module 8 direct marketing

Question 1

• What factors have contributed to the growth of direct marketing in recent years?

Answer 1

Consumer credit cards: more than 1.5 billion credit cards in circulation this makes it more feasible for consumers to purchase both low and high ticket items
The changing structure of American society and the market: Americans are money rich and time poor rapid increase in dual income families has rapidly increased since 2018. Increased popularity in fitness, do it yourself crafts and repairs, and home entertainment has reduced time available for shopping and increased the attractiveness of direct purchasing
Technology advances: advances in electronic media and the internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.
Misc factors: these factors include changing values and lifestyles, more sophisticated marketing techniques, more options, and the industry’s improved image.

Question 2

• How can database marketing be used to manage customer relationships and build so-called “one- to-one” marketing?

Answer 2

They improve the effectiveness of various marketing programs and give various reports that track retention, identify new customers, and pinpoint opportunities to increase sales to current customers

Question 3

• What is by “RFM Analysis”? What is it used for?

Answer 3

Definition: a marketing technique used to determine quantitatively which customers are the most profitable by examining how recently a customer has purchased. How often he or she purchases, and how much the customer spends.
RFM us used to rate their customers and giving them values and based on those ratings fiving them a status like most valuable and least valuable.

Question 4

• What is meant by “Cross-selling”? How can database marketing can be used to cross-sell?

Answer 4

Cross selling: is a sales technique involving the selling of an additional product or service to an existing customer.

Question 5

• What are the advantages and disadvantages of direct marketing?

Answer 5

Selective reach Image factors
Segmentation capabilities Accuracy
frequency Content support
Testing Rising costs
Timing Do not call lists
Personalization
Costs
measures effectiveness

Question 6

• Review how direct marketing is used in combination with other elements of the promotions mix.

Answer 6

With public relations often employ a direct response technique. Private companies may use telemarketing activities to solicit funds for charities or cosponsor causes that use these direct response techniques to raise funds
Personal selling: companies will often use telemarketing with much greater frequency to screen and qualify prospects and generate leads.
Support media: using a promotional product on an add has shown to improve response rates on an ad

Question 7

• Be able to identify a “two-step” approach to direct marketing?

Answer 7

A direct marketing strategy in which the first effort is designed to screen or qualify potential buyers, while the second effort has the responsibility of generating the response
Ex: before giving a long sales pitch to somebody about buying a time share by first asking them there income and seeing if they are able to afford it you will not waist your time on somebody you will not be able to make a sale on.

Question 8

• Specifically, how does advertising assist with direct marketing efforts?

Answer 8

Sometimes ads support the direct selling effort directly for example Ikea, Nordstrom, and Blooming dales among many other run image ads and commercials to support their store catalog sales. Bose also markets through stores and online supporting its efforts through advertising