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Direct Digital & Data-Driven
Marketing
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5
Direct Digital & Data-Driven
Marketing
5th Edition
Lisa Spiller
Los Angeles
London
New Delhi
Singapore
Washington DC
Melbourne
6
SAGE Publications Ltd
1 Oliver’s Yard
55 City Road
London EC1Y 1SP
SAGE Publications Inc.
2455 Teller Road
Thousand Oaks, California 91320
SAGE Publications India Pvt Ltd
B 1/I 1 Mohan Cooperative Industrial Area
Mathura Road
New Delhi 110 044
SAGE Publications Asia-Pacific Pte Ltd
3 Church Street
#10-04 Samsung Hub
Singapore 049483
© Lisa D. Spiller 2020
Domino’s Case Copyright © Matthew H. Sauber and David W.
Marold 2020
First published as Contemporary Direct Marketing by Prentice
Hall
in 2004. Second edition published in 2010. Third edition
published
as Contemporary Direct and Interactive Marketing by Racom
Communications in 2012. Fourth edition published in 2018.
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Apart from any fair dealing for the purposes of research or
private
study, or criticism or review, as permitted under the Copyright,
Designs and Patents Act, 1988, this publication may be
reproduced, stored or transmitted in any form, or by any means,
only with the prior permission in writing of the publishers, or in
the
case of reprographic reproduction, in accordance with the terms
of
licences issued by the Copyright Licensing Agency. Enquiries
concerning reproduction outside those terms should be sent to
the
publishers.
Library of Congress Control Number: 2019955360
British Library Cataloguing in Publication data
A catalogue record for this book is available from the British
Library
ISBN 978-1-5297-0818-9
ISBN 978-1-5297-0817-2 (pbk)
Editor: Matthew Waters
Assistant editor: Jasleen Kaur
Assistant editor, digital: Sunita Patel
Production editor: Nicola Carrier
Copyeditor: Sharon Cawood
Proofreader: Leigh C. Smithson
Indexer: Silvia Benvenuto
Marketing manager: Lucia Sweet
Cover design: Francis Kenney
Typeset by: C&M Digitals (P) Ltd, Chennai, India
Printed in the UK
At SAGE we take sustainability seriously. Most of our products
are printed in
the UK using responsibly sourced papers and boards. When we
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we ensure sustainable papers are used as measured by the
PREPS grading
system. We undertake an annual audit to monitor our
sustainability.
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Dedication
Martin Baier
Martin Baier
Direct marketing legend Martin Baier died on June 30, 2016. He
was 93 years old. Martin was truly one of the founding fathers
of
the direct marketing field, and a staunch supporter and active
contributor to direct marketing education nearly his entire
professional life. His keen intellect and business vision,
combined
with his many significant intellectual contributions, will live on
forever in our marketing discipline.
Martin helped define direct marketing and was a key figure in
developing and expanding the direct marketing industry. He was
known as the ‘Father of Zip Code Marketing’ after writing an
article in 1967 for the Harvard Business Review entitled ‘Zip
Code: New Tool for Market Segmentation.’
Martin Baier authored or coauthored many seminal books on
direct marketing during his lifetime. His Elements of Direct
Marketing, published in 1983 by McGraw-Hill, was the first
academic textbook on direct marketing. A Japanese edition of
this
text was published by Nikkei in Tokyo in 1985, and an
international student edition was published in Singapore in
1986.
Martin’s How to Find and Cultivate Customers through Direct
Marketing was published by NTC Business Books in 1996.
Contemporary Database Marketing: Concepts and Applications,
an interactive college textbook and CD, coauthored with Kurtis
Ruf and Goutam Chakraborty, was published by Racom Books
in
2001. Martin coauthored with Lisa Spiller the first edition of
Contemporary Direct Marketing, released in 2004, and the
second
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edition, Contemporary Direct and Interactive Marketing,
released
in 2009, both published by Prentice-Hall. Their third edition
was
published in 2012 by Racom Books.
Martin was recognized by his peers and received many awards
for
his achievements and contributions to the field. The Direct
Marketing Educational Foundation, now known as Marketing
EDGE, presented him its Ed Mayer Award, and the Direct
Marketing Insurance Council named him Direct Marketing
Insurance Executive of the Year, both in 1983. Martin was
inducted into the Direct Marketing Association (DMA) Hall of
Fame in 1989. The Mail Advertising Service Association
honored
him with its Miles Kimball Award in 1990. The Ed Sisk Award
for
Direct Marketing Vision was presented to him by the Direct
Marketing Association of Washington Educational Foundation
in
1994. The 1995 Andi Emerson Award for contribution of
outstanding service to the direct marketing creative community
was awarded to him by the Direct Marketing Creative Guild and
the John Caples Awards Board. In 1995, he was elected
International Fellow of the Institute of Direct Marketing (U.K.)
in
recognition of exceptional services to the profession. The New
England Direct Marketing Association honored him with a
Lifetime
Achievement Award in 1996.
Martin was with Old American Insurance Company as Senior
Executive and Vice President of Marketing for more than 25
years.
After retiring in 1987 as executive vice president of the
marketing
group, he was a direct marketing consulta nt and educator. He
founded the Center for Direct Marketing Education and
Research
in the Henry Bloch School of Business and Public
Administration
of the University of Missouri—Kansas City (UMKC), where he
served for 25 years as adjunct professor. He created and taught
a
Professional Direct Marketer certification program at UMKC
and
traveled the world speaking at direct marketing conferences.
Martin consulted with a variety of organizations involved in
adopting the discipline of direct marketing. He was affiliated
with
many professional organizations and is listed in Who’s Who in
Finance and Industry and Who’s Who in Advertising. He taught
direct marketing at many universities and conducted numerous
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seminars throughout the United States as well as in Europe,
Australia, New Zealand, and Asia.
Martin’s education included an MA in economics (1970), a BA
in
business administration (1943), and a BS in economics (1943) —
all from UMKC.
Martin was an active and passionate member of both the Direct
Marketing Association (now known as the Data & Marketing
Association) and the Kansas City Direct Marketing Association.
His passion for direct marketing was second only to his love for
his family—his devoted wife Dorothy Baier; his daughter,
Donna
Baier Stein; his grandson, Jonathan Baier Stein; and
granddaughter, Sarah Rachel Stein.
This book, Direct, Digital & Data-Driven Marketing, in both its
fourth edition and the present edition, has been written with
Martin
Baier in my heart and on my mind. I hereby dedicate this text to
him.
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Contents in Brief
Preface
Using this Book
Acknowledgments
About the Author
Online Resources
PART 1 Build, Develop, and Measure Direct Marketing
Strategies
1 Processes and Applications of Direct Marketing
2 Database Marketing and Customer Relationship
Management
3 Lists and Market Segments
4 Marketing Analytics: Testing and Measurement
PART 2 Create and Place Direct Marketing Campaigns
5 The Offer
6 Creative Message Strategies
7 Print Media
8 Television, Radio, and Digital Video
9 Mobile, Text, and Telephone for Marketing
10 Digital and Social Media
PART 3 Serve and Adapt to Customers and Markets
11 Business-to-Business (B2B)
12 Fulfillment and Customer Service
13 Environmental, Ethical, and Legal Issues
14 International Direct Marketing
PART 4 Applications, Examples, and Careers in Direct,
Digital, and Data-Driven Marketing
COMPREHENSIVE CASES
Case A: Domino’s
Case B: Oozlefinch Craft Brewery
APPENDICES
Appendix A: The Martin Agency: Developing a Direct
Marketing Campaign
Appendix B: Careers in Direct and Interactive Marketing
Appendix C: Branded Digital Marketing Certification
Programs
Appendix D: Direct and Digital Marketing Campaign Proposal
Guide
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Glossary
Index
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Contents
Preface
Using this Book
Acknowledgments
About the Author
Online Resources
PART 1 Build, Develop, and Measure Direct Marketing
Strategies
1 Processes and Applications of Direct Marketing
The Scope of Direct Marketing
Characteristics and Growth of Direct Marketing
Definition and Description
The Convergence of Direct and Brand
Marketing
Factors Affecting the Growth of Direct Marketing
The Processes of Direct Marketing
Direct Communication 1:1
Multiple Media
Measurable Response
Database
Customer Relationships
Multichannel Fulfillment
Omni-Channel Marketing
Applications of Direct Marketing
Users of Direct Marketing
Nonprofit Organizations
Political Organizations
Governmental Organizations
Sports Organizations
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Fear 2 Freedom
Notes
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2 Database Marketing and Customer Relationship
Management
Customer Database
Database Development
Customer Loyalty Programs
Examples of Loyalty Programs
Source Data
Recency/Frequency/Monetary Assessment
Database Maintenance
Match Codes and Merge-Purge
Multibuyers
Keeping Records Current
Database Security
Information Privacy
Proper Database Storage
List Seeding
Database Uses and Applications
Using a Customer Database
Performing Database Analytics
Database Enhancement
Internal Data Enhancement
External Data Enhancement
Customer Relationship Management
Customer Value
Customer Lifetime Value (CLTV)
One-on-One Personalized Marketing
Partner Relationship Management (PRM)
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Nevada Tourism
Notes
3 Lists and Market Segments
Lists as Market Segments
A Perishable Commodity
Types of Lists
The List Industry
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List Users
List Owners
List Brokers
List Managers
List Compilers
Service Bureaus
List Research and Analysis
List Research
List Measurement and Analysis
The Nature of Market Segmentation
Product Differentiation
Product Positioning
The Bases for Market Segmentation
Geographic Segmentation
Demographic Segmentation
Social Factor Segmentation
Psychographic Segmentation
Behavioral Market Segmentation
Cohort Analysis
Using Multiple Segmentation Bases
ZIP Code Areas as Market Segments
Geographic Structure
ZIP+4
Clustering Areas to Segments
Availability of Statistical Data
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Virginia Beach Tourism
Notes
4 Marketing Analytics: Testing and Measurement
Testing
List Tests
Offer Tests
Creative Tests
Contact Strategy Tests
Designing the Test
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Tracking Responses and Measuring Test
Results
Hypothesis Testing
Statistical Evaluation of Differences
Structuring and Evaluating a Test
Using Math and Metrics to Determine the ‘Right’
Target Market
Determining Customer Value
Calculating Customer Lifetime Value (CLTV)
Predicting Buyer Behaviors
Determining the ‘Right’ Customer to Target
Analyzing Market Penetration
Measurement is the Key
Calculating Response Rates and Conducting
Break-Even Analysis
Calculating the Impact of a Lift
Determining Conversion Rates
Planning the Direct Marketing Budget
How to Begin: Estimating Costs
The First Calculations: Margins, Fixed and
Variable Costs
Net Profit and Breaking Even
Cost per Inquiry/Cost per Order
Return on Investment/Return on Advertising
Investment
Budgeting for Tests
Analytic Application: Super Bowl Advertising
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Hi-Ho Silver
Notes
PART 2 Create and Place Direct Marketing Campaigns
5 The Offer
What Is the Offer?
Making an Offer Effective
Components of the Offer
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Product or Service
Pricing and Payment Terms
Risk-Reduction Mechanisms
Time Limits or Length of Commitment
Incentives
Creating an Offer
Step 1: Perform Market Research
Step 2: Determine the Objectives of the Offer
Step 3: Target the Offer
Step 4: Test the Offer
Step 5: Execute the Offer
Popular Offers
Subscription Models
Platform Business Models
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Mike’s Bike Tours
Notes
6 Creative Message Strategies
Creative Research
Message Objectives
Copywriting Techniques
Features versus Advantages versus Benefits
Writing the Copy
Copy Appeals
Copywriting Formulas
Design and Graphics
Layouts
Illustrations and Photographs
Involvement Devices
Type
Paper
Ink
Color
Creating Messages for Specific Media
Print
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Television
Radio
Online Video
Digital Platforms
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Barely There
Notes
7 Print Media
Direct Mail
Advantages and Disadvantages
Designs
Market Segmentation
Coupons
Cooperative Mailings
Statement/Invoice Stuffers
Package Inserts
Take-One Racks
Magazines
Design
Market Segmentation
Categories of Magazines
Advantages and Disadvantages
Position and Timing
Newspapers
Market Segmentation
Categories of Newspaper Advertising
Advantages and Disadvantages
Position and Timing
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Busch Gardens
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Notes
8 Television, Radio, and Digital Video
Introduction
Television
Market Segmentation
Characteristics of Television Time
Direct Marketing Uses of Television
Television Home Shopping
Infomercials
Advantages and Disadvantages
Radio
Market Segmentation
Rate Structure
Advantages and Disadvantages
Internet Radio Competitors
Digital Video
YouTube
Setting up a Video Channel
Going Viral
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: GEICO
Notes
9 Mobile, Text, and Telephone for Marketing
Introduction
Emerging Tools and Trends
Google Lens
Mobile Payment Systems
Mobile Marketing
Location-Based Search: Google, Yahoo, and
Bing Places
Mobile Websites
Mobile Coupons
Click-to-Call
Prerecorded Messages
QR Code Campaigns
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Geo-tagged Marketing
Location-Based Mobile
Mobile Application Development
Text Messaging
SMS Text Messaging
Multimedia Messaging Service (MMS)
Telephone
Inbound versus Outbound Calls
Advantages and Disadvantages
Planning a Telephone Marketing Program
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Uber
Notes
10 Digital and Social Media
Introduction
Growth and Transition
Content Marketing
Influencer Marketing
Crowdsourcing
Applications
E-mail Marketing
Online Market Research
E-commerce
Connecting Sites
Driving Site Traffic
Search Engine Optimization
Google Ads
Banner Ads
Webinars
Online Direct-Response Conversion Pages
Offline Tactics
Digital Formats and Tools
Blogs
Social Networks
PURLs
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Deal-of-the-Day Online Offers/Coupons
Click-to-Chat
Measuring Site Traffic and Analytics
Google Analytics
Clicktale
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Mud Pie
Notes
PART 3 Serve and Adapt to Customers and Markets
11 Business-to-Business (B2B)
Business-to-Business
Business-to-Government
Differences between Business and Consumer
Markets
Characteristics of Industrial Demand
B2B Applications
B2B Marketing Challenges
Segmenting Business Markets
Standard Industrial Classification (SIC)
North American Industry Classification System
(NAICS)
Other Industrial Market Segmentation Criteria
Marketing Funnel
B2B Customer Acquisition
Content Marketing
In-Person Contact
Telephone Calls
Referrals
Webinars
Social Media
B2B Customer Retention
Up-selling
Cross-selling
Customer Loyalty
Customer Advocacy
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Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Cisco
Notes
12 Fulfillment and Customer Service
Fulfillment
What Is Fulfillment?
Traditional Fulfillment Standards
The Fulfillment Process
The Offer
The Response
Processing
Shipping
Billing
Customer Service
Fulfillment Options
In-House Fulfillment
Outside Fulfillment Centers
Online Fulfillment
Supplier Direct Fulfillment
Delivery Options
U.S. Postal Service
Alternative Delivery Systems
Fulfillment Problems
Sources of Fulfillment Problems
Ways to Avoid Fulfillment Problems
Call Centers
In-House Call Center
Outside/ Outsourced Call Centers
The Importance of Customer Service
Zappos: An Online Customer Service Experience
Evaluating Customer Satisfaction Level
Keeping Customers Happy
Summary
Key Terms
Review Questions
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Exercise
Critical Thinking Exercise
Readings and Resources
Case: 1-800-FLOWERS.COM
Notes
13 Environmental, Ethical, and Legal Issues
Environmental Issues
The DMA’s Environmental Resolution and
‘Green 15’ Program
Ethics of Direct Marketing
The DMA’s Guidelines for Ethical Business
Practice
The DMA Corporate Responsibility Department
Basic Consumer Rights
The Right to Safety
The Right to Information
The Right to Selection
The Right to Confidentiality
The Right to Privacy
Legislative Issues
Intellectual Property
Security
Privacy
Privacy Legislation
Privacy Protection Study Commission
Privacy Today: Antispam Laws
Annoyance and Violation
Type of Information
Consumer Privacy Segments
Corporate Response to Privacy
The DMA Commitment to Consumer Choice
The DMA Interest-Based Advertising (IBA)
Guidelines
Third-Party Privacy Intervention: Infomediaries
Regulatory Authorities of Direct Marketing
Federal Communications Commission
Federal Trade Commission
Consumer Financial Protection Bureau
Food and Drug Administration
U.S. Postal Service
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State and Local Regulation
Private Organizations
The Future: Self-Regulation or Legislation
Self-Regulation
Legislation and Permission Marketing
Online Legal Issues
Emerging Privacy Concerns
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Snow Companies
Notes
14 International Direct Marketing
Direct Marketing around the World
Differences between Domestic and International
Direct Marketing
Making the Decision to Go International
Step 1: Assess Your International Potential
Step 2: Conduct Market Research
Step 3: Select Your Trading Partners
Step 4: Develop an International Direct
Marketing Plan
Step 5: Begin International Direct Marketing
Activities
Modes of Market Entry
Exporting
Licensing
Joint Venture
Contract Manufacturing
Direct Investment
Management Contracting
International Direct Marketing Infrastructure
Lists and Databases
Fulfillment
Media
Creative
Geographical Area Analysis
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Canada
Europe
Latin America
Asia/Pacific
Middle East
Africa
Summary
Key Terms
Review Questions
Exercise
Critical Thinking Exercise
Readings and Resources
Case: Coca-Cola in Peru
Notes
PART 4 Applications, Examples, and Careers in Direct,
Digital, and Data-Driven Marketing
COMPREHENSIVE CASES
Case A: Domino’s
Case B: Oozlefinch Craft Brewery
APPENDICES
Appendix A: The Martin Agency: Developing a Direct
Marketing Campaign
Appendix B: Careers in Direct and Interactive Marketing
Appendix C: Branded Digital Marketing Certification
Programs
Appendix D: Direct and Digital Marketing Campaign Proposal
Guide
Glossary
Index
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Preface
Welcome to Direct, Digital & Data-Driven Marketing, the fifth
edition of the book formerly titled Contemporary Direct and
Interactive Marketing. Called ‘3D Marketing’ for short, this
new title
is well suited to its contents as the book overviews the
historical
foundations of direct marketing, explores the present and future
transformation of marketing relative to the explosion of digital
marketing formats, and details the constant and consistent use
of
data to drive marketing strategies and activities. In essence, this
book presents modern marketing concepts, strategies, tactics,
formats, and activities, which have blossomed from the
implementation of direct marketing methods.
The updated title is also consistent with other recent name
changes in the direct marketing industry. In October 2016, the
DMA rebranded itself by replacing ‘direct’ with ‘data’ in its
name.
DMA now stands for the Data & Marketing Association. This
rebranding strategy showcases the fact that relevant customer
data has always been the driver behind targeted marketing and
customer relationship enhancement. Another name change
occurred a few years earlier when the Direct Marketing
Educational Foundation (DMEF) changed its name in 2013 to
Marketing EDGE. EDGE is an acronym that represents the
nonprofit organization’s mission: to Educate, Develop, Grow,
and
Employ college students in the field of marketing. Thus, the
new
title of this book, Direct, Digital & Data-Driven Marketing (‘3D
Marketing’), appropriately reflects the multi-dimensional
aspects of
this dynamic field as it continues to transform and becomes
increasingly relevant in today’s modern business world. Direct
marketing is truly multi-faceted and three-dimensional, given
the
many mediums and channels used to engage with consumers
today.
Just as with previous editions, this book was written to help you
understand the theories behind modern ‘3D marketing’ and to
learn how to apply these theories in your classes and in your
career. In other courses, you may have studied psychology and
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human behavior, the basics of advertising, communications
theory, and practice, and even accounting. In this book, you will
see how these, and many more disciplines, converge in the field
of direct marketing to form a discipline that changes with time
but
is always creative, useful, and even fun! When reading the
following chapters, I hope you will be able to apply many
concepts
you have already studied and learn how they are essential to
successful marketing. I also hope that, as you consider your
career, whether in marketing or a related field, you will have
found
it helpful to understand how so many activities we all undertake
daily are affected by direct, digital, and data-driven marketing.
In
some sense, we are all marketers and consumers, and we all
become involved in the techniques of modern marketing.
Decades
ago, direct marketers gathered customer names and addresses,
created mailing lists, established relationships with customers,
and sold goods and services on a one-on-one basis to customers
via mail and telephone. Today, modern marketers are still
concerned with gathering information and creating relationships
with each customer in order to maxi mize customer value and
personalize the customer experience, but customer databases
and digital, social, mobile, and text message media have
dramatically changed the speed and effectiveness of these
activities. More and more companies and organizations are
using
the concepts of direct, digital, and data-driven marketing as
their
primary methods for business transactions.
This fifth edition recognizes the growth of various digital
marketing
formats as the newest interactive channels for conducting
modern
marketing today. Although digital, mobile, and social media
marketing channels are similar to direct mail in that they target
messages on a personal one-on-one basis with great precision
and effectiveness, they do so with much greater speed of
transmission and enable both immediate customer response and
excellent measurability and analysis. Today’s consumers desire
both the speed and the control that the digital, social, and
mobile
media formats provide. Marketers must include these important
mediums in their marketing campaigns. Direct marketing has
always been accountable and measurable. Now, with the various
digital media formats and computer technology, it is more
interactive and precise than ever before. The fifth edition builds
on
32
the traditional foundations of direct marketing that are still
applicable today, and it extends into the future where constant
digital innovations continue to transform the marketing
landscape.
The new media of yesterday have become mainstream media
today. We cannot begin to envision what changes are ahead. But
one thing is certain: traditional direct and data-driven marketing
principles will still apply. This latest edition builds on these
traditional foundations, captures the new media and methods,
and
explores the future innovations of modern marketing.
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Using This Book
This fifth edition of Direct, Digital & Data-Driven Marketing
contains the following four major sections:
1. Build, Develop, and Measure Direct Marketing Strategies
2. Create and Place Direct Marketing Campaigns
3. Serve and Adapt to Customers and Markets
4. Applications, Examples, and Careers in Direct Marketing
Individual chapters within these major sections deal with such
subjects as database marketing and customer relationship
management; developing lists and profiling customers; testing,
measuring, and analyzing campaigns; planning value
propositions; creating compelling message and media strategies;
fulfilling the offer; serving the customer; understanding
environmental, ethical, and legal issues; exploring international
strategies; and applying direct marketing. Each chapter includes
a
chapter outline, key terms, end-of-chapter summaries, review
questions, exercises, readings and resources and cases. The
material does not progress from easy to difficult, but it does
progress logically from introduction to application. To be
successful in any course, you must read each chapter carefully
and outline key concepts along the way. The chapter spotlight
for
each chapter will give you a real-world example that provides a
sense of what that chapter will address. Read the chapter
spotlight prior to the chapter. Each chapter also contains state -
of-
the-art modern marketing content, many photos and images, and
numerous applications and examples to drive home important
concepts. The discussion questions at the end of each chapter
will
assist you in reviewing the important concepts and the mini
exercises will enable you to critically think about and apply the
chapter’s content. Be sure to explore the four appendices that
are
designed to contribute to your marketing education and help you
during your college years and beyond. Keep your eyes and ears
open to the marketing world around you and you will be able to
easily understand and apply the concepts, strategies, tools, and
35
techniques of direct marketing that have become mainstream
marketing in today’s world.
36
37
Acknowledgments
As the author, I am personally responsible for this
comprehensive
text; however, I must acknowledge the valuable input and
assistance from many individuals. I am especially grateful to
the
following people who surrounded me, motivated me, put up
with
me, and contributed very valuable information to select chapters
of this textbook:
Huge thanks to Dr. Matt Sauber and David Marold, both of
Eastern Michigan University, for coauthoring the business-to-
business chapter with me and for updating their ‘Domino’s
Pizza:
Growing Sales with Technology’ comprehensive case. Extra
thanks to Dave Marold for coauthoring the new Direct and
Digital
Marketing Campaign Proposal Guide featured in Appendix D.
Sincere gratitude goes to Dr. Carol Scovotti, University of
Wisconsin–Whitewater, for coauthoring the international
chapter
with me. In addition, much appreciation to Freddy Rosales,
Universidad de CEMA, Argentina, for contributing the ‘Coca-
Cola
in Peru’ case for the International chapter.
A great deal of thanks to Dr. Dae-Hee Kim, Christopher
Newport
University, for his many valuable contributions to the
Marketing
Analytics chapter, and for his insight and advice on other
chapters
as well. Also, special thanks to Susan Jones, Ferris State
University, for contributing the new and expanded catalog
section
in the Print Media chapter.
Genuine appreciation to Dr. Tracy Tuten, University of
Michigan,
for her inspiration and support, very valuable insight and
assistance regarding much of the revision content for this
current
edition, coauthoring the new Appendix C on Branded Digital
Marketing Certification Programs, and her contribution of many
of
38
the new Readings and Resources provided at the end of each
chapter.
I am sincerely indebted to the many business professionals who
kindly assisted in providing valuable input, case and spotlight
information and textbook examples for this fifth edition. These
include:
Tyler Baesman, Jeff Sopko, Evan Magliocca, and Brian
Garner, Baesman Group, Inc.
Breeze Holmgren, Bloomin
Nadine Drath, Doctors Without Borders/Médecins Sans
Frontières (MSF)
Debbie McNeil and Wendy Werner, DuPont
Yumi Lawlor, Instacart
Rick Pallen, Johnson Controls Security
Solution
s
Mike Lasher, Siegmund Brundl, Roberto Gallegos, Mike
Luksatich and Bente Hughes, Mike’s Bike Tours
Joe Psych, NextMark
Russ and Rebekah Tinsley, Oozlefinch Craft Brewery
Liz Lacey and Bella Nguyen, Pandora
Lori Barnett and Kristina Pontillo, PepsiCo
Carrie Schweikart, Quad
TJ Blease, Uber
Many of the valuable contributions of business professionals to
previous editions of the text have continued to enhance the fifth
edition. Those contributors included: Dan Caro and Faith
Albers,
both of Whereoware, for their excellent work on each of their
client
features (Evergreen, Interlude, Sullivans, and Mud Pie), and for
their valuable contributions to the Careers Appendix. To Dan
Dipiazzo and Andrew Scogna, formerly of Busch Gardens/Water
Country USA, for their many outstanding real-world examples
that
appear in several chapters throughout the textbook.
Special appreciation to Elizabeth Baumann, Lids; Will Blanton,
Snow Companies; Senny Boone, Data & Marketing Association
(DMA); LaRhonda Burley, The Washington Redskins; Corrina
Ferguson, Greater Williamsburg Chamber & Tourism Alliance;
Amy Hart, Hauser’s Jewelers; Nicole Hoadley, Snow
Companies;
39
Michael Kimball, Williamsburg Winery; Bill Leber, Swisslog
Logistics; Muriel Millar, Fear 2 Freedom; Herbie Morewitz,
ChirpXM; Leslie Sink, Hi-Ho Silver; Rosemary Trible, Fear 2
Freedom; Judy Triska, Virginia Living Museum; and Sylvia
Weinstein, Oyster Pointer.
I remain grateful to Dr. Elizabeth Young, who coauthored the
‘Testing, Measuring, and Analyzing Customers and Campaigns’
chapter; Dave Marold of Eastern Michigan University for his
networking assistance and his contributions in coauthoring
several
of the end-of-chapter cases; Dr. Matt Sauber of Eastern
Michigan
University for his contributions to several end-of-chapter cases
and select chapter material; Charles George for his
contributions
to the ‘Mobile, Text, and Telephone’ and ‘Digital and Social
Media’
chapters; and the talented and dedicated people at The Martin
Agency for the agency feature in Appendix A, for their
contributions to and assistance with Appendix B and several
opening vignettes and cases featuring their clients.
I continue to appreciate the contributions of Chuck Applebach,
formerly of the Virginia Beach Convention & Visitors Bureau;
Greg
Ward and Justine Thompson of BCF Boom Your Brand; Kurt
Ruf,
Ruf Strategic

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12Direct Digital & Data-DrivenMarketing

  • 1. 1 2 Direct Digital & Data-Driven Marketing 3 4 5 Direct Digital & Data-Driven Marketing 5th Edition Lisa Spiller Los Angeles London
  • 2. New Delhi Singapore Washington DC Melbourne 6 SAGE Publications Ltd 1 Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc. 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B 1/I 1 Mohan Cooperative Industrial Area Mathura Road New Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd 3 Church Street
  • 3. #10-04 Samsung Hub Singapore 049483 © Lisa D. Spiller 2020 Domino’s Case Copyright © Matthew H. Sauber and David W. Marold 2020 First published as Contemporary Direct Marketing by Prentice Hall in 2004. Second edition published in 2010. Third edition published as Contemporary Direct and Interactive Marketing by Racom Communications in 2012. Fourth edition published in 2018. 7 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers.
  • 4. Library of Congress Control Number: 2019955360 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 978-1-5297-0818-9 ISBN 978-1-5297-0817-2 (pbk) Editor: Matthew Waters Assistant editor: Jasleen Kaur Assistant editor, digital: Sunita Patel Production editor: Nicola Carrier Copyeditor: Sharon Cawood Proofreader: Leigh C. Smithson Indexer: Silvia Benvenuto Marketing manager: Lucia Sweet Cover design: Francis Kenney Typeset by: C&M Digitals (P) Ltd, Chennai, India Printed in the UK At SAGE we take sustainability seriously. Most of our products are printed in the UK using responsibly sourced papers and boards. When we
  • 5. print overseas we ensure sustainable papers are used as measured by the PREPS grading system. We undertake an annual audit to monitor our sustainability. 8 9 Dedication Martin Baier Martin Baier Direct marketing legend Martin Baier died on June 30, 2016. He was 93 years old. Martin was truly one of the founding fathers of the direct marketing field, and a staunch supporter and active contributor to direct marketing education nearly his entire professional life. His keen intellect and business vision, combined with his many significant intellectual contributions, will live on forever in our marketing discipline. Martin helped define direct marketing and was a key figure in developing and expanding the direct marketing industry. He was known as the ‘Father of Zip Code Marketing’ after writing an article in 1967 for the Harvard Business Review entitled ‘Zip Code: New Tool for Market Segmentation.’ Martin Baier authored or coauthored many seminal books on
  • 6. direct marketing during his lifetime. His Elements of Direct Marketing, published in 1983 by McGraw-Hill, was the first academic textbook on direct marketing. A Japanese edition of this text was published by Nikkei in Tokyo in 1985, and an international student edition was published in Singapore in 1986. Martin’s How to Find and Cultivate Customers through Direct Marketing was published by NTC Business Books in 1996. Contemporary Database Marketing: Concepts and Applications, an interactive college textbook and CD, coauthored with Kurtis Ruf and Goutam Chakraborty, was published by Racom Books in 2001. Martin coauthored with Lisa Spiller the first edition of Contemporary Direct Marketing, released in 2004, and the second 10 edition, Contemporary Direct and Interactive Marketing, released in 2009, both published by Prentice-Hall. Their third edition was published in 2012 by Racom Books. Martin was recognized by his peers and received many awards for his achievements and contributions to the field. The Direct Marketing Educational Foundation, now known as Marketing EDGE, presented him its Ed Mayer Award, and the Direct Marketing Insurance Council named him Direct Marketing Insurance Executive of the Year, both in 1983. Martin was inducted into the Direct Marketing Association (DMA) Hall of Fame in 1989. The Mail Advertising Service Association
  • 7. honored him with its Miles Kimball Award in 1990. The Ed Sisk Award for Direct Marketing Vision was presented to him by the Direct Marketing Association of Washington Educational Foundation in 1994. The 1995 Andi Emerson Award for contribution of outstanding service to the direct marketing creative community was awarded to him by the Direct Marketing Creative Guild and the John Caples Awards Board. In 1995, he was elected International Fellow of the Institute of Direct Marketing (U.K.) in recognition of exceptional services to the profession. The New England Direct Marketing Association honored him with a Lifetime Achievement Award in 1996. Martin was with Old American Insurance Company as Senior Executive and Vice President of Marketing for more than 25 years. After retiring in 1987 as executive vice president of the marketing group, he was a direct marketing consulta nt and educator. He founded the Center for Direct Marketing Education and Research in the Henry Bloch School of Business and Public Administration of the University of Missouri—Kansas City (UMKC), where he served for 25 years as adjunct professor. He created and taught a Professional Direct Marketer certification program at UMKC and traveled the world speaking at direct marketing conferences. Martin consulted with a variety of organizations involved in adopting the discipline of direct marketing. He was affiliated
  • 8. with many professional organizations and is listed in Who’s Who in Finance and Industry and Who’s Who in Advertising. He taught direct marketing at many universities and conducted numerous 11 seminars throughout the United States as well as in Europe, Australia, New Zealand, and Asia. Martin’s education included an MA in economics (1970), a BA in business administration (1943), and a BS in economics (1943) — all from UMKC. Martin was an active and passionate member of both the Direct Marketing Association (now known as the Data & Marketing Association) and the Kansas City Direct Marketing Association. His passion for direct marketing was second only to his love for his family—his devoted wife Dorothy Baier; his daughter, Donna Baier Stein; his grandson, Jonathan Baier Stein; and granddaughter, Sarah Rachel Stein. This book, Direct, Digital & Data-Driven Marketing, in both its fourth edition and the present edition, has been written with Martin Baier in my heart and on my mind. I hereby dedicate this text to him. 12
  • 9. 13 Contents in Brief Preface Using this Book Acknowledgments About the Author Online Resources PART 1 Build, Develop, and Measure Direct Marketing Strategies 1 Processes and Applications of Direct Marketing 2 Database Marketing and Customer Relationship Management 3 Lists and Market Segments 4 Marketing Analytics: Testing and Measurement PART 2 Create and Place Direct Marketing Campaigns 5 The Offer 6 Creative Message Strategies 7 Print Media 8 Television, Radio, and Digital Video 9 Mobile, Text, and Telephone for Marketing 10 Digital and Social Media PART 3 Serve and Adapt to Customers and Markets 11 Business-to-Business (B2B) 12 Fulfillment and Customer Service 13 Environmental, Ethical, and Legal Issues 14 International Direct Marketing PART 4 Applications, Examples, and Careers in Direct, Digital, and Data-Driven Marketing
  • 10. COMPREHENSIVE CASES Case A: Domino’s Case B: Oozlefinch Craft Brewery APPENDICES Appendix A: The Martin Agency: Developing a Direct Marketing Campaign Appendix B: Careers in Direct and Interactive Marketing Appendix C: Branded Digital Marketing Certification Programs Appendix D: Direct and Digital Marketing Campaign Proposal Guide 14 Glossary Index 15 16 Contents Preface Using this Book Acknowledgments About the Author Online Resources PART 1 Build, Develop, and Measure Direct Marketing Strategies
  • 11. 1 Processes and Applications of Direct Marketing The Scope of Direct Marketing Characteristics and Growth of Direct Marketing Definition and Description The Convergence of Direct and Brand Marketing Factors Affecting the Growth of Direct Marketing The Processes of Direct Marketing Direct Communication 1:1 Multiple Media Measurable Response Database Customer Relationships Multichannel Fulfillment Omni-Channel Marketing Applications of Direct Marketing Users of Direct Marketing Nonprofit Organizations Political Organizations Governmental Organizations Sports Organizations Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Fear 2 Freedom Notes
  • 12. 17 2 Database Marketing and Customer Relationship Management Customer Database Database Development Customer Loyalty Programs Examples of Loyalty Programs Source Data Recency/Frequency/Monetary Assessment Database Maintenance Match Codes and Merge-Purge Multibuyers Keeping Records Current Database Security Information Privacy Proper Database Storage List Seeding Database Uses and Applications Using a Customer Database Performing Database Analytics Database Enhancement Internal Data Enhancement External Data Enhancement Customer Relationship Management Customer Value Customer Lifetime Value (CLTV) One-on-One Personalized Marketing
  • 13. Partner Relationship Management (PRM) Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Nevada Tourism Notes 3 Lists and Market Segments Lists as Market Segments A Perishable Commodity Types of Lists The List Industry 18 List Users List Owners List Brokers List Managers List Compilers Service Bureaus List Research and Analysis List Research List Measurement and Analysis The Nature of Market Segmentation Product Differentiation
  • 14. Product Positioning The Bases for Market Segmentation Geographic Segmentation Demographic Segmentation Social Factor Segmentation Psychographic Segmentation Behavioral Market Segmentation Cohort Analysis Using Multiple Segmentation Bases ZIP Code Areas as Market Segments Geographic Structure ZIP+4 Clustering Areas to Segments Availability of Statistical Data Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Virginia Beach Tourism Notes 4 Marketing Analytics: Testing and Measurement Testing List Tests Offer Tests Creative Tests Contact Strategy Tests Designing the Test
  • 15. 19 Tracking Responses and Measuring Test Results Hypothesis Testing Statistical Evaluation of Differences Structuring and Evaluating a Test Using Math and Metrics to Determine the ‘Right’ Target Market Determining Customer Value Calculating Customer Lifetime Value (CLTV) Predicting Buyer Behaviors Determining the ‘Right’ Customer to Target Analyzing Market Penetration Measurement is the Key Calculating Response Rates and Conducting Break-Even Analysis Calculating the Impact of a Lift Determining Conversion Rates Planning the Direct Marketing Budget How to Begin: Estimating Costs The First Calculations: Margins, Fixed and Variable Costs Net Profit and Breaking Even Cost per Inquiry/Cost per Order Return on Investment/Return on Advertising Investment Budgeting for Tests Analytic Application: Super Bowl Advertising Summary
  • 16. Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Hi-Ho Silver Notes PART 2 Create and Place Direct Marketing Campaigns 5 The Offer What Is the Offer? Making an Offer Effective Components of the Offer 20 Product or Service Pricing and Payment Terms Risk-Reduction Mechanisms Time Limits or Length of Commitment Incentives Creating an Offer Step 1: Perform Market Research Step 2: Determine the Objectives of the Offer Step 3: Target the Offer Step 4: Test the Offer Step 5: Execute the Offer Popular Offers Subscription Models Platform Business Models
  • 17. Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Mike’s Bike Tours Notes 6 Creative Message Strategies Creative Research Message Objectives Copywriting Techniques Features versus Advantages versus Benefits Writing the Copy Copy Appeals Copywriting Formulas Design and Graphics Layouts Illustrations and Photographs Involvement Devices Type Paper Ink Color Creating Messages for Specific Media Print 21
  • 18. Television Radio Online Video Digital Platforms Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Barely There Notes 7 Print Media Direct Mail Advantages and Disadvantages Designs Market Segmentation Coupons Cooperative Mailings Statement/Invoice Stuffers Package Inserts Take-One Racks Magazines Design Market Segmentation Categories of Magazines Advantages and Disadvantages Position and Timing Newspapers Market Segmentation Categories of Newspaper Advertising
  • 19. Advantages and Disadvantages Position and Timing Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Busch Gardens 22 Notes 8 Television, Radio, and Digital Video Introduction Television Market Segmentation Characteristics of Television Time Direct Marketing Uses of Television Television Home Shopping Infomercials Advantages and Disadvantages Radio Market Segmentation Rate Structure Advantages and Disadvantages Internet Radio Competitors Digital Video YouTube
  • 20. Setting up a Video Channel Going Viral Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: GEICO Notes 9 Mobile, Text, and Telephone for Marketing Introduction Emerging Tools and Trends Google Lens Mobile Payment Systems Mobile Marketing Location-Based Search: Google, Yahoo, and Bing Places Mobile Websites Mobile Coupons Click-to-Call Prerecorded Messages QR Code Campaigns 23 Geo-tagged Marketing Location-Based Mobile Mobile Application Development
  • 21. Text Messaging SMS Text Messaging Multimedia Messaging Service (MMS) Telephone Inbound versus Outbound Calls Advantages and Disadvantages Planning a Telephone Marketing Program Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Uber Notes 10 Digital and Social Media Introduction Growth and Transition Content Marketing Influencer Marketing Crowdsourcing Applications E-mail Marketing Online Market Research E-commerce Connecting Sites Driving Site Traffic Search Engine Optimization Google Ads Banner Ads Webinars
  • 22. Online Direct-Response Conversion Pages Offline Tactics Digital Formats and Tools Blogs Social Networks PURLs 24 Deal-of-the-Day Online Offers/Coupons Click-to-Chat Measuring Site Traffic and Analytics Google Analytics Clicktale Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Mud Pie Notes PART 3 Serve and Adapt to Customers and Markets 11 Business-to-Business (B2B) Business-to-Business Business-to-Government Differences between Business and Consumer Markets Characteristics of Industrial Demand
  • 23. B2B Applications B2B Marketing Challenges Segmenting Business Markets Standard Industrial Classification (SIC) North American Industry Classification System (NAICS) Other Industrial Market Segmentation Criteria Marketing Funnel B2B Customer Acquisition Content Marketing In-Person Contact Telephone Calls Referrals Webinars Social Media B2B Customer Retention Up-selling Cross-selling Customer Loyalty Customer Advocacy 25 Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Cisco
  • 24. Notes 12 Fulfillment and Customer Service Fulfillment What Is Fulfillment? Traditional Fulfillment Standards The Fulfillment Process The Offer The Response Processing Shipping Billing Customer Service Fulfillment Options In-House Fulfillment Outside Fulfillment Centers Online Fulfillment Supplier Direct Fulfillment Delivery Options U.S. Postal Service Alternative Delivery Systems Fulfillment Problems Sources of Fulfillment Problems Ways to Avoid Fulfillment Problems Call Centers In-House Call Center Outside/ Outsourced Call Centers The Importance of Customer Service Zappos: An Online Customer Service Experience
  • 25. Evaluating Customer Satisfaction Level Keeping Customers Happy Summary Key Terms Review Questions 26 Exercise Critical Thinking Exercise Readings and Resources Case: 1-800-FLOWERS.COM Notes 13 Environmental, Ethical, and Legal Issues Environmental Issues The DMA’s Environmental Resolution and ‘Green 15’ Program Ethics of Direct Marketing The DMA’s Guidelines for Ethical Business Practice The DMA Corporate Responsibility Department Basic Consumer Rights The Right to Safety The Right to Information The Right to Selection The Right to Confidentiality The Right to Privacy
  • 26. Legislative Issues Intellectual Property Security Privacy Privacy Legislation Privacy Protection Study Commission Privacy Today: Antispam Laws Annoyance and Violation Type of Information Consumer Privacy Segments Corporate Response to Privacy The DMA Commitment to Consumer Choice The DMA Interest-Based Advertising (IBA) Guidelines Third-Party Privacy Intervention: Infomediaries Regulatory Authorities of Direct Marketing Federal Communications Commission Federal Trade Commission Consumer Financial Protection Bureau Food and Drug Administration U.S. Postal Service 27 State and Local Regulation Private Organizations The Future: Self-Regulation or Legislation Self-Regulation Legislation and Permission Marketing Online Legal Issues Emerging Privacy Concerns
  • 27. Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Snow Companies Notes 14 International Direct Marketing Direct Marketing around the World Differences between Domestic and International Direct Marketing Making the Decision to Go International Step 1: Assess Your International Potential Step 2: Conduct Market Research Step 3: Select Your Trading Partners Step 4: Develop an International Direct Marketing Plan Step 5: Begin International Direct Marketing Activities Modes of Market Entry Exporting Licensing Joint Venture Contract Manufacturing Direct Investment Management Contracting International Direct Marketing Infrastructure Lists and Databases Fulfillment Media
  • 28. Creative Geographical Area Analysis 28 Canada Europe Latin America Asia/Pacific Middle East Africa Summary Key Terms Review Questions Exercise Critical Thinking Exercise Readings and Resources Case: Coca-Cola in Peru Notes PART 4 Applications, Examples, and Careers in Direct, Digital, and Data-Driven Marketing COMPREHENSIVE CASES Case A: Domino’s Case B: Oozlefinch Craft Brewery APPENDICES Appendix A: The Martin Agency: Developing a Direct Marketing Campaign Appendix B: Careers in Direct and Interactive Marketing Appendix C: Branded Digital Marketing Certification
  • 29. Programs Appendix D: Direct and Digital Marketing Campaign Proposal Guide Glossary Index 29 30 Preface Welcome to Direct, Digital & Data-Driven Marketing, the fifth edition of the book formerly titled Contemporary Direct and Interactive Marketing. Called ‘3D Marketing’ for short, this new title is well suited to its contents as the book overviews the historical foundations of direct marketing, explores the present and future transformation of marketing relative to the explosion of digital marketing formats, and details the constant and consistent use of data to drive marketing strategies and activities. In essence, this book presents modern marketing concepts, strategies, tactics, formats, and activities, which have blossomed from the implementation of direct marketing methods. The updated title is also consistent with other recent name changes in the direct marketing industry. In October 2016, the DMA rebranded itself by replacing ‘direct’ with ‘data’ in its name. DMA now stands for the Data & Marketing Association. This
  • 30. rebranding strategy showcases the fact that relevant customer data has always been the driver behind targeted marketing and customer relationship enhancement. Another name change occurred a few years earlier when the Direct Marketing Educational Foundation (DMEF) changed its name in 2013 to Marketing EDGE. EDGE is an acronym that represents the nonprofit organization’s mission: to Educate, Develop, Grow, and Employ college students in the field of marketing. Thus, the new title of this book, Direct, Digital & Data-Driven Marketing (‘3D Marketing’), appropriately reflects the multi-dimensional aspects of this dynamic field as it continues to transform and becomes increasingly relevant in today’s modern business world. Direct marketing is truly multi-faceted and three-dimensional, given the many mediums and channels used to engage with consumers today. Just as with previous editions, this book was written to help you understand the theories behind modern ‘3D marketing’ and to learn how to apply these theories in your classes and in your career. In other courses, you may have studied psychology and 31 human behavior, the basics of advertising, communications theory, and practice, and even accounting. In this book, you will see how these, and many more disciplines, converge in the field of direct marketing to form a discipline that changes with time but is always creative, useful, and even fun! When reading the following chapters, I hope you will be able to apply many
  • 31. concepts you have already studied and learn how they are essential to successful marketing. I also hope that, as you consider your career, whether in marketing or a related field, you will have found it helpful to understand how so many activities we all undertake daily are affected by direct, digital, and data-driven marketing. In some sense, we are all marketers and consumers, and we all become involved in the techniques of modern marketing. Decades ago, direct marketers gathered customer names and addresses, created mailing lists, established relationships with customers, and sold goods and services on a one-on-one basis to customers via mail and telephone. Today, modern marketers are still concerned with gathering information and creating relationships with each customer in order to maxi mize customer value and personalize the customer experience, but customer databases and digital, social, mobile, and text message media have dramatically changed the speed and effectiveness of these activities. More and more companies and organizations are using the concepts of direct, digital, and data-driven marketing as their primary methods for business transactions. This fifth edition recognizes the growth of various digital marketing formats as the newest interactive channels for conducting modern marketing today. Although digital, mobile, and social media marketing channels are similar to direct mail in that they target messages on a personal one-on-one basis with great precision and effectiveness, they do so with much greater speed of transmission and enable both immediate customer response and excellent measurability and analysis. Today’s consumers desire
  • 32. both the speed and the control that the digital, social, and mobile media formats provide. Marketers must include these important mediums in their marketing campaigns. Direct marketing has always been accountable and measurable. Now, with the various digital media formats and computer technology, it is more interactive and precise than ever before. The fifth edition builds on 32 the traditional foundations of direct marketing that are still applicable today, and it extends into the future where constant digital innovations continue to transform the marketing landscape. The new media of yesterday have become mainstream media today. We cannot begin to envision what changes are ahead. But one thing is certain: traditional direct and data-driven marketing principles will still apply. This latest edition builds on these traditional foundations, captures the new media and methods, and explores the future innovations of modern marketing. 33 34 Using This Book This fifth edition of Direct, Digital & Data-Driven Marketing
  • 33. contains the following four major sections: 1. Build, Develop, and Measure Direct Marketing Strategies 2. Create and Place Direct Marketing Campaigns 3. Serve and Adapt to Customers and Markets 4. Applications, Examples, and Careers in Direct Marketing Individual chapters within these major sections deal with such subjects as database marketing and customer relationship management; developing lists and profiling customers; testing, measuring, and analyzing campaigns; planning value propositions; creating compelling message and media strategies; fulfilling the offer; serving the customer; understanding environmental, ethical, and legal issues; exploring international strategies; and applying direct marketing. Each chapter includes a chapter outline, key terms, end-of-chapter summaries, review questions, exercises, readings and resources and cases. The material does not progress from easy to difficult, but it does progress logically from introduction to application. To be successful in any course, you must read each chapter carefully and outline key concepts along the way. The chapter spotlight for each chapter will give you a real-world example that provides a sense of what that chapter will address. Read the chapter spotlight prior to the chapter. Each chapter also contains state - of- the-art modern marketing content, many photos and images, and numerous applications and examples to drive home important concepts. The discussion questions at the end of each chapter will assist you in reviewing the important concepts and the mini exercises will enable you to critically think about and apply the chapter’s content. Be sure to explore the four appendices that are designed to contribute to your marketing education and help you
  • 34. during your college years and beyond. Keep your eyes and ears open to the marketing world around you and you will be able to easily understand and apply the concepts, strategies, tools, and 35 techniques of direct marketing that have become mainstream marketing in today’s world. 36 37 Acknowledgments As the author, I am personally responsible for this comprehensive text; however, I must acknowledge the valuable input and assistance from many individuals. I am especially grateful to the following people who surrounded me, motivated me, put up with me, and contributed very valuable information to select chapters of this textbook: Huge thanks to Dr. Matt Sauber and David Marold, both of Eastern Michigan University, for coauthoring the business-to- business chapter with me and for updating their ‘Domino’s Pizza: Growing Sales with Technology’ comprehensive case. Extra
  • 35. thanks to Dave Marold for coauthoring the new Direct and Digital Marketing Campaign Proposal Guide featured in Appendix D. Sincere gratitude goes to Dr. Carol Scovotti, University of Wisconsin–Whitewater, for coauthoring the international chapter with me. In addition, much appreciation to Freddy Rosales, Universidad de CEMA, Argentina, for contributing the ‘Coca- Cola in Peru’ case for the International chapter. A great deal of thanks to Dr. Dae-Hee Kim, Christopher Newport University, for his many valuable contributions to the Marketing Analytics chapter, and for his insight and advice on other chapters as well. Also, special thanks to Susan Jones, Ferris State University, for contributing the new and expanded catalog section in the Print Media chapter. Genuine appreciation to Dr. Tracy Tuten, University of Michigan, for her inspiration and support, very valuable insight and assistance regarding much of the revision content for this current edition, coauthoring the new Appendix C on Branded Digital Marketing Certification Programs, and her contribution of many of 38
  • 36. the new Readings and Resources provided at the end of each chapter. I am sincerely indebted to the many business professionals who kindly assisted in providing valuable input, case and spotlight information and textbook examples for this fifth edition. These include: Tyler Baesman, Jeff Sopko, Evan Magliocca, and Brian Garner, Baesman Group, Inc. Breeze Holmgren, Bloomin Nadine Drath, Doctors Without Borders/Médecins Sans Frontières (MSF) Debbie McNeil and Wendy Werner, DuPont Yumi Lawlor, Instacart Rick Pallen, Johnson Controls Security Solution s Mike Lasher, Siegmund Brundl, Roberto Gallegos, Mike Luksatich and Bente Hughes, Mike’s Bike Tours Joe Psych, NextMark Russ and Rebekah Tinsley, Oozlefinch Craft Brewery Liz Lacey and Bella Nguyen, Pandora Lori Barnett and Kristina Pontillo, PepsiCo Carrie Schweikart, Quad TJ Blease, Uber
  • 37. Many of the valuable contributions of business professionals to previous editions of the text have continued to enhance the fifth edition. Those contributors included: Dan Caro and Faith Albers, both of Whereoware, for their excellent work on each of their client features (Evergreen, Interlude, Sullivans, and Mud Pie), and for their valuable contributions to the Careers Appendix. To Dan Dipiazzo and Andrew Scogna, formerly of Busch Gardens/Water Country USA, for their many outstanding real-world examples that appear in several chapters throughout the textbook. Special appreciation to Elizabeth Baumann, Lids; Will Blanton, Snow Companies; Senny Boone, Data & Marketing Association (DMA); LaRhonda Burley, The Washington Redskins; Corrina Ferguson, Greater Williamsburg Chamber & Tourism Alliance; Amy Hart, Hauser’s Jewelers; Nicole Hoadley, Snow Companies; 39 Michael Kimball, Williamsburg Winery; Bill Leber, Swisslog
  • 38. Logistics; Muriel Millar, Fear 2 Freedom; Herbie Morewitz, ChirpXM; Leslie Sink, Hi-Ho Silver; Rosemary Trible, Fear 2 Freedom; Judy Triska, Virginia Living Museum; and Sylvia Weinstein, Oyster Pointer. I remain grateful to Dr. Elizabeth Young, who coauthored the ‘Testing, Measuring, and Analyzing Customers and Campaigns’ chapter; Dave Marold of Eastern Michigan University for his networking assistance and his contributions in coauthoring several of the end-of-chapter cases; Dr. Matt Sauber of Eastern Michigan University for his contributions to several end-of-chapter cases and select chapter material; Charles George for his contributions to the ‘Mobile, Text, and Telephone’ and ‘Digital and Social Media’ chapters; and the talented and dedicated people at The Martin Agency for the agency feature in Appendix A, for their contributions to and assistance with Appendix B and several opening vignettes and cases featuring their clients. I continue to appreciate the contributions of Chuck Applebach, formerly of the Virginia Beach Convention & Visitors Bureau; Greg
  • 39. Ward and Justine Thompson of BCF Boom Your Brand; Kurt Ruf, Ruf Strategic