This presentation will cover various elements of Direct Marketing and the Privacy Issues that GGI will address, and the benefits as well as the disadvantages of the major issues surrounding the new forms of Marketing
GGI has decided to launch a Direct Marketing champaign, to help reduce cost of communications and the regular channels of advertising. Directing Marketing will enhance conversion-rates from prospect to our purchasers’ by customizing targeting based on the data we obtain from each data source. Cost per acquisition of the new project will be measured after sales have been evaluated. Cost per piece: house wares has a large array of items, these cost will be measured by piece.
The response rate will be measured by the sales in the targeted areas. Marketing communications are `direct', where: the marketer conducts the communications directly with the prospect, rather than through intermediaries and/or the channel supports some degree of interaction between the marketer and the prospect.
As long as the guidelines are followed staying within the law, and GGI guidelines we should have no problems with the communication promotion, and the New Project (Sdmg , 2010).
Direct marketing is a form of advertising that’s not done in the traditional way of reaching the consumer. Normally the communication takes place through formal channels, such as TV, newspaper or radio direct marketing is straight to the consumer, catalogue, flier, promotional letters, coupons, and telemarketing. Now we have email marketing, pop ups, call to action phone numbers, door, to door leaflet, fax, and infomercials sending the messages directly to the customers. All consumers are buying something no matter if it is a need or want. Marketing and Direct Marketing helps them to make a decision of what, and who’s product to buy. The choice between brands, models is a decision making process that takes place each time something is purchased, even if the product or brand has been bought a 1000 times, there’s always something new. The utility theory believes that consumers make decision according to previous purchases or expected outcomes of their decisions. GGI plans to use these strategy below to enhance sales(Sdmg , 2010).
Incremental of sales Client supplied a 4-page insert with 10 coupons for various house ware items Inserts were placed in both Newspapers and GGI Shared Mail Insert distribution based on household penetration within the targeted stores trade areas Promotion last 8 weeks
Measuring the results:
Cost per acquisition of the new project will be measured after sales have been evaluated. Cost per piece: house wares has a large array of items, these cost will be measured by piece. The response rate will be measured by the sales in the targeted areas.
Different Forms of Communication for Direct Marketing
Advantages of using all of these channels to promote your new business or product is lower cost and covering all avenues. Instead of concentrating on one channel and most and likely wasting money you can spread the money to all of the other channels, where you can become successful. Using keywords to promote your business on the internet is important, as well as through Mailings, TV, Fax, or telemarketing. Buzzwords and different spelling variations can get the attention of the readers. Engaging your customers through keywords will get long term results and is well worth it.
Marketing is also described as the act or process of buying and selling in a market. The market has gotten larger it is now global. Thanks to the internet GGI’s house wares are sold internationally. We are able to advertise internationally, state and city wide. This has changed marketing meaning, it has changed corporate polices, and departments. Marketing is used to increase sales, customer’s base products, and to introduce new products to the world.
Conventional channels, which are well-established and well-understood, but which continue to exhibit inadequately checked privacy-invasive behavior. These channels include:
Mail. This enables the communication of perhaps colorful but essentially static documents, which arrives in a mailbox along with other materials competing for the person's attention, and which the prospect can choose whether and when to peruse; customers.
Fax. This medium is limited to the communication of black-and-white text and images, which the prospect can choose whether and when to peruse;
Telephone. This is a voice-only medium, used in several ways: as a means of communication in established marketer-customer relationships; as 'inbound tele-marketing', particularly using interactive voice response (IVR). This is essentially a marketer's answering machine that provides automated mechanisms for simple transactions. It is convenient and efficient for the marketer, but establishes barriers between organisations and people trying to contact them; as 'outbound tele-marketing', by which is meant marketer-initiated calls to suspects, prospects or customers;
Electronic channels, which are recent or near-future developments, and which involve serious though as yet poorly understood dangers of privacy-intrusive behavior. To date, the primary vehicle has been the Internet; but cable-based schemes are imminent. These channels include:
electronic mail. This is presently limited to text, competes with a considerable clamour in the emailbox, and offers very low hit-rates in return for extremely low costs;
web-based communications. These include:
on-line discovery of, ordering of, and payment for, digital goods and services like software, games and insurance, and including; electronic publishing on-line ordering of physical goods and services, including on-line reservation schemes for entertainment, travel and accommodation, 'tele-shopping' and 'virtual malls'; Online payment; and electronic service delivery (ESD) schemes which are being initiated by most governments and some private sector organizations;
How do direct marketers obtain consumer information? What are some of the issues faced in effectively and appropriately using this data?
Companies like GGI obtain customers information through their first time interaction with the company. Maybe the customer is contacted through a first time purchase, referral by a friend, or visiting the company’s website. Push strategy uses the manufactures sales force, trade promotion and other means to induce intermediaries; this is mostly used for the low brand products. The Pull strategy uses advertising, promotions, and other forms of communication to persuade customers to buy the products.
Direct marketing employees collect information by surveying target customers from third party information and other public databases. Telemarketing is also used to obtain marketers information, through surveys, but is a very slow response; focus groups are also used to collect consumer’s information. TV commercials are a great way of getting the consumer to internet and voluntarily give companies their personal information.
Around the holiday’s people are internets shopping, or just surfing the web to see what's on sale and what is popular. Social networks, linked to other web pages allow business to collect consumer’s information as well. Internet privacy is a big issue around this time, your browser keeps a record of which sites you are on, in case you want to use the back button. If you visit another site it can lead to your information being divulged, without you wanting to.
Personalization and Privacy
Marketers have all of these wonderful ways to collect data, the problem is the customers privacy may be invaded, resulting in a lost of a potential customer if we had gone with the right approach. Customers want control over their own personal information, so marketers need to communicate on a personal level to the customer. Make them an offer giving them the choice, to obtain a great value. Because the internet is so full of offers, and pop ups people are more in an agreement if given them a choice. Customers feel is too time costly to clear out all the email offers, from third parties, and unsolicited communications (VAI, 2009) .
The primary issue here is privacy of the customers, marketers collecting the data via a third party, results in low response rates and rejections. Permission data from customers results in more targeted, customized effective marketing.
Personalized marketing, directing customers to websites, without disrupting their internet visit is appreciated a lot more than a pop up. The benefits of personalized invitations and visits are long lasting relationships with customers. Personalized data collection can track the movements of an individual customer, you can receive valuable data on your customer and will not invade their privacy.
Key Factors of a personalized approach:
Identify Potential Customers Determine their real needs and their lifetime value to the company Interact/ Communicate with customers to know about their real needs, wants and preferences Customize product/service offerings to customers as per their needs and preferences
GGI’s Direct Marketing Strategy and Consumer’s Privacy:
GGI Can Use Direct Marketing Strategy to its advantage via respecting consumer’s privacy and adhering to legal regulations. Accomplish GGI’s goals without invading a customers’ privacy. GGI should obtain prior permission from customers to use their personal data for Direct Marketing purposes. GGI should research and analyze customer’s data to develop relevant and appealing direct marketing communication (Clarke, 2010).
Understanding your customer’s needs and tracking them properly will give GGI a valuable insight on their customers. Acknowledging their habits, interest, opinions, preferences about our products, is the way to gain customer and potential customer’s loyalty
Shoppers tend to purchase form the same places in the same manner Shoppers seeking value these customers channel surf before making that final purchase High involvement shoppers tend to gather information in all channels before making their final choices
Presented from the consumer’s point of view :
Three types of Shoppers
Service/quality shoppers this type of shopper is looking for high quality and good service, without these two elements they usually do not purchase, instead they go to or remain loyal to a company that provides these services.
2. Price/value Shoppers this type of shopper is looking for a deal, price is first for them, and then value, so they are looking for the best deal.
3. Affinity shoppers this type of shopper is looking for a purchase that is well-known, sticking to what they know, they are looking for quality, price and value but with a brand, or type that they are familiar with.
These shoppers are looking for different things in their purchases, but once they are satisfied they all will become loyal customers.
Privacy Laws in business has been integrated to protect organizations from breaking privacy laws. It provides independent privacy information service for some of the largest companies all over the world. They employ specialist and lawyers and service 45 countries. It also services the public sector, helping them to comply with data The Protection ACT and the Freedom of Information Act (VAI, 2009) .
GGI is a company that imports and exports internationally, the new project house wares will be sold all over the world. GGI will comply with all laws and the Data Protection Act and the Freedom of Information Act.
Marketing this project and protecting our customers privacy is a big issue, right now and the CEO and senior management expects customers’ privacy to be respected. These laws protect the company and the public, producing positive response to the issues and privacy laws. The laws actually give the companies competitive advantage and build sustaining customer trust.
Marketing is also described as the act or process of buying and selling in a market, while respecting your customer‘s privacy as well. The market has gotten larger it is now global the same privacy policies will apply. Marketing is thought of as advertising and sales, but it is more than that, it is everything a company does to obtain customers and maintain a good relationship with them.
Thanks to the internet GGI’s house wares are sold internationally. We are able to advertise internationally, state and city wide. This has changed meaning of marketing and corporate polices. The global market and the internet can increase sales, customer’s base products, and can introduce new products to the world. No matter where you sale your product in the world you must obey the laws (PL&B, 2010) .
The Privacy Laws & Business protects the public information when they visit a website. The policy relates to the privacy on websites. Many businesses collect your personal and private information, such as your social security numbers, credit card numbers and other account numbers. Privacy laws & business Act protects you and your business from legal problems. The Federal Trade Commission requires online companies to post privacy policies, which let the customers know how the information is collected, shared, and secured. The laws prevent unfair practices and deceptive behaviors, enforcing companies’ privacy policies to protect the consumer(VAI, 2009) .
First identifying the users who are registered and who actually has an account.
To fulfill the orders appropriately and securely.
Collate information about the privacy laws of business.
Improve and develop services offered by these laws.
Contacting all customers with information about the Privacy laws.
The privacy laws saves emails and other contact information which are voluntarily given, to receive inform and updates. These updates includes User Name and Password news, Cookies, and Sharing data with other parties. When sharing information with third parties, your information may be collected by other organizations, that access information such as your banking information.
The Freedom of Information Act (FOIA) holds a presumption of disclosure; the burden is on the government - not the public - to substantiate why information may not be released, and ensure access to all government information.
The Government is required to release records upon written request, unless they fall under one of the nine exemption of the FOIA. Rules and procedures and revision are updated and can be obtained on a timely bases. Each company in accordance with the rules must make available records for public inspection and copying (FIOA , 2010).
This assignment addressed direct marketing and issue of privacy, this affects everyone on the internet the consumer and the organization. This was a challenge to address so many privacy issues, it is an ongoing concern for our company and we have addressed it here in this presentation.
Direct Marketing tends to have many definitions. The best one I’ve read so far is marketing involves communication between the customer and the business for good or services and directly stimulating a purchase decision (Clark, 1995-2010).
We have answer what is Direct Marketing, the forms of communications that are utilized in Direct Marketing. We also address the key benefits with these approaches. This was presented from the consumer’s point of view; we also defined the Data Protection Act and The Freedom of Information Act and what it means to consumers and businesses.
Retailers are setting up personalized web sites to gain information and to keep it safe. Software developers are paid a lot to develop these types of sites for retailers.
It is important to use all channels of communication in Direct Marketing to communicate with your customers and the consumer in general. Reaching out to get to know what the consumer wants or needs a great business strategy that will never get old.
I believe it is also important to realize that personalizing products are some of the biggest selling items, such as CD’s, Books, people know what they are looking for, for whatever reason, previous purchases, brands or what, so any old thing will not do, personalization will.
Phase 3 individual project
PHASE 2 INDIVDUAL PROJECT
Applied Managerial Marketing
Delisa C. Fryer
This presentation will cover various elements of Direct Marketing
and the Privacy Issues that GGI will address, and the benefits as
well as the disadvantages of the major issues surrounding the new
forms of Marketing
Direct Marketing and the Issues
•Drive incremental sales
•Integrate digital media
•Acquire new customers
•Incremental of sales
• Client supplied a 4-page insert with 19
coupons for various frozen food items
• Inserts were placed in both Newspapers and
GGI Shared Mail
• Insert distribution based on household
penetration within the targeted stores trade
• Promotion last 8 weeks
• Cost per acquisition
• The response rate.
Mail Fax Telephone
issues using the
channels are well
Mail, fax, telephone
email and web
Arrives along with
Has to compete
The customer can
overlook and throw
Mostly Black and
choose when they
will receive them
Disadvantage of a
Fax has the
possibility of getting
loss or misplaced
This means of
Music and images
can get a customer
to return to your
The internet is the
channel of the
The average customer
only shop online during
Christmas , other
holidays and special
Electronics will only
sophisticated in the
Look for everything to
Different Forms of Communication for Direct Marketing
•This will enable
method is a
by voice only
•GGI Web site is a
channel that enable
our customers to make
online payments, and
are more popluar
today, because most
communication is done
via email, or internet
Channels of Communication
Primary issue is
•Shoppers tend to purchase
form the same places in the
•Shoppers seeking value
these customers channel
surf before making that
•High involvement shoppers
tend to gather information
in all channels before
making their final choices.
Three types of Shoppers
1. Service/quality shopers
1. Price/value Shoppers
1. Affinity shoppers
Marketing : Understand Customers Needs
Direct Marketing and Privacy Issues
State Sale of
on a Global
•International Privacy Laws
•Merges and Acquistions Privacy laws
•Telephone, email, address and
• The U.S. Freedom of Information
Act (FOIA) is a law ensuring public
access to U.S. government
records.. 552 Public information;
agency rules, opinions, orders,
records and proceedings
The Freedom of
Data Protection Act and The Freedom of
• Direct Marketing and Privacy Issues
• Strategy Enhancement
• Measuring Results
• Different Forms of Communication for Direct Marketing
• Channels of Communication
• How do direct marketers obtain consumer information? What are some of
the issues faced in effectively and appropriately using this data?
• Privacy Laws
• Data Protection Act and The Freedom of Information Act
Clarke, R. (1995-2010) Direct Marketing and Privacy Retrieved October 18, 2010 from
FOIA (2010)Freedom of Information Act Retrieved October 17, 2010 from
Iinfopackets (2010)Information technology abuse—issues Retrieved from
PL&B (2010) Privacy Laws & Business Retrieved October 16, 2010 from
Virtual Advisor, Inc (2009) Personalization strategies to attract and retain customers Retrieved October 17, 2010
Sdmg (2010) Strategic direct marketing group Retrieved October 16, 2010 from
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