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©2005 Pearson Education Canada Inc. 6-1
Chapter 6Direct Response Communications
©2005 Pearson Education Canada Inc. 6-2
Direct Response Advertising
Direct response advertising can be a component of a direct marketing campaign or a component of an integrated marketing communications campaign.
Direct MarketingDirect MarketingDeveloping an offer; communicating the offer; accepting orders; and delivering orders
Direct ResponseAdvertising
Direct ResponseAdvertising
Ads placed in any medium that generate an immediate and measurable response.
©2005 Pearson Education Canada Inc. 6-3
Direct Response Communications
Blue chip marketing organizations effectively integrate direct response communications with traditional forms of communications.
• Direct Mail
• Direct Response Television (DRTV)
• Direct Response Print
• Telemarketing
• Catalogues
©2005 Pearson Education Canada Inc. 6-4
Direct Response Planning
MarketingPlan
MarketingPlan
Direct ResponsePlan
Direct ResponsePlan
Direct ResponseMessage Strategy
Direct ResponseMessage Strategy
Direct ResponseMedia StrategyDirect ResponseMedia Strategy
FulfillmentFulfillment
Other IMC Plans
Other IMC Plans
©2005 Pearson Education Canada Inc. 6-5
Database Management
It’s the list that makes or breaks the campaign!”
1. Lists are obtained from internal sources (house lists) and external sources (list brokers).
2. Data mining is the key to maximizing the potential of a customer list.
3. Continuous compiling and analysis of customer information is essential.
©2005 Pearson Education Canada Inc. 6-6
Data Mining
The analysis of information that establishes relationships between pieces of information; the uncovering of “nuggets” of information that leads to great offers and increases in sales. Data mining offers two benefits:
1. It provides a means of profiling the best and worst customers.
2. It provides a means of predicting future sales.
©2005 Pearson Education Canada Inc. 6-7
List Brokers and Lists
Brokers provide lists based on demographic characteristics that marketers are interested in. Lists go through a merge/purge process to eliminate duplicate names.
• Response List
• Circulation List
• Compiled List
• Online Database
©2005 Pearson Education Canada Inc. 6-8
The Direct Mail Offer
Direct mail offers are carefully planned based on historical experience. There are numerous components to an effective direct mail offer:
• Envelope
• Letter
• Leaflet or Folder
• Incentive
• Order Form
• Postage Paid Return Envelope
• Statement Stuffer
©2005 Pearson Education Canada Inc. 6-9
Distribution Options
An organization can go it alone (higher cost) or join forces with other organizations (to lower costs).
SoloDirect Mail
SoloDirect Mail
CooperativeDirect MailCooperativeDirect Mail
Unique offers for unique customers by individual organizations.
Offers from non-competing companies in one envelope.
©2005 Pearson Education Canada Inc. 6-10
Direct Response Television
DRTV is growing in popularity among traditional television advertisers. There options include:
• Infomercials
• 30- and 60-second direct response commercials
• Direct home shopping
©2005 Pearson Education Canada Inc. 6-11
Infomercials
The quality of infomercials has improved greatly. A good infomercial serves a variety of marketing communications objectives:
• Establish leads
• Build retail traffic
• Launch new products
• Create awareness
• Protect and enhance image
A brand message can be combined with a direct
response technique.
©2005 Pearson Education Canada Inc. 6-12
Direct Response Print
Print is a good alternative when targeting an audience based on geographic and psychographic characteristics.
1. Ads in newspapers and magazines
2. Inserts
3. Tip-ins
©2005 Pearson Education Canada Inc. 6-13
Telemarketing
Despite negative perceptions among consumers, telemarketing is very popular with marketers. The efficiency is incredible!
Call CentreCall Centre
Inbound CallsInbound Calls Outbound CallsOutbound Calls
Offers from TV, Mail or Print
Offers from TV, Mail or Print
Offers for Specific Targets
Offers for Specific Targets
©2005 Pearson Education Canada Inc. 6-14
Roles of Telemarketing
To be effective the telemarketing call must be carefully planned, and the representative must be thoroughly trained. Telemarketing is effective for:
• Fundraising
• Sales Support
• Personal Selling
• Fulfillment
• Customer Service
©2005 Pearson Education Canada Inc. 6-15
Catalogues
Catalogue marketing involves the merchandising of products through catalogue sales.
1. Leaders such as Sears and Canadian Tire see the value of integrated marketing communications: catalogues, 1-800 , e-mail, and traditional forms of media advertising.
2. U.S cataloguers now offer CD versions.
©2005 Pearson Education Canada Inc. 6-16
Catalogues to Grow
There are several factors that will continue to influence growth in catalogues:
1. Catalogues offer convenience, a top priority among busy shoppers.
2. Consumers are into “multi-channel” shopping.
3. Companies are producing their own magazines to stay in touch with customers (CRM).
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