Wholesaling

Direct Marketing

• 14

• McGraw-Hill/Irwin

• Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

QVC

• $6.5 billion a year
• 2nd most profitable channel
• Once sold 4,000 silver rings ($70) in just 3 ½ minutes
• 91 million homes
• 1 in 10 make purchase
• 40 to 60

Direct Marketing Defined

• Radio

• Direct Selling

• Magazine and Newspaper

• Direct Mail

• Telemarketing

• TV Selling

• The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer

Growth of Direct Marketing

• Technological Advances

• Changing Structure of Society

• Consumer Credit Cards

• Miscellaneous factors

• Direct Marketing Syndicates

• Changing Structure of Markets

Direct Marketing Combines With . . .

• Advertising

• Sales Promotions

• Public Relations

• Personal Selling

• Internet

• Support Media

• Direct Marketing

San Diego Encourages Visits

How Database Marketing Works

A Comprehensive Consumer Database

• Name

• Address/
• Zip Code

• Telephone
• Number

• Length of
• Residence

• Age

• Gender

• Marital
• Status

• Family
• Data

• Education

• Income

• Occupation

• Transaction
• History

• Promotion
• History

• Inquiry
• History

• Unique
• Identifier

A Business-to-Business Database

• Contact Info

• Contact Title

• Telephone
• Number

• Source of order, inquiry, referral

• Credit History

• Industrial Classification

• Size of Business

• Revenues

• Number of Employees

• Time in Business

• Headquarters Location

• Purchase History

• Promotion
• History

• Inquiry
• History

• Unique
• Identifier

Test Your Knowledge

• For market segmentation and targeting, direct marketers rely most heavily on:
• A) Primary qualitative research
• B) Census data
• C) A database
• D) Survey responses
• E) Focus groups