Scribd
Upload
19 views12 pages

Scope of Direct Marketing Explained

This document provides an overview of direct marketing. It defines direct marketing as using advertising media to stimulate immediate behavior change that can be tracked and analyzed. It has grown due to factors like credit cards, availability of customer data, and its measurability. A direct marketing program aims to elicit a measurable response and profit by achieving objectives like generating leads, penetrating new markets, and building long-term customer value. Direct marketing integrates various communication strategies like advertising, promotions, and PR for maximum impact. Testing and analysis are keys to direct marketing success.

Uploaded by

Satish Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
19 views12 pages

Scope of Direct Marketing Explained

This document provides an overview of direct marketing. It defines direct marketing as using advertising media to stimulate immediate behavior change that can be tracked and analyzed. It has grown due to factors like credit cards, availability of customer data, and its measurability. A direct marketing program aims to elicit a measurable response and profit by achieving objectives like generating leads, penetrating new markets, and building long-term customer value. Direct marketing integrates various communication strategies like advertising, promotions, and PR for maximum impact. Testing and analysis are keys to direct marketing success.

Uploaded by

Satish Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Chapter 1:

The Scope of Direct Marketing

Direct Marketing (444)

Renee Pfeifer-Luckett
UW-Whitewater
What is Direct Marketing?

 Response driven (rather than “image” driven)


 Personalized messages (rather than generalized)
 Two-way dialog (rather than one way)
 Immediate behavior (rather than future)
 Motivational message (rather than attitudinal)
 Produces measurable & testable results
 Flexible
 Less “wasted reach”
Direct Marketing Defined

 “Direct Marketing is the interactive use of


advertising media, to stimulate and (immediate)
behavior modification in such a way that this
behavior can be tracked, recorded, analyzed, and
stored on a database for future retrieval and
use.”
Why Has DM Grown?

 Credit Cards
 Business-to-Business
 Availability of lists/data
 Change in society
 Change in technology
 Measurable
Economic Impact of Direct Marketing

 Difficult to measure (since 1992 by DMA)


 2004 has show growth (see
“[Link]” on ROAD)
 B to B still fastest growing
DM Program

 Purpose: elicit a measurable response & create profit


 Objectives:
– Generate traffic
– Build awareness/image
– Generate/qualify leads
– Penetrate new markets
– Reactivate old accounts
– Upgrade current accounts
– Cross-sell products/services
– Build long-term (lifetime) value of customer**
Use of Direct Marketing

 Measuring Customer Value


– Lifetime value (LTV)
– Recency
– Frequency
– Monetary
 Building Customer Loyalty
– Reduce churn
– Increase referrals
Direct Marketing Basics

 Offer Elements of Promotion


30%
 Creative 40%
List/Media
Copy

 List Layout
Offer

 Media 15%
15%

Database LIST
OFFER

Target Market(s)
One-to-One v. DM

 Same tools and techniques


 Solutions approached differently
•One-to-One
- Direct interaction on the individual level
- Individual is subjected to “mass customization”
- Allows a company to find products and services for
the customer it knows
- Customer’s perspective
CRM

 Customer Relationship Management


 Customer Relationship Marketing is a subset
of CRM
Integrated Communications

“A concept of marketing communications


planning that recognizes the added value in a
program that integrates a variety of strategic
disciplines, e.g., general advertising, direct
response, sales promotion, and public relations
— and combines these disciplines to provide
clarity, consistency, and maximum
communications impact.”
Keys to DM Success

 Right product/service
 Right offer
 Right media
 Right format
 Right tests
 Right analysis

You might also like