12 direct digital & data drivenmarketing

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Direct Digital & Data-Driven
Marketing
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Direct Digital & Data-Driven
Marketing
5th Edition
Lisa Spiller
Los Angeles
London

New Delhi
Singapore
Washington DC
Melbourne
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© 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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Library of Congress Control Number: 2019955360
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ISBN 978-1-5297-0818-9
ISBN 978-1-5297-0817-2 (pbk)
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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.
12

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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
15
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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
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
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
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
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
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
Position and Timing
Newspapers
Market Segmentation
Categories of Newspaper Advertising

Position and Timing
Summary
Key Terms
Review Questions
Exercise
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
Radio
Market Segmentation
Rate Structure
Internet Radio Competitors
Digital Video
YouTube

Setting up a Video Channel
Going Viral
Summary
Key Terms
Review Questions
Exercise
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
Planning a Telephone Marketing Program
Summary
Key Terms
Review Questions
Exercise
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
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
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
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
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
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
29
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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
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

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, …

IBM 3262 Interactive Marketing
Cal Poly Pomona
LCS
1 of 2
Individual 1 – Segmentation
Pre-Work
• Review chapter 3 of your text and your notes from in-class
material.
• Read the case study on Virginia Beach Tourism (pp. 126-134).
• Select one of the following tourist destinations for your
assignment and research the
destination, what it offers, what is unique about it, and why
people enjoy visiting (i.e., why

consumers decide to spend time and dollars within the selected
destination).
o Santa Monica: https://www.santamonica.com/
o Santa Ynez Valley: https://www.visitsyv.com/
o Yosemite: https://www.yosemite.com/
Assignment
Identify and personalize 2 market segments in the leisure
traveler category - B2C, anyone traveling for
pleasure and not business whose main motivation is vacation.
The segments will be based on your
selected destination, the information provided by each
destination’s official visitor/tourist website, and
other resources including data on why this audience has a high
propensity to visit and spend money at
this location (e.g., travel and tourism research, review sites, and
more).

Nature of Market Segmentation
Remember the criteria for segments, noted on p. 108.
Sources/References/Citations
Include data to support your segment selections. Use credible
and authoritative sources. Employ the
CRAAP test to find credible material.
Original Work
Examples of how Virginia Beach targeted segments are in the
text. The examples in the textbook case
study of how they target DO NOT represent examples of
segment descriptions; your assignment is to
provide segment descriptions with data to back up your
recommendations.
If the segments you create sound too close to someone else’s
work (i.e., duplication rather than original
work based on research and critical thinking), your submission
will be challenged; you may receive a

score of zero and further action may be taken. Consider
examples from Claritas PRIZM® and from our in-
class exercise.
Include the Following in Your Submitted Work
• Brief, 1 page or less, introduction summarizing how your
recommendations meet market
segmentation criteria: homogeneous, heterogeneous, and
substantial in size.
• Two B2C segments you recommend targeting for your selected
destination. Detailed
requirements for each segment can be found on the next page.
https://www.santamonica.com/
https://www.visitsyv.com/
https://www.yosemite.com/
https://libguides.library.cpp.edu/ld.php?content_id=55414939

IBM 3262 Interactive Marketing
Cal Poly Pomona
LCS
2 of 2
Include within each segment:
• A creatively descriptive name for the segment. Have fun. You
can do better than the textbook!
• Description of each segment. Be specific. 2-3 paragraphs are
sufficient if you are concise.
Communicate clearly who has the highest propensity to buy.
Flex your marketing muscles.
• List the segmentation bases/variables used for the descriptions
(e.g., social factor,
psychographic, behavioral, etc.; refer to pp. 109-122).

• At least 1 image per segment depicting people representing the
segment.
• The basis - reasoning or rationale - for each segment. Include
data to support the basis. Your
segments must align with what each destination offers.
• Work cited or used for research, even if you are not directly
citing. Include image sources.
Important: Segmentation bases and the basis (reasoning or
rationale) are two different things.
Grading
You start with 10 points. 2 points will be automatically
deducted for omitting references or for no
introduction summarizing how your recommendations meet
market segmentation criteria. Remaining
points will be maintained for clear articulation of segment
descriptions and a relevant, referenced basis

for each segment. Any material omissions typically result in 1-3
points deducted per item. Points may be
deducted for a poor segment description (e.g., vague) or
incongruence. 1 point will be deducted for
each missing or lazily titled segment name, list of segmentation
bases, or image.
Due Date
Refer to the Course Schedule in the Syllabus. Submit your
assignment through Turnitin via Blackboard.
Late assignments will not be accepted.
---------------------------------------------------------------------------
-------------------------------------------------- -------------
Data to Support Recommendations
What is the basis (different than segmentation bases) of your
recommendations? What available data
support the segment as practical and substantial in size? Here is
an example using pet owners as the

target audience. Within the overall target audience, you would
select/identify specific segments and
supply corresponding details or characteristics of the pet owners
in your segment(s).
Segment 1 might include “Nothing is Too Good for My Baby”
dog owners.
• Attributes might include demographic, geographic, lifestyle,
product consumption, media
consumption, and certainly financial behaviors based on the
segment title.
• A starting point for data might include how much U.S. dog
owners spend per month/year:
https://www.petfoodindustry.com/articles/7255-survey-
examines-us-pet-ownership-
demographics. A better data point would be the high end of the
spending spectrum, given the
attributes of the segment.

• A cross reference would include the number of U.S.
households that have a dog for a pet:
https://www.iii.org/fact-statistic/facts-statistics-pet-statistics.
• Do some marketing math to figure out the segment viability or
how meaningful this group is to a
marketer/brand/organization.
examines-us-pet-ownership-demographics
examines-us-pet-ownership-demographics
https://www.iii.org/fact-statistic/facts-statistics-pet-
statisticsPre-WorkAssignmentNature of Market
SegmentationSources/References/CitationsOriginal
WorkInclude the Following in Your Submitted
WorkGradingDue DateData to Support Recommendations

12 direct digital & data drivenmarketing

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