10
Direct Chapter Marketing
Direct Marketing Today
Direct marketing has its roots in catalog companies such as
L.L.Bean.
Many types of organizations are increasing their expenditures
on direct marketing. These expenditures serve three primary
purposes:
Closing sales with customers
Identifying prospects for future contacts
Offering information and incentives to foster brand loyalty
Direct Marketing Today, Continued
Exhibit 10.1 Some Direct Marketing Milestones
Growing Popularity
The growing popularity of direct marketing can be attributed to
several factors.
Conveniencecredit cards, 800 numbers, and the Internet
Computer powerbuilding and mining large customer
information files
Trackinglends itself to current emphasis on measurable
outcomes
Growing Popularity, Continued
Finding that waterfall in Wyoming will
take some planning, and Wyomings
offices of Travel & Tourism is happy
to help. The adventure begins with a
request for a vacation packet. This ad
provides two options: calling a tollfree number or visiting the tourism
offices website.
Database Marketing
A mailing list is a file of names and addresses of current or
potential customers, such as lists that might be generated by a
credit card company or a catalog retailer.
Internal listsvaluable for creating relationships with
current customers
External listsuseful in generating new customers
List enhancementadding demographic, geodemographic,
psychographic, behavioral or data
Database Marketing, Continued
A marketing database is a natural extension of the internal list, but it also
includes information about individual customers and their specific
preferences and purchasing patterns.
A marketing database allows organizations to identify and focus their efforts
on their best customers using a recency, frequency, and monetary (RFM)
analysis.
Recognizing and reinforcing preferred customers helps build loyalty:
Follow-up letters, discounts, coupons
Frequency-marketing programsdatabase, benefit package,
communications strategy
Cross-selling opportunities also emerge once a database is in place.
One can gain keener information about the motivations of current best
customers, and insights usually emerge about how to attract new
customers.
However companies must be sensitive to consumers rights and wishes to
protect their privacy.
Database Marketing, Continued
Exhibit 10.2 What Makes a Marketing Database
Media Used in Direct Marketing
Direct-marketing programs
emanate from mailing lists and
databases, but there is still a need
to deliver a message to the
customer.
Direct mail, telemarketing, and
email are the most common means
used in executing direct marketing
programs. Email is most successful
when it avoids spam and uses opt-
Media Used in Direct Marketing,
Continued
Media Used in Direct Marketing,
Continued
Exhibit 10.3 Elements of a Successful Infomercial