MKT 4354: Marketing Promotion – Chapter 10

Direct Marketing
Interactive marketing system that uses multiple media to generate a transaction or other measurable response at any
location.
Cost Per Inquiry (CPI)
Number of inquiries generated by a direct-marketing program divided by the program’s cost.
Cost Per Order
Number of orders generated by a direct-marketing program divided by that program’s cost.
Mailing List
File of names and addresses used for contacting prospects or
customers.
Internal Lists
Organization’s records of its customers and inquirers; used for developing better customer relationships.
External Lists
Mailing lists purchased from a list compiler or rented from a list broker; used for cultivating new business.
Marketing Database
Mailing list with added information collected directly from individual customers.
Recency, Frequency, Monetary (RFM) Analysis
Analysis of how recently and frequently a customer bought from an organization, and how much the customer spent.
Frequency Marketing Programs
Direct-marketing programs that provide concrete rewards to
frequent customers.
Cross Selling
Marketing programs aimed at selling additional products to
existing customers.
Direct Response Advertising
Advertising that asks the receiver of the message to act immediately.
Direct Mail
Direct-marketing medium that uses the postal service to deliver marketing materials.
Telemarketing
Direct-marketing medium that involves using the telephone to deliver a spoken appeal.
Infomercial
Long advertisement that looks like a talk show or product
demonstration.