Direct Response
Chapter 15
Part Five:
Integration and Evaluation
• Part 5 deals with the
complexities of
marketing
communications
Chapter Outline
I.
II.
III.
IV.
V.
VI.
VII.
Chapter Key Points
The Practice of Direct Marketing
Database Marketing
The Key Players
The Tools of Direct Marketing
Integrated Direct Marketing
Global Considerations in Direct
Marketing
1
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
The Echo Awards: Celebrating Great
Direct Marketing
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the Site
The Practice of Direct Marketing
Figure 15.1 – The Direct-Marketing Industry
2
The Practice of Direct Marketing
Video Snippet
Ogilvy & Mather: the first
direct marketing company
Advantages of
Direct Marketing
• Collection of relevant
customer information
• Purchase not restricted
to location
• Marketer controls
product until delivery
• Easier to evaluate
• Flexibility in form and
timing
Disadvantages of
Direct Marketing
• Consumers reluctant
to purchase
• Annoyances
associated with direct
marketing
• Unable to reach
everyone in
marketplace
3
The DirectMarketing
Process
Figure 15.2
Database Marketing Objectives
1. Record names of
customers
2. Store and measure ad
results
3. Store and measure
purchasing
performance
4. Vehicle for continuing
direct communication
The Database Marketing Process
Figure 15.3
4
Database Marketing
• Lists
• Data-driven communication
• Customer Relationship Management
The Principles of Data-driven
Relationships
Visit the
Site
The Key Players:
Advertisers
• Companies whose
primary business is
selling products and
services by mail or
phone
• Retail stores who use
direct marketing as a
supplement
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The Key Players:
Agencies
•
•
•
•
Advertising agencies
Independent agencies
Service firms
Fulfillment houses
The Key Players:
Media Companies
• The media that deliver messages by phone,
mail, or the Web
The Key Players:
Customers
• Recipients of the
information and
sometimes the
initiator of the
contact
– Push-button shopper
– Mouse-clicking
shopper
6
The Tools of Direct Marketing:
Direct Mail
• A print advertising
message for a
product or service
delivered by mail
–
–
–
–
–
–
Outer envelope
Letter
Brochure
Supplemental flyers
Reply card
Return envelope
Direct Mail Solutions from Anderson
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the Site
Advantages of Direct Mail
•
•
•
•
•
Tells a story
Engages attention
Personalizes message
Builds in feedback
Reaches the
unreachable
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Disadvantages of Direct Mail
•
•
•
•
•
Negative perceptions
Cost
Mailing list
Response rate
Vulnerability
The Tools of Direct Marketing:
Catalogs
• A multipage directmail publication that
shows a variety of
merchandise
Tools of Direct Marketing:
Catalogs
Advantages and Disadvantages of Catalogs
Advantages
Description
Targeted
Engages attention
Can be directed at specific market segments.
Employs high-quality design and photography (see
Alsto’s cover).
Complete information Extensive product information and comparisons are
provided.
Convenience
Offer a variety of purchase options.
Disadvantages
Description
Negative perceptions
Costs
Catalogs are viewed as junk mail by many recipients.
The cost per thousand of catalogs is higher than
mass media.
The response is relatively low at 3 to 4 percent.
Databases must be consistently maintained.
Response rate
Mailing list
Table 15.2
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Tools of Direct Marketing:
Telemarketing
• Types of telemarketing
• Criticisms of telemarketing
• Telemarketing messaging design
Do Not Call Registry:
Keeping Telemarketers at Bay
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the Site
The Tools of Direct Marketing:
Direct-Response Advertising
• Combines the
characteristics of
advertising with a
contact element
• All direct-response
advertising moves
consumer to action
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The Internet and Direct Response
• Same components as
direct mail and
telemarketing
• Greater sampling
opportunities
• New ways to gather
info
USA Mail Now:
Making Direct-Mailing Easier
Integrated Direct Marketing
• Challenge is to
integrate direct mail,
catalogs,
telemarketing, Web
sites, e-mail, text
messaging, and
instant messaging
with other marketing
communication
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Global Considerations in
Direct Marketing
• Fueled by the same technological
forces as the U.S.
• Particularly important in countries with
tight restrictions on advertising
• Privacy issues more intense
• Governmental regulation of postal
service
Discussion Questions
Discussion Question 1
• Most people hate telemarketing. Say you work
for the local campus environmental
organization.
– How could you conduct a campus and community
telemarketing effort that would not generate
resistance?
– How would you develop a telemarketing program to
promote campus fund-raising?
– Would it be better to solicit money directly or
indirectly by having people attend specially designed
events?
• Your primary targets are students, faculty, and
staff.
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Discussion Question 2
• We know that copy and illustration are
vital parts of a successful direct-mail
campaign, but there must be some
priorities.
– All of the components of creativity are
important, but which are most important for
direct-response creativity?
– What principles drive message design for
direct marketing?
Discussion Question 3
• Hildy Johnson, a recent college graduate, is
interviewing with a large garden-product firm
that relies on television for its direct-response
advertising.
– “Your portfolio looks very good. I’m sure you can
write,” the interviewer says, “but let me ask you,
what is it about our copy that makes it more
important than copy written for Ford, Pepsi, or
Pampers?”
• What can she say that will help convince the
interviewer she understands the special
demands of direct-response writing?
Discussion Question 4
• One of the smaller, privately owned
bookstores on campus is considering a
direct-response service to cut down on its
severe in-store traffic problems at the
beginning of each semester.
• What ideas do you have for setting up
some type of direct-response system to
take the pressure off store traffic?
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Discussion Question 5
• How does the recent fervor surrounding
personal privacy affect direct
marketing—specifically, telemarketing?
• In addition to legal issues, what consumer
issues must media planners consider
when designing a direct-marketing
campaign?
Discussion Question 6
• The success of infomercials helps validate
direct marketing as a revenue generator
• What characteristics of a product must
you consider when determining whether
to use a direct-marketing campaign?
• An infomercial?
Discussion Question 7
• Amazon.com is one of the most wellknown direct marketers on the Internet.
• Browse the company’s Web site and
identify what direct-marketing strategies
the company employs.
– Which do you think are the most successful?
Why?
– Which are the least effective? Why?
– What does Amazon expect to gain from
direct marketing?
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