Chapter 6 Planning for Direct Response Communications Copyright © 2008 Pearson Education Canada.

Chapter 6Chapter 6

Planning for Planning for Direct Response Direct Response CommunicationsCommunications

Copyright © 2008 Pearson Education Canada

Copyright © 2008 Pearson Education Canada 6-2

Learning ObjectivesLearning Objectives

1) Describe the direct response marketing communications planning process

2) Describe the various forms of direct response communications

3) Assess the role of database management techniques in the design and implementation of direct response strategies

(continued)


Learning Objectives Learning Objectives (Continued)(Continued)

4) Evaluate various external sources of list information and evaluate the role of these lists in building an effective direct response campaign

5) Explain the advantages and disadvantages of the various forms of direct response communications


Direct Response Direct Response CommunicationsCommunications

Mass marketing is being combined with micro-marketing techniques

Quality information is the backbone of a direct response strategy

Allows for lifetime value analysis

Communications are much more personalized


Importance of Direct Importance of Direct ResponseResponse

Direct mail alone accounts for 13% of net advertising revenues

Direct mail is the third most utilized advertising medium after television and newspapers

This doesn’t include other direct response media forms


Growth of Direct ResponseGrowth of Direct Response

1) Increased accountability

2) Ability to nurture relationships at a personal level

3) Advances in database management technologies


Types of Direct ResponseTypes of Direct Response

Direct Marketing

Direct Marketing

Developing an offer; communicating the offer; accepting orders; and delivering orders

Direct Response

Advertising

Direct Response

Advertising

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


Direct Response Planning Direct Response Planning ProcessProcess

MarketingPlan

MarketingPlan

Direct ResponsePlan

Direct ResponsePlan

Direct ResponseMessage Strategy

Direct ResponseMessage Strategy

Direct ResponseMedia StrategyDirect ResponseMedia Strategy

FulfillmentFulfillment

Other IMC Plans

Other IMC Plans


Traditional Forms of Direct Traditional Forms of Direct ResponseResponse

Direct Mail

Direct Response Television (DRTV)Direct Response Print

Telemarketing

Catalogues


Database ManagementDatabase Management

It’s the list that makes or break the campaign

A good system collects and maintains relevant customer information


Database Management:Database Management:Internal SourcesInternal Sources

Collecting DataList information

Purchasing behaviour

Acquisition of external information

Demographics

Psychographics

Accessing DataInstant, accessible storage system

Data miningAllows profiling

Prediction of future sales


Database Management:Database Management:External SourcesExternal Sources

Lists can be purchased from a list broker and through a merge/purge process integrated into the database

Three types of lists available1. Response lists

2. Circulation lists

3. Compiled lists


Database Management:Database Management:Online SourcesOnline Sources

Online Database – an information database accessible to anyone with adequate communications facilities

Directory Database – provides a quick picture of a company and its products


Direct Mail ComponentsDirect Mail Components

Envelope

Letter

Leaflets and Folders

Order Form

Postage-paid Return Envelope

Statement Stuffers


Direct Mail Components Direct Mail Components ExampleExample


Direct Mail StrategiesDirect Mail Strategies

Solo Direct Mail

Solo Direct Mail

Unique offers for unique customers by individual organizations

CooperativeDirectMail

CooperativeDirectMail

Offers from non-competing companies in one envelope


Consumer ReceptivenessConsumer Receptiveness


Advantages of Direct MailAdvantages of Direct Mail


Disadvantages of Disadvantages of Direct MailDirect Mail


Direct Response TelevisionDirect Response Television

DRTV is growing in popularity among traditional television advertisers

Three types includeInfomercials

30- and 60-second direct response commercials

Direct home shopping


Direct Response Direct Response Print MediaPrint Media

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

Two options includeAds in newspapers and magazines

InsertsTip-ins


Insert ExampleInsert Example


TelemarketingTelemarketing

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 TelemarketingRoles of Telemarketing

To be effective, the telemarketing call must be carefully planned and the representative must be thoroughly trainedTelemarketing is effective for

FundraisingSales SupportPersonal SellingFulfillmentCustomer Service


Analysis of TelemarketingAnalysis of Telemarketing

AdvantagesCost offers considerable savings

Response rates are 100 times higher than direct mail

DisadvantagesNegative image

Calls unwelcome and intrusive

Least-liked sales technique


CataloguesCatalogues

Catalogue marketing involves the merchandising of products through catalogue sales

Leaders such as Sears and Canadian Tire see the value of integrated marketing communications


Catalogue GrowthCatalogue Growth

Catalogues offer convenience, a top priority among busy shoppers

Consumers are into “multi-channel” shopping

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


Chapter ReviewChapter Review

1) Describe the direct response marketing communications planning process

2) Describe the various forms of direct response communications

3) Assess role of database management techniques in the design and implementation of direct response strategies

(continued)


Chapter Review Chapter Review (Continued)(Continued)

4) Evaluate various external list information sources and evaluate the role of these lists in building an effective direct response campaign

5) Explain the advantages and disadvantages of the various forms of direct response communications

Chapter 6 Planning for Direct Response Communications Copyright © 2008 Pearson Education Canada.

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