Direct Marketing Primer
 

Direct Marketing Primer

on

  • 3,974 views

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.

Statistics

Views

Total Views
3,974
Views on SlideShare
3,883
Embed Views
91

Actions

Likes
6
Downloads
316
Comments
0

5 Embeds 91

http://paper.li 51
https://www.linkedin.com 21
http://www.slideshare.net 11
http://www.linkedin.com 5
https://twitter.com 3

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Direct Marketing Primer Direct Marketing Primer Presentation Transcript

    • About Direct Marketing
    • Presented by Jim Gilbert, President,
    • Gilbert Direct Marketing, Inc.
    • "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
    • 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.
    • Database used to capture response (and non response)
    • Data to be used for future decision making and targeted promotions!
  •  
  • Database
    • 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.
    • 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.
    • 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!
    • 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.
  • Direct Marketing Process
  • 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.
    • 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!!!
    • 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?
    • 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.
  • Direct Marketing 40/40/20 Rule
    • 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.
    • 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/