Direct Response. Part Five: Integration and Evaluation Part 5 deals with the complexities of marketing communications. Chapter Outline.

Transcription

1 Direct Response Chapter 15 Part Five: Integration and Evaluation Part 5 deals with the complexities of marketing communications Chapter Outline I. Chapter Key Points II. The Practice of Direct Marketing III. Database Marketing IV. The Key Players V. The Tools of Direct Marketing VI. Integrated Direct Marketing VII. Global Considerations in Direct Marketing 1

2 Key Points Define and distinguish between direct marketing and direct-response advertising Explain the types of direct marketing Name the players in direct marketing Evaluate the various media that directresponse programs can use Explain how databases are used in direct marketing Discuss the role of direct marketing in integrated marketing programs The Echo Awards: Celebrating Great Direct Marketing Visit the Site The Practice of Direct Marketing Figure 15.1 The Direct-Marketing Industry 2

3 The Practice of Direct Marketing Video Snippet Ogilvy & Mather: the first direct marketing company Advantages of Direct Marketing Collection of relevant customer information Purchase not restricted to location Marketer controls product until delivery Easier to evaluate Flexibility in form and timing Consumers reluctant to purchase Annoyances associated with direct marketing Unable to reach everyone in marketplace Disadvantages of Direct Marketing 3

4 The Direct- Marketing Process Figure 15.2 Database Marketing Objectives 1. Record names of customers 2. Store and measure ad results 3. Store and measure purchasing performance 4. Vehicle for continuing direct communication The Database Marketing Process Figure

5 Database Marketing Lists Data-driven communication Customer Relationship Management The Principles of Data-driven Relationships Visit the Site Companies whose primary business is selling products and services by mail or phone Retail stores who use direct marketing as a supplement The Key Players: Advertisers 5

6 The Key Players: Agencies Advertising agencies Independent agencies Service firms Fulfillment houses The Key Players: Media Companies The media that deliver messages by phone, mail, or the Web Recipients of the information and sometimes the initiator of the contact Push-button shopper Mouse-clicking shopper The Key Players: Customers 6

7 The Tools of Direct Marketing: Direct Mail A print advertising message for a product or service delivered by mail Outer envelope Letter Brochure Supplemental flyers Reply card Return envelope Direct Mail Solutions from Anderson Visit the Site Advantages of Direct Mail Tells a story Engages attention Personalizes message Builds in feedback Reaches the unreachable 7

8 Disadvantages of Direct Mail Negative perceptions Cost Mailing list Response rate Vulnerability The Tools of Direct Marketing: Catalogs A multipage directmail publication that shows a variety of merchandise Tools of Direct Marketing: Catalogs Advantages and Disadvantages of Catalogs Advantages Targeted Engages attention Complete information Convenience Disadvantages Negative perceptions Costs Response rate Mailing list Table 15.2 Description Can be directed at specific market segments. Employs high-quality design and photography (see Alsto s cover). Extensive product information and comparisons are provided. Offer a variety of purchase options. Description Catalogs are viewed as junk mail by many recipients. The cost per thousand of catalogs is higher than mass media. The response is relatively low at 3 to 4 percent. Databases must be consistently maintained. 8

9 Tools of Direct Marketing: Telemarketing Types of telemarketing Criticisms of telemarketing Telemarketing messaging design Do Not Call Registry: Keeping Telemarketers at Bay Visit the Site The Tools of Direct Marketing: Direct-Response Advertising Combines the characteristics of advertising with a contact element All direct-response advertising moves consumer to action 9

10 The Internet and Direct Response Same components as direct mail and telemarketing Greater sampling opportunities New ways to gather info USA Mail Now: Making Direct-Mailing Easier Integrated Direct Marketing Challenge is to integrate direct mail, catalogs, telemarketing, Web sites, , text messaging, and instant messaging with other marketing communication 10

11 Global Considerations in Direct Marketing Fueled by the same technological forces as the U.S. Particularly important in countries with tight restrictions on advertising Privacy issues more intense Governmental regulation of postal service Discussion Questions Discussion Question 1 Most people hate telemarketing. Say you work for the local campus environmental organization. How could you conduct a campus and community telemarketing effort that would not generate resistance? How would you develop a telemarketing program to promote campus fund-raising? Would it be better to solicit money directly or indirectly by having people attend specially designed events? Your primary targets are students, faculty, and staff. 11

12 Discussion Question 2 We know that copy and illustration are vital parts of a successful direct-mail campaign, but there must be some priorities. All of the components of creativity are important, but which are most important for direct-response creativity? What principles drive message design for direct marketing? Discussion Question 3 Hildy Johnson, a recent college graduate, is interviewing with a large garden-product firm that relies on television for its direct-response advertising. Your portfolio looks very good. I m sure you can write, the interviewer says, but let me ask you, what is it about our copy that makes it more important than copy written for Ford, Pepsi, or Pampers? What can she say that will help convince the interviewer she understands the special demands of direct-response writing? Discussion Question 4 One of the smaller, privately owned bookstores on campus is considering a direct-response service to cut down on its severe in-store traffic problems at the beginning of each semester. What ideas do you have for setting up some type of direct-response system to take the pressure off store traffic? 12

13 Discussion Question 5 How does the recent fervor surrounding personal privacy affect direct marketing specifically, telemarketing? In addition to legal issues, what consumer issues must media planners consider when designing a direct-marketing campaign? Discussion Question 6 The success of infomercials helps validate direct marketing as a revenue generator What characteristics of a product must you consider when determining whether to use a direct-marketing campaign? An infomercial? Discussion Question 7 Amazon.com is one of the most wellknown direct marketers on the Internet. Browse the company s Web site and identify what direct-marketing strategies the company employs. Which do you think are the most successful? Why? Which are the least effective? Why? What does Amazon expect to gain from direct marketing? 13