Lecture Advertising and promotion (2/e) – Chapter 13: Direct marketing and communication

Chapter 13 - Direct marketing and communication. The goals of this chapter are: To examine the development and reasons for growth of direct marketing communication; to define the role and relationships of direct marketing, the internet and interactive media in an IMC program; to identify the advantages and disadvantages of direct marketing communication; to evaluate the effectiveness of communication through direct marketing communication.

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Chapter 13

Direct marketing and

communication

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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

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Advertising

Direct marketing

Measuring effectiveness

Part of IMC Advantages

Mail and print

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Guide Dogs Australia

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Direct marketing defined

Interpersonal

Direct selling Internet & email

Mail Telephone

TV, 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

Direct response

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Anthony Hordens’ mail-order

catalogue

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Growth of direct marketing

Miscellaneous factors Technological advances Changing structure of society Direct marketing syndicates Consumer credit cards

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Direct marketing: roles and

relationships

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Direct marketing combines with

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Dirt Action direct marketing

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Advertising

Mail and print

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Cross-selling other products

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Sources of information for

developing a database

Credit bureaux List services

Direct marketing associations

Online search behaviours

Info sources

Retail transaction

histories

Retail transaction

histories

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Family data

Education

Income

Occupation

Transaction history

Promotion history

Inquiring history

Unique identifier

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Direct marketing and customer loyalty

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Limitations

Advertising

Mail and print

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Direct marketing media strategies

One-step approach

• The medium is used to

Two-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

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DM Media: mail

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DM Media: catalogues

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DM Media: unwrapped catalogue

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DM Media: catalogue websites

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Direct selling

Party plans

Repetitive

person-to-person selling

Non-repetitive person- to-person selling

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Direct marketing advantages

and disadvantages

Accuracy Image factors

Economy

Measurement of effectiveness

Rising costs

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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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