Chapter Objectives
• To recognize the purpose of direct
marketing as a communications tool.
• To appreciate the strategies and tactics
involved in direct marketing.
• To demonstrate the use of direct
marketing media.
• To determine the scope and
effectiveness of direct marketing.
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Direct Marketing
“Any medium where a seller can contact
prospective customers and then accept
the orders”
TV Selling
Catalog Selling
Telemarketing
Direct Selling
Direct Mail
Direct Action Advertising
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Growth of Direct Marketing
Consumer Credit Cards
Changing Structure of Society
Direct Marketing Syndicates
Technical Advances
Miscellaneous factors
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Direct Marketing in the IMC Program
Public
Relations
Advertising
IMC Program
Direct
Marketing
Personal
Selling
Sales
Promotion
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Direct Marketing Program Plan
• Companies must determine:
1. What program’s objectives will be.
2. Who to target by using a database.
3. What direct marketing strategy will be
employed.
4. How to measure direct marketing
effectiveness.
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1. Direct Marketing Objectives
Behavioural Response
Build an Image
Objectives
Inform and/or Educate
Customer Relationship
Management
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2. Database Marketing – How It Works
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2. Sources of Database Information
Statistics Canada
Canada Post
Info Canada
List Services
Marketing
Research Houses
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3. Direct Marketing Media Strategy
One Step
Two Step
• The medium is
used directly to
obtain an order.
• Use one medium
to obtain inquiry,
qualify prospect.
• Often use 800
number phone
orders and credit
card payment.
• Typically follow up
with another
medium to
complete sale.
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Strengths and Limitations
Strengths
Limitations
Selective Reach
Image Factors
Segmentation Capability
Accuracy
Frequency Potential
Content Support
Flexibility
Rising Costs
Timing
Personalization
Economy
Measurement of
Effectiveness
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