Direct Marketing: Chapter 1

Direct Marketing
is the interactive use of advertising media to stimulate an immediate behavior modification in such a way this behavior can be tracked, recorded, analyzed, and stored on database for future retrieval and use
Elements of Promotion
1. List/Media(40%)
2. Offer(20%)
3. Copy(15%)
4.Layout/Format(15%)
5. Timing(10%)
Lists
Profile prospects and customers and make it possible to target specific market segments
Media
Examples
1. Newspapers(selected by day of the week and by specific section)
2. Television( selected by program type, day part, or network)
Offer
A promotional effort; motivates consumer to respond
Copy
Compels readers to respond by giving them rationales on why they should believe the offer, convincing them to trust the organization,and assuring them they won’t make a mistake by responding
Four Categories of Copy
1. Benefits: showing how the product will improve the consumer’s life
2. Description: replaces personal examination before purchase
3. Support: data/statistics which validates claimed benefits
4. Sweeteners and Facilitators: more incentives, offering choices, making it easier to respond or pay
Finical Dimensions of DR
1. Lifetime Value
2. Recency
3. Frequency
4. Monetary
Lifetime Value
Financial transactions with a customer over the life of a relationship
Recency
The amount of time since a person or firm last purchase
Frequency
How many purchases
Monetary
The amount of money a customer spends within a season or year
CRM( Customer Relationship Management)
Analyze and integrate every aspect of the business that affects the consumer
Integrated Communications Marketing
The integrated management of all communications to build positive and lasting relationships with customers and other stakeholders. The goal is to understand the consumer to achieve an response