marketing Communications

…direct marketing

5

…introduction to…

…introduction to

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 stakeholders

this 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 relationships

precise target marketing possible

the role of direct marketing…

minimise waste and increased profits

differences between mass and direct media

Mass media

segmenting

recall, recognition and image measurement

De Pelsmaker

et. Al., 2007

mass, one-way communications

market share

Direct media

individualising

response measurement

targeted two-way communications

customer share

types of direct marketing

complementary

primary differentiator

sales 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 context

continued fragmentation in the media and audiences requires

finely tuned segmentation and communication devices

the changing needs of management - now requires managers to respond quickly plus justify their use and allocation of resources

the emergence of relationship marketing principles

Fill, 2009

drivers of growth…

databases now consist of several layers of info…

segmentation data… e.g. age, lifestyle, attitudinal variances

information gathered from customer transactions

lifestyle 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

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

telemarketingFill, 2009

direct mail

digital

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