Principles of Global Direct Marketing

1. Stephen Ong
BSc(Hons)Econs (LSE), MBA (Bradford)
Visiting Professor, Shenzhen University
Academic Fellow, Entrepreneurship & Innovation,
The Lord Ashcroft International Business School, Anglia
Ruskin University Cambridge UK
MARKETING

2. •What is DIRECT
MARKETING ?
1
•Direct Marketing
Channels & Methods2
•Case Discussion
: TESCO Direct
3

3. 1. To introduce direct marketing as a
special form of marketing
communications
2. To discuss the different channels and
methods of direct marketing and their
effectiveness
3. To discuss the use of direct marketing
by business to consumers

6. Direct marketing is the use
of consumer-direct
channels to reach and
deliver goods and services
to customers without using
market middlemen.

8. Direct Marketing
via
Direct mail
Catalogues
Infomercials,
teleshopping
 other direct
response media

9. Any communication with a consumer
or business recipient that is designed
to generate a response in the form of:
1. An order
2. Request for further information
3. A visit to a store or other place of
business

10. Building from Customer Relationship
Management
 Identify customers and accumulate
detailed information about them
 Differentiate customers and rank them in
terms of their value to the company
 Interact with customers and develop more
cost efficient and effective forms of
interaction
 Customize the product/service offered to
the customer

11.  The world is full of people who are not Malaysians.
Be sure not to treat them like they are.
 Like politics, all marketing is local. Just because your
direct mail campaign worked in Kuala Lumpur, do
not assume it will work in Tokyo.
 Although there may be a European Union, there is
no such thing as a "European."
 Pick your target, focus on one country, and do your
homework.
 Customers need to be able to return products
locally or at least believe there are services
available in their country.

13. Direct Marketing Association
 Prospecting 60%
 Customer retention  40%
It works!
Customers respond
 Telephone
 E-mail
 Retail store
 Personalised URL

14.  Direct mail
 Catalogues
 Telemarketing
 Interactive TV
 Internet
 Mobile
 Other direct response

15. Methods of Direct Marketing
24%
16%
46%
55%
17%
22%
29%
8%
10%
21%
24%
16%
73%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Outbound telemarketing
Inbound telemarketing
E-mail to prospects
E-mail to customers
Search engine optimization
Search engine marketing
Direct response-Internet
Direct response-TV
Direct response-radio
Direct response-promotions
Catalogs
Statement stuffers
Direct mail to prospects
Direct mail to customers
% of Companies Using Particular DM Methodology
Source: Based on Richard H. Levy, “Prospects Look Good,” Direct, Vol. 16 (December 1, 2004), pp. 1-5.

16. A vehicle for delivering a personally
addressed offer to a prospect targeted by a
marketer
Popular with banks, insurance co., other
financial service providers
U.S. direct mail lists are easy to rent;
Europe and Japan lists are lower in quality
Germans spend the most, US$500 per
capita, in mail-order shopping

17. Most common form
of direct
marketing
Types of lists
 Response list
 Compiled list
Digital direct-to-
press
Advantages
 Target mailings
(consumer, B-to-B)
 Measurable
 Driver of online
sales
Disadvantages
 Clutter
 Costs

18. •Catalogue: magazine-style
publication that features
photographs, illustrations, and
extensive information about a
company’s products
•U.S. 1/3 of world market, 17
billion mailed in 2008
•EU: Elimination of barriers has
led to a boom
•Hong Kong and Singapore have
efficient postal systems and
highly educated consumers
with credit cards

19. Long-term impact
Low-pressure sales
tactics
First stage in buying
cycle
Database
Specialty catalogues
Business-to-business

20. Television
Radio
Magazines
Newspapers

21.  An infomercial is a form of paid TV in which a
particular product is demonstrated, explained,
and offered for sale to viewers who call a toll-free
number on the screen
 In Asia, infomercials make $100s of millions in
sales. Low penetration rates of private phones,
credit cards create difficulties
 Teleshopping on channels like HSN and QVC is
exclusively devoted to demonstration and selling

22. ITV allows viewers to interact with
the programming content they are
viewing
In the U.K., more than half of pay-
TV subscribers use ITV
Remote controls have buttons to
push to order products shown on
screen

23. Direct response to ads
Cost-effective
Builds relationships
Personalization of
communication
Customization of offer
Search engine ads

24. Consumer direct sales
Host parties
Amway, Mary Kay, Avon

25. Inbound telemarketing
Cross-selling
Outbound telemarketing
Cold calling
Database
Prospects

26. Irritation
Unfairness
Deception/fraud
Invasion of privacy
Environmental

28.  Background Founded in 2006, Tesco Direct retails a wide range of non-
food products via the Internet and catalogues. In 2008, the organisation
issued 11.5 million catalogues, attracted around 1.5 million visits to its
website each week and increased sales by more than 50% in the year.
Group Discussion
 30 mins discussion in Groups of 7
 5 mins presentation by Group representative
► Individual Assignment
 Individual coursework (contributes to 15% overall mark of course)
 2 pages written in English in WORD format
►Summary
►Issues discussed
►Solutions proposed

29. “Sell good merchandise at a
reasonable profit, treat
your customers like human
beings, and they will come
back for more.” Leon
Leonwood (L.L.) Bean

30.  Keegan, W.J. and Green, M.C. (2014) Global Marketing,
Pearson 8th edition
 Kotler, P. and Keller, K. (2012) Marketing Management,
Pearson, 14th edition
 Timm, P.R. (2014) Customer Service: Career Success
Through Customer Loyalty, Pearson 6th edition
 Clow, K.E. and Baack, D.E. (2014) Integrated Advertising,
Promotion, and Marketing Communications , Pearson
6th edition
30