Advertising Chapter 14 Direct Marketing – Flashcards
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Direct Marketing-
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an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location
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Frequency
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how often the target market is exposed to the ad. Inexpensive mediums allow more frequent ad runs.
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Testing
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direct marketing allows for easy testing of the effectiveness of the overall program as well as specific elements.
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Timing
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direct marketing materials can often be put together and distributed quickly, unlike other media, which require long-range planning.
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Disadvantages Direct Marketing
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• Image factors... the mail segment of this industry is often referred to as junk mail, and junk emails fare no better. Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed this way. • Accuracy... computerization has greatly improved the accuracy and currency of lists, but the cost of generating a lead can be expensive, depending on the quality desired. • Content support... mood creation is limited to the surrounding program and/or the editorial content. • Rising costs... as postal rates and print costs increase, direct-mail profits are directly impacted. • "Do not contact" lists... now exist for both land and cell phones, and a "Do Not Contact" list for junk mail is under consideration by the FTC.
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sources for marketers to get databases
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• List services/brokers • Standard Rate and Data Service (SRDS) • U.S. Postal Service • Direct Marketing Association • U.S. Census Bureau • Experion Simmons Market Research Bureau.
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One Step Marketing Approach
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the medium is used to directly obtain an order (e.g. TV offer with an 800 number).
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2 step marketing approach
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may involve more than one medium, with the first being used to obtain an inquiry or qualify a prospect and the second to complete the sale.
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• Repetitive person-to-person selling
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salesperson visits the buyer's home, job site, or other location to sell frequently purchased items or services. Mary Kay uses this technique.
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• Nonrepetitive person-to-person selling
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salesperson visits the buyers home, job site, or other location to sell infrequently purchased items, such as encyclopedias.
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• Party plans
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a salesperson offers products or services to groups of people through home or office parties and demonstrations. Tupperware and PartyLite Gifts uses this sales method.
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Cost per order (CPO)
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dividing the cost of the ad by the average size of the orders placed.
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Standard Rate and Data Service (SRDS)
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leading provider of media rates and data, connecting buyers and sellers through sources that offer comprehensive coverage of traditional media such as magazines, newspapers, television, direct marketing and radio- as well as alternative marketing opportunities... largest database in the world