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  1. 1. Direct Response Part 5: Integration and Evaluation Chapter 15
  2. 2. Chapter Outline <ul><li>Chapter Key Points </li></ul><ul><li>The Practice of Direct Marketing </li></ul><ul><li>Database Marketing </li></ul><ul><li>The Key Players </li></ul><ul><li>The Tools of Direct Marketing </li></ul><ul><li>Integrated Direct Marketing </li></ul><ul><li>Global Considerations in Direct Marketing </li></ul>
  3. 3. Key Points <ul><li>Define and distinguish between direct marketing and direct-response advertising </li></ul><ul><li>Explain the types of direct marketing </li></ul><ul><li>Name the players in direct marketing </li></ul><ul><li>Evaluate the various media that direct-response programs can use </li></ul><ul><li>Explain how databases are used in direct marketing </li></ul><ul><li>Discuss the role of direct marketing in integrated marketing programs </li></ul>
  4. 4. The Practice of Direct Marketing <ul><li>Occurs when a seller and customers deal with each other directly </li></ul><ul><li>Four tools of direct marketing </li></ul><ul><ul><li>Catalog </li></ul></ul><ul><ul><li>Direct mail </li></ul></ul><ul><ul><li>Telemarketing </li></ul></ul><ul><ul><li>Direct response advertising </li></ul></ul>
  5. 5. Advantages of Direct Marketing <ul><li>Collection of relevant customer information </li></ul><ul><li>Purchase not restricted to a location </li></ul><ul><li>The marketer controls product until delivery </li></ul><ul><li>Easier to evaluate </li></ul><ul><li>Flexibility in form and timing </li></ul>
  6. 6. Disadvantages of Direct Marketing <ul><li>Consumers are still reluctant to purchase a product they have not seen or touched </li></ul><ul><li>Annoyances associated with direct marketing </li></ul><ul><li>Unable to reach everyone in the marketplace </li></ul>
  7. 7. Direct-Response Advertising <ul><li>Combines the characteristics of advertising with a contact element </li></ul><ul><li>The direct-marketing process </li></ul><ul><ul><li>Objectives and strategies </li></ul></ul><ul><ul><li>The offer </li></ul></ul><ul><ul><li>Message and media strategy </li></ul></ul><ul><ul><li>The response/order </li></ul></ul><ul><ul><li>Fulfillment and customer maintenance </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul>
  8. 8. Database Marketing <ul><li>A practice that uses databases to predict trends and monitor consumers </li></ul><ul><li>Four primary objectives </li></ul><ul><li>Record names of customers </li></ul><ul><li>Store and measure results of advertising </li></ul><ul><li>Store and measure purchasing performance </li></ul><ul><li>Vehicle for continuing direct communication </li></ul>
  9. 9. The Database Marketing Process <ul><li>Collection point </li></ul><ul><li>Data entry </li></ul><ul><li>Data assessment </li></ul><ul><li>Data clustering </li></ul><ul><li>Data application </li></ul><ul><li>Data sharing </li></ul><ul><li>Data refinement </li></ul>
  10. 10. The Key Players <ul><li>Advertisers </li></ul><ul><li>Agencies </li></ul><ul><li>Media Companies </li></ul><ul><li>Customers </li></ul><ul><li>Companies whose primary business is selling products and services by mail or telephone </li></ul><ul><li>Retail stores who use direct marketing as a supplement to other forms of marketing communication </li></ul>
  11. 11. The Key Players <ul><li>Advertisers </li></ul><ul><li>Agencies </li></ul><ul><li>Media Companies </li></ul><ul><li>Customers </li></ul><ul><li>Advertising agencies </li></ul><ul><li>Independent agencies </li></ul><ul><li>Service firms </li></ul><ul><li>Fulfillment houses </li></ul>
  12. 12. The Key Players <ul><li>Advertisers </li></ul><ul><li>Agencies </li></ul><ul><li>Media Companies </li></ul><ul><li>Customers </li></ul><ul><li>The media that deliver messages by phone, mail, or the Web </li></ul>
  13. 13. The Key Players <ul><li>Advertisers </li></ul><ul><li>Agencies </li></ul><ul><li>Media Companies </li></ul><ul><li>Customers </li></ul><ul><li>Recipients of the information and sometimes the initiator of the contact </li></ul><ul><ul><li>Push-button shopper </li></ul></ul><ul><ul><li>Mouse-clicking shopper </li></ul></ul>
  14. 14. The Tools of Direct Marketing: Direct Mail <ul><li>A print advertising message for a product or service that is delivered by mail </li></ul><ul><li>Practical Tips </li></ul><ul><li>Get attention </li></ul><ul><li>Create a need </li></ul><ul><li>Answer questions </li></ul><ul><li>Provide critical information </li></ul><ul><li>Inspire confidence, minimize risks </li></ul><ul><li>Make the sale </li></ul><ul><li>Use an incentive </li></ul>
  15. 15. The Tools of Direct Marketing: Direct Mail <ul><li>Advantages </li></ul><ul><li>Tells a story </li></ul><ul><li>Engages attention </li></ul><ul><li>Personalizes message </li></ul><ul><li>Builds in feedback </li></ul><ul><li>Reaches the unreachable </li></ul><ul><li>Disadvantages </li></ul><ul><li>Negative perceptions </li></ul><ul><li>Cost </li></ul><ul><li>Mailing list </li></ul><ul><li>Response rate </li></ul><ul><li>Vulnerability </li></ul>
  16. 16. The Tools of Direct Marketing: Catalogs <ul><li>A multi-page direct-mail publication that shows a variety of merchandise </li></ul><ul><li>Growth in this field is in the area of specialty catalogs </li></ul><ul><li>Video catalogs provide more information about products </li></ul>
  17. 17. The Tools of Direct Marketing: Catalogs <ul><li>Advantages </li></ul><ul><li>Targeted </li></ul><ul><li>Engages attention </li></ul><ul><li>Complete information </li></ul><ul><li>Convenience </li></ul><ul><li>Disadvantages </li></ul><ul><li>Negative perceptions </li></ul><ul><li>Costs </li></ul><ul><li>Response rate </li></ul><ul><li>Mailing list </li></ul>
  18. 18. Tools of Direct Marketing: Telemarketing <ul><li>Types of telemarketing </li></ul><ul><li>Criticisms of telemarketing </li></ul><ul><li>Telemarketing messaging design </li></ul>
  19. 19. The Tools of Direct Marketing: Direct-Response Advertising <ul><li>All direct-response advertising moves the consumer to action </li></ul><ul><li>Well-targeted </li></ul><ul><li>Reaches prime audience </li></ul>
  20. 20. The Internet and Direct Response <ul><li>Same components as direct mail and telemarketing </li></ul><ul><li>Greater sampling opportunities </li></ul><ul><li>New ways to gather info </li></ul>
  21. 21. Integrated Direct Marketing <ul><li>The challenge is to integrate direct mail, catalogs, telemarketing, Web sites, e-mail, text messaging, and instant messaging with other marketing communication </li></ul><ul><ul><li>Integrated direct marketing (IDM) </li></ul></ul>
  22. 22. Global Considerations in Direct Marketing <ul><li>Fueled by the same technological forces as in the U.S. </li></ul><ul><li>Particularly important in countries with tight restrictions on advertising </li></ul><ul><li>Potential restrictions on direct marketing </li></ul><ul><ul><li>Privacy issues more intense </li></ul></ul><ul><ul><li>Governmental regulation of postal service </li></ul></ul>