Chapter 14 B
Development and expansion of the U.S. Postal Service, which made catalogs available to both urban and rural dwellers.
Consumer credit cards, which make it easy for consumers to purchase.
The changing structure of American society and the market – Money-rich, time-poor society
Technological advances that make it easier for consumers to shop and for marketers to reach targeted consumers. These include electronic media and the Internet.
Miscellaneous factors including changing values, more sophisticated marketing techniques, and the industry’s improved image.
Combined with advertising – Direct marketing itself is a form of advertising
Combined with public relations – Public relations activities often employ direct-response techniques to do such things as solicit funds
Combined with personal selling – Telemarketing and direct selling are two methods of personal selling used to generate sales
Combined with sales promotions – Direct-mail pieces are often used to notify consumers of a sales promotion or event
Combined with support media – Adding a promotional product to a direct mailer increases response rates
Two-step approach: Uses more than one medium
First effort – Screens potential buyers
Second effort – Generates the response
list , which constitutes the database from which names are generated, and the ability to segment markets and, the offer.
While direct mail continues to be a popular medium amongst many advertisers, and projections are that the market will grow, this medium has been seriously threatened by the Internet.
Number of catalogs mailed is decreasing
Available on the Internet for consumer and business-to-business customers
E-mail: Electronic version of regular mail
Direct mail on the Internet
Lower cost and higher effectiveness than traditional direct mail
Spam: Electronic equivalent of junk mail
In direct-response advertising , the product or service is offered and a sales response is solicited, through either the one- or two-step approach previously discussed.
Support advertising is designed to do exactly that—support other forms of advertising.
Designed to be viewed as a regular TV show
Effective with a broad demographic base
Ads compete with the clutter of other ads
Space is relatively expensive
Response rates and profits are low
Declined due to its potential for fraud and deception, and for annoyance
Helps determine if a customer should be acquired
Optimizes existing customers’ service levels
Segmentation – Purchased lists allow segmentation based on geographic area, occupation, demographics, job title, and more
Frequency – How often the target market is exposed to the ad. Inexpensive mediums allow more frequent ad runs
Testing – Direct marketing allows for easy testing of the effectiveness of the overall program as well as specific elements.
Timing – Direct marketing materials can often be put together and distributed quickly, unlike other media, which require long-range planning.
Personalization – No other advertising medium can personalize the message as well as a direct media.
Costs – Direct marketing costs can be high, but the actual CPM may be low due to the ability to specifically target the audience and eliminate waste coverage.
Measures of effectiveness – Feedback is often immediate and always accurate.
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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