Chapter 14
Direct-Response Marketing
1
Direct Marketing
Direct marketing is an interactive
system of marketing which uses one
or more advertising media to effect a
measurable response and/ or
transaction at any location.
In direct marketing, a database – a
customer file – must exist.
2
Components of Direct
Marketing
Database
Interactive
Target Communication
To Specific
Customer
Two-Way
Communication
Measurable
Response
Response
Way for Consumer
To Respond
To Offer
Calculate Costs of
Producing and
Resulting Income
Exchange
Order Can be Made at
Any Time
3
Direct Marketing Strategy
Direct marketing uses the same general
planning framework suggested for advertising.
Certain elements are critical to success:
Database quality.
 Targeting focus of the database.

Direct marketing is a process that integrates
the functions of:
Communication.
 Selling.
 Distribution.

4
Direct-Response Advertising
Common Thread that Runs Through All
Types of Direct-Response Advertising is Action
Achieve an Action-Oriented Objective
Inquiry, Visit to Store, Answer
to Survey, or Purchase of Product
Can Use Any Medium
Magazines, Newspapers, Radio, TV,
Direct Mail, or Posters
Reaches Prime Audience
People Who Are More Likely to be
Interested in the Product
5
Database Marketing
With advent of computer and development of
extensive databases, it is possible for an advertiser
to develop one-on-one communication with potential
customers.
Database marketing targets the individual based
on some common characteristics that predict that a
particular consumer will be a good prospect.
Information gathering such as this is called
database marketing, relationship marketing, or
MaxiMarketing. 6


Computer game makers such as Nintendo.
American Express.
6
The Players in DirectResponse Marketing
Advertisers
Agencies
Consumers
More Than
12,000 are
Involved.
Advertising
Agencies
Convenient for
Many People
Independent
Direct- Marketing
Agencies
Mouse-Clicking
Shopper
Primary Business
Is Selling
Products and
Services by Mail
Or Phone
Service Firms
Fulfillment
Houses
Daring to Order
Product Can’t
See, Touch, Feel,
Or Try Out
7
The Media of Direct Response
Internet
Broadcast Media
Direct Mail
Direct Response
Is a Multimedia Field
and Includes:
Print Media
Catalogs
Telemarketing
8
Direct Mail
A Direct-Mail Piece is a Self-Standing Advertising
Message for a Product or Service That is Delivered
by Mail.
Function is to Provide a Message That
Moves the Reader to Purchase.
Typical Package Has Outer Envelope, Letter, Brochure,
Reply Card and Return Envelope.
Target Must Decide Whether to Read or Throw
Away; Decision May be Based on Outside Envelope.
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Practical Tips # 1
Creating Effective Direct Mail
Get the attention of the targeted prospect as the
envelope comes from the mailbox.
Create a need for the product, show what it looks like,
and demonstrate how it is used.
Answer questions, as a good salesperson does,
reassure the buyer.
Provide critical information about product use.
Inspire confidence, minimize risk, and establish that the
company is reputable.
Make the sale by explaining how to buy, how to order,
where to call, and how to pay for the purchase.
10
Catalogs
Graphics
Publication
That Shows a
Variety of
Merchandise.
Specialty
Catalogs
May Own
Stores
Facing
Saturated
Markets.
Electronic
Armchair
Shopping.
Customers
May
Purchase
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Telemarketing
Personal Contact
More DirectMarketing Dollars
Are Spent on
Telemarketing
Than Any Other
Medium.
Personal, Live, Less Money
Intrusive, Interruptive
Inbound or Outbound
Hire Outside Agency
Simple Message Design
12
Print Media
Ads in Mass Media Are Less Directly Targeted, but
Still Provide Opportunities for a Response:
Bind-Ins
Blow-Ins
Stapled or Glued in
Magazine
and Must be Torn Out to
Be Used.
Blown Into Magazine
After It is Printed;
Loose and May
Fall Out.
13
Broadcast Media
Cable TV Works Well
Since It is Targeted to
Particular Interests
Good Infomercial Format
TV and Radio Can
Be Used in
Direct-Marketing
Advertising
Radio Doesn’t Usually
Work Well Because
Audience is Preoccupied
14
The Internet
Direct Marketing is the Model for E-Commerce
Internet Selling Reduces the Need for Paper Catalogs
That are Expensive to Produce and Send
Advantages Include:
Interactive
Gathering
Information
One-to-One
Marketing
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Managing a Database (Tab. 14.4)
The Database is the Heart of Direct Marketing and Its Four
Primary Objectives Are:
Record the Names of Customers, Expires (Names
No Longer Valid), and Prospects.
Provide a Vehicle for Storing and Then Measuring
The Results of Advertising.
Provide a Vehicle for Storing and Then Measuring
Purchasing Performance.
Provide a Vehicle for Continuing Direct
Communication by Mail or Phone.
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Types of Lists
Response List
House List
Marketer’s Own
Customers or
Members
People Who Have
Responded To
a Direct-Mail Offer
Compiled List
Rented From a Direct-Mail
List Broker
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