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Martin de Tours School of Management
Department of Marketing
Lesson Plan
MKT 3830
Direct marketing
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Lesson Plan
MKT3830
COURSE DESCRIPTION
A comprehensive study of the elements of direct marketing and its fit into the strategy to
reach target audiences effectively. Topics include comparison of consumer and business-
to-business direct marketing techniques, uses of databases, circulation planning, creative
executions, list and media planning, direct mail, catalog marketing, telemarketing,
internet marketing and response analysis.
COURSE OBJECTIVES
• To provide an overview of the role and importance of Direct marketing as an activity
in the marketing mix.
• To help students understand the many facets of the firm's internal and external
environments that influences the formation and implementation of direct marketing
strategy.
• To provide an exposure to the organization and process of direct marketing activities.
• Through the use of case analysis and group project, enable students to practice
managerial decision-making.
• To provide an insight into to techniques for direct marketing evaluation and
measurement.
REQUIRED TEXT
Contemporary Direct Marketing, Lisa Spiller, Martin Baier, Pearson Prentice Hall
MARK ALLOCATION:
Participations 5 %
Assignments 10%
Project /Presentation 20 %
Mid-term exam. 25 %
Final exam. 40 %
Total 100 %
1
CONTENTS
Chapter 1: Elements of direct marketing ...................................................................................2
Chapter 2: Direct Marketing Lists and Segmentation ...............................................................4
Chapter 3: Database Driven Direct Marketing ..........................................................................5
Chapter 4: Planning the Offer....................................................................................................6
Chapter 5: Creative Strategy in Direct Marketing .....................................................................7
Chapter 6: Direct mail and other print media ............................................................................9
Chapter 7: Broadcase and other Electronic Media .................................................................11
Chapter 8: Telemarketing ........................................................................................................13
Chapter 9: The Internet ............................................................................................................14
Chapter 10: Customer Service and fullfillment ......................................................................15
Chapter 11: Direct Marketing Research: Survey and Experimentation...................................16
Chapter 12: Regulatory Environment: The Ethical and Legal Issues in Direct Marketing .....18
Chapter 13: Business-to-Business (Industrial) Direct Marketing............................................19
Chapter 14: Direct Marketing for Nonprofit Organization ....................................................20
Chapter 15: International Direct Marketing.............................................................................21
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(WEEK1) Brief Course Introduction and Course Outline Distribution.
Lecture start From Week2. CHAPTER 1: Elements of Direct Marketing. Time Allocation: 2 hrs and 10 minutes (Week 2)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
-Understand
the differences
between direct
and traditional
marketing …
and that direct
marketing is an
extension of
and not an
alternative to
traditional
marketing
- Be familiar
with the
elements of
direct
marketing,
especially
those which
distinguish it
from
traditional
marketing
- Understand
the marketing
concept and
the impact it
has had on the
management
of customer
relationships
- Be able to
define and
discuss the
special
characteristics
of direct
marketing …
especially
measurement
and
accountability
• Elements of Direct Marketing
• The Marketing Concept and Customer
Relationship Management
• Direct Marketing Is an Extension of
Traditional Marketing
• Characteristics of Direct Marketing
• Who Uses Direct Marketing and How
° Users of Direct Marketing
° Applications of Direct Marketing
• Trends in Direct Marketing
° Creating In-Store Traffic
° Directing On-Line Traffic
° Membership (Affinity) Clubs
° Issues of Privacy and Security
Friendly, ice breaking discussion, asking question about basic marketing knowledge
Power Point slides
• Test their knowledge of basic marketing
• Testing student’s understan-ding in Direct marketing cycle.
Encouraging students to apply in different environment (either domestic or foreign countries) Case study.
3
; lists and
databases
- Know the
variety of
media: print,
broadcast, and
electronic
4
CHAPTER 2: Direct Marketing Lists and Segmentation Time Allocation: 2 hrs and 10 minutes (Week 3)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
-Understand
the importance
of market
segmentation
and the role
that lists serve
in direct
marketing
- Be familiar
with the five
bases
(geographic,
demographic,
social,
psychological
and
behavioral)
used in
segmenting
the consumer
market
- Be able to
differentiate
between
house,
response and
compiled lists
and be able to
critically
evaluate the
value of each
for direct
marketers
- Be able to
explain how
the list
industry
operates and
the interaction
between the
various
members in
this industry
The Nature of Market Segmentation:
° Product Differentiation
° Product Positioning
° Industrial Market Segmentation
The Bases for Market Segmentation:
° Geographic
° Demographic
° Social
° Psychological
° Behavioral
Lists As Market Segments:
A Perishable Commodity
Types of Lists: House, Response, Compiled
Development of House Lists
The List Industry :
List Users
List Owners
List Managers
List Compilers
List Brokers
Service Bureaus
Examples Power Point slides
Question and Answers Case study.
5
CHAPTER 3: Database-driven direct marketing Time Allocation: 2 hrs and 10 minutes (Week 4)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand
what a
customer
database is,
how to create
one and its
value and
uses for direct
marketing
- Explain the
function of a
customer
loyalty
program and
overview
examples of
customer
loyalty
programs
- Be familiar
with R-F-M
assessment
- Be able to
explain the
various
database
maintenance
activities that
direct
marketers
should
implement on
a regular basis
- Customer Database
- Database Development
° Customer Loyalty Programs
° Examples of Loyalty Programs
° Source Data
° The Recency/Frequency/Monetary
Assessment
- Database Maintenance
° Match Codes & Merge-Purge
° Multi-buyers
° Keeping Records Current
- Database Security
° Information Privacy
° Proper Database Storage
° List Seeding
- Database Uses & Applications
° Seven Ways a Direct Marketer Can Use
a Customer Database
- Database Enhancement
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
6
CHAPTER 4: Planning the offer Time allocation: 2 hours 10 mins(Week 5)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand
the role of an
offer along
with the
elements of
any effective
offer
- Know the
required steps
in planning an
effective offer
- Be familiar
with the basic
components
of an offer
and the
decisions that
direct
marketers
must make
with regard to
the offer
- Understand
the five step
process that
should be
followed
when creating
an offer
- Be able to
overview
some the
popular offers
used by direct
marketers
What is the Offer?
The Offer as a Component of Direct
Marketing Strategy
Elements of an Effective Offer
Planning the Offer :
° Step 1: Establish Objectives of the Offer
° Step 2: Decide on the Attractiveness of
the Offer
° Step 3: Reduce Risk of the Offer
° Step 4: Select a Creative Appeal
Components of the Offer:
° Product or Service
° Pricing & Payment Terms
° Trial or Examination Period
° Guarantees
° Sweepstakes and Contests
° Gifts and Premiums
° Time Limits
Creating an Offer :
Step 1: Perform Market Research
Step 2: Determine the Terms of the Offer
Step 3: Target the Offer Step 4: Test the Offer
Step 5: Execute the Offer
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
7
CHAPTER 5: Creative strategies in Direct Marketing Time allocation: 2 hours and 10 minutes (Week 6)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand
that Offers +
Databases +
Promotions =
Customers
- Understand
that the
purpose of
promotion is
to generate
action
- Understand
that
promotion is a
means and not
an end in and
of itself
- Understand
the nuances
which
differentiate
brand/image
advertising
from
response/trans
action
advertising
- Be able to
distinguish
between the
ability to buy
and the
proneness to
spend
- Know the
tools and
techniques of
copywriting
and graphic
design
Offers + Databases + Promotions = Customers
Brands and Image-Building Versus Responses
and Transactions
Buyer Behavior: The Ability to Buy Versus the
Proneness to Spend
Copywriting and Graphics Techniques for
Creating Promotions
° Features Versus Advantages Versus.
Benefits
° Writing the Copy
° Using Design and Graphics
Creating Messages for Specific Media:
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
8
- Know the
various
advertising
media and
how to create
messages for
each
- Know the
variety of
media: print,
broadcast, and
electronic,
including the
Internet
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CHAPTER 6: Direct mail and other print media Time allocation: 2 hours (Week 7)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Be able to
distinguish
among
printed media,
broadcast
media, and
electronic
media,
including the
Internet
- Know the
characteristics
and the
formats of
direct mail,
still the
medium most
utilized by
direct
marketers
- Know the
categories of
magazines,
advantages
and
disadvantages
of the
medium,
impact of
positioning
and timing,
and the
possibilities
for market
segmentation
- Know the
categories of
newspapers,
advantages
and
disadvantages
, impact of
Direct Mail as a Printed Medium
° Market Segmentation
° Catalogs
° Syndication Mailings
° Coupons
° Cooperative Mailings
° Statement/Invoice Stuffers
° Package Inserts
° Take-One Racks
Magazines as a Printed Medium
° Market Segmentation
° Categories of Magazines
° Advantages and Disadvantages
° Position and Timing
Newspapers as a Printed Medium
° Market Segmentation
° Categories of Newspapers
° Advantages and Disadvantages
° Position and Timing
Presentation on the related topics and examples
Power Point slides
Question and Answers .
10
positioning
and timing,
and the
possibilities
for market
segmentation
11
CHAPTER 7: Broadcast and other electronic media Time allocation: 2 hours (Week8)
Learning objectives
Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Know the
characteristics
and the direct
marketing
uses of
television as
well as its
advantages
and
disadvantages
and especially
the
opportunities
it presents for
market
segmentation
- Know the
advantages
and
disadvantages
of radio as a
direct-
response
medium,
possibilities
for market
segmentation
in utilizing
the medium
- Know how to
use the
interactive
electronic
media … the
telephone and
the
revolutionary
Internet with
its partner, the
World Wide
Web. Know
how market
segmentation
Television:
Market Segmentation
Characteristics of Television Time
Direct Marketing Uses of Television
Home Shopping and Infomercials
Advantages and Disadvantages
Radio:
Market Segmentation
Rate Structure
Advantages and Disadvantages
Interactive Electronic Media:
Telemarketing
Presentation on the related topics and examples
Power Point slides
Question and Answers Mid-Term Preparation. Ch1~7 30%
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fits in with
these media
- Be alert to the
opportunities
being
presented by
the emerging
technology of
television/tele
phone hook-
ups
13
CHAPTER 8: Telemarketing Time allocation: 2 hours (Week 9)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Be able to
differentiate
between inbound
and outbound calls
and each of their
particular uses
- Understand the
steps in planning a
telemarketing
program
- Be familiar with
the different types
of call centers that
exist - .
The Telephone as a Marketing Medium
° Inbound vs. Outbound Calls
° Advantages & Disadvantages
° History
° Telemarketing Technology
Planning the Telemarketing Program
Preparing the Telephone Script
° Training Telephone
Operators
° Integrating with other
Media
Call Centers
° In-House
° Outsourcing
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
14
CHAPTER 9: The Internet Time allocation: 1 hour and 15 minutes (Week 10)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
characteristics,
including the
advantages and
disadvantages,
associated with the
Internet
- Be familiar with
the various
applications of
interactive media
- Know how to
measure and
increase web site
traffic
The Newest Interactive Medium
Growth of Internet Marketing
Business-to-Business Transactions
° Differences Between the Internet and
The World Wide Web
° Advantages and Disadvantages
Applications of Interactive Media
° e-mail Marketing
Online Market Research
° Web Advertising
° e-Branding
Measuring and Increasing Site Traffic &
Stickiness
Web Site Promotion
° Creating Web Site Stickiness
Media Measurement – “e-metrics”
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
15
CHAPTER 10: Customer Service and Fulfillment. Time allocation: 2 hours (Week 11)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
importance of and
activities involved
in delivering good
customer service
- Be able to explain
what is involved in
customer
relationship
management
- Be able to define
fulfillment and
overview
traditional
fulfillment
standards
- Be familiar with
the six step
fulfillment process
- Compare and
contrast the
various fulfillment
and delivery
options
The Importance of Customer Service
° Customer Relationship Management
° Evaluating CRM
° Keeping Customers Happy
Fulfillment
° What is Fulfillment?
° Traditional Fulfillment Standards
The Fulfillment Process
° The Offer
° The Response
° Processing
° Shipping
° Billing
° Customer Service
Fulfillment Options
° In-House Fulfillment
° Outside Fulfillment Centers
° On-Line Fulfillment
Delivery Options
° Multi-Channel Distribution
° United States Postal Service
° Alternative Delivery Systems
Fulfillment Problems
° Sources of Fulfillment Problems
° Ways to Avoid Fulfillment Problems
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
16
CHAPTER 11: Direct Marketing Research: Survey and Experimentation Time allocation: 1 hour and 30 minutes (Week 12)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
importance and
place of both
quantitative and
qualitative
research;
distinguish that
which is survey
from that which is
experimentation;
know when and
how to conduct
research.
- Understand the
significance of
statistics and know
terms used in
statistics.
- Distinguish
between secondary
and primary data
and know how to
obtain each.
- Know how to
design and
conduct an
experiment and
track its results.
- Be able to
determine a
sample size
statistically,
considering
confidence level,
limit of error and
predicted (or
actual) response.
- Be able to measure
difference in
response rates
between control
The Nature of Research
° Surveys Versus Experiments
° Problem Structure
° What to Test
Data: Types, Sources, and Collection
° Secondary Data
° Primary Data
Experimentation as Testing
° Design of the Experiment
° Tracking Responses
° Response Rate and Break-Even
Analysis
Samples and Estimations
° Random Samples
° Determining the Sample Size
°
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
17
and test segments.
- Understand the
procedure for
hypothesis testing -
18
CHAPTER 12: Regulatory Environment: The ethical and Legal issues in Direct Marketing Time allocation: 2 hours and 10 minutes (Week 13)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Be familiar with
the basic rights of
consumers
- Be able to explain
the primary issues
regarding
information
privacy
- Be familiar with
the regulatory
authorities of
direct marketing -
Ethics of Direct Marketing
° DMA’s Guidelines for Ethical Business Practices
° The DMA Ethics & Consumer
Affairs Department
Basic Consumer Rights
° Right to Safety
° Right to Be Informed
° Right to Selection
° Right to Confidentiality
° Right to Privacy
Legislative Issues
° Intellectual Property
° Security
° Privacy
Privacy Legislation
° Privacy Protection Study Commission
° Privacy Today: Anti-Spam Laws
Privacy Issues
° Annoyance and Violation
° Type of Information
° Consumer Privacy Segments
° Corporate Response to Privacy
° DMA Privacy Promise
Regulatory Authorities of Direct Marketing
° Federal Communication Commission
° Federal Trade Commission
° United States Postal Service
° State and Local Regulations
° Private Organizations
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
19
CHAPTER 13: Business-to-Business (Industrial) direct marketing Time allocation: 2 hour and 10 minutes (Week 14)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
distinction
between consumer
and industrial
markets and the
implications for
marketing in each
- Know the
characteristics that
distinguish
industrial demand
and those that
identify industrial
goods
- Address the
perceived
“differences”
between consumer
and industrial
markets
- Identify and relate
to uses and users
of B2B direct
marketing
- Know the
techniques of
industrial market
segmentation
- Understand the
special importance
of database in B2B
direct marketing
The Nature of Industrial Markets
○ Types of Industrial Goods
○ Characteristics of Industrial
Demand
Uses and Users of B2B Direct Marketing
○ A Special Case: Industrial
Computer Installations
○ Another Special Case:
Industrial Vending
Machine Installations
○ FedEx is a Model B2B
Marketer
Challenges of B2B Direct Marketing
How to Identify B2B Market Segments
○ Standard Industrial
Classification System
(SIC)
○ North American Industrial
Classification System
(NAICS)
○ Input-Output Analysis of
Industrial Markets
○ The Census Bureau’s TIGER
System
○ Business Clusters
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
20
CHAPTER 14: Direct marketing for Nonprofit Organizations Time allocation: 1 hour and 15 minutes (Week 15)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
various
applications of
direct marketing
for nonprofit
organizations
- Be able to explain
the importance of
customer
relationship
management for
nonprofit
organizations
- Overview the
elements of an
effective
fundraising
campaign
- Be familiar with
the various media
strategies that are
used by nonprofit
organizations
Direct Marketing for Nonprofit Organization
Direct Marketing Applications
Customer Relationship Building
° Customer Relationship Maintenance
° Corporate Partnerships
Fundraising
° Basic Fundraising Principles
° The Fundraising Appeal
Media Strategies and Award Winning
Campaigns
° Direct Mail
° Telephone
° Television
° Internet
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.
21
CHAPTER 15: International Direct marketing Time allocation: 1 hour and 15 minutes (Week 15)
Learning objectives Brief contents Teaching/ Learning Strategies
Teaching Aids/ Materials
Evaluation
- Understand the
unique differences
between domestic
and foreign
markets for direct
marketers
- Be familiar with
the steps that
should be followed
when entering a
foreign market
- Be able to
overview of the
common modes of
market entry
including direct
exporting,
licensing, joint
venture, contract
manufacturing and
direct investment
- Understand the
unique
infrastructure
needed to support
direct marketing
operations in
foreign countries
including lists and
database,
fulfillment
operations, media
and creative
Direct Marketing Around the World
Differences Between Domestic and International Dir
° Making the Decision to Go Internationa
° Modes of Market Entry
° Exporting
• Licensing
• Joint Venture
• Contract Manufacturing
• Direct Investment
• Management Contracting
International Direct Marketing Infrastructure.
° Lists/Database
• Fulfillment
• Media
• Creative
Presentation on the related topics and examples
Power Point slides
Question and Answers Case study.