Direct Response

1
Direct Response

• Part 5 Integration and Evaluation
• Chapter 15

2
Chapter Outline

1. Chapter Key Points
2. The Practice of Direct Marketing
3. Database Marketing
4. The Key Players
5. The Tools of Direct Marketing
6. Integrated Direct Marketing
7. Global Considerations in Direct Marketing

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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
The Practice of Direct Marketing

• Occurs when a seller and customers deal with each
  other directly

• Four tools of direct marketing
• Catalog
• Direct mail
• Telemarketing
• Direct response advertising

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
Database Marketing

• 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

9
The Database Marketing Process

1. Collection point
2. Data entry
3. Data assessment
4. Data clustering
5. Data application
6. Data sharing
7. Data refinement

10
The Key Players

• 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

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The Key Players

• Advertisers
• Agencies
• Media Companies
• Customers

• Advertising agencies
• Independent agencies
• Service firms
• Fulfillment houses

12
The Key Players

• Advertisers
• Agencies
• Media Companies
• Customers

• The media that deliver messages by phone, mail,
  or the Web

13
The Key Players

• Advertisers
• Agencies
• Media Companies
• Customers

• Recipients of the information and sometimes the
  initiator of the contact
• Push-button shopper
• Mouse-clicking shopper

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The Tools of Direct MarketingDirect Mail

• 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

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The Tools of Direct MarketingDirect Mail

• Advantages
• Tells a story
• Engages attention
• Personalizes message
• Builds in feedback
• Reaches the unreachable

• Disadvantages
• Negative perceptions
• Cost
• Mailing list
• Response rate
• Vulnerability

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The Tools of Direct MarketingCatalogs

• 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

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The Tools of Direct MarketingCatalogs

• Advantages
• Targeted
• Engages attention
• Complete information
• Convenience

• Disadvantages
• Negative perceptions
• Costs
• Response rate
• Mailing list

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Tools of Direct MarketingTelemarketing

• Types of telemarketing
• Criticisms of telemarketing
• Telemarketing messaging design

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The Tools of Direct MarketingDirect-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