Direct Marketing
Part 5: Integration and Evaluation
Chapter 15
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ADVERTISING Principles and Effective IMC Practice
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Key Points
Define and distinguish between direct
marketing and direct-response advertising
Explain the types of direct marketing
Name the players in direct marketing
Evaluate the various media that directresponse programs can use
Explain how databases are used in direct
marketing
Discuss the role of direct marketing in
integrated marketing programs
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Direct marketing
the process that seller and
customer deal with each other directly without
intermediary involvement such as wholesaler,
retailer
 For: Profit and non-profit organization
 GOAL: produce a sale and other actions (short-term

Definition: is
results)
 Tools: direct mail, catalogue, telemarketing, directresponse ad
 Evaluation: easy to evaluate
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The Direct-Marketing Process
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Objectives
Lead generation: provide basic information
e.g. description of product, terms of sale, payment & delivery
information
Traffic generation: motivate customers to visit or come to seller
place
Purchase : order product and make payment
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ADVERTISING Principles and Effective IMC Practice
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The offer
- All direct marketing contains an offer,
consisting of a description of the product,
terms of sale, payment and delivery
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ADVERTISING Principles and Effective IMC Practice
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Direct marketing
Database (the heart of direct marketing)
-To keep track of the customers and identify prospective consumers and as
a segment tool for communicating offers to customers and prospects
List: a database of prospects and customer’s contact information
Type of lists
House list: the marketer’s own customers e.g. customer receipt, credit
card information, etc.
Response list: are collection of customers who have responded to the
direct-mail offer Complied list: are collections of names with some
common interest. Rented from direct-mail list broker e.g. sports car
owner, graduating lists, new homebuyers, subscribers to magazine, cable
TV
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ADVERTISING Principles and Effective IMC Practice
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Message and Media Strategy
The message is often longer and detailed
It contains more explanation
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The Response/Order
Direct marketing may include a
promotional device such as a gift or
limited-time-only price deal
It aims at creating the immediate
response, sales
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ADVERTISING Principles and Effective IMC Practice
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Fulfillment and Customer Maintenance
Getting the product to the customer who
ordered it
Maintaining the customer relationship
Evaluation
- Sales, number of visitors, etc.
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Tools of direct marketing
Controllable media
1. Direct mail
A print advertising message for a product or service
that is delivered by mail
Advantage: attention, personalized message
Disadvantage: cost, mailing list is not update, low
response rate
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Tools of direct marketing (contd.)
3. Telemarketing: Ad that delivered through phone
call Persuasive personal call e.g. software
- It may be used with other tools such as catalogue,
ad.
Outbound-The co. pitches the product to the
customer  high resistance
Inbound- The customers sees the product and asks
for more info.
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Tools of direct marketing (contd.)
2. Catalog : A multi-page direct-mail
publication that shows a variety of
merchandise
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Tools of direct marketing (contd.)
4. Direct response ads: Combines the characteristics of
advertising with a contact element
: Advertising that seeks to achieve an action-oriented
objective.
 Toll free number,
 Coupon
 order form in newspaper and magazine
 Response card in magazine
 Bind-in (response card attached-> tear out when using) or
Blow-in (response card not attached but inserted less
reliable (may fall out)
 Infomercial program in TV (demonstration of product) e.g
TV Direct
 Sampling opportunity in internet
Media: TV, newspaper, magazine, radio, internet, etc.
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Direct marketing
Advantage & Disadvantage
+
-Data collection
-Added value e.g. ease of
purchase
-Marketer control the product
-Effective, easier to evaluate
-Flexibility of form and timing
Wells, Moriarty, Burnett & Lwin - Xth Edition
-Consumer may not be able to
see the product before purchasing
-Annoyance e.g. bulk of mails
-Inability to reach everyone in the
market (direct mail, telemarketing)
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