Direct Database Marketing

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    Direct & Database MarketingDirect & Database Marketing

    Prof. Rushen Chahal

    Prof. Rushen Chahal

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    Direct & Database MarketingDirect & Database Marketing

    Class Rules:

    y Attend every class 100% & never be late.

    y A

    ttention to be focused on the classy Do not plagiarize

    y No late assignments (and turn is as I ask)

    y

    Participate in class (Im only thefacilitator)

    y Read the news (assignment later)

    Prof. Rushen Chahal

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    Learning Objectives:

    y Define direct & database marketing(DDM)

    y Understand & apply DDM concepts andmethods

    y Understand concept of integrated

    marketing & the role of DDMy Hands-on practice with DDM software

    y Implications of current events

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Lets jumpLets jump

    right in!right in!

    Prof. Rushen Chahal

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    The New Direct Marketing is aninformation driven marketing process,

    made possible by database technology,that enables marketers to develop, test,implement, measure, and appropriatelymodify customized marketing programs

    and strategies.New Direct Marketing, 3rd Edition, by David Shepard

    Associates

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    y Consists of ways of thinking, principles

    and tangible elements

    y What are the tangible elements of direct

    marketing?

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Direct Marketings Tangible Elements

    y

    The database itselfy Communications that invite a direct

    response

    y Direct distribution of goods

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Possible definitions:

    Any activity which creates and exploits adirect relationship between you and your

    customerDrayton Bird, 1989

    Direct marketing is a way ofacquiring and keepingcustomers by providing a frameworkfor three

    activities: analysis of individual customer information,strategy formation, and implementation such thatcustomers respond directly

    Alan Tapp, 2004

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    The Database - Interactive Marketings

    Essential Difference:

    y who our customers are

    y what they buy

    y leads to what they want from us

    y how much they are worth to us

    => create relationships over time?

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Handling Customers Over TimeHandling Customers Over Timey Your database allows you to understand your

    customers history with you and so predict

    their future needs

    Prof. Rushen Chahal

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    General marketing: product focus

    build a brand and advertise it

    distribution to retail

    customer initiates buying

    Database marketing: customer focus

    get to know customer because you start recordingyour transactions with them

    maybe distribute direct

    company initiates contact

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Similarities: in the initial stages of strategyformulation

    General marketing & DDM marketing:

    New product development

    Strategic thinking (SWOT)

    Research methods and testing

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Direct & Database Marketing 2009Direct & Database Marketing 2009

    GM vs DDM differences = in the content &

    execution of the strategy

    General Marketing:

    communications uses mass media to build

    brands

    sales promotions in retail environment

    Prof. Rushen Chahal

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    GM vs DDM differences = in the content &execution of the strategy

    Direct & Database Marketing:

    Uses mass media when addressing new prospects

    Uses personal media-direct mail, telemarketing, whendeveloping relationships with existing customers

    Focus on customers, rather than products

    x get to know customer because you start recording your

    transactions with them maybe distribute direct

    company initiates contact

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    GM vs DDM differences = in the content &execution of the strategy

    General Marketing: measurement Market research techniques to understand &

    predict customers likely behaviour

    Direct & Database Marketing:measurement

    Marketers analyse behaviour to predict bestresponding people & the best offers to make

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    GM vs DDM differences = in the content &execution of the strategy

    Direct & Database Marketing:

    y Is more expensive, on a per-customer basis

    y A way of buying a closer relationship customer

    First individual information

    Subsequent precision & control in customer contactI.e., Marketers analyse behaviour to predict best

    responding people & the best offers to make

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Direct & Database Marketing 2009Direct & Database Marketing 2009

    A Complete System of Marketing:

    y market analysis and research

    y

    segmentation and positioningy making an offer

    y creating relationships

    are alldone within a database marketingframework

    Prof. Rushen Chahal

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    3 levels of direct marketing:

    y DDM drives the business

    y DDM drives all or part of the marketing

    strategy

    y DDM is used within the communications

    mix

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Database Marketing: 3 Broad Types ofDatabase Marketing: 3 Broad Types of

    ApplicationApplication

    Prof. Rushen Chahal

    DM

    DM

    DM

    1. Stand alone

    3. Peripheral

    2. Integrated

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    Reasons for growth:

    Social:

    y Fragmentation of societyy Proliferation of media

    y Greater consumer sophistication

    y Consumers want to be in control

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    Reasons for growth:

    Business:

    y

    Ever more competitiony Drive for cost-effectiveness

    y Interest in consumer retention & loyalty

    y Continuing drop in computer processingcosts

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing

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    DDM Advantages:

    y Lead grading

    y Customized targeting at the right time

    y New information & past results help

    formulate strategy

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    DDM Advantages:

    y Information can drive new programs &

    fuel new revenue sourcesy Information can foster new new services

    & generate repeat orders

    y

    Ongoing communication efforts canincrease customer loyalty

    Prof. Rushen Chahal

    Direct & Database MarketingDirect & Database Marketing