DOCSLIB.ORG

Database Marketing

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Database Marketing 10-1 Chapter 10 Direct Marketing 10-2 1. Identify purposes served by direct marketing. 2. Explain the popularity of direct marketing. 3. Distinguish a mailing list from a marketing database, and review the applications of each. 4. Describe the media used by direct marketers in delivering messages to consumers. 10-3 Direct Marketing Today • Direct marketing has its roots in catalog companies such as L.L.Bean. • Many types of organizations are increasing their expenditures on direct marketing. These expenditures serve three primary purposes: • Closing sales with customers • Identifying prospects for future contacts • Offering information and incentives to foster brand loyalty 10-4 Direct Marketing Today, Continued Exhibit 10.1 Some Direct Marketing Milestones 10-5 Growing Popularity • The growing popularity of direct marketing can be attributed to several factors. • Convenience—credit cards, 800 numbers, and the Internet • Computer power—building and mining large customer information files • Tracking—lends itself to current emphasis on measurable outcomes 10-6 Growing Popularity, Continued Finding that waterfall in Wyoming will take some planning, and Wyoming’s offices of Travel & Tourism is happy to help. The adventure begins with a request for a vacation packet. This ad provides two options: calling a toll- free number or visiting the tourism office’s website. 10-7 Database Marketing • A mailing list is a file of names and addresses of current or potential customers, such as lists that might be generated by a credit card company or a catalog retailer. • Internal lists—valuable for creating relationships with current customers • External lists—useful in generating new customers • List enhancement—adding demographic, geodemographic, psychographic, or behavioral data 10-8 Database Marketing, Continued • A marketing database is a natural extension of the internal list, but it also includes information about individual customers and their specific preferences and purchasing patterns. • A marketing database allows organizations to identify and focus their efforts on their best customers using a recency, frequency, and monetary (RFM) analysis. • Recognizing and reinforcing preferred customers helps build loyalty: • Follow-up letters, discounts, coupons • Frequency-marketing programs—database, benefit package, communications strategy • Cross-selling opportunities also emerge once a database is in place. • One can gain keener information about the motivations of current best customers, and insights usually emerge about how to attract new customers. • However companies must be sensitive to consumer’s rights and wishes to protect their privacy. 10-9 Database Marketing, Continued Exhibit 10.2 What Makes a Marketing Database 10-10 Media Used in Direct Marketing • Direct-marketing programs emanate from mailing lists and databases, but there is still a need to deliver a message to the customer. • Direct mail, telemarketing, and email are the most common means used in executing direct marketing programs. Email is most successful when it avoids spam and uses opt-in lists. • Because the advertising done as part of direct-marketing programs typically requests an immediate response from the customer, it is known as direct-response advertising. • Conventional media such as newspapers, magazines, and radio also can be used to request a direct response by offering an 800 number or a Web address to facilitate customer contact. • Television makes use of the infomercial for direct-response advertising. Successful infomercials require: • a same-day response • frequent closes • testimonials (celebrities do no harm, but are not essential) 10-11 Media Used in Direct Marketing, Continued 10-12 Media Used in Direct Marketing, Continued Exhibit 10.3 Elements of a Successful Infomerical.
Load more

Recommended publications
  • Marketing Automation Simplified the Small Guide to Big Ideas Table of Contents
    Marketing Automation Simplified The Small Guide to Big Ideas Table of Contents Introduction What is Marketing Automation? . 4 The Role of Reactive Marketing Using Behavioral Insights . 6 The Role of Database Marketing Maximize the Value of Your Data . 8 The Role of Targeting & Segmentation Keep It Focused . 10 The Role of Trigger-Based Marketing Offer Timely & Relevant Communication . 11 The Role of Email Marketing Centralize Multi-Touch Engagement . 12 The Role of Social Media and Content Influence Inbound Marketing . 13 The Role of Lead Management Maximize Prospect Interest & Engagement . 14 The Role of Lead Routing Manage & Optimize Demand Generation . 15 The Role of Lead Nurturing Stay in Touch and Top of Mind . 16 The Role of Lead Scoring Identify Target Attributes . 17 The Role of Marketing in Sales Enablement Address the Independent Buying Cycle . 19 PAGE 2 Table of Contents The Role of Business Intelligence Drive Smart Marketing . 20 The Role of Marketing Automation Eliminate Silos and Engage Your Community . 22 Resources . 23 About Oracle Marketing Cloud . 23 PAGE 3 INTRODUCTION What is Marketing Automation? Successful email marketing, demand generation, and lead management processes hinge on a modern strategy closely aligned to buyer needs and expectations across all phases of the buying process . Using a wide spectrum of digital channels, today’s buyers employ an extensive network of tools and resources to make the most informed purchase decisions . The Modern Marketing era is driven by the self-educated buyer who marketers must engage to achieve a relevant, targeted, and value-based customer experience . Marketers are increasingly enhancing their understanding of how data can fuel the delivery of meaningful interactions .
    [Show full text]
  • Direct Marketing Terms
    GLOSSARY OF DIRECT MARKETING TERMS By Arthur Middleton Hughes Affinity Appended Data People who are similar in lifestyle process whereby a customer file has Abandonment data appended to it (such as age, As in the phrase “call abandonment”. Affinity Analysis income, home value) from some This refers to people who, being A process of finding relationships external data file. See overlay. placed on hold in an incoming call, between customer purchases. People elect to hang up (“abandon”) the who buy skis buy snow tires. ASCII call. Call centers monitor closely the American Standard format for data “abandonment rate” as a measure of Affinity Matrix storage on magnetic media (tape or their inefficiency. A cross tab showing cross buying disk). patterns by customers who did or did ACD not buy Products A, B, C, and D. Attrition Model Automatic Call Distributor. A complex A model that predicts which machine used in modern call centers Affluents customers are most likely to leave. for incoming calls. It routes calls to Households with 30% or more than Usually expressed as a percentage of available agents, holds overflow calls, the cost of living plus taxes. likelihood. gives and takes messages, provides reports. A must for modern database Agent Attrition Rate marketing. The word for a telephone operator The opposite of retention rate. The in a modern inbound call center in a percentage of customers this year who Acquisition Cost company that takes a lot of customer are no longer buying next year. The cost of signing up a new service and sales calls. customer. Lifetime Value is often used Autosexing to compute the maximum allowable Analog A computer process for finding the sex acquisition cost.
    [Show full text]
  • Using Data Management to Enhance the Effectiveness of Database
    SUGI 29 Data Warehousing, Management and Quality Paper 102-29 Good data makes good marketing: Using data management to enhance the effectiveness of database marketing campaigns John Walker, Bell Mobility, Mississauga, ON Gavin Day, DataFlux Corporation, Cary, NC ABSTRACT The goal of database marketing should be to build relationships. When you create stronger, tighter relationships with your customers, they are likely to buy more often, purchase at a higher price, and try new products when they become available. Unfortunately, poor data quality hinders many database marketing efforts. If your customer information contains incorrect, duplicate, or incomplete data, you cannot effectively reach your entire universe of contacts—and can waste time and resources contacting the wrong address or phone number. INTRODUCTION This paper provides a real-world example of the technology and techniques required to verify, merge and cleanse customer data prior to starting database marketing efforts. By performing extensive data quality routines on new and existing customer contact information, companies can provide more reliable data to its telemarketing and direct marketing groups—and allow them to contact more people than in a traditional database marketing campaign. As a result, database marketing efforts can contact more prospective customers. And help you elevate the effectiveness of marketing campaigns. DATABASE MARKETING DEFINED Database marketing is the process of using data to deliver marketing messages to specific target markets. As you refine the message, you can more effectively change the behavior of each market. And the more specific you can be about the market you intend to reach, the less it can cost to successfully reach each member of that market.
    [Show full text]
  • Five Tips for Building a Marketing Database
    Five Tips For Building A Marketing Database www.AnchorComputer.com [email protected] 800-728-6262 W H I T E P A P E R In This White Paper We Discuss Five Tips That Marketers Should Be Aware Of Before Embarking On Building A Marketing Database INTRODUCTION Over the years, direct marketers have come to rely on their marketing databases more and more. During this time, more marketers have focused on building or outsourcing marketing databases as they try to support new or more advanced contact management strategies. As a result, marketing databases have gotten more complex and the data necessary to support the decision making process has expanded dramatically. As a provider of database marketing services, Anchor Database Services has heard many war stories from clients about how their first attempt at building a marketing database failed. With that in mind, this whitepaper is designed to highlight some of the critical factors you should consider so that your marketing database project will be a success! _______________________________ For a FREE No-Obligation Database Consultation Please Call Paul Storch or Jim Spillane 800-452-2357 [email protected] www.AnchorComputer.com TIP #1 - BEGIN AT THE END! DEFINE YOUR OBJECTIVES Why do database projects fail? It’s really very simple. They fail because clear expectations are not set and measurable goals defined before the project is started. Not doing so leaves the project open to be misdirected and/or derailed as the project progresses. When embarking on a database project, it is essential to define the objectives before committing to the project.
    [Show full text]
  • DATABASE MARKETING Real Life Answers
    DATABASE MARKETING Real Life Answers Success Stories 2 DATABASE MARKETING: Real Life Answers What is with all of the buzz about database marketing? Why are people spending so much time and so much money on buying this software technology? It is very simple. Increased competition from other financial outlets...banks, credit unions, non-bank firms like Fidelity and Schwab, mortgage companies, and credit companies are squeezing profits. Profitable customers are hard to find, and proving even harder to keep. And database marketing can help you find and retain your best customers. Couple that reality with more hard facts...your marketing dollars are not unlimited, your customers have dramatically higher expectations, you must make additional investments in new delivery channels, you might desire for your institution to move towards a sales culture,... all the while maintaining that “close customer relationship” that all of your large competitors can only dream of having, and the picture grows more complex. A recent Gallup poll stated that while “classic” financial institutions held greater than 50 percent of the market share of deposits in 1950s, today that number has plummeted to less than 20 percent. That is an astonishing fact! A closer look at the numbers would also prove that the most profitable customers are the ones who moved their money to the non-bank firms. All of the large and regional financial players have been using database marketing techniques for years. For the non-bank types, it has proven an incredibly inexpensive way to cherry-pick the best customers from everyone — including your institution. I know what you’re saying,“Our profits are doing great, why would we spend the money on database marketing?” Probably the primary reason is, because you don’t know what you don’t know.
    [Show full text]
  • Database Marketing in Life Insurance Marketing Development Strategy
    5th International Conference on Social Science, Education and Humanities Research (SSEHR 2016) Database Marketing IN Life Insurance Marketing Development Strategy 1, a Guozhen Sun 1Jilin radio and TV University, Changchun City, Jilin Province, China [email protected] Keywords: Database marketing, Life insurance marketing, Development strategy Abstract. This template explains and demonstrates how to prepare your camera-ready manuscript for publisher. The best is to read these instructions and follow the outline of this text. Please make the page settings of your word processor to Letter format (21.59 x 27.94 cm or 8.5 x 11 inches); with the margins: bottom 2.8 cm (1.1 in) and top 2.8 cm (1.1 in), right/left margins must be 2.54 cm (1 in). Your manuscript will be reduced by approximately 20% by the publisher. Please keep this in mind when designing your figures and tables etc. Introduction Database marketing is a kind of big data marketing mode based on information technology and network technology. It originated in the 80's of last century, it has developed with the gradual maturity of the market and the increasing competition of the enterprises. Database marketing mode is the combination of customer relationship management and database technology, and the current customers for a comprehensive and systematic search and analysis, in order to achieve the purpose of business growth. From the point of view of the concept of database marketing, database marketing model generally consists of data acquisition, storage, processing, customer mining, data usage and improvement of links and according to the characteristics of the customers for the judgment the implementation of marketing, also reflect the customer promptly change trend, so as to improve marketing efficiency.
    [Show full text]
  • A Guide to Direct Mail Marketing How to Successfully Reach Your Target Audience
    A Guide To Direct Mail Marketing How To Successfully Reach Your Target Audience (914) 948-8300 What is Direct Marketing? Direct marketing targets businesses and consumers directly, circumventing an advertising intermediary. Campaigns tend to communicate with existing customers who are known to be interested in the product or service, and/or prospects whose profile makes them good candidates for outreach. In either case, the purpose is to take an aggressive, direct approach to growing business. Direct marketing utilizes a variety of channels to do this, both physical and digital. Campaigns invariably include some kind of offer, where customers and prospects are made aware of special promotions or other opportunities to act. While other advertising methods aim to educate about a brand’s services or products, direct marketing solely intends to persuade the recipient to take a specific action. Campaigns invariably include some kind of offer, where customers and prospects are made aware of special promotions or opportunities. A key component of the direct response approach is providing a call to action (CTA) that prompts the recipient to act. Types of Campaigns – Direct marketing campaigns can include any, all, or some of the following channels and formats. Emails, online adverts, flyers, database marketing, promotional letters, 2 newspapers, outdoor advertising, phone, text messaging (SMS), magazine ads, coupons, phone calls, postcards, websites, and catalogs are some examples of direct marketing channels and techniques. Each is predicated on targeting a specific audience with a relevant presentation. They vary in the ability to reach targets on different scales with different degrees of granularity while delivering a variety of experiences.
    [Show full text]
  • Database Marketing: Level I
    EXPANDED TRAINING OPTIONS FOR INTERNET, DIRECT and DATABASE MARKETING PROFESSIONALS OVERVIEW When you need critical skills to build your current capabilities or a productive way to sharpen your skills and stay current, RPM2 provides you with a complete menu of training courses. Our “Expanded Training Options” are not only comprehensive, they’re modular. This means you have total control of the curriculum subjects and can choose the kind of training you need, when you need it. Feel free to call us anytime and we’ll collaborate to make sure your custom course fits like a glove. And, as you’ll see from the “Course Options” listed on the next page, you can obtain training in virtually every aspect of internet, direct and database marketing in addition to data mining and modeling courses. As part of the curriculum, all attendees will receive a detailed course manual, complete with references. In addition, we want you to receive the maximum benefit and we recognize there will be questions resulting from what you’ve learned. Therefore, every organization attending an Extended course will also receive up to two hours of free phone follow-up consultation and advisory as part of our service to you. Your Training Also Includes a 100% RPM2 Satisfaction Guarantee. WHO WILL BENEFIT MARKETING EXECUTIVES AND PRODUCT MANAGERS: Anyone responsible for product marketing and direct sales channels, including Internet Marketing, Direct Mail, and Telemarketing QUANTITATIVE EXPERTS, RESEARCHERS AND ANALYSTS: Statisticians, Modelers, Business Intelligence Analysts,
    [Show full text]
  • 8 Critical Success Factors for Lead Generation by Brian J
    8 critical success factors for lead generation By Brian J. Carroll WHITEPAPER 8 critical success factors for lead generation Brian J. Carroll 8 critical success factors for lead generation My book, Lead Generation for the Complex Sale (McGraw-Hill, 2006), was The complex sale inspired by the inarguable fact that concerted lead generation endeavors were primarily that in name only until recently. Until now, “lead generation” is not about mass was associated with direct mail campaigns, sometimes supported by a flashy marketing. website, sporadic trade show appearances, intense e-mail blasts or stabs at telemarketing, but with very little if any special attention brought to bear on the complex sale. The complex sale is not about mass marketing. Rather, the complex sale focuses on the specific needs and wants of the target audience. It is valuable to businesses that are engaged in long-term sales processes that require prolonged education and nurturing of the prospect. These companies generally provide solutions to their clients, who tend to be more sophisticated, are targeted to solving specific critical business issues and are managed deliberately and with precision. The complex sale most often manifests itself in the environment of business-to-business marketing. Marketers today are constantly reminded that the company needs more sales leads . now. Unfortunately, that immediacy quite often is at the direct expense of quality. A flood of ordinary, everyday leads does not mean that successful sales will follow. The challenge, therefore, is to tailor and adopt lead generation programs that will increase the odds of creating better sales leads, ultimately resulting in long-term, happy and profitable customers.
    [Show full text]
  • Improving Sales Productivity Beyond Lead Generation
    0 Marketing’s New Role: Improving Sales Productivity John M. Coe President Protocol B2B Protocol Overview 1 Protocol Protocol B2B – Colorado Springs Revenue $120MM + 15 year old firm with 275 people Expertise in key industries focused only on B2B > Financial services > High-tech/software Three service offerings > Healthcare 1. Lead Generation and Qualification 2. Sales Coverage > Government services 3. SMB Marketing > Telecom > Pharmaceutical Fully integrated six-step process that is > Automotive media neutral > Energy > Retail 14 locations across the U.S. and Canada 1 Protocol Locations 2 Protocol B2B Experience 3 Software ADP MCI Alaska Air Mercury Interactive Technology Meridian IQ American Express Telecommunications Microsoft Aspect Mitsubishi Communications Energy NaviMedex AT&T Finance NCR Cisco NEC Technology Continental Airlines Oracle Manufacturing Dell Computer Qwest Duke Energy SABA Transportation/Logistics Shell Oil Federal Express Travel/Tourism StorageTek Hay Group Ritz Carlton Club Pharmaceuticals Hewlett Packard Thompson Healthcare Health Care Ibis Group United Technologies IBM UPS iPass Xerox 2 So Who’s John Coe? 4 15 years sales and sales management > BF Goodrich Chemical – Product Manager > Quaker Oats, Chemical – Technical Sales and National Sales Manager > West-Agro – Director and Sales & Marketing > Samuel Bingham – VP Sales & Marketing 25 years B2B direct/database marketing > Integrated Target Marketing – President > Database Marketing Associates – Founder > IBM – National DM Campaign Manager > Rapp Collins Worldwide
    [Show full text]
  • Direct Marketing Q&A: US
    Direct marketing Q&A: US, Practical Law Country Q&A 9-102-2030 (2017) Direct marketing Q&A: US by Alan Friel, Baker & Hostetler Country Q&A | Law stated as at 30-Nov-2017 | United States The regulation of unsolicited commercial communications In the United States, federal and state laws limit and regulate the way in which companies communicate with individuals and other businesses for marketing, advertising, fundraising, and other related purposes. These laws affect the manner in which companies can call, text, mail, e-mail, or fax consumers. Two of the most important federal laws governing this field are the: • Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), and the Telemarketing Sales Rule (TSR) regulations issued under it by the Federal Trade Commission (FTC). • Telephone Consumer Protection Act (TCPA), enacted by Congress and regulated by the Federal Communications Commission (FCC). Both laws apply to telemarketing calls, but the TCPA also contains provisions that apply to other types of calls, text messages, and fax advertisements. These rules often overlap, but they also contain key differences in scope including who can enforce them. In addition, direct marketing by e-mail and direct mail is regulated in the United States most notably by the federal CAN-SPAM Act, which largely pre-empts state laws and covers e-mail, and the federal Deceptive Mail Prevention and Enforcement Act (DMPEA), which governs physical mail. US privacy and data security laws, and laws regulating false advertising, and promotions such as sweepstakes and contests, are also relevant to direct marketing. These laws are at both the federal and state level, often with great differences in the laws from state to state.
    [Show full text]
  • A Systemic Approach to the Database Marketing Process, in Proceedings of the Australian and New Zealand Marketing Academy Conference, ANZMAC, Geelong, Vic., Pp
    Deakin Research Online This is the published version: Pearce, James E., Webb, Geoffrey I., Shaw, Robin and Garner, Brian 2002, A systemic approach to the database marketing process, in Proceedings of the Australian and New Zealand Marketing Academy Conference, ANZMAC, Geelong, Vic., pp. 2941-2948. Available from Deakin Research Online: http://hdl.handle.net/10536/DRO/DU:30009565 Reproduced with the kind permission of the copyright owner. Copyright: 2002, ANZMAC. A Systemic Approach to the Database Marketing Process James E Pearce, Geoffrey I Webb, Robin N Shaw and Brian Garner, Deakin University Abstract The role of database marketing (DBM) has become increasingly important for organisations that have large databases of information on customers with whom they deal directly. At the same time, DBM models used in practice have increased in sophistication. This paper examines a systemic view of DBM and the role of analytical techniques within DBM. It extends existing process models to develop a systemic model that encompasses the increased complexity of DBM in practice. The systemic model provides a framework to integrate data mining, experimental design and prioritisation decisions. This paper goes on to identify opportunities for research in DBM, including DBM process models used in practice, the use of evolutionary operations techniques in DBM, prioritisation decisions, and the factors that surround the uptake of DBM. Introduction Database marketing (DBM) is often viewed as a tactical marketing tool rather than a strategic one, and as a capability that is easily developed (Cooke, 1994). In fact, DBM is a sophisticated process that requires a systemic approach that integrates a number of organisational departments.
    [Show full text]