Direct marketing is an interactive system that allows for two-way communication between marketer and customer. It aims to elicit a measurable response or transaction from customers. Direct marketing relies on databases of customer information to target communications and measure response rates. It uses various media like mail, print, broadcast, telemarketing and technology like email and forums to directly reach customers. The key is reaching the right person at the right time with the right offer. Forces like information overload, marketplace congestion and globalization are changing the direct marketing landscape, increasing the need to target individuals.

1. Marketing the Direct Response Media Marketing - LECTURE 7

2. The Characteristics of Direct Marketing Direct marketing is an interactive ( 互動 ) system of marketing which uses one or more advertising media to affect a measurable response and/or transaction at any location.

3. Direct Marketing 1.Direct marketing is an interactive system. The prospective customer ( 目標客戶 ) and the marketer engage ( 交接 ) in two-way communication.

4. Direct Marketing 2.Direct marketing is a mechanism ( 機制 ) for the consumer to respond to the offer is always available. Making a measurable response available suggests that the characteristics of respondents and non-respondents can be assessed ( 被評估 ).

5. Direct Marketing 3.Direct marketing is that the exchange between buyer and seller is not bound by a retail store or salesperson. Location is not an issue – the order can be made at any time of the day or night.

6. Direct Marketing 4.The response of direct marketing is measurable ( 可測量的 ). It allows the marketer to calculate precisely ( 準確地 ) the costs of producing the communication effort and the resulting income.

7. Direct Marketing 5.Direct marketing is the necessity ( 必要性 ) for a database of consumer information. Through the information in databases, the direct marketers can target communications to an individual consumer.

8. Marketplace Direct Marketing

9. Direct Mail 直銷郵件 Direct mail provides the historical foundation for the direct-response industry. A direct-mail piece is a complex, self-standing advertising message for a single product or service.

10. Direct Mail 直銷郵件 It may be as simple as a single-page letter or as complex as a package consisting of a multiple letter, a brochure ( 小冊子 ), supplemental flyers ( 傳單 ) and an order card with a return envelope ( 回郵信封 ).

11. Direct Mail 直銷郵件 multiple letter

12. Direct Mail 直銷郵件 brochure ( 小冊子 )

13. Direct Mail 直銷郵件 supplemental flyers ( 傳單 )

14. Direct Mail 直銷郵件 return envelope ( 回郵信封 )

15. Print Media 印刷媒體 Ads in the mass media are less directly targeted than are direct mail and catalogs. However, they can still provide the opportunity for a direct response. Ads in newspapers and magazines can carry a coupon or an order form. The response may be either to purchase something or to ask for more information.

16. Broadcast Media 廣播媒體 Television and radio have also become involved in direct marketing advertising. Television is a major medium for direct marketers who are advertising a broadly target product and providing budget to afford the ever-increasing costs of television advertising.

17. Direct-response advertising on television used to be the province of late-night hard sell message. (eg 宣傳易 )

18. Broadcast Media 廣播媒體 Radio has not been a dynamic medium for direct-response advertising because most experts believe the radio audience is too preoccupied ( 集中精神 ) with other things to record an address or a telephone number.

19. Telemarketing 電話推廣 Telemarketing can be an important part of an integrated marketing communication program. The objective is reach customers in a personalized, cost-effective interaction that meets customer needs. The most effective telemarketing programs make use of the latest technologies, including communications hardware and software, particularly database technologies to build and maintain satisfactory customer relationships .

20. Telemarketing 電話推廣 Telemarketing methods are categorized as: inbound , where customers are calling a firm to place an order or to request more information or customer service, and outbound , where the firm is calling customers and prospects to make a sale or to offer information which it hopes will lead to a sale.

21. Telemarketing 電話推廣 A well-managed telemarketing operation monitors every calling station to ensure quality customer and prospect service, uses full-time supervisors for all its calling operations, develops a professional telemarketing staff, and uses professionally prepared scripts ( 稿 ) to guarantee that the firm’s sales message is delivered to its customers and prospects with consistency and with the correct emphasis on what the firm wants to communicate.

22. Reasons for the growth of Direct Response

23. Reasons for the growth of Direct Response Three major factors have contributed to the growth in direct response. These changes represent long-term macro-environmental trends that are outside the control of any individual or firm.

24. Changing lifestyles and demographics ( 人口統計資料 ) With lifestyles that place a premium on time use, consumers are also interested in quicker and easier ways to shop, including the ability to order from home.

25. Changing lifestyles and demographics ( 人口統計資料 ) By monitoring changes in the number and composition of households at each stage in the family life cycle, direct marketers can also predict buying behaviors that depend on a combination of age, marital status ( 婚姻情況 ) , and the presence of children.( 有冇小朋友 )

26. An evolving ( 發展中 ) economy and international competition Today’s boom in international trade and competition is affecting both how businesses operate and the quality of life in nearly every country. Direct marketers are particularly concern about how the changing economy influences the ability of consumers and businesses to purchase their goods and services.

27. Technological advances and innovations 創新 Technology is an important agent of change in today’s business and society. It is becoming possible to shop from the comfort of one’s living room, using a telephone or a PC to order merchandise.

28. Technological advances and innovations 創新

29. Marketing the Database

30. Marketing database has FOUR primary objectives To record names of customers, expires (names no longer valid), and prospects; ( 儲存客戶叫咩名、會籍幾時到期、係唔係有機會再續前緣 ) To provide a vehicle for storing and then measuring results of direct-response advertising; ( 準備好強而有力的資料數據，去準備下一輪廣告 ) To provide vehicle for storing and then measuring the purchasing performance; ( 了解一下自己銷售情況係唔係理想 ) To provide vehicle for continuing direct communication by mail or phone. ( 給自己多一個機會，一次唔得下次再黎 ~ 總有一天感動你 … )

31. Marketing a Direct Response Piece Direct Marketing

32. five elements in a direct marketing piece 1) the offer 俾個提議你去買野 2) the medium 俾個渠道你去買野 3) the message 俾個訊息你去買野 4) timing and sequencing 俾個時間及購買程序你去買野 5) customer service 客戶服務

33. Marketing a Direct Response Piece The offer constitutes ( 組合 ) all the variables that together are intended to satisfy the needs of the consumer. Because of the unique benefits provided through direct marketing, the offer may contain a price, extra incentives and guarantees or warranties.

34. Marketing a Direct Response Piece Selecting the medium and the message are decisions that go hand-in-hand with direct marketing. The key to success of direct marketing is reaching the right person at the right time . The customer service offered is an important technique for overcoming customer resistance to buying through direct response media.

35. Direct Response Profitability

36. Direct Response Profitability There are many ways for a direct marketing firm to increase its profits , the alternatives can be grouped into four categories.

37. Direct Response Profitability 1. attempt to get more business from its current customers ( 鼓勵舊客用多 D); 2. invest in new-customer acquisition, which involves pursuing prospects who probably have the same characteristics as the firm’s current customers; ( 尋找“新 ”的客戶 ) 3. invest in new direct marketing tools; or ( 投資新市場、新方向 ) 4. add new products or services to its business ( 增加新產品推出市場 )

38. Forces of Change in Direct Marketing

39. Information Overload In today’s information-rich business and personal environment, everyone is inundated with all types of data. Daily people receive letters, memos, computer-screen and voice-mail messages, and spoken presentations from co-workers and associates.

40. Welcome and unwelcome information accosts the sense through fax, SMS and mobile. Direct marketers are perceived ( 意識到 ) as contributing to this overload – a perception that they must work to change.

41. Example: Smartone

42. Marketplace Congestion 擠塞 Competition in the marketplace for a share of the consumer’s mind is intensifying ( 強烈 ) . Today the key to breaking through marketplace congestion is to reach individuals. More and more companies now place on customer data acquisition is evident in their increasing use of packaged-good discount coupons with sweepstakes ( 獎金 ) .

43. Marketplace Congestion 擠塞 This combination allows consumers to feel they are getting a deal while allowing companies to acquire name, address, and other information for later marketing efforts.

44. Globalization As the world evolves toward becoming open and unified ( 統一 ), the tools of direct marketing are more widely available country by country ( 跨國 ). Technology now allows one-to-one selling across the nation and around the globe. The diversification ( 多樣化 ) of target and product markets across national borders broadens ( 擴大 ) the scope ( 範圍 ) of direct marketing.

45. Targeting the Individual The trend toward greater segmentation is precisely ( 明確 ) why marketers must use an array ( 一連串 ) of media in combination to seek out special tastes and address them with tailored ( 度身定做的 ) goods and services. Consumers cannot be standardized ( 標準化 ) in terms of either products or styles. The success of a program depends on properly ( 恰當地 ) addressing ( 滿足 ) the right person with the right offer. Knowledge of current and potential customers then allows effective strategy planning and media selection.

46. Technology in Direct Response Different kinds of technologies are available for direct marketers to reach customers on the internet.

47. Electronic mail 電郵 E-mail is a one-to-one medium, exceptionally ( 異常地 ) good for communicating and building relationships with prospects and customers.

48. Forums 討論區 Forums are one-to-many medium. Those on the net can find discussions going on about virtually any topic they can imagine.

49. Forums 討論區 uwants.com

50. Forums 討論區 discuss.com.hk

51. Newsgroups 新聞組 Direct marketers can certainly approach appropriate groups to ask for focus group volunteers or to set up an online discussion forum where users of a firm’s products or services could get help, suggest new ideas or voice complaints.

52. Newsgroups 新聞組 newsgroup.la

53. Bulletin boards 佈告欄 All it takes to start a bulletin board system (BBS) is the software, a computer, and someone to operate it. Most bulletin board postings offer the owner’s e-mail address for users to respond to.

54. World Wide Web sites Websites are just computer locations on the internet where anyone with the address can go to read pages of information and/or to download files. The world wide web is the fastest growing part of the internet and promises to lead the way in its expansion to millions more users worldwide.