Marketing bán hàng - Chapter 14: Direct marketing

Chapter 14Direct MarketingDirect MarketingInteractive system of marketing Uses one or more advertising media to effect a measurable response and/or transaction at any locationUses a set of direct-response mediaDirect-response media: Tools by which direct marketers implement the communication process2Factors that Led to the Growth of Direct MarketingDevelopment and expansion of the Postal ServiceConsumer credit cardsChanging structure of American society and the marketTechnological advancesChanging values and lifestylesMore sophisticated marketing techniquesThe industry’s improved image3Role of Direct Marketing in the IMC ProgramCombines:Advertising and public relationsPersonal selling and sales promotionsSupport mediaCompanies decide:Program objectives Which markets to target and the strategies to useHow to evaluate the program’s effectiveness4Direct-Marketing ObjectivesTo seek a behavioral responseTo build an imageTo maintain customer satisfactionTo inform and/or educate customers in an attempt to lead to future actions5Direct-Marketing ApproachesOne-step approach: Medium is used directly to obtain an orderTwo-step approach: Uses more than one mediumFirst effort - Screens potential buyersSecond effort - Generates the response6Direct-Marketing MediaDirect MailCatalogs E-mail Broadcast MediaTV SpotsInfomercialsHome ShoppingPrint MediaTelemarketing7Direct Mail Unsolicited mailAdvertisers spend substantially on this mediumKeys to successMailing list: Database from which names are generatedAbility to segment markets and offersThreat - The Internet8Catalogs and E-mailCatalogsNumber of catalogs mailed is decreasingAvailable on the Internet for consumer and business-to-business customersE-mail: Electronic version of regular mailDirect mail on the Internet Lower cost and higher effectiveness than traditional direct mailSpam: Electronic equivalent of junk mail9Broadcast media and TV spotsBroadcast mediaCategories - Television and radioDirect-response advertising: Sales response for the offered product is solicited, through the one- or two-step approachSupport advertising: Supports other forms of advertisingTV spotsShort-form programs, include direct-response commercials seen on TV10Infomercial and Home ShoppingInfomercial: Long commercial designed for 30-minute or 1-hour time slotDesigned to be viewed as a regular TV showEffective with a broad demographic baseHome shoppingSubstantial growth due to toll-free telephone numbers and widespread use of credit cards11Print Media and TelemarketingPrint mediaDifficult to use for direct marketingAds compete with the clutter of other adsSpace is relatively expensiveResponse rates and profits are lowTelemarketing: Sales by telephoneDeclined due to its potential for fraud and deception, and for annoyance12Direct SellingDirect, personal presentation, and sales in consumers’ homesRepetitive person-to-person selling - Salesperson visits the buyer’s location to sell frequently purchased productsNonrepetitive person-to-person selling - Salesperson visits the buyer’s location to sell infrequently purchased productsParty plans - Salesperson offers products to groups of people through parties and demonstrations13Figure 14.2 - Sales Strategy (Methods Used to Generate Sales, Reported as a 2012 of Sales Dollars)14Evaluating the Effectiveness of Direct MarketingCost per order (CPO): Evaluates the relative effectiveness of an ad based on the number of calls generatedCustomer Lifetime Value (CLTV): Determines the dollar value associated with a long-term relationship with a customerHelps determine if a customer should be acquiredOptimizes existing customers’ service levels 15Advantages and Disadvantages of Direct MarketingAdvantagesSelective reachSegmentation capabilitiesFrequencyTestingTimingPersonalizationCostsMeasures of effectivenessDisadvantagesImage factorsAccuracyContent supportRising costsDo Not Contact lists16