Direct Marketing MKS-6-DMK

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Direct Marketing

MKS-6-DMK

2012-2013

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1. UNIT DETAILS

Unit Title: Direct Marketing

Unit Level: Level 6

Unit Reference Number: MKS-6-DMK

Credit Value: 15

Student Study Hours: 150

Contact Hours: 45

Private Study Hours: 105

Pre-requisite Learning (If applicable):

Co-requisite Units (If applicable): n/a

Course(s): BAM, CHM, CHDM, BABS, BABA

Year and Semester Semester 1

Unit Coordinator: Beverly Barker

UC Contact Details (Tel, Email, Room) 02078157803, barkerba@lsbu.ac.uk, Rm 343

Teaching Team & Contact Details (If applicable):

Kate Saunders

Email: saundek3@lsbu.ac.uk. Rm 321

Subject Area: Marketing & Strategy

Summary of Assessment Method: Group Project, Individual assignment and exam

2. SHORT DESCRIPTION

This unit builds on the accumulated knowledge of marketing, integrated marketing communications and digital marketing introducing, in greater detail, the discipline of direct marketing.

As a single unit it provides a thorough understanding of the concepts and skills required of direct marketing in today’s competitive marketing environment. The unit examines direct marketing theories and practice, and will introduce the key building blocks of direct marketing, including acquisition, retention, database marketing and direct marketing planning, encompassing both the creative and media processes needed to deliver the right message to the right target audience.

This unit provides a set of transferable and practical skills that students will be able to use at university and throughout their careers to integrate direct marketing with both management and marketing practice.

3. AIMS OF THE UNIT

This unit sets out to enable students to learn about direct marketing and to be able to work with the key theories and practices. It places great emphasis on the practical application of these theories and concepts, with the result that the student will be able to produced and rationalise a tactical direct marketing plan for an organisation.

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4. LEARNING OUTCOMES

4.1 KNOWLEDGE AND UNDERSTANDING

On completing the unit it is expected that students should have:

• A comprehensive knowledge of direct marketing theories and how they can be applied to provide strategic business solutions

• A detailed knowledge of the key direct marketing metrics and models for response analysis, including ‘Cost per response’ (CPR), ‘Life-Time-Value (LTV) and ‘Return-on-Investment’ (ROI) to evaluate and refine business efficiency • An awareness of the professional and legislative codes within direct marketing

and an appreciation of ethical issues relating to personal data

• An awareness of how to integrate direct marketing into the wider strategy and practices of marketing

4.2 INTELLECTUAL SKILLS

On completion of this the students should be able to:

• Analyse direct marketing data using appropriate models and techniques & assist with customer value forecasting

• Synthesise customer data and market insights to propose relevant, profitable acquisition and retention plans

• Apply a range of direct marketing communication tools and techniques to propose appropriate tactical solutions to improve marketing effectiveness

4.3 PRACTICAL SKILLS

On completion of this unit students will be able to:

• Apply budgeting and forecasting techniques to direct marketing tasks • Write a tactical direct marketing acquisition and retention plan

• Make proposals relating to the database requirements to collect relevant customer data from own and external sources

4.4 TRANSFERABLE SKILLS

On completion of this unit student will be able to:

• Plan, undertake and interpret consumer and business research

• Develop, implement and manage projects autonomously and work to deadlines • Prepare and communicate effectively through written and oral business reports • Work with computers and major office software

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5. ASSESSMENT OF THE UNIT

The assessment will encompass both individual and group coursework, representing a total of 50% of the overall marks for the unit, together with a 3hour exam (50%).

Coursework 50 %

• Group Case Study Assignment Group Presentation equivalent to 500 words per student

• Individual creative proposal: Written work equivalent to 1000 words per student

Examination 50%

Exam (3hours) 50% of the overall mark (equivalent to 3000 words)

5.2 COURSEWORK DESCRIPTION

Being the Direct Marketing Agency

For this assignment you will assume the role of a senior executive working in a full service direct marketing agency. Your agency has been given the opportunity to pitch for a new client. They have supplied a brief which you will be given a copy of in week 2 of this unit.

You have been asked to prepare a direct marketing plan to achieve their marketing objectives. You will need to build a programme of activity which will create interest and the desired response from the target market. The tasks details below are indicative of the types of information you will be required to provide, but the final brief will provide you with the core details and the case study that you will be required to work on.

5.2.a

Group work: Presentation (20% of the overall course marks)

Task 1: Presentation of overarching direct marketing analysis and identification of key issues, objectives and strategy. Presented in Week 9

The broad objectives will be given to you within the brief but you need to demonstrate an understanding of these objectives by the strategies that you put forward.

• You will need to conduct a situation analysis, including PEST and SWOT analysis,

for the brand and product, identifying the key issues and considerations for your plan, demonstrating how you can use these findings in setting your strategy.

• Demonstrate you are clear who you are talking to about the brand – who are the key

segments and who is your target market ?

• Give a clear view as to what the top line proposition is for your target audience about

the product, why should they be interested? How will you persuade potential customers away from their current brand choice?

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5.2.b

Individual work (30% of the overall course marks)

Task 2: How will you communicate the message that you have to put over? To be handed in by the end of Week 12

This work can be presented in any medium of your choice. You may use photomontage, paper, film, CD, t-shirts, direct mail mock-ups, Photo Story 3, etc to accompany or instead formal proposal.

• Building upon your strategy presentation, you need to outline your creative

positioning which must fit with the overall brand, be appropriate for the target audience segments

• You should demonstrate how it will be practical to meet your objectives and have the

creative flexibility to be ‘campaignable’ across the media that you might choose to reach your audience.

• You will be assessed on whether the creative fits with the brand and your proposed

strategy. You will be marked on the ‘big idea’, the propositions and the concepts - not your ability to draw.

5.2.c

The Exam: 50% of the overall course marks

Your exam will include a question about the proposed Database Strategy and Communications Plan and will be a seen paper.

How are you going to deliver the strategies you have proposed? This is where you provide detailed action plans for your target audience(s). You will need to think about the following when writing your plan:

• Summarising the ‘situation analysis and key issues you identified to generate your

objectives. Articular your communications objectives clearly.

• Who is the target audience – are there any clear segments that you have identified?

Think about new customers vs existing customers and differentiate between aquisition and retention.

• What are the recommended Media channels & formats for the target segments? • What is your database strategy, what data whill you collect? How will you incentivise

people to respond and provide information for your database?

• What are your estimated response rates and forecasted results?

• What do you recommend for handling fulfilment & response management (who

answers your queries/orders/complaints)

• What is your contact plan & communication schedules (Customer

segment/objective/media/ message/ offer/timing) Will there one or two stage programmes?

• Outline your testing strategy (media/timing/offer/format/creative execution. You need

to make a recommendation of what aspects of your plans you will test to ensure you get the best results.)

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You need to create a database of enquirers and customers to use through the acquisition and retention stages.

• What will be the content of your database? • How will you gather this information?

• How will you migrate across any existing customers/prospects?

• How will you ensure that you are meeting all data protection requirements? • How will the database be used to build a picture of the prospects

• How will the database be used to direct your communications and record responses

to them?

The exam will provide you with the case study details again along with a budget and some issues that need to be addressed. The case study will be based on the IDM student Direct Marketing competition

5.2.d

Background to the IDM Student Direct Marketing Competition

The IDM Student Direct Marketing Competition case study will be used as the basis for the Group assessment.

The case study is designed to test students on all aspects of direct marketing, calling for them to demonstrate their knowledge by producing a direct marketing plan in response to a set client brief.

The competition is underwritten by the IDM and sponsored each year by a leading direct marketing agency and one of its high-profile clients. For the 2012 competition, the IDM teamed up with BMW. Should you wish you may continue with the competition. Participation in the Competition can make a powerful addition to a student’s CV.

6. FEEDBACK

Feedback will normally be given to students 15 working days after the submission of an assignment.

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7. INTRODUCTION TO STUDYING THE UNIT

Teaching will incorporate both class room lecture sessions, seminar group and individual activities. In addition students can work with the IDM graduate microsite, www.think-direct.com, which incorporates a range of short case studies and examples of companies using interactive and direct marketing

7.1 OVERVIEW OF THE MAIN CONTENT

This unit covers the core DM theories and how they can be used to build a business. The main content areas build on the core principles of marketing planning and introduce the direct marketing concepts of proactive ‘Acquisition’ of new customers and the development of relationships and loyalty, over time, to improve the ‘Retention’ of those customers. It introduces the importance of metrics, using data and database analysis to gain customer insights that inform business decision making, customer targetting, proposition development and creative approach, building on the principles of STP (segmentation, targetting and positioning).

7.2 OVERVIEW OF TYPES OF CLASSES

The classes will be a based around 1 & 2 hour lectures, delivered by the module tutor & industry-based speakers, supported by classroom-based seminars and computer lab sessions, particularly for the investigation and application of data & database analysis.

7.3 IMPORTANCE OF STUDENT SELF-MANAGED LEARNING TIME

Self managed learning time is very important to this unit and will require both the reading of recommended books, journal articles and practical research to enable participation in the seminar sessions each week. You should be examining both industry and academic journals for discussion. Some of these texts and journals are listed in the Indicative Reading Section 10.0. These journals are all available through the Library Resources. Some are available on-line; others will also be available in hard copy in the library. Should you experience any difficulties in locating these necessary journals, please ask the library staff.

The blackboard site - which you can access using your student username and password, has been set up to have a weekly schedule of lecture and seminar work. It expected that students will access the materials each week. Tracking is set up on the blackboard site and statistics will be reviewed regularly to ensure students are accessing the materials and using them appropriately.

Please ensure you have set up auto forwarding from your LSBU email account if you prefer using your own personal email account. Emails will be sent out about lectures, assignments and exams from the blackboard area. In addition, if you reserve a book on the library catalogue or are overdue in returning it, the system will send an automatic notification. It is important that these reach you.

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7.4 EMPLOYABILITY

Direct marketing is one of the growth disciplines within ‘marketing’ and opportunities exist for those interested in this field to enter a number of interesting areas. These include working on the ‘client side’ in marketing departments for commercial and public sector organisations that incorporate DM into their customer/donor communications mix as well as marketing & fundraising for charities and non-for-profit organisations. Additionally, many advertising agencies have established DM divisions to serve DM and IMC client requirements and specialist support service companies are growing to provide data planning, data warehousing, direct mail and fulfilment services.

In support of this, the Institute of Direct Marketing (IDM) exists to set and recognise the highest standards of direct marketing practice across the UK and Ireland. They are committed, with the support of the Royal Mail, to ensuring that universities and colleges are able to deliver the best interactive and direct marketing teaching and ensure a good stream of bright, talented and knowledgeable students to work in the interactive and direct marketing professions. Their web site theidm.com and student support site

www.urthebrand.co.uk will be an invaluable source of research material for the successful completion of this unit.

7.4.a

IDM Graduate Summer School

Students who demonstrate a desire to work in this area can apply for the IDM Graduate Summer School – a week long introduction to the direct, data and digital marketing profession, supported by leading DM companies, many of whom recruit direct from the weeks course. This is an annual programme and open to final year and recent graduates from all degree disciplines. To qualify students must apply for one of the intensive single day interviews from which 30 fast track candidates will be selected. See

http://www.urthebrand.co.uk/summer-school.aspx for more details.

7.4.b

IDM Certificate in Direct and Digital Marketing

In addition, students who wish to take the IDM Certificate in Direct and Digital Marketing. At the end of this unit may do so for a small enrolment fee of £65 + VAT gaining an additional qualification from your university education. This is the only academically-based qualification that is accepted by the direct marketing profession and employers in the UK. http://www.theidm.com/about/education-programme/for- educators/the-idm-certificate-in-direct-and-digital-marketing-giving-your-students-a-head-start/

The IDM paper is sat at the same time as your Semester 2 exams but included in this fee is access to a tailored selection of IDM membership benefits until the end of July (in the year they take the examination) – this includes a study materials, case studies, placement and job opportunities, etc. Have a look for yourself at:

http://www.urthebrand.co.uk

A marketing career can promise excitement, achievement and a fast track to senior management. Direct marketing is no longer a branch line of the marketing network. It's a proven route for any product, any service, any brand. Ninety percent of British companies use it in some form. And they will continue to use it, gradually refining its power, constantly re-tooling to embrace its technological advances.

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8. THE PROGRAMME OF TEACHING, LEARNING

AND ASSESSMENT

Week 1: Introduction, theory and definitions of direct marketing

What is the definition of data and direct marketing? Why is direct marketing different? Who uses data and direct marketing and how do they use it? How are the internet and the increase in new digital channels affecting marketing? What is a customer journey?

Week 2: Planning requirements and processes including budgeting

Building on the planning work students will learn how to identify DM orientated issues for the situation analysis, how relevant DM objectives are set and strategies are formed to deliver an action plan.

Week 3: Databases—data collection, management and functions

Introducing the detail of data and databases, students will build their knowledge of different types of databases and look at how the collection of key metrics can be used for many management controls through measurement and forecasting. Students will be learning about the main elements of data protection and the legal requirements for storing and using data in marketing.

Week 4: Databases—segmentation, targeting and research

Students will look at customers and prospects segmentation and how target prioritisation can affect business efficiency. Students will work with UK profiling and segmentation sources and learn how segmentation systems are built and modelled. Students will be introduced to the concept of Lifetime Value (LTV) within the forecasting model and learn about predictive data modelling.

Week 5: Customer Acquisition— theory and business planning

Students will be introduced to the principles of ‘customer acquisition’ and the key success factors; exploring 'The Customer Journey' and how brand perceptions and buyer behaviour influence customer acquisition strategy and a company’s ability to attract new customers. Using their understanding of data profiling, segmentation, and LTV, etc., Students will learn to how to structure an acquisition plan, including how to set objectives and identifying who should be targetted.

Week 6: Customer Acquisition— media, practice and implementation

This will introduce the concepts behind building behavioural and psycho-graphic profiles for value proposition development; defining and identifying ‘best’ customers and selecting which type of new customers should be acquiring and at what cost. This session will introduce the principle of direct marketing media, looking at how the various media channels can be used and what factors need to be considered when dealing with response and fulfilment, structuring the communications activity and planning for measurement and evaluation of the campaign.

Week 7: Customer Acquisition— media, practice and implementation

This session will continue the look at media channels and consider how digital technology can be used to enhance the customer journey

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Week 8: Retention—theory and principles

Defining customer retention and the importance of customer value, students will be introduced to the underlying models and theories of loyalty programmes and how companies plan for retention, exploring how to build lasting customer loyalty and optimise lifetime customer value.

Week 9: Group presentations to be assessed during this session. Week 10: Retention— Practice and implementation

Building on the retention theory students will exploring the principles of CRM and evaluate case studies of successful, long term customer retention such as Tesco, Amazon, etc and learn how to use media channels such as the internet, email and direct mail to aid retention.

Week 11: Creative practices and strategies

Students will explore how general advertising and direct marketing creativity differ and why creativity is important in direct marketing. Students will work on direct marketing propositions, be introduced to creative briefing, AIDCA: a time tested formula, and how to steer good copywriting. Building on earlier sessions, students will investigate how the medium and message work creatively and how the creative strategy drives and enhances the customer journey and linking to IMC..

Week 12: Testing and Managing response

What does testing mean to DM. Introducing testing principles and methods to ensure students understand how to plan a valid test campaign and be sure direct marketing is predictable, building on their understanding of how to use databases for forecasting and market research.

Individual creative assignment to be handed in by the end of this week. Week 13: Revision and discussion of Exam technique

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9. LEARNING RESOURCES

9.1 CORE MATERIALS

• Thomas B & Housden M (2010) Direct and digital marketing in practice, A. & C. Blac,

elibrary. Available in hard back and as an electronic resource linked from the university

9.2 RECOMMENDED READING

• Altstiel T & Grow J (2010) Advertising creative: strategy, copy + design, Sage

• Bird D (2007) Commonsense direct & digital marketing [electronic resource], Kogan

Page

• Mark S (2009) Copywriting: successful writing for design, advertising and marketing,

Laurence King

• McCorkell G (1998) Direct and Database Marketing, Kogan Page,

• Sheppard D (1999), The New Direct Marketing (3rd Ed), McGraw-Hill, 1999

• Tapp, A (2008) Principles of direct and database marketing : a digital orientation, :

Financial Times Prentice Hall, 2008.

9.3 REFERENCE SOURCE

Available from the Perry library and online via the IDM web site for students registered with their certificate programme:

The IDM, (2006) The Interactive and Direct Marketing Guide, (ISBN 0951869299)

• Comprehensive guide to every aspect of the interactive and direct marketing

process. Contains more than 300 checklists, 250 examples and 41 case studies to improve efficiency, eliminate errors and save money, with specialist contributions from 37 leading experts

9.4 JOURNALS

• Journal of direct, data and digital marketing practice [electronic resource]. London,

England : Henry Stewart Publications

9.5 WEB SITES

The IDM, www.theidm.com

Think Direct http://www.think-direct.com

Brand Republic www.brandrepublic.com

ABC www.abc.org.uk

ASA www.asa.org.uk

DMA www.dma.org.uk

Precision Marketing http://www.precisionmarketing.co.uk

Committee of Advertising Practice www.cap.org.uk

Direct Mail Information Service www.dmis.co.uk

E-mail preference Service www.e-mps.org

Direct Marketing MKS-6-DMK