13-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...

13-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Chapter 13

Direct marketing and communication


Learning objectives

1. To examine the development and reasons for growth of direct marketing communication.

2. To define the role and relationships of direct marketing, the internet and interactive media in an IMC program.

3. To identify the advantages and disadvantages of direct marketing communication.

4. To evaluate the effectiveness of communication through direct marketing communication.


Limitations

Advertising

Direct marketing

Measuring effectiveness

Part of IMC

Advantages

Mail and print

Catalogues

Broadcast

Telephony

PR

Objectives Media

Growth

Personal Selling

Support


Guide Dogs Australia


Direct marketing defined

InterpersonalInterpersonal

Direct sellingDirect selling Internet & emailInternet & email

MailMailTelephoneTelephone

TV, Radio & PrintTV, Radio & Print

Direct marketing is a system by which organisations communicate directly with target customers to generate a

response or transaction.

Direct marketing is a system by which organisations communicate directly with target customers to generate a

response or transaction.

DM

me

dia

DM

me

dia

Te

chn

iqu

es

Te

chn

iqu

es

CataloguesCatalogues SMSSMS

Electronic home shoppingElectronic home shopping

Direct mailDirect mailTelemarketingTelemarketing

Direct responseDirect response

Electronic interactive marketingElectronic interactive marketing


Anthony Hordens’ mail-order catalogue


Growth of direct marketing

Miscellaneous factorsMiscellaneous factors

Technological advancesTechnological advances

Changing structure of societyChanging structure of society

Direct marketing syndicatesDirect marketing syndicates

Consumer credit cardsConsumer credit cards


Direct marketing: roles and relationships


Direct marketing combines with . . .

AdvertisingAdvertising

Sales promotionSales promotion

Public relationsPublic relations

Personal sellingPersonal selling

InternetInternet

Support mediaSupport media

Direct marketing

Direct marketing


Dirt Action direct marketing


Limitations

Advertising

Direct marketing


Part of IMC

Advantages

Mail and print

Catalogues

Broadcast

Telephony

PR

Objectives Media

Growth

Personal Selling

Support


Developing a database

Improve selection of market segments

Improve selection of market segments

Stimulate repeat purchasesStimulate repeat purchases

Cross-selling other productsCross-selling other products

Customer relationship management

Customer relationship management

ObjectivesObjectives


Sources of information for developing a database

Credit bureauxCredit bureaux

List servicesList services

Direct marketingassociations

Direct marketingassociations

Online search behaviours

Online search behaviours

Postal servicesPostal services

Syndicated research

Syndicated research

Bureaux of statistics

Bureaux of statistics

Info sources

Info sources

Retail transaction histories

Retail transaction histories


A comprehensive consumer database

Name

Address/postcode

Telephonenumber

Length ofresidence

Age

Gender

Maritalstatus

Familydata

Education

Income

Occupation

Transactionhistory

Promotionhistory

Inquiringhistory

Uniqueidentifier


Direct marketing and customer loyalty


Limitations

Advertising

Direct marketing


Part of IMC

Advantages

Mail and print

Catalogues

Broadcast

Telephony

PR

Objectives Media

Growth

Personal Selling

Support


Direct marketing media strategies

One-step approachOne-step approach

• The medium is used to obtain an order

• Goal is to generate an immediate sale

Examples:

• Reply paid coupons

• 1-800 numbers

• The medium is used to obtain an order

• Goal is to generate an immediate sale

Examples:

• Reply paid coupons

• 1-800 numbers

Two-step approachTwo-step approach

• The medium is used for inquiry and to qualify prospects

• Follow up with a second medium to complete the sale

• Also known as permission marketing

• The medium is used for inquiry and to qualify prospects

• Follow up with a second medium to complete the sale

• Also known as permission marketing


DM Media: mail


DM Media: catalogues


DM Media: unwrapped catalogue


DM Media: catalogue websites


Direct selling

DirectsellingDirectselling

PartyplansPartyplans

Repetitiveperson-

to-person selling

Non-repetitive person-

to-person selling


Evaluating DM effectiveness

DM specific measures

• Cost per order (CPO)

DM specific measures

• Cost per order (CPO)

Behavioural objectiveBehavioural objective

Traditional measures

• Brand awareness

• Brand attitude

• Other measures of brand health

Traditional measures

• Brand awareness

• Brand attitude

• Other measures of brand health

Non-behavioural objective

Non-behavioural objective

MeasuresMeasures


Direct marketing advantages and disadvantages

AccuracyAccuracy

Image factorsImage factors

Content supportContent support

Selective reachSelective reach

Segmentation capabilitySegmentation capability

Frequency potentialFrequency potential

FlexibilityFlexibility

TimingTiming

PersonalisationPersonalisation

EconomyEconomy

AdvantagesAdvantages DisadvantagesDisadvantages

Measurement of effectivenessMeasurement of effectiveness

Rising costsRising costs


Summary and conclusions As advertisers search for more cost efficient

means of reaching markets, direct marketing and direct response media continue to grow.

Advantages of direct marketing include the ability to tightly segment, high level of message personalisation as well as excellent cost efficiency.

Advantages of the internet include its versatility, interactivity and its use in building customer relationships.

This chapter also considers means of evaluating the performance of DM and the internet.

13-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...

Documents

kerr powell direct marketing

mcgrawhill australia

powerpoint slides

radio print direct marketing

communication slide

kerr powell chapter

effectiveness of communication

interactive media