Lecture Advertising and promotion (2/e) – Chapter 13: Direct marketing and communication
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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
1. To examine the development and reasons for
growth of direct marketing communication.
2. To define the role and relationships of direct
marketing, the internet and interactive media in
an IMC program.
3. To identify the advantages and disadvantages of
direct marketing communication.
4. 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
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Guide Dogs Australia
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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
Telemarketing
Telemarketing
Direct
Direct response
response
Internet
Internet && email
Direct
Direct 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
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Anthony Hordens’ mail-order
catalogue
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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
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Direct marketing: roles and
relationships
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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
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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
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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
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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
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13-14
Direct marketing and customer
loyalty
Copyright 2012 McGraw-Hill Australia Pty Ltd
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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
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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
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DM Media: mail
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DM Media: catalogues
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DM Media: unwrapped catalogue
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DM Media: catalogue websites
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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
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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
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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
