Download Direct Response Marketing - Loyola Marymount University

COURSE SYLLABUS
Direct Response Marketing
MBAC 617
Summer Session I, 2005
College of Business Administration
Loyola Marymount University
Los Angeles, California
Dr. Jeffrey S. Thies, PDM
(562) 634-6484 – office
(714) 306-1746 - cell
(562) 531-3721 (fax)
[email protected] (email)
COURSE DESCRIPTION
The use of Direct Response Marketing has become prevalent throughout all advertising
media. Its growth has outpaced total growth in overall advertising spending, with direct
marketing advertising expenditures representing 56.5% of total U.S. advertising
expenditures. (The Direct Marketing Association)
The course will focus upon marketing philosophies, which have increased the use of
direct response marketing; database use and development; the various media of direct
response marketing; direct mail design and production; and various case studies
demonstrating the efficacy of direct response marketing.
COURSE GOALS
Important general goals include:
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To distinguish direct response marketing from mass marketing and general
advertising;
To define the continued growth, changes and trends in direct response
marketing and the audience of database markets;
To identify key direct marketing principles at use in the development and
production of direct response marketing, and
To identify key direct marketing strategies as direct response marketing
professionals discuss their industry applications.
To understand the growing debate regarding consumer privacy and uses of
consumer databases.
REQUIRED TEXTS
1. The New Marketing Paradigm: Integrated Marketing Communications,
Don E. Schultz, et al., McGraw-Hill Trade Press, 1996.
2. Successful Direct Marketing Methods, Seventh Edition, Bob Stone and Ron
Jacobs, NTC Business Books, 2001.
INTERNET RESOURCES
Various associations and electronic publications are available and one should subscribe
to newsletters when available. Some of the recommended sites are:
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www.mfsanet.org (see Industry Information)
www.the-dma.org
www.dmnews.com
www.directnewsline.com (for daily publication of Direct Newsline)
www.targetonline.com (for weekly publication of TM Tipline)
LEARNING ACTIVITIES AND GRADES
Class Participation
Mid-Term Project
Consumer Profiling Map
Final Project
Final exam
10 points
30 points
10 points
30 points
20 points
CLASS PARTICIPATION
Class attendance and participation will demonstrate that the student is effectively
studying the topics pertaining to direct response marketing and bringing that knowledge
to class discussions and case studies analyzed.
PROJECTS
There will be three related projects. The first project is meant to focus each student on
themselves as a recipient of direct marketing. Those findings are meant to be used in
the segmentation analysis and comparison that is the central focus of the third project.
The second project is a team exercise in mapping the touch points in each student’s
consumer behavior which enable consumer data profiling.
FIRST PROJECT
Direct Marketing Received:
Each student will be required to identify and examine all direct response advertisements
aimed toward him or her from May 17, 2005 through June 10, 2005.
These are to include both business-to-consumer (received at home) and businessto-business (received at the office) marketing.
The advertisements are then to be identified by category (providing comprehensive
statistics detailing the quantity of advertisements by media), presented in spreadsheet
format to document quantities by category, and analyzed according to the bullet points
below.
Topics to include in this analysis:
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The media (mail, catalog, internet, telephone, print advertising, television,
radio, billboards, etc.).
The offer.
The creative design and text chosen.
The response solicited.
The format.
The database and response tracking mechanism.
The market segmentation reflected by the solicitation.
The effectiveness of the solicitation.
The first project will be due on June 14, 2005 delivered in person or via email to
[email protected] no later than 11:00 p.m.
This project is the mid-term project and is worth 30 points toward your final course
grade.
SECOND PROJECT
Each consumer is involved in a daily exchange of providing consumer behavior
information for the benefits of the convenience of technology. Some examples of
consumer behavior that can form a part of database consumer profiling are the
following.
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Credit Card Use
Cell Phone Use
Email Use
Television Use
GPS and EZ pass traffic Use
Internet and Search engine Use
ATM and other financial transaction behavior
Store membership or shopping cards
Electronic Travel planning
The purpose of this project is to have each student prepare a detailed daily and weekly
map of his/her consumer behavior, detailing each specific touch point at which
information about consumer behavior is exchanged for the convenience of technology.
Student teams will be formed and teams will meet to assist each member to write a
detailed daily and weekly map.
Each student is to complete the following map daily and weekly map.
Organization
Electronic Touch
Point
Nextel
Cell Phone Use
Google
Search Engine
Albertsons
Membership Card
Consumer
Times per
Information
day/week
Provided
Location
10 times daily
Communication
Network
Local/Long Distance
Use
Shopping Interest
Lifestyle Interest
Business Interest
Purchase behavior
3 times daily
2 time weekly
Etc.
Along with each personal map, each student is to summarize the privacy policies of
three (3) organizations that have access to her/his personal data, explaining the
organization’s use of that data as stated in the privacy policy.
Each student map is to be sent, via email, to [email protected], no later than
11:00 p.m. on June 9, 2005.
THIRD PROJECT
Representing Market Segments: A Comparative Analysis
The second project is a team project to be presented as a class presentation and as a
written analysis. The class will be divided into random teams. The focus of the first
project was to identify oneself as a recipient of direct marketing, as a targeted
consumer. The purpose of the second project is to compare and contrast oneself to
other team members, identifying market segments and segmentation strategies
targeted to team members.
The team’s presentation and final paper is to follow this outline:
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How is each team member defined as a marketing segment? (Marketer’s perception
as seen in the targeted DRM products.)
Who are we as marketing segments? (Self-perception of the student.)
Which are segments common to the group and which are not, as seen in the direct
marketing materials received? (Present the answer in detail.)
Show the best and worst direct response marketing piece received by each member
as defined by core direct marketing principles. (Spam is to be excluded from these
examples.)
Each team is to prepare a 15-minute class presentation as well as a final paper, both
due June 23, 2005. The paper should be a minimum of 10 pages in length and
comprehensive in addressing the four points outlined above.
This project is worth 30 points toward your final course grade.
FINAL EXAM
A take home examination, comprised of four questions, will be developed from the
readings and course texts. It will be due June 23, 2005.
ACADEMIC REQUIREMENTS
It is to be remembered that all papers submitted must reflect graduate level academic
standards. Supportive research must be extensive and appropriate to the points to be
analyzed. Resources must be appropriately referenced by presenting required
referencing formats and a comprehensive bibliography.
Each student is expected to have a thorough understanding of the “LMU Honor Code &
Process”, found on pages 15 – 17 of the Graduate Division Bulletin. Academic honesty
is central to the mission of the University. Consequently, acts of “Intentional Academic
Dishonesty” will result in immediate dismissal from the course and a final course grade
of “F”. Acts of “Unintentional Academic Dishonesty”, including the failure to properly cite
quotations will result in an automatic reduction of 10 points from the final course grade.
All references citations must follow the APA style guides as presented on the LMU
library site. (www.lmu.edu/pages/4157.asp) A formal bibliography must also be
presented. Failure to follow these guidelines will be seen as an example of
“Unintentional Academic Dishonesty” and will be impact one’s final grade as explained
above.
All papers are to be presented in double space text format. Each student will provide a
hard copy and an electronic copy of each paper submitted. Hard copies can be turned
in during the class period. Electronic copies can be emailed no later than midnight of the
date the paper is due.
CLASS SCHEDULE
Date
Topic
Assignment
May 17
(LMU)
Introduction
-What is Direct Response
Marketing?
-Industry Review
-DRM distinguished from
traditional mass marketing.
Integrated Marketing
Communications
Collect all DRM materials
received for class project.
May 19
(LMU)
May 24
(LMU)
Database Development
Schultz, et al.,
Chapters 1 – 5
Stone, Chapters 1 – 2
Stone, Chapter 3-4
May 26
(LMU)
May 31
(LMU)
June 2
(LMU)
June 7
June 9
June 14
(LMU)
June 16
(LMU)
June 21
(LMU)
June 23
(LMU)
Database Analysis
List Usage
The Mathematics of DRM
-Testing
-Measurement
-Lifetime Customer Value
-F/R/M
The Offer
Schultz, Chapters 6 – 9
Stone, Chapters 19 – 21
Maria J. Almendariz
Hispanic Direct Response
TV
Maria J. Almendariz
Director, New Business
Development
U.S. Hispanic Market
In Clover Marketing
www.inclovermarketing.co
m
Direct Marketing Analysis
Team Analysis of Direct
Marketing Solicitation
Stone, Chapters 6-10
Consumer Profiling
Mapping
Team Analysis of Profiling
Touch Points
Creative Design and
Creative Process in
Direct Mail
Bill Borzage
Guest Speaker: Electronic
Direct Marketing
www.gozing.com
The Question of Privacy
Stone, Chapters 14-16, 22
Team Profiling Mapping
due via email.
Group Presentations
Final Class
Final Project Due.
Final Exam Due.
Stone, Chapter 5
Stone, Chapters 11-13, 1718
Mid-Term project due in
person or via email.
Stone, Chapter 15