Direct market for market research purposes Flashcards
What is direct marketing?
The process in which individual customer responses and transactions are recorded - the data is then used to inform targeting, execution and control of actions.
- Capturing & analysing data
What can direct marketing be used for?
- Generating new customers
- Retaining the best customers
- Developing a customer communication programme
- Profile customers
How is data acquired for direct marketing?
- Requires initial collection of customer data & then on going data capture
- Initial collection of the data may be from purchasing a mailing list
What are some internal sources of customer data?
- Product registration details
- Warranty cards
- Credit card details
- Subscription details
- In-store offers
What are some ways in which customers details are tried to be obtained for direct marketing purposes?
- Sales promotions: coupons, competitions
- Personal selling: cold calling
What is needed once the initial data collection is captured?
A mechanism is needed to collect ongoing behavioural information and a databased is needed to store the information
How can on-going data collection be achieved for businesses?
- E-commerce: easily captured, through what is purchased/viewed & their account details
- In store: Collected easily though till scanning if they have a loyalty card
What are the advantages of loyalty schemes in direct marketing?
- They are frequently used to create and populate customer databases
- Targeting is important
- Reputation is enhanced through incentives and offers
What are the downsides of using loyalty schemes in direct marketing?
- Not all customers join it
- May be taken advantage of
What is a database?
A marketing database is a list of customers and their records that allow for strategic analysis and communication to customers
What are databases useful for?
- Tracking behaviour
- Looking at past behaviour
What is data mining?
Data mining is the extraction of previously unknown yet comprehensible and actionable information from large data pool. It is used to make business decisions & support the implementations
What are the benefits and disadvantages of the traditional approach to data analysis?
- Relatively cheap
- Can be done continuously
- Trends can be spotted
- Not very targeted
What are the benefits and disadvantages data mining?
- More targeted approach
- Expensive
- Specialist skills and technology needed
