Chapter10 - Chapter 10 Outline RELATIONSHIP BUILDING:...

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Unformatted text preview: Chapter 10 Outline RELATIONSHIP BUILDING: Direct Marketing, Personal Selling, and Sales Promotion Understanding Direct Marketing Direct Marketing defined: A. any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order (direct order), a request for further information (lead generation), and/or a visit to a store or other place of business for the purchase of a specific product(s) or service(s) (traffic generation). B. Database marketing builds and maintains a collection of data on current and prospective customers so companies can communicate with them using a variety of media; it is one of the fastest-growing marketing methods because it is an efficient way to increase sales. It is also a major component of most IMC programs. Working with a marketing database requires two processes: 1. Data management is the process of gathering, consolidating, updating, and enhancing information in the database. 2. Data access enables marketers to manipulate, analyze, and rank information to make better decisions. RFM formula (recency, frequency, monetary)Using the three measures to help rank customers by the type of merchandise or services they buy, how often they buy, or by how much they spend. C. A good database enables marketers to target, segment, and grade customers. It also helps them identify customers and prospects; what and when they purchase; and how to contact them. D. Direct marketers use direct-response (or action ) advertising aimed at stimulating some action or response from the customer. The Importance of Direct Marketing to IMC Perhaps the greatest reason for direct marketings growth is that marketers and agencies realize they cannot do the job with just one medium anymore. Direct marketing is the best way to develop a good database. 1. With a database, companies can pick the prospects they can serve most effectively and profitablythe purpose of all marketing. 1 2. Companies can send discrete messages to individual customers and prospectsallowing people to feel unique, not part of a mass market. 3. Direct marketing gets a tangible response (marketers can count the responses and determine the cost per response). 4. Direct marketing offers convenience to consumers, precision, and flexibility to marketersthe best way to reach small B2B customers, for example....
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Chapter10 - Chapter 10 Outline RELATIONSHIP BUILDING:...

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