Chapter 10 Direct Marketing 10-1 1. Identify purposes served by direct marketing. 2. Explain the popularity of direct marketing. 3. Distinguish a mailing list from a marketing database, and review the applications of each. 4. Describe the media used by direct marketers in delivering messages to consumers. 10-2 Direct Marketing Today • Direct marketing has its roots in catalog companies such as L.L.Bean. • Many types of organizations are increasing their expenditures on direct marketing. These expenditures serve three primary purposes: • Closing sales with customers • Identifying prospects for future contacts • Offering information and incentives to foster brand loyalty 10-3 Direct Marketing Today, Continued Exhibit 10.1 Some Direct Marketing Milestones 10-4 Growing Popularity • The growing popularity of direct marketing can be attributed to several factors. • Convenience—credit cards, 800 numbers, and the Internet • Computer power—building and mining large customer information files • Tracking—lends itself to current emphasis on measurable outcomes 10-5 Growing Popularity, Continued 10-6 Finding that waterfall in Wyoming will take some planning, and Wyoming’s offices of Travel & Tourism is happy to help. The adventure begins with a request for a vacation packet. This ad provides two options: calling a toll- free number or visiting the tourism office’s website. Database Marketing • A mailing list is a file of names and addresses of current or potential customers, such as lists that might be generated by a credit card company or a catalog retailer. • Internal lists—valuable for creating relationships with current customers • External lists—useful in generating new customers • List enhancement—adding demographic, geodemographic, psychographic, or behavioral data 10-7 Database Marketing, Continued • A marketing database is a natural extension of the internal list, but it also includes information about individual customers and their specific preferences and purchasing patterns. • A marketing database allows organizations to identify and focus their efforts on their best customers using a recency, frequency, and monetary (RFM) analysis. • Recognizing and reinforcing preferred customers helps build loyalty: • Follow-up letters, discounts, coupons • Frequency-marketing programs—database, benefit package, communications strategy • Cross-selling opportunities also emerge once a database is in place. • One can gain keener information about the motivations of current best customers, and insights usually emerge about how to attract new customers. • However companies must be sensitive to consumer’s rights and wishes to protect their privacy. 10-8 Database Marketing, Continued Exhibit 10.2 What Makes a Marketing Database 10-9 Media Used in Direct Marketing • Direct-marketing programs emanate from mailing lists and dat.

1. Chapter 10
Direct Marketing
10-1
1. Identify purposes served by direct
marketing.
2. Explain the popularity of direct
marketing.
3. Distinguish a mailing list from a
marketing database, and review the
applications of each.
4. Describe the media used by direct
marketers in delivering messages to
consumers.
10-2
Direct Marketing Today
• Direct marketing has its roots in catalog companies such as
L.L.Bean.
• Many types of organizations are increasing their expenditures

2. on direct marketing. These expenditures serve three primary
purposes:
• Closing sales with customers
• Identifying prospects for future contacts
• Offering information and incentives to foster brand loyalty
10-3
Direct Marketing Today, Continued
Exhibit 10.1 Some Direct Marketing Milestones
10-4
Growing Popularity
• The growing popularity of direct marketing can be attributed
to
several factors.
• Convenience—credit cards, 800 numbers, and the Internet
• Computer power—building and mining large customer
information files
• Tracking—lends itself to current emphasis on measurable
outcomes
10-5

3. Growing Popularity, Continued
10-6
Finding that waterfall in Wyoming will
take some planning, and Wyoming’s
offices of Travel & Tourism is happy to
help. The adventure begins with a
request for a vacation packet. This ad
provides two options: calling a toll-
free number or visiting the tourism
office’s website.
Database Marketing
• A mailing list is a file of names and addresses of current or
potential customers, such as lists that might be generated by a
credit card company or a catalog retailer.
• Internal lists—valuable for creating relationships with
current customers
• External lists—useful in generating new customers
• List enhancement—adding demographic, geodemographic,
psychographic, or behavioral data
10-7
Database Marketing, Continued
• A marketing database is a natural extension of the internal

4. list, but it also
includes information about individual customers and their
specific preferences
and purchasing patterns.
• A marketing database allows organizations to identify and
focus their efforts
on their best customers using a recency, frequency, and
monetary (RFM)
analysis.
• Recognizing and reinforcing preferred customers helps build
loyalty:
• Follow-up letters, discounts, coupons
• Frequency-marketing programs—database, benefit package,
communications strategy
• Cross-selling opportunities also emerge once a database is in
place.
• One can gain keener information about the motivations of
current best
customers, and insights usually emerge about how to attract new
customers.
• However companies must be sensitive to consumer’s rights
and wishes to
protect their privacy.
10-8
Database Marketing, Continued

5. Exhibit 10.2 What Makes a Marketing Database
10-9
Media Used in Direct Marketing
• Direct-marketing programs emanate from mailing lists and
databases, but there is
still a need to deliver a message to the customer.
• Direct mail, telemarketing, and email are the most common
means used in
executing direct marketing programs. Email is most successful
when it avoids
spam and uses opt-in lists.
• Because the advertising done as part of direct-marketing
programs typically
requests an immediate response from the customer, it is known
as direct-response
advertising.
• Conventional media such as newspapers, magazines, and radio
also can be used
to request a direct response by offering an 800 number or a Web
address to
facilitate customer contact.
• Television makes use of the infomercial for direct-response
advertising. Successful
infomercials require:
• a same-day response
• frequent closes

6. • testimonials (celebrities do no harm, but are not essential)
10-10
Media Used in Direct Marketing, Continued
10-11
Media Used in Direct Marketing, Continued
10-12
Exhibit 10.3 Elements of a Successful Infomerical
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