ADVERTISING:
Direct Marketing
July 17, 2016
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Direct Marketing Defined
“Any medium where a seller can
contact prospective customers
and then accept the orders”
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Direct Marketing
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Top 10 Direct Industries
$ Billions
Nonstore retailers
115.2
Real estate
55.2
General merchandise stores
50.4
Auto dealers/service stations
47.3
Membership organizations
40.6
Insurance carriers/agents
39.3
Food and kindred products
35.3
Health services
34.9
Depository institutions
29.4
Entertainment
28.8
0%
5%
10%
15%
Percentage Annual Growth 1994-1999
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The Growth of Direct Marketing
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The catalog
Use of consumer credit cards
Direct-marketing syndicates
The changing structure of the
North American market
• Technological advances
• Other factors
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History of Credit
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1812 NY co. begins selling furniture on "installment."
1831 The first building and loan association is formed.
1856 Singer allows buyers a sewing machine for $5 down.
1889 Installment plans are listed in dictionary for the first time.
1910 The Sears catalog decries the "folly" of buying on credit.
1911 Sears abandons its cash-only policy.
1919 General Motors helps buyers finance car purchases.
1924 3/4 of cars purchased in the US are bought on credit.
1950 Diners' Club introduces its credit card.
1958 American Express and Bank of America (VISA) cards.
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Direct Response Media
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Direct Mail
Catalogs
Broadcast media
Infomercials
The Internet
Print media
Telemarketing
Electronic teleshopping
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Advantages of Direct Marketing
Segmentation capabilities
Good reach (selective, too)
Control over:
• Frequency
• Timing
Measurability
Personalization potential
Cost efficiencies
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Disadvantages of Direct Marketing
• Image factors
• “Cheesy”
• Accuracy
• No one “regulates” direct mail
• Fairly expensive
• Traditional support required
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Telemarketing
Telemarketing generates $6 billion in sales annually.
Call Centre
Inbound
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Outbound
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Use of 800 and 900 Numbers
Order-taking
90
80
70
60
% of
comp- 50
anies 40
Customer
list
Sales tool
Advertising
Relation.
Mtkg.
30
20
10
0
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Quote of the day
One-third of the people in the
United States promote, while the
other two-thirds provide.
• Will Rogers
(humorist)
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