treat the individual as a customer

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CRM

• Customer Relationship Management or Consumer
  Relationship Marketing
• Tesco Club Card Scoring Points drinking from
  the Fire Hydrant

• From Mass Marketing to One-to-One
• Software enables
• Attitude needed

Peppers and Rogers www.1to1.com
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Addressable Media
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Other Direct Marketing

• Doorstep canvassing
• Multilevel Marketing (Pyramid Selling)
• Party Plan
• Data Protection Act increasing legislation

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Integrated Marketing Communications

• Zero-based campaign planning

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Identify target audiences

• Analyse the various customer and prospect
  segments, and determine which to target and to
  what extent

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Analyze SWOTs

• Summarize internal (strengths, weaknesses) and
  external (opportunities, threats) brand-related
  conditions with respect to communicating with the
  selected target determine the success of the MC
  functions and media used in the preceding year

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Determine MC objectives

• Decide what marketing communication programmes
  should accomplish

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Develop Strategies and Tactics

• Determine which MC functions should be used and
  to what extent.
• Choose brand messages and means of delivery.
• Support each strategy with a rationale.
• Decide when each MC programme will begin and end
  (Gantt chart helps)

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Determine the Budget

• Decide what the overall MC budget will be and
  then how money will be divided among the selected
  MC functions

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Evaluate effectiveness

• Conduct ongoing MC tests in an effort to find
  more effective ways to do IMC.
• Monitor and evaluate all the IMC efforts to
  determine effectiveness and accountability

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Parentes Plan

• 1 Executive summary
• 2 Situation analysis
• 2.1 Company analysis
• 2.2 Competitor analysis
• 2.3 Consumer analysis
• 2.4 Market analysis
• 2.5 Product analysis
• 2.6 Problems and opportunities
• 3 Target market profile
• 4 Objectives
• 4.1 Marketing objectives
• 4.2 Communication objectives
• 4.3 Advertising objectives
• 5 Marketing communication strategy
• 5.1 Advertising strategy
• 5.1.1 Creative strategy and execution
• 5.1.1.1 Objectives
• 5.1.1. 2 Strategy

Advertising Campaign Strategy A Guide to
Marketing Communication Plans (Dryden Press
Series in Marketing) by Donald E. Parente
(Hardcover - 25 Aug 1999)
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Whats new?
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Seminar

• The Marketing Communications Mix in Action
  Marketing Theme Park Alton Towers