direct marketing: the dialogue builder. what are the strengths of direct marketing? what is the...
TRANSCRIPT
Direct Marketing: The Dialogue Builder
What are the strengths of direct marketing?
What is the biggest strength of direct mail? The biggest limitation?
What are the strengths and weaknesses of telemarketing?
How can direct marketing efforts be evaluated?
What are the major issues and concerns related to direct marketing?
Lecture Outline
Advertising and Sales Promotion
Advertising and Sales Promotion
Lecture Perspective
A big advantage of Direct Marketing over A big advantage of Direct Marketing over Advertising and Sales Promotion:Advertising and Sales Promotion:
Direct Marketing
Direct Marketing
VeryInteractive
The use of a direct marketing program featuring:
• On-air demonstrations and direct selling on Home Shopping Network
• 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson
The use of a direct marketing program featuring:
• On-air demonstrations and direct selling on Home Shopping Network
• 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson
The use of a direct marketing program featuring:
• On-air demonstrations and direct selling on Home Shopping Network
• 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson
The use of a direct marketing program featuring:
• On-air demonstrations and direct selling on Home Shopping Network
• 30-minute infomercials promoting and selling its brands featuring Billy Mays as spokesperson
Expanding Orange Glo’s distribution and profitExpanding Orange Glo’s distribution and profit
• One of the fastest-growing private companies
• $250 million in annual sales
• One of the fastest-growing private companies
• $250 million in annual sales
Opening Case: Orange Glo
Challenge:Challenge:
Answer:Answer:
Results:Results:
Expanding Orange Glo’s distribution and profitExpanding Orange Glo’s distribution and profit
Direct Marketing
Direct marketing: An interactive, database-driven messaging system that uses a range of media to motivate a response from customers and prospects
DirectMarketing
DirectMarketing
2/3 of Americans Respond Every Year2/3 of Americans
Respond Every Year
4 Primary Media: Mail, Telephone, Email, Infomercials
4 Primary Media: Mail, Telephone, Email, Infomercials
Also Known As Direct Response: Because It Is Two-way in Nature
Also Known As Direct Response: Because It Is Two-way in Nature
4 Primary Media: Mail, Telephone, Email, Infomercials
4 Primary Media: Mail, Telephone, Email, Infomercials
2/3 of Americans Respond Every Year2/3 of Americans
Respond Every Year
Direct Marketing
Figure 18-1
++
InteractiveInteractive
MeasurableMeasurable
Fast and FlexibleFast and Flexible
MeasurableMeasurable
InteractiveInteractive
Direct Marketing’s Strengths
DirectMarketingStrengths
DirectMarketingStrengths
What Are Direct Marketing’s Strategies?
Front end strategies
Delivering the message
Back end strategies
Handling consumer responses and delivering the product
The OfferThe Offer Targeted DatabasesTargeted
DatabasesThe
ResponseThe
Response
FulfillmentFulfillment Customer Service
Customer Service
Privacy ProtectionPrivacy
Protection
The OfferThe Offer Targeted DatabasesTargeted
Databases
FulfillmentFulfillment Customer Service
Customer Service
Front & Back End Components
Front End ComponentsFront End
Components
Back End ComponentsBack End
Components
The Response
The Response
The Offer
The offer: Everything, both tangible and intangible, promised by a company in exchange for money or some other desired behavior
Promoting and delivering flowers nationwidePromoting and delivering flowers nationwide
The use of an IMC program featuring:• TV, radio, and direct mail messages
delivering the offer
• 1-800-FLOWERS; web site, handling responses
• 2,500 local florists fulfilling orders
The use of an IMC program featuring:• TV, radio, and direct mail messages
delivering the offer
• 1-800-FLOWERS; web site, handling responses
• 2,500 local florists fulfilling orders
The use of an IMC program featuring:• TV, radio, and direct mail messages
delivering the offer
• 1-800-FLOWERS; web site, handling responses
• 2,500 local florists fulfilling orders
The use of an IMC program featuring:• TV, radio, and direct mail messages
delivering the offer
• 1-800-FLOWERS; web site, handling responses
• 2,500 local florists fulfilling orders
Promoting and delivering flowers nationwidePromoting and delivering flowers nationwide
Named “top gift site on the web”Named “top gift site on the web”
IMC In Action: 1-800-Flowers
Challenge:Challenge:
Answer:Answer:
Results:Results:
Direct Mail
Direct mail: One form of direct response advertising that uses mail rather than other media to deliver a brand offer
An Example Of a Set Of Materials In a Mail Package
++
Vs.
StrengthsStrengths
• Addressability• Can receive more
attention than advertising
• Not as much clutter as advertising
• Message can be tailored to any size or shape
• Addressability• Can receive more
attention than advertising
• Not as much clutter as advertising
• Message can be tailored to any size or shape
StrengthsStrengths
• Addressability• Can receive more
attention than advertising
• Not as much clutter as advertising
• Message can be tailored to any size or shape
• Addressability• Can receive more
attention than advertising
• Not as much clutter as advertising
• Message can be tailored to any size or shape
Strengths And Limitations Of Direct Mail
LimitationsLimitations
• Postage can be costly• Some offers can be
costly to produce• Complex offers can
require long lead times
• Postage can be costly• Some offers can be
costly to produce• Complex offers can
require long lead times
Telemarketing
Telemarketing: The practice of using the telephone to deliver a brand message designed to create a sale or sales lead
Controversial…Controversial… … … but Big Businessbut Big Business
43 Billion
Figure 18-2: A Range of Automated Phone System Options
Vs.
Strengths And Limitations Of Telemarketing
StrengthsStrengths
• Personal • Addressability• Interactive
• Personal • Addressability• Interactive
StrengthsStrengths
• Personal • Addressability• Interactive
• Personal • Addressability• Interactive
LimitationsLimitations
• Human callers can be costly
• Intrusive (unwanted calls)
• Human callers can be costly
• Intrusive (unwanted calls)
Media Mix Used
Media Mix Used
Creative ApproachCreative
Approach
List TypesList Types Offer ValuesOffer Values
Frequency of Exposure
Frequency of Exposure
Media Mix Used
Media Mix Used
Creative ApproachCreative
Approach
Offer ValuesOffer ValuesList TypesList Types
How Can Direct Marketing Efforts Be Evaluated?
TestingTesting
Ultimate Test: Effectiveness
Response Rate
Response Rate
Number of responsesNumber of offers mailed
Number of responsesNumber of offers mailed ==
Cost Per Sale
Cost Per Sale
Total cost of mailingNumber of sales made
Total cost of mailingNumber of sales made ==
5 / 100 = 20
$1,000 / 5 = $200
Insight: Tracking Customer Costs/Profits
Direct marketers are very proficient tracking their costs and profits because the medium is the easiest to measure in terms of cost per sale. One rule of thumb: in most direct-marketing programs, a customer isn’t profitable until the third time he or she buys.
Think About It
Email CampaignIf you had to design an e-mail campaign for your organization, how would you make it appealing and not just annoying spam?
Email CampaignIf you had to design an e-mail campaign for your organization, how would you make it appealing and not just annoying spam?
Tales From the Real World
The public often wonders: “how did they get my name (or address, phone number, or email account)?”
In the real world, it’s fairly easy to acquire a database list of many different types of individuals. In fact, it’s amazing how specific some of the lists can be. Some examples of lists offered for sale by a list broker in their catalog: “accupuncturists,” “golfers,” and “nuclear physicists.”
Final Note:
• The increasing amount of clutter and privacy concerns suggests that the Direct Marketing winners will be those organizations who:• Are creative in making their appeals stand out
• Are sensitive to consumer privacy concerns
Bibliography
Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R.
Carlos Published by Pearson Prentice Hall.
Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall
International.
Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice
Hall.
The End:
"What lies behind us, and what lies before us are small matters
compared to what lies within us."
Ralph Waldo Emerson