Chapter Twelve

The One-To-One Media

Direct mail, Telephone and Internet

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Learning Objectives

• Definition of Direct Marketing• Map the range of utility for direct mail, telephone, and valuations in

modern business marketing

• Describe the essence of their appeal to business markets

• One-to-One Programs• Direct Mail - Plan and evaluate a direct mail program

• Telemarketing - Outline key elements of a telephone marketing program

• Internet Marketing - Classify the major marketing objectives of websites

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Definition of Direct Marketing

• Direct mail, telephone marketing, websites, fax programs, e-mail listservs, and the like often fall under “direct marketing”.

− Direct Marketing is an interactive form of marketing using one or more advertising media to affect a measurable response and/or transaction at any location, with this activity stored on database. - DMA

• Four essential components of the definition

1. DM is marketing

2. It precludes face-to-face interaction

3. It implies uniqueness in seeking a measurable response

4. It utilized database

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Lists

• Mail and telephone programs are built on a database – customer contact list, phone list or mail list

• Two broad classes of lists (on the basis of their origins):1. Compiled Lists – Externally generated, purchased or rented from outside

sources: compiled lists are assembled by companies from public records, various directories, physical observations and the government

2. Response Lists – Internally generated, harvested from company files: lists of another firm’s previous mail or telephone purchasers or inquiries are called response lists

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Primary Media for DM

• Direct Mail—Just staying in touch− Newsletters− Specialty Magazines− Greeting Cards− Special Offer Messages

• Telephone Marketing—Let’s talk− Prospecting− Closing− Servicing− Supporting

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Direct Mail

• Direct mail can provide business marketers with a number of benefits:1. Excels at delivering a personalized message

2. Can deliver a message at a precise time

3. Can reach a well-defined market

4. Is the most versatile of the direct media

5. Less expensive than personal sales calls

• Why is direct mail called the most versatile of direct marketing media?

Direct mail can build/maintain goodwill and/or combating PR crisis

- Send gifts, greetings, thanks or even apologies

- Develop familiarity, encourage mail responsiveness, and stimulate interest

- Demonstrations can be provided through enclosures such as simple experiments, audio CD explanations, or video demonstrations

- Influence channel member’s support while selling directly to the buyer

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The Elements of Direct Mail

• The envelop - carries the weight in the decision to read or discard

• The offer - describes “what’s in it for me?” with credibility; the description of the product or service offered

• The enclosure - supports the offer by getting attention or providing proof; plays a supporting role to the offer

• The reply - this closes the sale

− Tells the reader what to do

− Makes action easy and obvious

− Gives a reason for acting now

− Stresses positive benefits for action

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Secrets to Increasing Response Rates to Mail Surveys

THE DIRECT MARKETING RESEARCHER WILL

• Make A Telephone Pre-notification

• Mail A Personalized Cover Letter With The Questionnaire

• Follow-up With A Postcard Reminder

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The first objective of direct mail

GET THE ENVELOPE OPENED

1. CREATE URGENCY—with deadlines and scarcity

2. CREATE TEASER HEADLINES—save the story

3. TRY ENVELOPES WITH NO RETURN ADDRESS—except with your customers

4. TRY POINTED VS. ROUNDED FLAPS—pointed flaps go with personal communication items

5. PUT YOUR ADDRESS ON THE FLAP SIDE—use the front for messages

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Telemarketing

Telemarketing – the systematic and continuous program of personally communicating with (potential) customers via telephone.

1. Increase sales

2. Account management – allow marketer to maintain contact with customers between sales calls and assure fast response to customer service needs

3. Field representative support – Is a “force multiplier” for the sales rep, providing information needed by customers (and all areas impacted) while maximizing the sales rep’s time expenditures

4. Prospecting and qualifying new clients – Assists in identifying new potential buyers for the sales rep and providing the background needed for effective follow-up

5. Customer service / support for inbound and outbound call centers – helps make the salesman’s promises come true, enhancing their credibility and future productivity

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Telemarketing

How can direct mail be combined with the telephone to achieve synergy?- While mail is considered best with regard to personalization, benefit

amplification, and call to action, it does not allow for dialog.

- A telephone follow-up to a direct mail campaign which, in turn, serves as a reminder of the mail program, answers questions and/or objections, and enhances total response beyond any additional cost.

Inbound & outbound telemarketing, which is a better sales tool?- While outbound telephone efforts are marketing controlled/initiated, they are

typically viewed as intrusive by the customer

- Customers initiate inbound telemarketing – offering valuable information and feedback with the opportunity for the marketer to build goodwill by solving problems, pave the way for future sales, and/or actually sell additional products/services

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Internet Marketing

• Internet marketing claim advantages of both direct mail and phone

• Enhance the speed of mail

• Reduce the intrusiveness of the telephone

• It offers two-way dialogue

• Three e-marketing strategies1. Use the web

2. Develop virtual communities

3. The email tool

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E-Marketing strategies (1)

• USE THE WEB

Manage channels for easier transactions – e.g., Cisco and Dell: employing websites to satisfy transaction and presale channel preferences of existing customers; target new users; deliver information-based products (software, digitized photos, and documents); and effectively develop deeper relationships with customers

Provide customer service 24/7 – e.g., FedEx: gave key customers a $4,000 computer and software to enable them to communicate efficiently, manage logistical operations, and check the shipping status of package

Complete back-office activities of ordering, checking, shipping – to eliminate unnecessary human interactions, avoid human error, and minimize redundant data entry

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E-Marketing strategies (2)

• DEVELOP VIRTUAL COMMUNITIES

A virtual community is a distinct segment, supported with abundant sets of published content and transaction capability and a network of communication connectivity.

Provides transaction capability

Delivers content

Provides communication exchanges

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E-Marketing strategies (3)

• THE E-MAIL TOOL

Focus on permission based customers – Online marketers seek permission. By requesting the customer’s email address, and then asking for permission to contact, the marketers will lose some names. But the customers who have explicitly opted in for further contact and dialogue have a far superior yield.

Network relationships – Email is also a powerful medium for communicating and expanding relationships with current customers