13-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion...
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![Page 1: 13-1 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 13 Direct](https://reader031.vdocuments.site/reader031/viewer/2022031809/56649db25503460f94aa1dae/html5/thumbnails/1.jpg)
13-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Chapter 13
Direct marketing and communication
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13-2Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Learning objectives
1. To examine the development and reasons for growth of direct marketing communication.
2. To define the role and relationships of direct marketing, the internet and interactive media in an IMC program.
3. To identify the advantages and disadvantages of direct marketing communication.
4. To evaluate the effectiveness of communication through direct marketing communication.
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13-3Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
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13-4Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Guide Dogs Australia
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13-5Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing defined
InterpersonalInterpersonal
Direct sellingDirect selling Internet & emailInternet & email
MailMailTelephoneTelephone
TV, Radio & PrintTV, Radio & Print
Direct marketing is a system by which organisations communicate directly with target customers to generate a
response or transaction.
Direct marketing is a system by which organisations communicate directly with target customers to generate a
response or transaction.
DM
me
dia
DM
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dia
Te
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iqu
es
Te
chn
iqu
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CataloguesCatalogues SMSSMS
Electronic home shoppingElectronic home shopping
Direct mailDirect mailTelemarketingTelemarketing
Direct responseDirect response
Electronic interactive marketingElectronic interactive marketing
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13-6Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Anthony Hordens’ mail-order catalogue
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13-7Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Growth of direct marketing
Miscellaneous factorsMiscellaneous factors
Technological advancesTechnological advances
Changing structure of societyChanging structure of society
Direct marketing syndicatesDirect marketing syndicates
Consumer credit cardsConsumer credit cards
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13-8Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing: roles and relationships
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13-9Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing combines with . . .
AdvertisingAdvertising
Sales promotionSales promotion
Public relationsPublic relations
Personal sellingPersonal selling
InternetInternet
Support mediaSupport media
Direct marketing
Direct marketing
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13-10Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Dirt Action direct marketing
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13-11Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
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13-12Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Developing a database
Improve selection of market segments
Improve selection of market segments
Stimulate repeat purchasesStimulate repeat purchases
Cross-selling other productsCross-selling other products
Customer relationship management
Customer relationship management
ObjectivesObjectives
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13-13Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Sources of information for developing a database
Credit bureauxCredit bureaux
List servicesList services
Direct marketingassociations
Direct marketingassociations
Online search behaviours
Online search behaviours
Postal servicesPostal services
Syndicated research
Syndicated research
Bureaux of statistics
Bureaux of statistics
Info sources
Info sources
Retail transaction histories
Retail transaction histories
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13-14Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
A comprehensive consumer database
Name
Address/postcode
Telephonenumber
Length ofresidence
Age
Gender
Maritalstatus
Familydata
Education
Income
Occupation
Transactionhistory
Promotionhistory
Inquiringhistory
Uniqueidentifier
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13-15Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing and customer loyalty
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13-16Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Limitations
Advertising
Direct marketing
Measuring effectiveness
Part of IMC
Advantages
Mail and print
Catalogues
Broadcast
Telephony
PR
Objectives Media
Growth
Personal Selling
Support
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13-17Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing media strategies
One-step approachOne-step approach
• The medium is used to obtain an order
• Goal is to generate an immediate sale
Examples:
• Reply paid coupons
• 1-800 numbers
• The medium is used to obtain an order
• Goal is to generate an immediate sale
Examples:
• Reply paid coupons
• 1-800 numbers
Two-step approachTwo-step approach
• The medium is used for inquiry and to qualify prospects
• Follow up with a second medium to complete the sale
• Also known as permission marketing
• The medium is used for inquiry and to qualify prospects
• Follow up with a second medium to complete the sale
• Also known as permission marketing
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13-18Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: mail
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13-19Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: catalogues
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13-20Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: unwrapped catalogue
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13-21Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
DM Media: catalogue websites
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13-22Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct selling
DirectsellingDirectselling
PartyplansPartyplans
Repetitiveperson-
to-person selling
Non-repetitive person-
to-person selling
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13-23Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Evaluating DM effectiveness
DM specific measures
• Cost per order (CPO)
DM specific measures
• Cost per order (CPO)
Behavioural objectiveBehavioural objective
Traditional measures
• Brand awareness
• Brand attitude
• Other measures of brand health
Traditional measures
• Brand awareness
• Brand attitude
• Other measures of brand health
Non-behavioural objective
Non-behavioural objective
MeasuresMeasures
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13-24Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Direct marketing advantages and disadvantages
AccuracyAccuracy
Image factorsImage factors
Content supportContent support
Selective reachSelective reach
Segmentation capabilitySegmentation capability
Frequency potentialFrequency potential
FlexibilityFlexibility
TimingTiming
PersonalisationPersonalisation
EconomyEconomy
AdvantagesAdvantages DisadvantagesDisadvantages
Measurement of effectivenessMeasurement of effectiveness
Rising costsRising costs
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13-25Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Summary and conclusions As advertisers search for more cost efficient
means of reaching markets, direct marketing and direct response media continue to grow.
Advantages of direct marketing include the ability to tightly segment, high level of message personalisation as well as excellent cost efficiency.
Advantages of the internet include its versatility, interactivity and its use in building customer relationships.
This chapter also considers means of evaluating the performance of DM and the internet.