Chapter 13 - Direct marketing and communication. The goals of this chapter are: To examine the development and reasons for growth of direct marketing communication; to define the role and relationships of direct marketing, the internet and interactive media in an IMC program; to identify the advantages and disadvantages of direct marketing communication; to evaluate the effectiveness of communication through direct marketing communication.
Chapter 13 Direct marketing and communication Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-1 Learning objectives To examine the development and reasons for growth of direct marketing communication To define the role and relationships of direct marketing, the internet and interactive media in an IMC program To identify the advantages and disadvantages of direct marketing communication To evaluate the effectiveness of communication through direct marketing communication Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-2 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-3 Guide Dogs Australia Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-4 Direct marketing defined Techniques Techniques DM DMmedia media Direct Direct marketing marketingis isaasystem systemby bywhich whichorganisations organisations communicate communicatedirectly directlywith withtarget target customers customersto togenerate generateaa response responseor ortransaction transaction Interpersonal Interpersonal Telephone Telephone Direct Direct selling selling Catalogues Catalogues TV, TV, Radio Radio && Print Print Telemarketing Telemarketing Direct Direct response response Mail Mail Internet Internet && email email Direct Direct mail mail SMS SMS Electronic Electronic home home shopping shopping Electronic Electronic interactive interactive marketing marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-5 Anthony Hordens’ mail-order catalogue Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-6 Growth of direct marketing Consumer Consumer credit credit cards cards Direct Direct marketing marketing syndicates syndicates Changing Changing structure structure of of society society Technological Technological advances advances Miscellaneous Miscellaneous factors factors Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-7 Direct marketing: roles and relationships Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-8 Direct marketing combines with Advertising Advertising Internet Internet Public Public relations relations Direct Direct marketing marketing Support Support media media Personal Personal selling selling Sales Sales promotion promotion Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-9 Dirt Action direct marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-10 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-11 Developing a database Improve Improve selection selection of of market market segments segments Stimulate Stimulate repeat repeat purchases purchases Objectives Objectives Cross-selling Cross-selling other other products products Customer Customer relationship relationship management management Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-12 Sources of information for developing a database List List services services Online Online search search behaviours behaviours Syndicated Syndicated research research Retail Retail transaction transaction histories histories Info Info sources sources Credit Credit bureaux bureaux Postal Postal services services Bureaux Bureaux of of statistics statistics Direct Direct marketing marketing associations associations Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-13 A comprehensive consumer database Name Gender Occupation Address/ postcode Marital status Transaction history Telephone number Family data Promotion history Length of residence Education Inquiring history Age Income Unique identifier Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-14 Direct marketing and customer loyalty Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-15 Advantages Limitations Growth Direct marketing Part of IMC Objectives Advertising PR Measuring effectiveness Media Mail and print Catalogues Personal Selling Broadcast Support Telephony Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-16 Direct marketing media strategies One-step One-step approach approach •• The The medium medium is is used used to to obtain obtain an an order order •• Goal Goal is is to to generate generate an an immediate immediate sale sale Examples: Examples: •• Reply Reply paid paid coupons coupons •• 1-800 1-800 numbers numbers Two-step Two-step approach approach •• The The medium medium is is used used for for inquiry inquiry and and to to qualify qualify prospects prospects •• Follow Follow up up with with aa second second medium medium to to complete complete the the sale sale •• Also Also known known as as permission permission marketing marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-17 DM Media: mail Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-18 DM Media: catalogues Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-19 DM Media: unwrapped catalogue Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-20 DM Media: catalogue websites Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-21 Direct selling Repetitive personto-person selling Direct Direct selling selling Non-repetitive personto-person selling Party Party plans plans Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-22 Evaluating DM effectiveness Measures Measures Non-behavioural Non-behavioural objective objective Traditional Traditional measures measures •• Brand Brand awareness awareness •• Brand Brand attitude attitude Behavioural Behavioural objective objective DM DM specific specific measures measures •• Cost Cost per per order order (CPO) (CPO) •• Other Other measures measures of of brand brand health health Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-23 Direct marketing advantages and disadvantages Advantages Selective Selective reach reach Segmentation Segmentation capability capability Frequency Frequency potential potential Flexibility Flexibility Timing Timing Disadvantages Image Image factors factors Accuracy Accuracy Content Content support support Rising Rising costs costs Personalisation Personalisation Economy Economy Measurement Measurement of of effectiveness effectiveness Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-24 Summary and conclusions As advertisers search for more cost efficient means of reaching markets, direct marketing and direct response media continue to grow Advantages of direct marketing include the ability to tightly segment, high level of message personalisation as well as excellent cost efficiency Advantages of the internet include its versatility, interactivity and its use in building customer relationships This chapter also considers means of evaluating the performance of DM and the internet Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 13-25 ... objectives To examine the development and reasons for growth of direct marketing communication To define the role and relationships of direct marketing, the internet and interactive media in an IMC... program To identify the advantages and disadvantages of direct marketing communication To evaluate the effectiveness of communication through direct marketing communication Copyright 2012 McGraw-Hill... 13-4 Direct marketing defined Techniques Techniques DM DMmedia media Direct Direct marketing marketingis isaasystem systemby bywhich whichorganisations organisations communicate communicatedirectly