direct marketing undergrad lecture

Business & Management 1B (Marketing)

Direct Marketing CommunicationsJobber and Ellis-Chadwick, Chapter 16

Laurence Dessart

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AimsIntroduce direct marketing communications

• Personnal selling • Direct marketing

Be critical and envisage what can go wrong in direct /online marketing – thought of the day : Anti branding!

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Don’t forget

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@GUMarketing101 @laurencedessart

Overview • Direct marketing communications

– Personal selling and sales management #personalselling #salesmgmt

– Direct marketing #directmarketing

• Marketing thought of the day: #antibranding

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PERSONAL SELLING

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“Everyone lives by selling something”Robert Louis Stevenson

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Personal selling is an interpersonal communication tool which involves face to face activities in order to inform, persuade or remind a target.

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Characteristics of personal selling

• Opportunity for long-term relations• Communication of complex information• Customized message• Ability to demonstrate • High customer attention • Two-way interaction

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Modern selling

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1. CRM

4. Marketing the Product

2. Customer Retention/Deletion

5. Database Management

6. Problem solving

3. Need satisfaction

The selling process

101. Preparation

2. Opening

3. Need identification

4. Presentation

5. Dealing with objections

6. Closing

7. Following-up

1. Preparation

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2. Opening

12Who would you buy an insurance/car servicing/mascara from?

3. Need and problem identification• Identify needs and problems of the customer

• Sales reps often in consultant type roles (esp. in B2B)

• Develop good questioning and listening skills• Let the customer do a lot of the talking

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4. Presentation

The sales process often involves product or service demonstrationsFocus on benefits, not technical features

Demonstrations allows the customer to be actively involved in the product-selling processChance to verify product claimReduce perceived risk of buying a product 14

5. Dealing with objections

Sales processes often involves customer objections• Listen and do not interrupt• Accept the perceived problems with your product• Take time to answer• Don’t answer if you can’t!

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6. Closing• Ask for the order• Concession close (say 10% off if order placed now)• Action agreement (when sale must be cleared

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7. Following-up • Most companies rely on repeat purchase

• By following up, you demonstrate interest in real customer value, not just bottom-line performance

• Cognitive dissonance

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DIRECT MARKETING

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Direct marketing is the distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured.

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Key characteristics• Direct communications with no intermediaries

• Directly to consumer: outbound• Consumer directly to firm: inbound

• Aims at direct response• E.g., influence consumer to call, text or visit a shop

• In the UK, direct marketing accounts for• 9% of total B2C spending• £60 billion worth of B2B spending

• Heavy reliance on marketing databases (CRM – Big data)

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Main types of direct marketing

1. Direct mail 2. Online advertising and e-mail3. Telemarketing4. Direct-response advertising5. Mobile marketing

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Case study

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Direct mailing & Catalogue

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Email marketing• Geotargeted• Call to Action • Personalised • Purchase record and history through loyalty programme• Integrated with TV actions• Humanising the brand

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Online targeted ads

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Mobile Marketing

IKEA Catalogue 2013: A New Kind Of Catalogue…#augmentedrealityhttp://www.youtube.com/watch?v=0dS5L7zHv74

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Direct response advertising

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Measurement of direct marketing effectivenessResponse rate (proportion of contacts responding)

Importance of determining what is the expected “responses”, especially when it involves steps.

CPMCPCCPACTR

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Ethical considerations• Deception• Hard sell• Bribery • Reciprocal buying• Intrusive nature of calls• Invasion of privacy• Poorly targeted direct mail

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Can direct communications backfire?

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Marketing thought of the day

Anti Branding #antibranding

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#antibrandingBooks

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#antibrandingvideos (

• https://www.youtube.com/watch?v=MCvBnm0Vb-E

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#antibrandingMemes

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#antibranding Websiteswww.iphonesucks.com

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#antibrandingFacebook pages

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#antibrandingRankings

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Top 50 of most hated brands

Source: http://www.socialmediaexplorer.com/

#antibrandingWhy join an anti brand community

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[Ethics] Doubtful brand ethics, or contradiction between consumer and corporate values

[Oppositional loyalty] Preference for a competing brand

[Social identity] Need for social approval

[Voluntary simplicity] Want to detach oneself from material and branded goods in general

[Dissatisfaction] Negative experiences with the brand

#antibranding So what?

Should companies care?What can they do?

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Summary • Direct forms of communication involve contact without

intermediaries, either face to face or through online technologies

• Personal selling particularly relevant in B2B or highly technical industries

• Direct marketing has highly traceable outcomes and often involves information technologies (online marketing)

• Online marketing can also be used by users for the purpose of anti-branding.

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