Chptr 19 - 19-1Understand how companies can integrate...

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Unformatted text preview: 19-1Understand how companies can integrate direct marketing for competitive advantageUnderstand how companies can do effective interactive marketingUnderstand how marketers can best take advantage of the power of word of mouth19-2Understand what decisions companies face in designing and managing a sales forceUnderstand how salespeople can improve selling, negotiating, and relationship marketing skills19-3BreakDirect marketing: use of consumer-direct (CD) channelsto reach & deliver goods & servicesto customerswithout using marketing middlemenGrowth of direct marketing due to: 1.Market demassification - market niche2.At-home shoppingi.High driving costsii.Traffic congestioniii.Lack of time3.Stores drop specialty items - opportunity for direct marketers4.Increased credit card penetration5.Growth of Internet, email, cell phonesCustomers benefits :Home shopping - fun, convenient, hassle-freeComparative shopping - browse mail catalogs & online shopping servicesOrder goods for themselves or othersBusiness customers: learn about products & services without meeting salespeopleSellers benefits:1.Buy mailing lists - names of target groups of customers2.Customize & personalize messages3.Build continuous relationship with each customerSent to keen people - right time, high readershipTest alternative media & messages - most cost-effective wayMakes offer & strategy less visible to competitorsCan measure responses to campaigns - most profitableDirect-mail marketing: sending an offer, announcement, reminderPopular, WHY?Permits target market selectivityCan be personalizedFlexibleAllows early testing & response measurementDirect mail marketing - stages:1.Carpet bombing2.Database marketing3.Interactive marketing4.Real-time personalized marketing5.Lifetime value marketingOBJECTIVES:Order from prospectsSuccess - response rate: 2% goodAchieve other objectivesProduce leadsStrengthen relationshipsInform & educate customersRemind customers of offersReinforce recent purchasesTARGET MARKETS & PROSPECTS:Identify- most able, willing, ready to buy HOW?1.RFM: (recency, frequency, monetary amount)2.Variables: age, sex, income, education3.Consumer lifestyle or passion groupsB2B: prospect group of people Target defined - obtain specific namesOFFER ELEMENTS:5 elements1.Product2.Offer3.Medium4.Distribution method5.Creative strategy5 mailing components:1.Outside envelope2.Sales letter3.Circular4.Reply form5.Reply envelopeTESTING ELEMENTS:Advantage: ability to test elements - real market conditions Response rates - understate campaigns long-term impactImpact on awareness, intention to buy & word-of-mouthMEASURING CAMPAIGN SUCCESS: LIFETIME...
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This note was uploaded on 02/07/2012 for the course MBA 102 taught by Professor Xxx during the Winter '11 term at American InterContinental University.

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Chptr 19 - 19-1Understand how companies can integrate...

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