Chapter 6 Planning for Direct Response Communications Copyright © 2008 Pearson Education Canada.
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Chapter 6Chapter 6
Planning for Planning for Direct Response Direct Response CommunicationsCommunications
Copyright © 2008 Pearson Education Canada
Copyright © 2008 Pearson Education Canada 6-2
Learning ObjectivesLearning Objectives
1) Describe the direct response marketing communications planning process
2) Describe the various forms of direct response communications
3) Assess the role of database management techniques in the design and implementation of direct response strategies
(continued)
Copyright © 2008 Pearson Education Canada 6-3
Learning Objectives Learning Objectives (Continued)(Continued)
4) Evaluate various external sources of list information and evaluate the role of these lists in building an effective direct response campaign
5) Explain the advantages and disadvantages of the various forms of direct response communications
Copyright © 2008 Pearson Education Canada 6-4
Direct Response Direct Response CommunicationsCommunications
Mass marketing is being combined with micro-marketing techniques
Quality information is the backbone of a direct response strategy
Allows for lifetime value analysis
Communications are much more personalized
Copyright © 2008 Pearson Education Canada 6-5
Importance of Direct Importance of Direct ResponseResponse
Direct mail alone accounts for 13% of net advertising revenues
Direct mail is the third most utilized advertising medium after television and newspapers
This doesn’t include other direct response media forms
Copyright © 2008 Pearson Education Canada 6-6
Growth of Direct ResponseGrowth of Direct Response
1) Increased accountability
2) Ability to nurture relationships at a personal level
3) Advances in database management technologies
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Types of Direct ResponseTypes of Direct Response
Direct Marketing
Direct Marketing
Developing an offer; communicating the offer; accepting orders; and delivering orders
Direct Response
Advertising
Direct Response
Advertising
Ads placed in any medium that generate an immediate and measurable response
Copyright © 2008 Pearson Education Canada 6-8
Direct Response Planning Direct Response Planning ProcessProcess
MarketingPlan
MarketingPlan
Direct ResponsePlan
Direct ResponsePlan
Direct ResponseMessage Strategy
Direct ResponseMessage Strategy
Direct ResponseMedia StrategyDirect ResponseMedia Strategy
FulfillmentFulfillment
Other IMC Plans
Other IMC Plans
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Traditional Forms of Direct Traditional Forms of Direct ResponseResponse
Direct Mail
Direct Response Television (DRTV)Direct Response Print
Telemarketing
Catalogues
Copyright © 2008 Pearson Education Canada 6-10
Database ManagementDatabase Management
It’s the list that makes or break the campaign
A good system collects and maintains relevant customer information
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Database Management:Database Management:Internal SourcesInternal Sources
Collecting DataList information
Purchasing behaviour
Acquisition of external information
Demographics
Psychographics
Accessing DataInstant, accessible storage system
Data miningAllows profiling
Prediction of future sales
Copyright © 2008 Pearson Education Canada 6-12
Database Management:Database Management:External SourcesExternal Sources
Lists can be purchased from a list broker and through a merge/purge process integrated into the database
Three types of lists available1. Response lists
2. Circulation lists
3. Compiled lists
Copyright © 2008 Pearson Education Canada 6-13
Database Management:Database Management:Online SourcesOnline Sources
Online Database – an information database accessible to anyone with adequate communications facilities
Directory Database – provides a quick picture of a company and its products
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Direct Mail ComponentsDirect Mail Components
Envelope
Letter
Leaflets and Folders
Order Form
Postage-paid Return Envelope
Statement Stuffers
Copyright © 2008 Pearson Education Canada 6-15
Direct Mail Components Direct Mail Components ExampleExample
Copyright © 2008 Pearson Education Canada 6-16
Direct Mail StrategiesDirect Mail Strategies
Solo Direct Mail
Solo Direct Mail
Unique offers for unique customers by individual organizations
CooperativeDirectMail
CooperativeDirectMail
Offers from non-competing companies in one envelope
Copyright © 2008 Pearson Education Canada 6-17
Consumer ReceptivenessConsumer Receptiveness
Copyright © 2008 Pearson Education Canada 6-18
Advantages of Direct MailAdvantages of Direct Mail
Copyright © 2008 Pearson Education Canada 6-19
Disadvantages of Disadvantages of Direct MailDirect Mail
Copyright © 2008 Pearson Education Canada 6-20
Direct Response TelevisionDirect Response Television
DRTV is growing in popularity among traditional television advertisers
Three types includeInfomercials
30- and 60-second direct response commercials
Direct home shopping
Copyright © 2008 Pearson Education Canada 6-21
Direct Response Direct Response Print MediaPrint Media
Print is a good alternative when targeting an audience based on geographic and psychographic characteristics
Two options includeAds in newspapers and magazines
InsertsTip-ins
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Insert ExampleInsert Example
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TelemarketingTelemarketing
Call CentreCall Centre
Inbound CallsInbound Calls Outbound CallsOutbound Calls
Offers from TV, Mail, or Print
Offers from TV, Mail, or Print
Offers for Specific Targets
Offers for Specific Targets
Copyright © 2008 Pearson Education Canada 6-24
Roles of TelemarketingRoles of Telemarketing
To be effective, the telemarketing call must be carefully planned and the representative must be thoroughly trainedTelemarketing is effective for
FundraisingSales SupportPersonal SellingFulfillmentCustomer Service
Copyright © 2008 Pearson Education Canada 6-25
Analysis of TelemarketingAnalysis of Telemarketing
AdvantagesCost offers considerable savings
Response rates are 100 times higher than direct mail
DisadvantagesNegative image
Calls unwelcome and intrusive
Least-liked sales technique
Copyright © 2008 Pearson Education Canada 6-26
CataloguesCatalogues
Catalogue marketing involves the merchandising of products through catalogue sales
Leaders such as Sears and Canadian Tire see the value of integrated marketing communications
Copyright © 2008 Pearson Education Canada 6-27
Catalogue GrowthCatalogue Growth
Catalogues offer convenience, a top priority among busy shoppers
Consumers are into “multi-channel” shopping
Companies are producing their own magazines to stay in touch with customers (CRM)
Copyright © 2008 Pearson Education Canada 6-28
Chapter ReviewChapter Review
1) Describe the direct response marketing communications planning process
2) Describe the various forms of direct response communications
3) Assess role of database management techniques in the design and implementation of direct response strategies
(continued)
Copyright © 2008 Pearson Education Canada 6-29
Chapter Review Chapter Review (Continued)(Continued)
4) Evaluate various external list information sources and evaluate the role of these lists in building an effective direct response campaign
5) Explain the advantages and disadvantages of the various forms of direct response communications
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