Marketing strategies: direct and online assignment

In 1967, Lester Wunderkind identified, named, and defined the term “ direct marketing”. Wunderkind?? considered to be the father of contemporary direct marketing?? is behind the creation of the toll- free 1-800 number and numerous loyalty marketing programs including the Columbia Record Club, the magazine subscription card, and the American Express Customer Rewards program. B. Principles As can be seen in the figure, the four elements of successful direct marketing can be looked at either as four triangles or alternatively as one triangle inside another. 8. Interaction Interaction is in the centre. Interaction includes the stimuli we marketers create in the hope of producing a response from the people in our target market. Their response is also included in the interaction triangle. In all cases we will attempt to attribute a response to the correct stimulus. Thus, the results of our activities form the core of our information system and enable s to become progressively more efficient at targeting, control and continuity. That is because we are learning by experience. Interaction takes center stage in direct marketing information system.

B. 2 Targeting Targeting refers to our decisions on who will receive our message and includes our media selection: W, banner ads, print advertising, direct mail, telemarketing, e-mail and soon. We may be targeting our established customers, identified prospects or a much larger audience of ‘ suspects’. In all of these cases our targeting decisions will generally outweigh in importance sections about what to offer and how to frame our message. By examining the results of our previous attempts to target correctly, we can keep on refining our future targeting. B. Control Control is the management of our marketing. It includes setting objectives, planning at the strategic and operational levels, budgeting and assessment of results. The process is cyclical, future planning being informed by past results. Interaction is at the heart of direct marketing. The completeness and accuracy of our data within the interaction triangle will be crucial to the exercise of control. Interaction quantifies the effects of our marketing. B. 4 Continuity Continuity is about retaining customers, cross-selling other products to them and up trading them.

These include the variety of sections offered within a newspaper, shorter closing dates, an immediate espouse, and broad coverage of a large and diverse audience. Disadvantages include poor ad reproduction and the limited availability of color. Editorial content can also have more of an adverse effect on ad response than in magazines. In addition to advertising in the regular pages of a newspaper, direct marketers also advertise in free-standing inserts (Ifs) that are usually distributed with the Sunday editions of newspapers. C. Television Direct marketing on television is increasing. Early examples Of direct response advertisements on television that should be familiar to viewers include those for knives, garden tools, exercise equipment, records, and books, which ask viewers to call in and order a specific product. More recent developments in direct response television advertising include a return to a lengthier format, commonly known as the infomercial, where a product or other offer is explained in some detail over a time period extending to 30 minutes or more.

Advocates of this format point out that the greater length gives the advertiser the opportunity to build a relationship with the viewer and overcome initial viewer skepticism, and at the same time present a invoicing story spelling out product features and benefits in detail. D. Factors driving direct marketing success Advocates are your very best customers. They not only buy from you very heavily, but sell for you by touting your product or service to business colleagues, friends and neighbors.

Example: You can put a photo of a cute baby on the envelope of a direct mail package to get it opened. But if you’re selling steaks-by-mail, you have to tie the product to the baby or you will have attracted attention without paying it off for the reader. The keys to creating good direct response advertising are understanding the prospect’s beliefs and coming up with a strategy to change those beliefs in your favor. Good direct response advertising involves the prospect. 0. 5 Analyze response to improve profitability One of direct marketing great assets is that is exquisitely measurable.

The ultimate measurement is lifetime value of a customer. This means how much profit a customer contributes over a period of time (usually five years) after the cost of goods and services and promotional expenses. There are a number of ways to improve lifetime value (other than lowering product/ service costs): lowering customer acquisition costs, increasing frequency or duration of purchase, and increasing size of purchase. Being able to measure means being able to improve. But the only way to improve is to test on a continuous basis. The critical factors to test are: The media you use.

When money is spent, value must be acquired for investment and then the asset. That asset will be an turned into a long-term business value. One of the worst mistakes 99% of the businesses make is letting prospects and clients come and go with no thought as to how valuable they really are and how valuable they are to the future security of your business.