Direct Marketing Primer
 

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This is a how-to presentation I developed for a client who wanted a basic understanding of direct marketing.

This is a how-to presentation I developed for a client who wanted a basic understanding of direct marketing.

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Direct Marketing Primer Presentation Transcript

  • 1.
    • About Direct Marketing
    • Presented by Jim Gilbert, President,
    • Gilbert Direct Marketing, Inc.
  • 2.
    • "There is only one valid definition of business purpose – to create a customer. Companies are not in business to make things…but to make customers.”
    • -- Peter F. Drucker
  • 3.
    • Direct Marketing (DM) is an interactive system of marketing that:
      • Uses one or more advertising media to effect a measurable customer response
      • Or transaction at any location
      • And stores information about that event in a database.
  • 4.
    • Database used to capture response (and non response)
    • Data to be used for future decision making and targeted promotions!
  • 5.  
  • 6. Database
  • 7.
    • Two way communication between customer or prospect and company.
    • Sometimes called interactive marketing.
    • No middle man.
    • Copy writer is the “sales person”.
    • Measurable, database always used. Direct marketer always accountable.
  • 8.
    • Lifetime Value (LTV): the net revenue stream generated by a customer, or customers over time. Includes all income less expenses.
    • Direct Response Advertising: The strategic and tactical element of direct marketing that includes, direct mail, print ads, direct response television and internet promotions.
    • RFM (Recency, Frequency, Monetary), an analysis and list selection tool that allows for targeting prospects and customers from a customer database from best to worst.
    • Select: a segment of a list or database. A subset of the the total universe. Usually used to drill deeper into as list to increase results. For instance, more recent names (selecting last 6 months will provide better results than older names.
  • 9.
    • Indirect path to final consumer.
    • Product manufacturer “loses control” of the sales cycle.
    • Manufacturer let’s go of responsibility.
    • Advertising and branding lead the way.
    • Not very efficient!
  • 10.
    • Direct path to final consumer.
    • Manufacturer retains control of the sales process.
    • Manufacturer responsible for success and failure.
    • Direct response advertising leads the way.
    • Branding seen as secondary to getting orders, leads, web visits, etc.
    • Efficiency gained via understanding full sales cycle.
  • 11. Direct Marketing Process
  • 12. The goal of the direct marketer is to move people higher up in the hierarchy. Each level has a progressive $ value attached in terms of worth the the company.
  • 13.
    • Generate new customers at the lowest possible cost per acquisition.
    • Maximize customer lifetime value via repeat purchases.
    • The goals of every direct marketing organization need to be exclusively focused around the above!!!
  • 14.
    • The process must start with customers:
      • Who are they?
      • What do they need and want?
      • Where are they located?
      • When are they ready to buy?
      • How much will they buy? How often?
      • Why do they buy?
  • 15.
    • Direct Marketing is a “test and roll” business!
      • Test the smallest quantity possible.
      • Use response and statistical analysis to project results over entire universe
      • Most test list orders between 5,000 – 10,000
      • Selections: drill down into list and allow for most bang for list renter buck
      • Selections add revenue to list order.
  • 16. Direct Marketing 40/40/20 Rule
  • 17.
    • For success, Concentrate your efforts as follows:
      • 40% on finding the right list that most closely matches your target market.
      • 40% on developing the most compelling offer you can to stimulate your target market market to respond.
      • 20% on developing creative that “speaks” your offer benefits in the most meaningful way to your target market.
        • Includes media, vehicle, layout, design, format, copy.
  • 18.
    • Presented by Gilbert Direct Marketing, Inc.
    • Email:
      • [email_address]
    • Blog:
      • http://gilbertdirectmarketing.wordpress.com/
    • Catalog Success Magazine Column:
      • http://www.catalogsuccess.com/blogs/jim-gilbert.html?page=1
    • Follow me on Twitter:
      • http://www.twitter.com/gilbertdirect/