Download DIRECT RESPONSE

DIRECT RESPONSE
Direct Marketing is an interactive system of marketing which uses one or more
advertising media to effect a measurable response and/or transaction at any location.
Direct Marketings greatest strength is it’s ability to target.
Benefits to consumers are: convenience, efficiency, and compression of decision-making
time.
Direct is different from traditional advertising in that it:
1. Integrates communication, selling and distribution.
2. Aims to generate a behavioral response (traditional marketing aims to generate a
psychological response with the hope of a later behavioral response)
There are five basic steps in direct marketing:
1. Strategic decisions - research, target, set objectives, pick media
2. Communication of an offer
3. Customer response/ordering - donation, subscription, membership, attending a
demonstration, asking for more information
4. Fulfillment, filling the order - distribution, customer service
5. Maintenance of database and customer relationships
Prospecting is looking for potential buyers in databases
SMART TARGETING/DATABASE MARKETING/RELATIONSHIP MARKETING
It can cost more per person to use direct advertising, but databases make it possible to
target individuals based on some common characteristics that predict that a particular
customer will be a good prospect.
Due to privacy concerns, the Reform Bill was enacted in 1996 it’s aim was to prevent
exploitation.
THE ADVERTISERS
1. Companies who use direct response as their only means of obtaining sales.
2. Companies who use direct response in addition to other ways of obtaining sales.
2. Advertising agencies who produce mass ads and direct response ads
3. Advertising agencies who specialize in direct response only
4. Service firms who specialize in supplying printing, mailing and lists.
5. Fulfillment houses
THE MEDIA OF DIRECT RESPONSE
Direct Mail
Catalogs
Electronic Catalogs
Telemarketing
Home Shopping
Radio
Television
Newspapers
Magazines
Internet
MANAGING A DATABASE
1. To record names of customers, expires (names no longer valid) and prospects
2. To provide a vehicle for storing and then measuring results of advertising(usually
direct-response advertising)
3. To provide a vehicle for storing and measuring purchasing performance
4. To provide a vehicle for continuing direct communication by mail or phone.
Merging - combine lists
Purging - delete duplicates
Types of Lists
1. House List - your own customers or members
2. Response List - people who inquire for more information, respond to a contest, etc.
3. Compiled List - rented from direct-mail list broker