2. Direct Marketing Defined
The total of activities by which the seller directs efforts to
a target audience using one or more media for the
purpose of soliciting a response by phone, mail, or
personal visit from a prospect or customer
TV Selling
Radio
Direct Mail
Telemarketing
Direct Selling Magazine and Newspaper
3. Growth of Direct Marketing
Direct
Marketing Consumer
Syndicates Credit Cards
Growth of the Changing
Structure of
Internet Society
Changing
Structure of Technological
Markets Advances
4. Direct Marketing Combines With . . .
Advertising
Public
Internet Relations
Direct
Marketing
Support Personal
Media Selling
Sales
Promotions
6. A Comprehensive Consumer Database
Name Gender Occupation
Address/ Marital Transaction
Zip Code Status History
Telephone Family Promotion
Number Data History
Length of Inquiry
Education
Residence History
Unique
Age Income
Identifier
7. A Business-to-Business Database
Industrial Headquarters
Contact Info
Classification Location
Contact Size of Purchase
Title Business History
Telephone Promotion
Revenues
Number History
Source of
Number of Inquiry
order, inquiry,
Employees History
referral
Credit Time in Unique
History Business Identifier
8. Objectives of Database Marketing
Improve Selection of
Market Segments
Stimulate Repeat
Purchases
Objectives
Cross-selling Other
Products
Customer Relationship
Management
9. Direct Marketing Strategies
One-Step Two-Step
• The medium is used • May use one medium
directly to obtain an to obtain inquiry and
order qualify prospect
• Often use 800 number • Typically follow up
phone orders and credit with a second medium
card payment to complete the sale
11. Types of Direct Mail
All forms of advertising sent directly to
prospects through the U.S. Postal Service or
through private services
House lists Inclusions
Broadsides Postcards
Catalogs Reprints
Flyers Sales letters
Folders Self-mailers
17. Telemarketing
Outbound Inbound
Telephone calling by the Marketers facilitate and
marketer or marketer’s invite prospects to call a
agent to individual central location via a long
prospects, seeking distance number, by a
purchase, subscription, toll-free 800 number, or a
membership, or fixed-cost 900 number.
participation by the call
recipient.
18. Forms of Direct Selling
Repetitive
person-to-person
Nonrepetitive
person-to-person
Party Plans
21. Direct Response Metrics
• Cost per inquiry – cost of media divided by
the number of inquires received ($10,000
ad that generates 1,000 inquiries = $10 CPI
• Cost per order = cost of media divided by
the number of orders received (e.g.,
$10,000 ad generating 200 orders = $50
CPO)
• Cost per point –cost of one household TV
rating point in a market
• Cost per thousand = cost to deliver 1,000
persons or households. CPM calculated by
dividing media cost by audience size x1000
22. Direct Marketing Advantages
Selective reach
Segmentation capabilities
Frequency potential
Flexibility
Timing
Personalization
Costs
Measures of effectiveness
Relation to text This slide relates to material on pp. 475-476 of the text. Summary Overview This slide summarizes the advantages of direct marketing, including: Selective reach , which lets the advertiser reach a large number of people, while minimizing waste coverage. Segmentation capabilities , based on geographic area, occupation, demographics, job title, and more. Frequency potential , which means how often the target market is exposed to the ad. Flexibility . Ad creativity is limited only by the imagination of the person creating it and the medium being used. Timing . Direct marketing materials can often be put together and distributed quickly, unlike other media, which may require long-range planning. Personalization . No other advertising medium can personalize the message as well as a direct media. Costs . The ability to target the audience and eliminate waste coverage reduces the actual CPM. Measurement of effectiveness . Feedback is often immediate and always accurate. Use of this slide This slide can be used to summarize the advantages of using direct marketing.
