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MCS 3620 (29)
Bharat Sud (21)
Chapter 6

Chapter 6 Marketing Communications

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Marketing and Consumer Studies
MCS 3620
Bharat Sud

Chapter 6 Marketing Communications Planning for Direct Response Communications  Direct response communications involves direct mail, direct response communications in mass media (mainly tv, magazines & newspaper), telemarketing & catalogue marketing  Most common means of delivering messages right to consumers  Advances in technology & database management techniques offer great potential for catalogues abd internet to become more important  Using database management techniques, a company can look at customers over an entire lifetime to plan appropriate strategies  Communicating directly w/ customers makes the process more personal Direct Response Communications & Direct Marketing  Recent stats suggest direct response communications and direct marketing have a significant impact on ad expenditures and sales revenues for goods & services  Direct mrdl advertising accounts for 13% of net advertising revenues in Canada  Ranks 3 behind TV and Newspaper as an advertising medium  Some big Canadian companies have successfully integrated direct response communications w/ traditional forms of communication  Direct response & direct marketing will continue to grow b/c…  Companies want mangers to be more accountable for the expenditures they oversee and direct response advertising can be measured for success quickly  Trend toward niche marketing/micro-marketing suggests importance of creating good customer relationships  The availability of database management techniques provides the fuel that direct response communications run on  Direct response communications is a subset of direct marketing and is only a component of a much larger direct marketing program Direct Marketing: A marketing system for developing products, sending messages directly to customers, and accepting orders through a variety of media, & then distributing the purchase directly to customers Direct Response Advertising: Advertising placed in a medium that generates an immediate and measureable response from an intended audience  If traditional mass media are used, the message includes a return mail address, or a website where more info can be obtained or order can be placed  Direct response communications can be divided between online communications and more traditional forms Traditional forms of direct response communications Direct Mail: A printed form of direct response advertising distributed by Canada Post or independent delivery agents (Leaflets, flyers etc.) DRTV (infomercials): Advertising that appears on tv & encourages viewers to respond by calling in on a toll- free #, by mail or online Direct Response Print: An ad in print media that issues a direct call to action via a toll-free #, return address or website Telemarketing: The use of telecommunications to promote the products or services of a business that involves outbound calls and inbound calls Catalogues: A reference publication, usually annually or seasonally, distributed by large retail chains and direct marketing companies The Roots of Direct Response Communications: Database Management  Needs to be a convenient and effective way of contacting customers  The list used to contact customers or prospective customers will make or break the campaign  It costs about 6x as much for a company to acquire a new customer than it does to keep an existing customer  The best list is a well-maintained and well managed internal list of customers House List: An internal list of customers  If goal is to get new customer than lists can be obtained from other sources Internal Data Sources  Good database management system collects & maintains relevant info about customers  Mangers will have easy access to it to develop marketing strategies Collecting Data  The names & addresses of customers are the most common form of internal data, but usually need to know more info for developing strategic plan  Keeping track of purchase behaviour and then linking it to a name and address is very meaningful  SO the database should identify what a customer purchases, how often, how much they spend, what brand of goods are preferred etc.  Sophisticated retail organizations update info automatically as goods are scanned  Adding external info to database rounds out the profile of the customer  Info about customers using credit cards for purchases is readily available  Stat Can makes census data available and is updated every 5 years  Demographic and psychographic info can be purchased from commercial research companies Accessing Data  The 2 step in database management is devising a storage system that allows managers to access info easily when needed  The electronic era has resulted in info explosion that allows for the storage & transfer of a great amount of business data in a short time Data Mining: The analysis of info to determine relationships among the data and enable more effective marketing strategies to be identified and implemented  Rather than looking at the entire set of data mining locates informational patterns/nuggets within the database  Goals are to lower
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