PPT chapter 13 - McGraw Hill Higher Education
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Chapter 13 Direct marketing and communication Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-1 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. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-2 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-3 Guide Dogs Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-4 Direct marketing defined Techniques DM media Direct marketing is a system by which organisations communicate directly with target customers to generate a response or transaction. Interpersonal Telephone Direct selling Catalogues TV, Radio & Print Telemarketing Direct response Mail Direct mail Internet & email SMS Electronic home shopping Electronic interactive marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-5 Anthony Hordens’ mail-order catalogue Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-6 Growth of direct marketing Consumer credit cards Direct marketing syndicates Changing structure of society Technological advances Miscellaneous factors Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-7 Direct marketing: roles and relationships Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-8 Direct marketing combines with . . . Advertising Internet Public relations Direct marketing Support media Personal selling Sales promotion Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-9 Dirt Action direct marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-10 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-11 Developing a database Improve selection of market segments Stimulate repeat purchases Objectives Cross-selling other products Customer relationship management Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-12 Sources of information for developing a database List services Online search behaviours Syndicated research Retail transaction histories Info sources Credit bureaux Postal services Bureaux of statistics Direct marketing associations Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-13 A comprehensive consumer database Name Gender Occupation Address/ postcode Marital status Transaction history Telephone number Family data Promotion history Length of residence Education Inquiring history Age Income Unique identifier Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-14 Direct marketing and customer loyalty Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-15 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-16 Direct marketing media strategies One-step approach • The medium is used to obtain an order • Goal is to generate an immediate sale 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 Examples: • Reply paid coupons • 1-800 numbers Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-17 DM Media: mail Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-18 DM Media: catalogues Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-19 DM Media: unwrapped catalogue Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-20 DM Media: catalogue websites Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-21 Direct selling Repetitive personto-person selling Non-repetitive personto-person selling Direct selling Party plans Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-22 Evaluating DM effectiveness Measures Non-behavioural objective Traditional measures • Brand awareness • Brand attitude Behavioural objective DM specific measures • Cost per order (CPO) • Other measures of brand health Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-23 Direct marketing advantages and disadvantages Advantages Selective reach Segmentation capability Disadvantages Image factors Accuracy Frequency potential Flexibility Timing Content support Rising costs Personalisation Economy Measurement of effectiveness Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-24 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. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-25
