copyright ©2000 mcgraw-hill book co aust pty ltd ppt t/a direct marketing by power, balderstone...
TRANSCRIPT
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
1
Chapter TwoChapter Two
Segmentation through list selection and database
management
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
2
The Importance of Good Lists
• Mailing lists– Response lists– Compiled lists– Business lists
• Standard industry classification• House lists
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
3
List Management
• The role of list managers
• List rental sources
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
4
Placing a List Order
Checklist of information• List description• Quantity/selectivity• Coding applications• Rental rates• Deliverability guarantee• List formats• List usage• Delivery instructions
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
5
List Rental Procedures
Thirteen steps to successfully renting and using a mailing list
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
6
Step OneYou approach the rental contact to discuss the
list and confirm your desire to rent it
Step TwoThe rental contact requests a sample of your
mailing package
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
7
Step ThreeYou provide a sample of your mailing package
Step FourThe list owner approves the sample
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
8
Step FiveThe rental contact prepares and sends the list
rental agreements to you, the renter
Step SixYou check, sign and return the list rental
agreement to the rental contact
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
9
Step SevenThe rental contact orders your list selections
Step EightThe ordered address diskette is sent or data
emailed to the mailing house or list manager/broker
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
10
Step NineYou dispatch the components of your mailing
package to the mailing house
Step TenThe mailing house assembles and addresses the
mailing packages and lodges them with Australia Post or an alternative carrier
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
11
Step ElevenThe mailing house invoices you for the
processing and postage
Step TwelveThe rental contact invoices you for the list rental
charges
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
12
Step Thirteen
You return the undeliverables — dead mail — to the rental contact
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
13
List Rental Costs, Terms,Conditions
• Rates higher are for names of proven mail order buyers
• Rates are lower for inquirers or inactive names• Rates for high profile personalised contacts
may fetch as much as 30% above normal • Tapes• Floppy disks• Sheet listings (hard copy)
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
14
Mailing List Security
• Storage
• Seeding
• Safeguards against misuse
• General
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
15
List Processing
Issues to consider when using lists:
• Merge/purge
• List suppression
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
16
Mailing List Maintenance
• Coding mailing list data into variables
• Mailing lists in Australia
• Problems
For other list considerations, see Application snapshot, p 41
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
17
Introducing Databases
A database is any collection of data organised for storage in a computer memory and designed for easy access by authorised users
The data may be in the form of text, numbers, or encoded graphics
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
18
A Customer Database• More than a mailing list• Evolves over time• Best way to talk to existing customers• Means for building relationships with
customers• Ideal for loyalty marketing• Relevancy—information and customers• Right messages for the right people
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
19
What is Database Marketing?• Creating data records about customers• Using this data to analyse customer patterns• Then promote them benefit of brand loyalty• Use in low cost sales methods (telemarketing etc)• Subdivide into special segments• Tailor offers to individuals or businesses• Compare customers with non-customers• Identify prospects most likely to become customers
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
20
Database Characteristics• Potential & actual customers all become identified as
records• Records contain marketing information• All information is accessible during communications• It records responses to all initiatives• Information is critical for marketers• Used to ensure approach is coordinated• It can often replace some market research• Automatic processing & assessing
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
21
Database Design
• Optimum field size must be determined• All data to conform to consistent rules• Data must include postcodes• Data should include account coding• Data should always be verified• Data should be updated regularly
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
22
Other Database Information
• Relational databases• Use of databases• Selection of market segments• Cross selling• Competitive superiority• Recency, frequency & monetary values
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
23
Database Strengths
The strengths of database marketing• It is measurable• It can be tested• It is selective• It can be personalised• It is flexible
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
24
Databases Weaknesses
The weaknesses of database marketing• Expense associated with establishing and
managing databases• Difficult and time consuming to keep records up
to date• Strengths outweigh weaknesses
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
25
Forms of Segmentation
• Geographic• Demographic• Geo-demographic• Psychographic• Attitudinal• Behavioural
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
26
Geo-demographics
Geo-demographics is a form of segmentation based on the premise that a blend of socio-economic characteristics lead to attitudes which lead to consumer behaviours
Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles
27
Geo-demographics
Census Collection District (CCD)Objectives:• Profiling• Selections• Targeting• Site location planning• Modelling