13-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...
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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
13-2Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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.
13-3Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
13-4Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Guide Dogs Australia
13-5Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
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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
13-6Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Anthony Hordens’ mail-order catalogue
13-7Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-8Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing: roles and relationships
13-9Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing combines with . . .
AdvertisingAdvertising
Sales promotionSales promotion
Public relationsPublic relations
Personal sellingPersonal selling
InternetInternet
Support mediaSupport media
Direct marketing
Direct marketing
13-10Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Dirt Action direct marketing
13-11Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
13-12Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-13Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-14Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
A comprehensive consumer database
Name
Address/postcode
Telephonenumber
Length ofresidence
Age
Gender
Maritalstatus
Familydata
Education
Income
Occupation
Transactionhistory
Promotionhistory
Inquiringhistory
Uniqueidentifier
13-15Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing and customer loyalty
13-16Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
13-17Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-18Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: mail
13-19Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: catalogues
13-20Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: unwrapped catalogue
13-21Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: catalogue websites
13-22Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct selling
DirectsellingDirectselling
PartyplansPartyplans
Repetitiveperson-
to-person selling
Non-repetitive person-
to-person selling
13-23Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-24Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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
13-25Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
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.
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