marketing Communications

…direct marketing

6

…introduction to…

…introduction to

learning content…direct marketing

when it can be used

what it can achieve

what it is

what is direct marketing?

…it’s about managing customer behaviour

…it’s a complimentary tool for other mar comms activities

…as with sales promotion, DM can drive a response

…a response linked directly to behaviour

direct marketing

is a comms tool used to create and sustain a personal and intermediary-free dialogue with customers, potential customers and other significant stakeholdersthis should be a measurable activity with a view to creating and sustaining a mutually rewarding relationship

other tools of promotion tend to address mass audiences not individuals – DM is one-to-one

generates a series of communications and

responses measurable activity

builds trust and commitment (Ganesan, 1994)

initially direct mail was the main tool but

now a range of other media

develops relationshipsprecise target marketing possible

the role of direct marketing…

minimise waste and increased profits

differences between mass and direct media

Mass mediasegmenting

recall, recognition and image measurement

De Pelsmaker et. Al., 2007

mass, one-way communicationsmarket share

Direct mediaindividualising

response measurement

targeted two-way communicationscustomer share

types of direct marketing

complementary

primary differentiatorsales channel

brand vehicle

complementary

Complements other elements of the communications mix and used to support the brand …used to generate leads, increase awareness, inform and reinforce

primary differentiator…the main form of communications

…great for reaching ‘niche’ markets

…sales channel

…mainly used for ‘telemarketing’ or ‘telesales’

…using direct marketing as a sales tool…is it ethical?

Supported by technology and databases……it’s less profitable than personal, face-to-face personal selling but still has value

brand vehicle

…the brand, and even the company, only operate via direct marketing activities

…facilitated by technological developments

drivers of growth…

technology

communication and interaction

capture and collect info – scanners, smart cards, loyalty schemes

information processing – database marketing and analysis

gives the ability to target customers much

more precisely

changing market contextcontinued fragmentation in the media and audiences requires finely tuned segmentation and communication

devicesthe changing needs of management - now requires managers to respond quickly plus justify their use and allocation of resourcesthe emergence of relationship marketing principles

Fill, 2009

drivers of growth…

databases consist of many layers of info…

segmentation data… e.g. age, lifestyle, attitudinal variancesinformation gathered from customer transactionslifestyle data can be combined with customers transaction histories to create complex forms of biographies

response analysis also helps identify the best customers and those which are most responsive to direct mail or mail order

drivers of growth…

social media

…and the platform providers use this to monetise what they do

we share almost everything…

social media

dark direct…

permissions marketing

…transactional data is still private and controlled by law

there are concerns about privacy and the need

for ‘sensitive’ communications

quite simply ‘permissions’ or ‘permission-based’ marketing is about…“getting the OK from individuals to market to them” Smith, 2004

permissions marketing…if we get explicit permission, then we can deliver…

…a reduction in cost and clutter

we need to get attention when they are prepared to give it

…improved relevance – personalised, customised, recognition

…better organisation at the information search stage

telemarketing

carelines

inserts

postal

direct ‘response’ media

digitalcan include response mechanisms in advertising media

direct marketing and personal selling

In B2B channels direct marketing is a great tool for supporting the sales force

it can improve performance and enhance customer satisfaction

telemarketing

Fill, 2009

direct mail

digital

https://vimeo.com/74833470

learning content…direct marketing

when it can be used

what it can achieve

what it is