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Flashcards in Direct Marketing Deck (12)
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1
Q

Direct Marketing: Definition

A
  • Direct Marketing is one-to-one marketing
  • Often described as individualised marketing
  • Part of The Promotional Mix (as well as Advertising and Public Relations)
2
Q

Direct Marketing: Tools

A
  • Direct Response Advertising
  • Direct mail
  • Teleshopping
  • Mail order
  • Telemarketing
  • Internet marketing
3
Q

Direct Marketing: Examples

A
  • Leaflets/inserts in newspapers and magazines
  • TV Advertising with direct contact such as a contact number
  • TELE and SMS marketing such as Domino’s Texts with Pizza Deals
  • Direct Mail
4
Q

Meets and exceeds customer needs by:

A
  • Concentrating on customers as individuals with the help of databases
  • Seeking to attract a direct response
  • Distributing directly to the customer
  • Building a personal/one-to-one long term relationship with the customer
5
Q

Institute of Direct Marketing (2008) definition:

A

An interactive system of marketing which uses databases to gather information about customers in order to develop a one-to-one, long term relationship with them.

6
Q

Databases at the heart of Direct Marketing

Databases 6 Questions:

A
Who? (name, address, credit status ...)
What? (detail of items ordered so far)
Where? (sales channel )
How much? (gross order value)
When? (date of last order/when sent)
Why? (non) response to last promotion)
7
Q

Database Marketing: Customer One-To-One Relationship at Different Stages

A

Because direct marketers identify customers individually, they can send different messages to people who have reached different stages in their relationship with the company.

8
Q

Targeting Customers by Potential Value

A

Because direct marketers know who the customers are individually and maintain a record of their purchases, high spending customers may receive more communications and privileges than low spending customers (e.g. British Airways frequent flyers)
- Value Creation (Borys & Jemison, 1989; Wilson, 1995)

9
Q

Targeting Customers by Potential Interest

A

Direct marketers will use information from the customer’s choices to improve the relevance of communications and offers e.g. supermarket loyalty cards/ telecommunications companies

10
Q

Targeting Customers by Potential Interest

Examples:

A
  • Amazon do this really well by recommending products on the basis of items purchased in the past, or making recommendations on the basis of customers whose purchasing profile is similar to yours.
  • Many other online retailers do this too such as Secret Sales, Boden, Argos etc, with Groupon and Amazon Local targeting consumers on the basis of location and interest
11
Q

Message: How different techniques are effective?

A
  • Direct response TV advertising is good for inspiring an emotional response
  • Direct mail is good for imparting large volumes of information about complex products
  • Good way of choosing medium and message: AIMRITE formula
12
Q

The Future: in Marketing

A
  • Likely that traditional media will still have its place, especially amongst older generations (and we have an aging population).
  • Marketers need to be aware of access to faster broadband speeds, increased take-up of 4G etc which will lead to increased internet usage.
  • Marketers also need to be aware of continuing smartphone take-up particularly amongst younger generations, as well as the fact that today’s 12-15 year olds are more media savvy than other generations.
  • It is likely that TV, radio and other traditional media will continue to play an important part in integrated campaigns, supported by direct marketing.
  • Mobile marketing will continue to be built round customer “moments” e.g. accessing the latest offer on your phone before purchasing in-store, comparing prices before doing a weekly grocery shop etc.