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.
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
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
© 2005 McGraw-Hill Ryerson Limited
Growth of Direct Marketing
Consumer Credit Cards
Changing Structure of Society
Direct Marketing Syndicates
Technical Advances
Miscellaneous factors
Direct Marketing in the IMC Program
Public
Relations
Advertising
IMC Program
Direct
Marketing
Personal
Selling
Sales
Promotion
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.
1. Direct Marketing Objectives
Behavioural Response
Build an Image
Objectives
Inform and/or Educate
Customer Relationship
Management
2. Database Marketing – How It Works
2. Sources of Database Information
Statistics Canada
Canada Post
Info Canada
List Services
Marketing
Research Houses
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.
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