chapter 14 presentation

Promotional StrategyMKT4230

Direct Marketing

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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2Promotional StrategyMKT4230 2

Direct Marketing DefinedThis is the definition of direct marketing and examples of direct marketing media.

TextbookPage 474

Interactive TV

The Internet Other Media

Direct MailTelemarketing

Print

… an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location


Growth of Direct MarketingThese are the reasons for the growth behind direct marketing.

TextbookPage 474 - 476

Technological Advances

CatalogsConsumer Credit CardsMiscellaneous factors

Changing Structure of Society

Changing Structure of Markets


Direct Marketing and IMC ToolsThis visual show how direct marketing can be combined with other IMC tools.

TextbookPages 476 – 477

Sales Promotions

Public Relations

Personal Selling

Advertising

Support Media

Direct Marketing


Promotional Offers Through the MailThis is a promotional ad by Costco.

TextbookPage 477 / Exhibit 14 - 2


How Database Marketing WorksThis visual shows how the process of database marketing operates.

TextbookPages 478 - 480 / Figure 14 – 2 / 3


A Comprehensive Consumer DatabaseThis visual shows the various types of information that would be included in a comprehensive consumer database.

TextbookPages 478 / Figure 14 - 3

Name

Address/Zip Code

TelephoneNumber

Length ofResidence

Age

Gender

MaritalStatus

FamilyData

Education

Income

Occupation

TransactionHistory

PromotionHistory

InquiryHistory

UniqueIdentifier


A Business-to-Business DatabaseThis visual shows the types of information that would be included in a business-to-business database.

TextbookPage 478 / Figure 14 - 3

Contact Info

Contact Title

TelephoneNumberSource of

order, inquiry, referral

CreditHistory

IndustrialClassification

Size of Business

Revenues

Number ofEmployees

Time in Business

HeadquartersLocation

PurchaseHistory

PromotionHistory

InquiryHistory

UniqueIdentifier


Test Your KnowledgeFor market segmentation and targeting, direct marketers rely most heavily on:

A. Primary qualitative research

B. Census data

C. A database

D. Survey responses

E. Focus groups


Objectives of Database MarketingThis visual presents the primary objectives of database marketing.

TextbookPages 478 - 480

Improve Selection of Market Segments

Stimulate Repeat Purchases

Cross-selling Other Products

Customer Relationship Management

Objectives


Developing a DatabaseThis chart identifies the various sources from which marketers can obtain information for their databases.


List Brokers

Direct MarketingAssociation

Standard Rate &Data Service

U.S. Postal Service

Experion Simmons Market Research

Bureau

U.S. Census Bureau

Sources


Effective DatabasesThis chart identifies what the acronym RFM stands for.

TextbookPage 481

Frequency

Recency Monetarytransactions

RFM Scoring


Direct Marketing StrategiesThis chart shows the two basic approaches that are used by direct marketers.

TextbookPage 481

One-Step Two-Step

• May use one medium to obtain inquiry and qualify prospect

• Follow-up with a second medium to complete the sale

• The medium is used directly to obtain an order

• Often uses toll-free phone orders and credit card payments


Porsche Targets ProspectsThis is how Porsche North America used direct marketing to appeal to upscale audiences:

• Target Criteria• Physicians in specialties• Highest income levels• Demographics of Porsche buyers• Specific geographic areas

• Hooks• Use X-ray of a Porsche 911 Carrera 4• Use medical terminology



Success with CatalogsThis visual shows a catalog for Road Runner Sports, one company that started out exclusively as a catalog company.

TextbookPages 482 – 483 / Exhibit 14 - 9


Test Your KnowledgeWhich of the following statements about the use of catalogs in the direct-marketing industry is true?

A. The emotional appeal of Internet catalogs exceeds that of print catalogs.

B. The number of catalogs being mailed each year has decreased significantly.

C. Many companies use catalogs in conjunction with their more traditional sales and promotional strategies.

D. No company in business today relies solely on catalog sales.

This visual displays an infomercial ad that Bentley uses to attract buyers.


TV Spots, Infomercials, Home Shopping

TextbookPage 483 / Exhibit 14 - 10


Direct-Response vs. Support AdsThis chart shows the difference between direct-response and support advertising.

TextbookPage 483 - 484

Direct-response advertising

Supportadvertising

Product/service offered

Sales response solicited

Supports other advertising

Toll-free numbers included

Reader’s Digest asks you to watch mailbox for sweepstakes entry

TV spots, infomercials, home shopping shows


Direct Marketing via Print MediaThis visual shows a direct ad that Cutco placed in a magazine.

TextbookPages 486


TelemarketingThis chart present some of the key points related to telemarketing.

TextbookPage 486

Big industry, but decreasing sales

Used by for-profit and

charitable organizations

Supports one- and two-step marketing

Impacted by Do Not Call lists

Potential for fraud and deception

Annoys consumers


Forms of Direct SellingThese are the three forms of direct selling.

TextbookPages 473 – 474

Repetitive person-to-person

Non-repetitive person-to-person

Party Plans


Measuring EffectivenessThis is the top of measuring the effectiveness of direct-marketing programs.

TextbookPages 487

Cost per Order (CPO)


Direct Marketing AdvantagesThis is a summary of the advantages of direct marketing.


Testing

Timing

Segmentation

Selective reach

Frequency potential

Personalization

Costs

Measures of effectiveness


Direct Marketing DisadvantagesThis is a summary of the disadvantages of direct marketing.


Rising costs

Accuracy

Concept supportImage factors

Do not contact lists

chapter 14 presentation

Marketing

direct marketing strategies

growth of direct marketing

definition of direct

directmarketing industry

promotional strategies

promotional ad

promotional offers

direct marketers