Direct Marketing

Direct Marketing Defined



Includes:

• Direct selling
• Direct mail
• Telemarketing
• Internet selling
• Direct action marketing
• Catalog selling
• Television/ print media
• Cable TV

Factors contributing to the growth of direct marketing

• Consumer Credit Cards
  • Over 1 billion credit cards in circulation
• Direct Marketing Syndicates Creating Opportunities
  • List development
  • Statement inserts
  • Catalogs/Sweepstakes
• Changing Structure of American Society
  • Increase in two income households
  • Money-rich/Time-poor – need for convenience
• Technological Advances
  • Better communications via electronic media
  • computers
  • Rapid package delivery
  • Electronic delivery systems
• Ability to measure effects of direct marketing efforts
  • Cost per order/ Cost per inquiry

Direct Marketing Combines With . . .

• Advertising
• Public Relations
• Personal Selling
• Sales Promotion
• Support Media

Database Marketing

Used to:

• Improve selection of target markets
• Encourage repeat purchase
• Cross-sell other products and services
• Develop one-to-one relationships with customers

Developing a Database

• Internal Records
• U.S. Census Bureau
• U.S. Postal Service
• List Services
• SRDS – Direct Mail Lists and Data
• Simmons Market Research Bureau
• Direct Marketing Association

PETCO builds a database through its loyalty program

Contents of a Comprehensive Consumer Data Base

• Name
• Address/Zip code
• Telephone number
• Length of residence
• Age
• Gender
• Marital status
• Family data
• Education
• Income
• Occupation
• Transaction history
• Promotion history
• Inquiring history
• Unique identifier

Contents of a Comprehensive Business to Business Data Base

• Name of company, contact or decision maker(s)
• Title of contact
• Telephone number
• Source of order/inquiry or referral
• Credit history
• Industrial classification
• Size of business
• Revenues
• Number of employees
• Time in business
• Headquarters location
• Multiple locations
• Purchase history

Direct Marketing Strategies Direct Marketing Strategies

• One-step approach - direct marketing media used directly to solicit an order
• Two-step approach – multiple efforts used to generate a response. First effort is used to screen, qualify or interest potential buyers. Follow-up used to achieve order or close the sale.
• Direct Marketing Media
  • Direct mail § Broadcast media (direct response ads/informercials)
  • Print media
  • Telemarketing
  • Direct selling

Types of Direct Mail

• Catalogs
• Flyers
• Folders
• Postcards
• Inclusions
• Reprints
• Sales letters
• Self-mailers

Direct Mail Advantages and Di sadvantages

Porsche uses direct mail to target potential customers

Direct Response Advertising Types

• TV and CATV commercials and infomercials selling products by phone or mail order.
• Newspapers, magazines and other print media ads with send-in or call-in coupon order forms
• Direct mail pieces and inserts soliciting inquiry recipients.
• Card decks, coupon booklets and mini-catalogs seeking orders for one or more products.
• E-mail messages to computer users

Direct Response Pros & Cons

Catalogs - Pros & Cons

Neiman Marcus uses traditional and online catalogs

Outbound and Inbound Telemarketing

Telephone calling by the marketer or marketer's agent to individual prospects, seeking purchase, subscription, membership, or participation by the call recipient.

Marketers' facilities and invitations to prospects to call a central location or long distance number or by toll- free, 800 or fixed cost 900 number.

Outbound Telemarketing

Inbound Telemarketing Pros & Cons

Overall Direct Marketing Pros & Cons