28_Digital_MarketingBUSM_333_files/CH 11

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Slide 11.1
Chapter 11
Direct marketing media
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.2
This session will cover…
•  At the end of this week’s session you will:
–  understand and be able to apply a step-bystep guide to media decision making for direct
marketing
–  understand the main features, strengths and
weaknesses of direct mail and telemarketing
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.3
Media available to DM
Figure 11.1
The range of media used in direct-response marketing
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.4
AIMRITE
•  Audience: Does the medium reach the desired target
audience?
•  Impact: Does the medium have impact; that is, does it ensure
the message has a chance of getting through the clutter?
•  Message: Does it help to ensure the message is clearly
communicated? Does it add to the message?
•  Response: This does not refer to the percentage response
but rather, does the media make responding easy?
•  Internal management: Does it enhance the efficient
management of the campaign?
•  The end result: What are the costs and projected likely
revenues? Taking all the above into account and looking at
typical response rates for your medium, how likely are you to
hit target for the campaign?
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.5
Media metrics
Figure 11.2
User interaction model
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.6
Direct marketing spend by medium
(DMA 2012)
Figure 11.3
Proportion of direct marketing spend by medium 2012
Source: DMA/ Future Foundation Research (2012).
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.7
Improving search rankings
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Register with the search engines (Google, Yahoo, Bing and Ask are the best known), to
ensure that your pages are being indexed Then use search engine optimisation techniques
to improve the search table position of your firm.
Ensure that copy in your site is optimised to help the search engines find your site.
Techniques include:
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Keyword density – Ensure that the copy in your site contains the words that are being used
by the people searching for products and services.
Ensure that the source code for your website is optimised for the search engines. This means
having a clear sitemap with efficient navigation within the site and inserting relevant keywords
within the code for example in title tags and in meta descriptions.
Develop links into the site.
Carry out pay-per-click advertising – These are the ads that appear on the right hand side of
the Search Engine Return Page (SERP) or in the shaded box at the top left of the Google
SERP.
Use affiliate sites to facilitate click-through from other sites to their site. This may be done by
establishing ‘affiliate networks’ – may be thousands of non-competing sites to help promote
your website.
Advertise their website offline through conventional offline media, or through other online
channels, for example Twitter and Facebook.
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Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.8
Advantages and disadvantages of
websites as a medium
Table 11.3
Summary of advantages and disadvantages of websites as a medium
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.9
Rules for the effective use of
email
•  E-mail is always opt-in.
•  Always offer unsubscribe buttons.
•  Do not solicit online with chatlines that forbid
commerce.
•  You cannot sell e-mail addresses on to another
company without permission.
•  Subject lines must not be deceptive.
•  Source of the e-mail must be traceable.
•  Include a full postal address.
•  If your customers or prospects think your e-mail is
spam, then it is.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.10
Advantages and disadvantages of
email as a medium
Table 11.4
Summary of advantages and disadvantages of e-mail as a medium
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.11
Direct mail strengths
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Testing and measurement
Money and information
The chance to transact – and to be personal
Timeliness
Personalisation
Flexible and creative messaging
Attention-grabbing
Keepability, tangibility and texture
It’s cost-effective – whether cheap or expensive
It translates intentions into action.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.12
Compiled lists
•  Electoral registers – since 2001 the public have the
opportunity to opt out of their electoral register details
being used for commercial promotions. According to
the Ministry of Justice in 2009, 40% of individuals had
opted out of the Electoral Register for marketing
purposes and, in some areas, this was as high as 70%
(Ministry of Justice, 2009)
•  Geodemographic lists
•  Psychographic lists
•  Geo-lifestyle lists
•  Business lists from firms such as Blue Sheep or Dun &
Bradstreet.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.13
Responsive lists
•  These are lists put together as a byproduct of someone else’s business, for
example mail-order buyers of catalogues,
subscribers to The Economist or store
card holders. These are often the most
responsive lists (hence the name),
because they usually contain people who
have responded to direct marketing
programmes.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.14
Advantages and disadvantages of
direct mail as a medium
Table 11.5
Strengths and weaknesses of direct mail
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.15
The use of the telephone in direct
marketing
•  Taking inbound and outbound use of the
telephone together, total spend on this
medium was estimated by the DMA at
close to £7 billion in the UK in 2012 (DMA,
2013), making it the most important of all
direct marketing media.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.16
Outbound telemarketing
•  Outbound telemarketing is the planned
use of the telephone to make
structured calls to the audience in a
measurable and accountable way.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.17
Advantages and disadvantages of
outbound telemarketing as a medium
Table 11.6
Summary of the strengths and weaknesses of outbound telemarketing
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.18
Inbound telemarketing
•  Inbound telemarketing is the use of
paid or free telephone services to carry
an invited response from other media.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.19
Advantages and disadvantages of
inbound telemarketing as a medium
Table 11.7
Summary of strengths and weaknesses of inbound telephone marketing
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.20
Mobile
•  ‘Mobile Marketing is a set of practices that
enables organisations to communicate and
engage with their audience in an
interactive and relevant manner through
any mobile device or network’ Mobile
Marketing Association (2013).
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.21
UK smartphone ownership, Internet on
mobile and mobile advertising revenues
Smartphone ownership, mobile Internet and mobile advertising revenues
in the UK 2008–2011
Figure 11.10
Source: Ofcom 2013, IAB/PWC.
Note: Take-up figures are from Q1 of the previous year.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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Slide 11.22
Summary of this session
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Direct marketers have a large number of media choices, of which some of the most
important are websites, e-mail, direct mail, the telephone and mobile.
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Online marketing has made life more difficult for direct mail and the telephone.
The biggest development of recent times has been search engine marketing which is now
the dominant player in the online marketing mix.
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Banners and pop-ups have declined in importance but can still be effective.
Website and e-mail costs per response are getting more and more competitive, although
they often sit at similar levels to traditional media.
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Moving offline, direct mail is still excellent at carrying large amounts of information, giving
consumers a permanent record, and presenting messages creatively.
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Even with the advent of web and e-mail marketing, the telephone remains the best
‘relationship building’ medium if it used properly (sadly all too rare).
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E-mail has the potential to be arguably the most powerful of all direct-response media.
Some direct mail usage in particular is under threat in the long term from the easier and
cheaper alternative of e-mail.
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Mobile marketing in all its guises is showing strong growth and many believe this to be the
future of direct and digital marketing.
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
Slide 11.23
Further reading
•  Chapter 11 of Tapp,
Whitten and Housden
(2014)
Tapp et al., Principles of Direct, Database and Digital Marketing, 5th edition © Pearson Education Limited 2014
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