Advertising Chapter 14 Direct Marketing

Direct Marketing-
an interactive system of marketing which
uses one or more advertising media to effect
a measurable response and/or transaction
at any location
Frequency
how often the target market is exposed to the ad. Inexpensive mediums allow more frequent ad runs.
Testing
direct marketing allows for easy testing of the effectiveness of the overall program as well as specific elements.
Timing
direct marketing materials can often be put together and distributed quickly, unlike other media, which require long-range planning.
Disadvantages Direct Marketing
• Image factors… the mail segment of this industry is often referred to as junk mail, and junk emails fare no better. Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed this way.
• Accuracy… computerization has greatly improved the accuracy and currency of lists, but the cost of generating a lead can be expensive, depending on the quality desired.
• Content support… mood creation is limited to the surrounding program and/or the editorial content.
• Rising costs… as postal rates and print costs increase, direct-mail profits are directly impacted.
• “Do not contact” lists… now exist for both land and cell phones, and a “Do Not Contact” list for junk mail is under consideration by the FTC.
sources for marketers to get databases
• List services/brokers
• Standard Rate and Data Service (SRDS)
• U.S. Postal Service
• Direct Marketing Association
• U.S. Census Bureau
• Experion Simmons Market Research Bureau.
One Step Marketing Approach
the medium is used to directly obtain an order (e.g. TV offer with an 800 number).
2 step marketing approach
may involve more than one medium, with the first being used to obtain an inquiry or qualify a prospect and the second to complete the sale.
• Repetitive person-to-person selling
salesperson visits the buyer’s home, job site, or other location to sell frequently purchased items or services. Mary Kay uses this technique.
• Nonrepetitive person-to-person selling
salesperson visits the buyers home, job site, or other location to sell infrequently purchased items, such as encyclopedias.
• Party plans
a salesperson offers products or services to groups of people through home or office parties and demonstrations. Tupperware and PartyLite Gifts uses this sales method.
Cost per order (CPO)
dividing the cost of the ad by the average size of the orders placed.
Standard Rate and Data Service (SRDS)
leading provider of media rates and data, connecting buyers and sellers through sources that offer comprehensive coverage of traditional media such as magazines, newspapers, television, direct marketing and radio- as well as alternative marketing opportunities… largest database in the world