Lecture 06: Direct Marketing PDF

Selling and Sales Manageme Lecture 06: Direct Marketing nt Learning Objectives 1) Understand what direct marketing is 2) Know how to manage a direct marketing campaign What is Direct Marketing Direct marketing attempts to acquire and retain customers by contacting them without the use o...

Selling and Sales Manageme Lecture 06: Direct Marketing nt Learning Objectives 1) Understand what direct marketing is 2) Know how to manage a direct marketing campaign What is Direct Marketing Direct marketing attempts to acquire and retain customers by contacting them without the use of an intermediary. Objective is to achieve a direct response from customers Requires database marketing (management of accurate information on customers so as to pass on Methods of Direct Marketing Direct mail Telemarketi ng Direct response advertising (coupon response) Electronic media (internet, interactive cable TV) Catalogue marketing Inserts (leaflets in magazines) Managing a Direct Marketing Campaign - Components Managing A Direct Marketing Campaign 1)Understanding the target audience 2)Setting Campaign Objectives 3)Creative Decision 4)Media Decisions 5)Campaign Execution and Evaluation 1) Understanding the target audience 2) Setting Campaign Objectives 1Financial objectives e.g. sales volume and value e.g. profit e.g. return on investment. 2Communication objectives e.g. awareness e.g. stimulate trial e.g. positioning of brand in consumers’ minds e.g. remind and reinforce e.g. crisis management. 3Marketing objectives e.g. customer acquisition e.g. customer retention e.g. lead/enquiry generation e.g. number of orders e.g. response rate (proportion of contacts 3) Creative Decisions - Areas Communication objectives Target market analysis Brand benefits (and weaknesses) Development of the offer 4) Media Decisions Direct Mail Telemarketing Mobile Marketing Direct Response 5) Campaign Execution and Evaluation Must be sales volume and evaluat value; response rate (the percentage of contacts ed on responding); number of enquiries; cost per order/enquiry/sale; number of new customers; number of existing customers re-buying; conversion rate from Questions 1 What is Direct Marketing.? 2. What are the methods of Direct Marketing ? Choose an organization of your choice.Critically evaluate direct marketing methods and justify at least 3 methods the organization can utilize. 3. What is database marketing? Explain the types of information that are recorded on a database. 4. What are the stages of managing a direct marketing campaign? Why is the concept of lifetime value of a customer important when designing a campaign? Questions 5. Give an account of sales situations where direct personal selling is likely to be more effective than other direct marketing techniques. Justify your answer by referring to specific practical situations. ANY QUESTIONS?