Chapter 11: Direct marketing

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Chapter 11 Direct marketing

• The convenience of shopping at home

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An Old Idea Improved Via Technology

• Been around for more than 150 years (mail order)
• Sears, Roebuck Company in 1886
• Computers, checkout counters scan information
• Names of individuals are now isolated not only by
  age, name, education, demographics, but also by
  credit history, hobbies, and buying habits.
  Prospects are also targeted by size and type of
  business and exact job function

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How it differs from mass advertising

• Whereas the goal of advertising is to build brand
  awareness or to create demand for a new product
  category, direct marketing is structured to sell
  now
• Urgency, interactiveness is the key component
• Way to obtain marketing information through sales
• Sells offers, using deadlines to produce swift
  responses
• More women order than men, 18-24 year old group,
  followed by 45-54, annual growth more than 50,000

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What companies/marketers find out

• The dollar value of purchases
• The number of purchases annually
• The length of customer-company relationships
• Information on other purchase influencers at the
  same address
• Promotions aimed at customers
• Rentals of customers names to other companies
• Nonresponders
• Sociographic and demographic information on
  customers

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Advantages of direct marketing

• Pinpointing of prospects by lifestyles,
  demographics, purchasing patterns, etc
• Personalized messages in design and tone
• Faster sales through traditional advertising
  media
• Variety of packaging options and product sample
• Less competition from other media content. Only
  compete with messages in the mail

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Computer Databases

• Trades with other companies, motor vehicle
  records, warranty card data from their own files,
  birth announcements, lists of college students,
  subscribers to selected magazines
• Buy fat-free salad dressing and yogurt at the
  checkout, and a scanner labels you as a prospect
  for exercise equipment or fitness magazine.

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Involves target audience

• Want to reinforce a jingle? Include a music chip
  that plays when the direct mail package is
  opened? Want consumers to smell, taste, or feel
  your product? Include a music sample. Although
  these techniques may be expensive to produce,
  they can be a bargain depending upon the
  audiences size and spending power

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The 3 musts for direct marketing

• The list should be narrowed to prime prospects
  for the product or service.
• The message Make it oversized. Personalized
  letter. Salutation in keeping with the list.
  Signature that looks handwritten. Use the
  postscript.
• The offer always ask for response often in form
  of limited-time offer. Can offer coupons.
  Pre-paid business-reply envelope

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The envelope

• Entice people to open the envelope to read the
  message by
• Make it oversized
• Print a message on the front
• Laser-print the recipients name into the message
• Customize the shape

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• Hersheys Resorts created a mailer that looked
  like luggage with vintage luggage labels

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Tips for writing letters

• Use letterhead stationery
• Open with a salutation
• Use short, indented paragraphs
• Use the word you liberally
• Underscore key points
• Include a signature at the end
• Include a postscript (P.S.) to give an incentive
  to act now

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E-mail tips

• Identify your company in the FROM line
• Give your reader a reason to open the message in
  your SUBJECT line
• Summarize your offer in the opening paragraph
• Include a link to your companys website
• Include an opt-out statement