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
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
direct-response 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
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The Practice of Direct Marketing
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
Disadvantages of
Direct Marketing
• Consumers reluctant to purchase • Annoyancesassociated with direct marketing
• Unable to reach everyone in marketplace
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
Database Marketing
• Lists
• Data-driven communication • Customer Relationship Management
The Principles of Data-driven
Relationships
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The Key Players:
Advertisers
• 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:
Agencies
• Advertising agencies • Independent agencies • Service firms • Fulfillment housesThe Key Players:
Media Companies
• The media that deliver messages by phone, mail, or the Web
The Key Players:
Customers
• Recipients of the information and sometimes the initiator of the contact – Push-button shopper – Mouse-clicking shopperThe 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 envelopeDirect Mail Solutions from Anderson
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Advantages of Direct Mail
• Tells a story • Engages attention • Personalizes message • Builds in feedback • Reaches the unreachable
Disadvantages of Direct Mail
• Negative perceptions • Cost • Mailing list • Response rate • VulnerabilityThe Tools of Direct Marketing:
Catalogs
• A multipage direct-mail publication that shows a variety of merchandise
Tools of Direct Marketing:
Catalogs
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. Negative perceptions Costs Response rate Mailing list Description Disadvantages
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. Targeted Engages attention Complete information Convenience Description Advantages
Advantages and Disadvantages of Catalogs
Tools of Direct Marketing:
Telemarketing
• Types of telemarketing • Criticisms of telemarketing • Telemarketing messaging design
Do Not Call Registry:
Keeping Telemarketers at Bay
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The Tools of Direct Marketing:
Direct-Response Advertising
• Combines the characteristics of advertising with a contact element • All direct-response advertising moves consumer to actionThe 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, e-mail, text messaging, and instant messaging with other marketing communication
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?
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?
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
well-known 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?
