Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 1 Chapter Two Segmentation through list selection.

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


2

The Importance of Good Lists

• Mailing lists– Response lists– Compiled lists– Business lists

• Standard industry classification• House lists


3

List Management

• The role of list managers

• List rental sources


4

Placing a List Order

Checklist of information• List description• Quantity/selectivity• Coding applications• Rental rates• Deliverability guarantee• List formats• List usage• Delivery instructions


5

List Rental Procedures

Thirteen steps to successfully renting and using a mailing list


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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


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Step ThreeYou provide a sample of your mailing package

Step FourThe list owner approves the sample


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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


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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


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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


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Step ElevenThe mailing house invoices you for the

processing and postage

Step TwelveThe rental contact invoices you for the list rental

charges


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Step Thirteen

You return the undeliverables — dead mail — to the rental contact


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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)


14

Mailing List Security

• Storage

• Seeding

• Safeguards against misuse

• General


15

List Processing

Issues to consider when using lists:

• Merge/purge

• List suppression


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Mailing List Maintenance

• Coding mailing list data into variables

• Mailing lists in Australia

• Problems

For other list considerations, see Application snapshot, p 41


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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


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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


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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


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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


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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


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Other Database Information

• Relational databases• Use of databases• Selection of market segments• Cross selling• Competitive superiority• Recency, frequency & monetary values


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Database Strengths

The strengths of database marketing• It is measurable• It can be tested• It is selective• It can be personalised• It is flexible


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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


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Forms of Segmentation

• Geographic• Demographic• Geo-demographic• Psychographic• Attitudinal• Behavioural


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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


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Geo-demographics

Census Collection District (CCD)Objectives:• Profiling• Selections• Targeting• Site location planning• Modelling


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Geo-demographics

• Must also consider advantages and disadvantages of geo-demographics

• Geo-demographics in predictive modelling

• When to use them and not to use geo-demographics

Copyright ©2000 McGraw-Hill Book Co Aust Pty Ltd PPT t/a Direct Marketing by Power, Balderstone & Gyles 1 Chapter Two Segmentation through list selection.

Documents

mike power

list rental agreements

list considerations

list selectionsstep

variablesmailing lists

undeliverables dead

inactive namesrates

conditionsrates higher