direct marketing definitions – Flashcards
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customer database
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a list of customer names to which additional information has been added in a systematic fashion
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customer loyalty programs
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programs that encourage customer repeat purchases through benefits sponsored by the organization or firm
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source data
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the information contained in a customer database
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source code
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the media, media vehicle or means by which the person has responded to become a customer
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transactional data
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the information contained in a customer database
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rfm
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recency/frequency/monetary- a mathematical formula used to evaluate the value or sales potential of customers or prospects
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match code
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abbreviated information about a customer record that is constructed so that each individual record can be matched, pairwise, with each other record.
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merge-purge process
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a computerized process used to identify and delete duplicate names/addresses within various lists
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multibuyer
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an individual whose name/address appears on two or more response lists simultaneously
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nixie
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mail that has been returned by the us postal office because it is undeliverable ass addressed
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salting
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the process whereby a direct marketer places decoys which are either incorrect spellings of fictitious names no a customer list to track and identify an misuse (seeding)
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stealth marketing
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communications secrecy in that direct marketers can communicate with small market segments or individual customers without competitors or other customers having knowledge of it
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cross selling
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an important characteristic of direct marketing where new and related products (or even unrelated products) are offered to existing customers
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continuity selling
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offers that are continued on a regular basis (club offers)
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database analytics
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the direct marketer analyzes customer information housed within the customer database to draw inferences about an individual customer's needs
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data mining
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the process of using statistical and mathematical techniques to extract customer information from the customer database to draw inferences about an individual customer's needs and predict future behavior.
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database enhancement
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adding and overlaying information to records to better describe and understand the customer
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CRM
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Customer relationship management- a business strategy to select and manage customers to optimize value
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LTV
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Customer Lifetime Value the discounted stream of revenue a customer will generate over the lifetime of his or her relationship or patronage with a company
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Microtargeting
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the creation and direct delivery to customers of customized winning messages, proof points, and offers, and accurately predicting their impact
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PRM
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partner relationship management the generation of greater value to customers through companies' cooperation and close work with partners in other companies or departments.
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Cause Related marketing
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a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product, or service for mutual benefit
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direct marketing
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a database driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels
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brand marketing
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marketing that boosts knowledge of a company or product's name, logo or slogan.
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multichannel distribution/multichannel fulfillment
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refers to a marketer using several competing channels of distribution to reach the same target customers
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B2B
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providing goods and offerings to businesses
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industrial goods
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products that are generally used as raw materials or in the fabrication of other goods
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political micro targeting
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combining groups o voters based on information about them accessible through databases and the internet to target them with specific messages
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response lists
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the house lists of other organizations
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compiled lists
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lists generated by a third party or market research firm
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list brokers
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serve as intermediaries who bring list users and list owners together
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list managers
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represent the interests of list owners and assume the responsibility on behalf of list owners, of keeping in contact with list brokers and lists users. They perform the advertising and sales functions and maintain the lists they manage in their own facility.
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list compilers
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organizations that develop lists and data about them, often serving as their own list managers and list brokers are called list compilers.
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service bureaus
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provide data processing, data mining, outsourcing, online analytical processing, and other services to support the interchange of lists and database information within the direct marketing industry.
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key code
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a unique identifier placed on the response device or order form prior to sending a promotional piece to prospective customers. (tracking code)
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hotline names
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those most recently acquired but there is no consensus in the industry about what chronological period recent describes. many lists specify three month hotline or six month hotline to detail the name categories by recency.
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market segmentation
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a strategy devised to attract and meet the needs of a specific submarket
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product differentiation
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a strategy that uses innovative design, packaging, and positioning to make a clear distinction between products and services serving the same market segment.
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product positioning
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the way the product is defined by consumers on important attributes. It enables consumers to rank products or services according to perceived differences between competing products or brands within a single product category.
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SIC
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Standard industrial classification- coding system developed by the federal government that erves as a basis for classifying statistical data and has been widely used by the government, trade associations, and business enterprises. They classify business customers by the main economic activity in which they engage.
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NAICS
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The NorthAmerican Industry Classification System- has replaced the SIC Coding system. Many business people felt that the SIC system failed to recognize the growth of information.
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Demographics
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identifiable and measurable statistics that describe the consumer population
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reference groups
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the people a consumer turns to for reinforcement
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reference individual
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a person a consumer turns to for advice
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psychographics
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study of lifestyles, habits, attitudes, beliefs, and value systems of individuals
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cookie
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an electronic tag or identifier that is placed on a personal computer
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independent variables
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controllable factors
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random assignments
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a component of a valid experiment that refers to the fact that both control and experiment group subjects must be assigned completely randomly so that differences between groups occur by chance alone.
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null hypothesis
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the researcher must state the hypothesis in such a way that it can be proved wrong
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alternative hypothesis
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the hypothesis that is determined when a nul hypothesis is proven wrong
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Type 1 Error
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results when the decision maker rejects the null hypothesis even though it is in fact true
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type 2 error
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occurs when the decision maker accepts the nul hypothesis when it is in fact not true
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chi square test
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one way to determine whether the difference is or is not statistically significant
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degrees of freedom
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defined as the number of observations that are allow to vary
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market penetration
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the expressed percentage relationship of customers to some benchmark universe
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gross sales
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total sales
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unit margin
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trade margin
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allowable margin
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the amount of money that can be spent to get an order while still permitting some left over for media costs and the designated profit to be made
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CPI
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Cost per inquiry
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CPR
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cost per response
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positive option
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where the customer must specifically request shipment for each offer in a series
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negative option
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the shipment is sent automatically unless the customer specifically requests that it not be
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price skimming
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a strategy that establishes the price at the highest possible level to skim the cream off the top of the market and target only a select number of consumers who can afford to buy the product/service
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price penetration
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strategy will help the direct marketer maximize sales volume
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price elasticity
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the relative change in demand for a product given a change in its price. It measures the consumer's responsiveness or sensitivity to price changes
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positioning
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a marketing strategy that enables marketers to understand how each consumer perceives a company's product or service
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copy appeal
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the basic underlying theme of the promotion or campaign
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self mailer
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any direct mail piece mailed without an envelope
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solo mailers
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mailing pieces promoting a single product or a limited group of related products
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classic format
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normally consists of six components: an outer mailing envelope, a letter, a brochure, a return device, a reply envelop, and a chit
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chit
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an additional enclosure card or separate slip of paper that highlights a free gift or some other information
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cooperative mailings
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provide participants, usually direct response advertisers, with opportunities to reduce mailing cost in reaching common prospects
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bingo card
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An information card is an insert or page of a magazine that is created by the publisher to provide a numeric listing of advertisers.
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ROP advertisements
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run of paper- positioning the ad at the will of the newspaper
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Ad note
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a small sticker that is placed on the front page of the newspaper that can be peeled off without damaging the newspaper
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validation
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refers to the way that the program minimizes fraud
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inbound calls
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a category of telemarketing where customers are placing calls to the organization to place an order,request more information or to obtain customer service
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outbound calls
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a category of telemarketing where firms place call to prospects or customers
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TI
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a giant pipeline or conduit through which a user may send multiple voice, data, or video signals
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Auto responders
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e-mails that are automatically sent
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viral marketing
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e-mail messages are forwdared to other consumers by a consumer
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viralocity
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coined to measure both the number of messages and the rate of speed by which email messages are forwarded by a consumer to other consumers
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Online panels
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online focus groups for marketers
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E-commerce
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the buying and selling of products online
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key word density
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the number of times that the key word in the search appears on tat web site
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PR Value
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how often google or other search engines indexes a site or how often they send their spiders to index a site
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Back links
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involve the quality of links, number of broken links, the anchor text, and the positoning of the link
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aging
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refers to the recency of the site and is based on the date by which it was established on the web
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quality score
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looks at a variety of factors to measure how relevant your keyword is to your ad text and to a user's search query
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click through rate
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addresses the number of people that click on your ad
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PURL
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a personalized web page or microsite that incorporates the prospect's name and is tailored to his interests based on information known about him
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button chat
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where the cal to action is resident on the page and the visor initiates the chat
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proactive chat
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where the visitor has triggered a business rule and the chat invitation pops in to the a page with a relevant call to action
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abandonment rule
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the rule that when visitors start to complete a form and then stall or close the form - at which point a proactive chat invitation can be issued to help complete the task
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list owners
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those who describe and acquire prospects who show potential of becoming customers of the list user
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offer test
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The most common type of test
