Day One IESEG Direct Marketing Presented by Tim Lyons So...what’s it all about then? Introduction and Welcome Introduction and Welcome Introduction Day by Day activities Assessment Get into Groups – Choose an assignment topic The Blog Introduction • Welcome to Direct Marketing • Tim Lyons • • tim@managechina.com • www.managechina.com • My background • Academic • Practical Expectations • Yours • Mine Who am I? Academic • Electronic Business/e-commerce • Marketing Communication • Strategic Marketing/Competitive Strategy • Sales Management and Negotiation • Direct Marketing • International Marketing • Previously Course Director of Australia’s largest U/G marketing program • U/G and P/G teaching • RMIT University, Monash University, Australian Graduate School of Management (AGSM), Securities Institute, HKMA, SIM, Hong Kong University, Zhejiang University of Technology, Latrobe University, APESMA, Hanoi University Who Am I? • Practical • • • 25 years experience in Sales and Marketing Worked in Australia, Singapore, Japan, China and Philippines Consulted in Hong Kong and Indonesia • Past Vice Chairman – Australia/China Chamber of Commerce • Currently Director of ManageChina • Managing Director • Sales Director • Marketing Director Management Consultant • • Projects for industry and government Who are you? • Work experience? • Marketing • Direct Marketing • Other • International experience • Other Expectations - yours • What do you hope to gain from these sessions? Expectations - mine • Attendance • Contribution • Assessment Day by Day Activities Day One Activities 8:10-8:45 Introduction and Welcome to the Course 8:45-9:30 Topic One: Introduction to Direct Marketing and Initial Discussion 9:30-9:45 Break 9:45-10:30 Topic Two: The Strategy of DM 10:30-11:00 Coffee Break 11:00-11:30 Workshop – Reflecting on DM Strategy 11:30-12:15 Topic Three: DM goes Digital 12:15-12:30 Reflection and Assignment work Day Two Activities 8:10-9:00 Topic Four: The Importance of Data 9:00-9:15 Break 9:15-10:00 Topic Five: The Media of DM 10:00-10:15 Break 10:15-11:00 Topic Six: Legal Issues in DM 11:00-12:30 Student Presentations Day Three Activities 8:10-9:00 Topic Seven: The Offer 9:00-9:15 Break 9:15-10:00 Topic Eight: DM and Creative 10:00-10:15 Break 10:15-11:00 Topic Nine: Social Media and DM 11:00-12:30 Student Presentations Day Four Activities 8:10-9:00 Assignment Discussion 9:00-9:15 Break 9:15-10:00 Topic Ten: Future Issues and Innovation in DM 10:00-10:15 Morning Tea 10:15-10:45 DM Strategic Case Study 10:45-12:15 Student Presentations 12.15-12.30 Wrap Up Assessment Teaching Method • Seminars • Class involvement • Case studies • Participation • • 40% class presentation/participation • presentations due days 2, 3 or 4 • Participation is group participation 20% assignment • • • Assignment to be submitted via Turnitin • Due two weeks from today • File to be saved as .doc • One file only • File to be saved with your last name, first initial Guidelines handed out in class • 40% exam • 2 hours on the last day • Eg. lyonst.doc If you fail to follow these instructions, I will not mark your paper. If you are forced to resubmit the paper, it will be treated as late and marks will be deducted Class Presentation/Participation • • Presentation (20%) based on your presentation of your progress on your assignment • Participation (20%) • Includes group attendance and punctuality • Includes quality of inclass exercises and blogging activity No more than 15 minutes + 15 minutes Q&A • No more than 1 minute per slide • All group members to present • Use the DM ppt template The assignment • 20% • 3,000 words • • +/- 10% Group assignment • See Assignment Guidelines • See DM Grading Sheet • Due two weeks from today • Due at midnight on this day Exam • Closed book • 120 minutes • Exam covers entire course • 3 essay questions from 5 questions in total Assignment Groups • • • You determine the makeup of your assignment group • Assignment grades are determined by group membership • Participation grades are determined by group membership Groups are to be no more than 5 or 6 members Choose a topic The Blog – In Class Participation How does the blog work What it is Why we use it • Click on directmarketingparis2014.wordpr ess.com • Each time you post, it will appear on the screen for all of your fellow students to see • Post one Hello message on behalf of the group • These postings will make up your participation grade for the course • You can complete your posts after class if you wish • Participation is group participation • • Your professor will then ‘accept’ your message and you will be able to access the system Make sure you state your: • Group Number/Name • All group member names Time for a break.... Be sure to be back in 15 mins Topic 1 Introduction to Direct Marketing Topic One – Introduction to Direct Marketing Class/Blog Exercises 1, 2 and 3 Definition Breaking down the definition Aims and how it fits into the bigger picture Definition of Direct Marketing Blog Exercise 1/Day 1 How can a marketer achieve some of their goals? What if these goals were mostly around customer acquisition and retention? Defining Direct Marketing • What is it? • “Direct marketing is the interactive use of advertising media to stimulate an immediate behaviour modification in such a way that this behaviour can be tracked, recorded, analyzed, and stored on a database for future retrieval” • Stone and Jacobs, 2001 Why show a definition from 2001? Technology might have changed but has the essence of Direct Marketing? Let’s discuss it in an interactive/digital context to see if it still makes sense Let’s look at YOUR company PROJECT Time for reflection Why such an old definition? THOUGHTS IS IT CURRENT? THOUGHTS IS IT RELEVANT? Breaking down the Definition Breaking down that definition • Interactive • One-on-one interaction • Two way communication • Rise of online marketing Breaking down that definition • Use of advertising media • Convergence within media • Mail, newspaper, TV, radio, internet, phone,etc • Customer rather than a media planner driving the process • ‘The Campaign’ • Come back to this soon Breaking down that definition • Track, record and analyse • Measurability • ‘Your company’ • Spending • Who is seeing it? • Response • Are you achieving your objectives? • Return On Investment • Did you get what you hoped for? Breaking down that definition • Stored in database for future retrieval and use • Store vital customer information for future use • • History of purchases • Sources of response ‘Your company’ • What information did you trap? • What can you hope to achieve? Blog Exercise 2/Day 1 How do you think some of the media choices have changed over the years thanks to the advent of the likes of Facebook, Instagram, WeChat, etc? Aims and How it fits into the Bigger Picture Aims of Direct Marketing • • Overall communication roles • Building customer loyalty • Measuring customer value • Aquistion/retention Specific role direct can play • Developing a one-to-one relationship with the customer How does Direct Marketing fit in with other communication elements? • Direct Marketing is a vital part of Integrated Marketing Communications • “IMC is the selective combination of appropriate types of advertising and promotion meeting a common set of communication objectives for the brand to support a singular macropositioning for the brand and integration over time with regard to customers.” • Rossiter and Percy, 2000 How does Direct Marketing fit in with other communication elements? • Let us again consider ‘your campaign’. • How does DM fit in with the rest of the communications program? Blog Exercise 3/Day 1 We’ve talked about your company and how it might approach a DM campaign. How would such a campaign fit in with other campaigns you might run, such as TV, Sales Promotion, Radio, etc? Time for a coffee Feel free to go outside...but be back in 15 mins Topic 2 The Strategy of Direct Marketing Topic Two – The Strategy of Direct Marketing Class/Blog Exercises 4 and 5 Reflections of a bigger strategic marketing process Reflections of a marketing communication strategic process The strategic process of Direct Marketing Reflections of a bigger strategic marketing process Strategic Marketing Process Mission/Vision Statement External Analysis •Market •Competition •competitor Internal Analysis •Core competence •Skill Base SWOT Objectives Marketing Strategy •4 P’s •SCA Implementation Performance Measurement and evaluation 49 Reflections of a bigger strategic marketing process • Mission and/or vision statement • • • Internal Analysis • Core competencies - skill base - portfolio analysis – etc Market analysis • • competition - likely targets –etc Customer analysis • • Raison d’etre Buyer behaviour - segmentation – channels used - etc SWOT 50 51 Reflections of a bigger strategic marketing process • • Strategic Imperative • Product - Price - Place Promotion • SCA - Brand strategy Cost/Differentiation Implementation • Time frames - responsibilities • Financial • • Resources - profitability - cash flow - performance measures Other • contingency Blog Exercise 4/Day 1 How do you see Marketing Communications and in particular Direct Marketing aligning itself to the bigger strategic picture? Reflections of a marketing communication strategic process Strategic Marketing Process Focus on the communication elements Mission Objectives Internal Analysis Product/Service Advertising Communication/ Promotion Sales Promotion Sponsorship External Analysis Distribution/Place Direct Marketing Public Relations/ Publicity Pricing Interactive Reflections of a marketing communication strategic process • Advertising • Sales Promotion • Sponsorship • Direct Marketing • Public Relations/Publicity • Interactive How does Direct Marketing Fit into this picture? Corporate Planning Marketing Planning Communication Planning Direct Marketing The strategic process of Direct Marketing The Strategic Process of Direct Marketing • Similar to the strategic marketing planning process and the strategic communication planning process • External and Internal elements critical • Customer at the centre of activities Some elements of that DM Strategy • Customer Management • • Eg. Data Base Management Some tactical considerations • Mailing Lists • The offer • Media • Creative Blog Exercise 5/Day 1 What are some of the key Direct Marketing strategic issues, as you see it. Hint: Reflect on the definition from Topic One Time for a small break Feel free to go outside...but be back in 15 mins Pink Ponies PROJECT Time for reflection You watched the YouTube Clip… FORM WHY IS IT KEY? STYLE HOW DOES IT CHANGE OUR VIEW Topic 3 DM goes Digital Topic Three – DM goes Digital Class/Blog Exercise 6 How does the Youtube clip inform us re DM strategy? A DM plan How does the YouTube clip inform us re DM strategy? Blog Exercise 6/Day 1 What are some of the key DM issues as you saw it based on the Youtube clip shown in class? A Direct Marketing Plan That Plan • Situational Analysis • Introduction to Direct Marketing • Definition of DM • Explanation of component parts • Objectives • DM and it’s role within Integrated Marketing Communications • • Integration with IMC • How a DM campaign fits into a bigger IMC campaign DM and how it fits into the digital world • Illustrating a case study in DM That Plan • Different Strategic Options • The 4 C’s • 5-7 P’s • 6 Markets Model of Relationship Marketing That Plan • What’s the Offer? • • What’s the Campaign Strategy? • Campaign Planning Needs to match the target • • Needs to observe the strategy • Communications Planning • • Audience, Objectives and Resources Types, Frequency, Forms Database Management • On or Off line That Plan • Structuring the Offer • Articulating the Creative • Deciding on Media • Campaign Measurement and Refinement • Other • Budget • Human Resource • Inside or Outside? In Summary • Today’s session • Introduction to Direct Marketing • • • DM and it’s role within Integrated Marketing Communications Definition of DM Explanation of component parts • • Integration with IMC • How a DM campaign fits into a bigger IMC campaign DM and how it fits into the digital world • Illustrating a case study in DM In Summary • Learning Objectives Complete 1.Differences between direct marketing and traditional marketing 2.Conceptual framework for the direct marketing process 3.Direct marketing objectives In Part 6.Direct marketing strategy and tactics 8.Role of direct marketing in branding 9.Understand the role of technology in direct marketing wrap up questions? Time for lunch It’s lunch and not a break…so…see you tomorrow