©2005 Pearson Education Canada Inc.6-1 Chapter 6 Direct Response Communications

©2005 Pearson Education Canada Inc. 6-1

Chapter 6Direct Response Communications


Direct Response Advertising

Direct response advertising can be a component of a direct marketing campaign or a component of an integrated marketing communications campaign.

Direct MarketingDirect MarketingDeveloping an offer; communicating the offer; accepting orders; and delivering orders

Direct ResponseAdvertising

Direct ResponseAdvertising

Ads placed in any medium that generate an immediate and measurable response.


Direct Response Communications

Blue chip marketing organizations effectively integrate direct response communications with traditional forms of communications.

• Direct Mail

• Direct Response Television (DRTV)

• Direct Response Print

• Telemarketing

• Catalogues


Direct Response Planning

MarketingPlan

MarketingPlan

Direct ResponsePlan

Direct ResponsePlan

Direct ResponseMessage Strategy

Direct ResponseMessage Strategy

Direct ResponseMedia StrategyDirect ResponseMedia Strategy

FulfillmentFulfillment

Other IMC Plans

Other IMC Plans


Database Management

It’s the list that makes or breaks the campaign!”

1. Lists are obtained from internal sources (house lists) and external sources (list brokers).

2. Data mining is the key to maximizing the potential of a customer list.

3. Continuous compiling and analysis of customer information is essential.


Data Mining

The analysis of information that establishes relationships between pieces of information; the uncovering of “nuggets” of information that leads to great offers and increases in sales. Data mining offers two benefits:

1. It provides a means of profiling the best and worst customers.

2. It provides a means of predicting future sales.


List Brokers and Lists

Brokers provide lists based on demographic characteristics that marketers are interested in. Lists go through a merge/purge process to eliminate duplicate names.

• Response List

• Circulation List

• Compiled List

• Online Database


The Direct Mail Offer

Direct mail offers are carefully planned based on historical experience. There are numerous components to an effective direct mail offer:

• Envelope

• Letter

• Leaflet or Folder

• Incentive

• Order Form

• Postage Paid Return Envelope

• Statement Stuffer


Distribution Options

An organization can go it alone (higher cost) or join forces with other organizations (to lower costs).

SoloDirect Mail

SoloDirect Mail

CooperativeDirect MailCooperativeDirect Mail

Unique offers for unique customers by individual organizations.

Offers from non-competing companies in one envelope.


Direct Response Television

DRTV is growing in popularity among traditional television advertisers. There options include:

• Infomercials

• 30- and 60-second direct response commercials

• Direct home shopping


Infomercials

The quality of infomercials has improved greatly. A good infomercial serves a variety of marketing communications objectives:

• Establish leads

• Build retail traffic

• Launch new products

• Create awareness

• Protect and enhance image

A brand message can be combined with a direct

response technique.


Direct Response Print

Print is a good alternative when targeting an audience based on geographic and psychographic characteristics.

1. Ads in newspapers and magazines

2. Inserts

3. Tip-ins


Telemarketing

Despite negative perceptions among consumers, telemarketing is very popular with marketers. The efficiency is incredible!

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


Roles of Telemarketing

To be effective the telemarketing call must be carefully planned, and the representative must be thoroughly trained. Telemarketing is effective for:

• Fundraising

• Sales Support

• Personal Selling

• Fulfillment

• Customer Service


Catalogues

Catalogue marketing involves the merchandising of products through catalogue sales.

1. Leaders such as Sears and Canadian Tire see the value of integrated marketing communications: catalogues, 1-800 , e-mail, and traditional forms of media advertising.

2. U.S cataloguers now offer CD versions.


Catalogues to Grow

There are several factors that will continue to influence growth in catalogues:

1. Catalogues offer convenience, a top priority among busy shoppers.

2. Consumers are into “multi-channel” shopping.

3. Companies are producing their own magazines to stay in touch with customers (CRM).

Documents

©2005 Pearson Education Canada Inc.6-1 Chapter 6 Direct Response Communications