© 2005 mcgraw-hill ryerson limited chapter objectives to recognize the purpose of direct marketing...
TRANSCRIPT
© 2005 McGraw-Hill Ryerson Limited
Chapter Objectives
• To recognize the purpose of direct marketing as a communications tool.
• To appreciate the strategies and tactics involved in direct marketing.
• To demonstrate the use of direct marketing media.
• To determine the scope and effectiveness of direct marketing.
© 2005 McGraw-Hill Ryerson Limited
Direct Marketing
Catalog SellingCatalog Selling
Direct SellingDirect Selling Direct Action AdvertisingDirect Action Advertising
Direct MailDirect MailTelemarketingTelemarketing
TV SellingTV SellingCatalog SellingCatalog Selling TV SellingTV Selling
Direct MailDirect Mail
Direct Action AdvertisingDirect Action AdvertisingDirect SellingDirect Selling
“Any medium where a seller can contact prospective customers and
then accept the orders”
“Any medium where a seller can contact prospective customers and
then accept the orders”
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
Growth of Direct Marketing
Miscellaneous factorsMiscellaneous factors
Technical AdvancesTechnical Advances
Direct Marketing SyndicatesDirect Marketing Syndicates
Changing Structure of SocietyChanging Structure of Society
Consumer Credit CardsConsumer Credit Cards
Technical AdvancesTechnical Advances
Direct Marketing SyndicatesDirect Marketing Syndicates
Changing Structure of SocietyChanging Structure of Society
Consumer Credit CardsConsumer Credit Cards
© 2005 McGraw-Hill Ryerson Limited
Direct Marketing in the IMC Program
PublicRelations
PublicRelations
PersonalSelling
PersonalSelling
SalesPromotion
SalesPromotion
DirectMarketing
DirectMarketing
AdvertisingAdvertising
SalesPromotion
SalesPromotion
PersonalSelling
PersonalSelling
PublicRelations
PublicRelations
AdvertisingAdvertising
IMC ProgramIMC Program
© 2005 McGraw-Hill Ryerson Limited
Direct Marketing Program Plan
• Companies must determine:
1. What program’s objectives will be.
2. Who to target by using a database.
3. What direct marketing strategy will be employed.
4. How to measure direct marketing effectiveness.
© 2005 McGraw-Hill Ryerson Limited
1. Direct Marketing Objectives
Behavioural ResponseBehavioural Response
Build an ImageBuild an Image
Inform and/or EducateInform and/or Educate
Customer Relationship Management
Customer Relationship Management
Inform and/or EducateInform and/or Educate
Build an ImageBuild an Image
Behavioural ResponseBehavioural Response
ObjectivesObjectives
© 2005 McGraw-Hill Ryerson Limited
2. Database Marketing – How It Works
© 2005 McGraw-Hill Ryerson Limited
2. Sources of Database Information
Info CanadaInfo Canada Marketing Research Houses
Marketing Research Houses
List ServicesList ServicesCanada PostCanada PostStatistics CanadaStatistics Canada
© 2005 McGraw-Hill Ryerson Limited
3. Direct Marketing Media Strategy
One StepOne Step Two StepTwo StepOne StepOne Step
• The medium is used directly to obtain an order.
• Often use 800 number phone orders and credit card payment.
• Use one medium to obtain inquiry, qualify prospect.
• Typically follow up with another medium to complete sale.
© 2005 McGraw-Hill Ryerson Limited
Strengths and Limitations
AccuracyAccuracy
Rising CostsRising Costs
Image FactorsImage Factors
Content SupportContent Support
Selective ReachSelective Reach
Segmentation CapabilitySegmentation Capability
Frequency PotentialFrequency Potential
FlexibilityFlexibility
TimingTiming
PersonalizationPersonalization
EconomyEconomy
StrengthsStrengths LimitationsLimitations
Measurement of Effectiveness
Measurement of Effectiveness
AccuracyAccuracy
Image FactorsImage Factors
Content SupportContent Support
Selective ReachSelective Reach
Segmentation CapabilitySegmentation Capability
Frequency PotentialFrequency Potential
FlexibilityFlexibility
TimingTiming
PersonalizationPersonalization
EconomyEconomy
Measurement of Effectiveness
Measurement of Effectiveness