Direct Marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 1. Direct Marketing Defined

“The
“The total
total of
of activities
activities by
by which
which the
the seller
seller directs
directs efforts
efforts toto aa
target
target audience
audience using
using one
one or
or more
more media
media forfor the
the purpose
purpose of of
soliciting
soliciting aa response
response byby phone,
phone, mail,
mail, or
or personal
personal visit
visit from
from aa
prospective
prospective customer.”
customer.”

TV
TV Selling
Selling
Radio
Radio
Direct
Direct Mail
Mail
Telemarketing
Telemarketing

Direct
Direct Selling
Selling Magazine
Magazine and
and Newspaper
Newspaper

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Growth of Direct Marketing

Consumer
Consumer Credit
Credit Cards
Cards

Direct
Direct Marketing
Marketing Syndicates
Syndicates

Changing
Changing Structure
Structure of
of Society
Society

Technological
Technological Advances
Advances

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 3. Role of DM in IMC
Direct Marketing Combines With . ..

Advertising
Advertising

Public
Public Relations
Relations

Direct
Direct
Marketing
Marketing
Support
Support Media
Media Personal
Personal Selling
Selling

Sales
Sales Promotion
Promotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 4. Developing a Database

List
List Services
Services

Standard
Standard Rate
Rate &&
Data
Data Service
Service
(SRDS)
(SRDS)

Sources
Sources

U.S.
U.S. Census
Census U.S.
U.S. Postal
Postal
Bureau
Bureau Service
Service

Direct
Direct Marketing
Marketing
Association
Association

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Comprehensive Consumer Data Base

Name Gender Occupation

Address/ Marital Transaction

Zip Code Status History

Telephone Family Promotion

Number Data History

Length of Inquiring
Education
Residence History

Unique
Age Income
Identifier

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 A Comprehensive Business to
Business Data Base

Comp. Contact Headquarter,

Industrial
or Decision Multiple
Classification
Makers Location

Title of Size of Purchase

Contact Business History

Telephone Promotional
Revenues
Number History

Source of
Number of Inquiry
Order/inquiry
Employees History
or Referral

Time in Unique
Credit History
Business Identifier

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Objectives of Database Marketing

Improve
Improve Selection
Selection of
of
Market
Market Segments
Segments

Stimulate
Stimulate Repeat
Repeat
Purchases
Purchases
Objectives
Objectives
Cross-selling
Cross-selling Other
Other
Products
Products

Customer
Customer Relationship
Relationship
Management
Management

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 5. DM strategies (approaches)

One-Step
One-Step Two-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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 6. Direct-Marketing Media

Direct
Direct Mail
Mail Catalogs
Catalogs

Broadcast
Broadcast
Media
Media
Media
Media
Print
Print Media
Media TV
TV Spots
Spots

Homeshopping
Homeshopping Infomercials
Infomercials

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Outbound and Inbound Telemarketing

Outbound
Outbound Inbound
Inbound

Telephone calling by the Marketers’ facilities and

marketer or marketer’s invitations to prospects to
agent to individual call a central location or
prospects, seeking long distance number or
purchase, subscription, by toll-free, 800 or fixed
membership, or cost 900 number.
participation by the call
recipient.

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 7. Overall Direct Marketing Pros & Cons

Advantages Disadvantages
Selective
Selective Reach
Reach Image
Image Factors
Factors

Segmentation
Segmentation Capability
Capability Accuracy
Accuracy

Frequency
Frequency Potential
Potential Content
Content Support
Support

Flexibility
Flexibility Rising
Rising Costs
Costs

Timing
Timing

Personalization
Personalization

Economy
Economy
Measurement
Measurement of of
Effectiveness
Effectiveness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin