Transcript Chap014.ppt
14 Direct Marketing McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed Direct Marketing Defined …an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location Print Interactive TV Telemarketing The Internet Direct Mail Other Media 14-2 Growth of Direct Marketing Miscellaneous factors Consumer Credit Cards Catalogs Changing Structure of Markets Changing Structure of Society Technological Advances 14-3 Direct Marketing Combines With… Public Relations Advertising Direct Marketing Support Media Personal Selling Sales Promotions 14-4 Promotional Offers Through the Mail 14-5 How Database Marketing Works 14-6 A Comprehensive Consumer Database Name Gender Occupation Address/ Zip Code Marital Status Transaction History Telephone Number Family Data Promotion History Length of Residence Education Inquiry History Age Income Unique Identifier 14-7 A Business-to-Business Database Contact Info Industrial Classification Headquarters Location Contact Title Size of Business Purchase History Telephone Number Revenues Promotion History Source of order, inquiry, referral Number of Employees Inquiry History Credit History Time in Business Unique Identifier 14-8 Test Your Knowledge For 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 14-9 Objectives of Database Marketing Improve Selection of Market Segments Stimulate Repeat Purchases Objectives Cross-selling Other Products Customer Relationship Management 14-10 Developing a Database List Brokers Experion Simmons Market Research Bureau Standard Rate & Data Service Sources U.S. Census Bureau U.S. Postal Service Direct Marketing Association 14-11 Effective Databases RFM Scoring Recency Monetary transactions Frequency 14-12 Direct Marketing Strategies One-Step Two-Step • The medium is used directly to obtain an order • May use one medium to obtain inquiry and qualify prospect • Often uses toll-free phone orders and credit card payments • Follow-up with a second medium to complete the sale 14-13 Porsche Targets Prospects • 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 14-14 Success with Catalogs 14-15 Test Your Knowledge Which 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. 14-16 TV Spots, Infomercials, Home Shopping 14-17 Direct-Response versus Support Ads Directresponse advertising Product/service offered Sales response solicited Toll-free numbers included TV spots, infomercials, home shopping shows Support advertising Reader’s Digest asks you to watch mailbox for sweepstakes entry Supports other advertising 14-18 Direct Marketing via Print Media 14-19 Telemarketing Used by for-profit & charitable organizations Supports one- and two-step marketing Big industry, but decreasing sales Potential for fraud and deception Annoys consumers Impacted by Do Not Call lists 14-20 Forms of Direct Selling Repetitive person-to-person Nonrepetitive person-to-person Party Plans 14-21 Measuring Effectiveness Cost per Order (CPO) 14-22 Direct Marketing Advantages Selective reach Segmentation Frequency potential Testing Timing Personalization Costs Measures of effectiveness 14-23 Direct Marketing Disadvantages Accuracy Image factors Do Not Contact lists Content support Rising costs 14-24