Chapter Twelve
The One-To-One Media
Direct mail, Telephone and Internet
Learning Objectives
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Definition of Direct Marketing
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Map the range of utility for direct mail, telephone, and valuations in
modern business marketing
Describe the essence of their appeal to business markets
One-to-One Programs
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Direct Mail - Plan and evaluate a direct mail program
Telemarketing - Outline key elements of a telephone marketing
program
Internet Marketing - Classify the major marketing objectives of
websites
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Definition of Direct Marketing
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Direct mail, telephone marketing, websites, fax programs, e-mail
listservs, and the like often fall under “direct marketing”.
− Direct Marketing is an interactive form of marketing using one or
more advertising media to affect a measurable response and/or
transaction at any location, with this activity stored on database. DMA
Four essential components of the definition
1. DM is marketing
2. It precludes face-to-face interaction
3. It implies uniqueness in seeking a measurable response
4. It utilized database
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Lists
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Mail and telephone programs are built on a database – customer
contact list, phone list or mail list
Two broad classes of lists (on the basis of their origins):
1.
2.
Compiled Lists – Externally generated, purchased or rented from outside
sources: compiled lists are assembled by companies from public records,
various directories, physical observations and the government
Response Lists – Internally generated, harvested from company files:
lists of another firm’s previous mail or telephone purchasers or inquiries
are called response lists
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Primary Media for DM
• Direct Mail—Just staying in touch
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Newsletters
Specialty Magazines
Greeting Cards
Special Offer Messages
• Telephone Marketing—Let’s talk
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Prospecting
Closing
Servicing
Supporting
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Direct Mail
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Direct mail can provide business marketers with a number of benefits:
1.
2.
3.
4.
5.
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Excels at delivering a personalized message
Can deliver a message at a precise time
Can reach a well-defined market
Is the most versatile of the direct media
Less expensive than personal sales calls
Why is direct mail called the most versatile of direct marketing media?
Direct mail can build/maintain goodwill and/or combating PR crisis
- Send gifts, greetings, thanks or even apologies
- Develop familiarity, encourage mail responsiveness, and stimulate interest
- Demonstrations can be provided through enclosures such as simple
experiments, audio CD explanations, or video demonstrations
- Influence channel member’s support while selling directly to the buyer
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The Elements of Direct Mail
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The envelop - carries the weight in the decision to read or discard
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The offer - describes “what’s in it for me?” with credibility; the
description of the product or service offered
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The enclosure - supports the offer by getting attention or providing
proof; plays a supporting role to the offer
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The reply - this closes the sale
− Tells the reader what to do
− Makes action easy and obvious
− Gives a reason for acting now
− Stresses positive benefits for action
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Secrets to Increasing Response Rates to Mail
Surveys
THE DIRECT MARKETING RESEARCHER WILL
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Make A Telephone Pre-notification
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Mail A Personalized Cover Letter With The Questionnaire
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Follow-up With A Postcard Reminder
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The first objective of direct mail
GET THE ENVELOPE OPENED
1. CREATE URGENCY—with deadlines and scarcity
2. CREATE TEASER HEADLINES—save the story
3. TRY ENVELOPES WITH NO RETURN ADDRESS—except with your
customers
4. TRY POINTED VS. ROUNDED FLAPS—pointed flaps go with personal
communication items
5. PUT YOUR ADDRESS ON THE FLAP SIDE—use the front for
messages
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Telemarketing
Telemarketing – the systematic and continuous program of personally
communicating with (potential) customers via telephone.
1.
Increase sales
2.
Account management – allow marketer to maintain contact with customers
between sales calls and assure fast response to customer service needs
3.
Field representative support – Is a “force multiplier” for the sales rep,
providing information needed by customers (and all areas impacted) while
maximizing the sales rep’s time expenditures
4.
Prospecting and qualifying new clients – Assists in identifying new
potential buyers for the sales rep and providing the background needed for
effective follow-up
5.
Customer service / support for inbound and outbound call centers –
helps make the salesman’s promises come true, enhancing their credibility and
future productivity
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Telemarketing
How can direct mail be combined with the telephone to achieve synergy?
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While mail is considered best with regard to personalization, benefit
amplification, and call to action, it does not allow for dialog.
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A telephone follow-up to a direct mail campaign which, in turn, serves as a
reminder of the mail program, answers questions and/or objections, and enhances
total response beyond any additional cost.
Inbound & outbound telemarketing, which is a better sales tool?
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While outbound telephone efforts are marketing controlled/initiated, they are
typically viewed as intrusive by the customer
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Customers initiate inbound telemarketing – offering valuable information and
feedback with the opportunity for the marketer to build goodwill by solving
problems, pave the way for future sales, and/or actually sell additional
products/services
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Internet Marketing
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Internet marketing claim advantages of both direct mail
and phone
Enhance the speed of mail
Reduce the intrusiveness of the telephone
It offers two-way dialogue
Three e-marketing strategies
1.
2.
3.
Use the web
Develop virtual communities
The email tool
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E-Marketing strategies (1)
• USE THE WEB
Manage channels for easier transactions – e.g., Cisco and Dell: employing
websites to satisfy transaction and presale channel preferences of existing
customers; target new users; deliver information-based products (software,
digitized photos, and documents); and effectively develop deeper relationships
with customers
Provide customer service 24/7 – e.g., FedEx: gave key customers a $4,000
computer and software to enable them to communicate efficiently,
manage logistical operations, and check the shipping status of package
Complete back-office activities of ordering, checking, shipping – to
eliminate unnecessary human interactions, avoid human error, and
minimize redundant data entry
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E-Marketing strategies (2)
• DEVELOP VIRTUAL COMMUNITIES
A virtual community is a distinct segment, supported with abundant sets of
published content and transaction capability and a network of
communication connectivity.
Provides transaction capability
Delivers content
Provides communication exchanges
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E-Marketing strategies (3)
• THE E-MAIL TOOL
Focus on permission based customers – Online marketers seek permission.
By requesting the customer’s email address, and then asking for
permission to contact, the marketers will lose some names. But the
customers who have explicitly opted in for further contact and dialogue
have a far superior yield.
Network relationships – Email is also a powerful medium for
communicating and expanding relationships with current customers
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