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Copy of How Direct and Digital Marketing enhance the Marketing Plann

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James Lee

on 14 December 2014

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Transcript of Copy of How Direct and Digital Marketing enhance the Marketing Plann

- The tasks involved in Direct and Digital Marketing Planning

- Influences on Direct Marketing strategy

- How does Direct and Digital marketing enhance the marketing planning process

- Key differences between Direct and Digital Marketing and General Marketing Planning
Objectives for today's presentation:
'Where are we now?'
Setting objectives
'Where do we want to get to?'
Setting strategy
'How do we get there?'
DIDM Planning Process
Is DIDM Planning Different?
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Erika Kovacs - 000706159
Petya Tretyakova - 000654914
Paula Campelo - 000676421
Margherita Morra - 000703852
James Lee - 000674770

The Direct Marketing Strategic Model
Influences on DIDM
'Market decisions'
The Four P's Marketing
Customer Relationship Marketing
Relationship Marketing
Decision 1
There is an opportunity to differentiate the product to different audiences
Website based sales
The Pareto Principle (80-20 rule) applies

Customers' lifetime value or margins are high enough to justify the costs of direct marketing

"Logical" rather than "emotional" approach
Decision 2
Decision 3
Product decisions: Tailored products, retain with service and dialogue.

“ Acquire with product, retain with service” (Professor Tom O.Jones,1996)

Decision 4

Attract new customers

'Product' decisions

Thank You For Listening

Any Questions???
Firstly, what do these terms mean?
Direct Marketing?
An emerging change in marketing. An effort that focuses more on the consumer than the product itself.
'Mass Marketing will usually use market research to predict a customers purchase. However will analyse buying behaviours using their database'. (Tapp et al, 2014)
Key Elements of Relationship Marketing (Payne et al, 1995)
Service and Quality is also part of Relationship Marketing (Gronroos, 1984)
Understanding customer expectations
Tailored approach to the model
Tapp et al (2014)
Database Marketing?
Digital Marketing?
General Marketing analysis

Loyalty is a consequence of creating value for customers and profit is a consequence of loyalty.

Customer retention
is more than giving the customer what they expect, it's about exceeding they expectations so that they become loyal advocates for you brand" Reichheld (1996)

No acquisition fees
Price advantages
Revenue Growth
Direct Marketing Objectives
Linking Direct Marketing Objectives to the Overall Marketing Objectives
Emphasis on Customers
4 P's will adapt 'product' for Direct Marketing
Mcdonald, M (2008)
Tapp et al (2014)
Direct Marketing Objectives
Allowable Marketing Spend Per Customer
Being SMART With Your Objectives!
Where are we now? - Marketing Audit
"Marketing Audit is a systematic, critcal and unbiased review and appraisal of all the external and internal factors that have affected an organisation's
commercial peformance
over a defined period." (McDonald, 2008)
Internal - SWOT
External - PEST
Direct Marketing analysis
Requires database
Concentrates on
segmentation: customer behaviour and profile
Market research, Salesforce feedback and Competitor monitoring
Customer profile is created based on
media habits
(Tapp et al, 2014)
Direct Marketing Analysis : Database management
Database application:
Using purchase data to segment by value
Using purchase data to set budget
Segmentation according to customer needs
Maximising response on a per campaign
Customer life time value
Allowable marketing spend per customer
Return on investment
Frequency, recency, amount and category (FRAC)
(Tapp et al, 2014)
Hard and Soft information in Direct Marketing:
Quantitative - decisions on budgets, finance & returns on spend.
Qualitative - decision making process and customer profile.
Cross and up-selling (Holder, 1992)
Where do we want to get to?
Whether or not to use direct marketing at all

Direct marketing should be considered if:
Target audience is relatively small or niche market

(Innocent Smoothies, 2014)
Bare in mind the following approaches...
(Tapp et al., 2014)
Allocate resources between existing and new customers
Decide how to keep customers
Market decisions and product decisions
Market decisions:
Segment by value and usage
Retain best customer
One-to-one marketing

“Web and e-mail links can provide ways of keeping the relationship alive between purchases”

(Tapp et al, 2014)

Brand/service is not as well known
Draw attention of price reduction
Differentiate/add value

"When you do not know your target market, it is like giving a gun to a monkey"
Asking new customers to identify themselves

New customers will be similar to existing customers

Affinity marketing e.g. Combining Oreo and Cadbury to create a Dairy Milk Bar allowed both retailers to boost their sales and attract new customers .
Relationship Marketing, CRM and Direct Marketing all relate to one another in some way.
Business Case Studies, Using customer service to position a business, 2014. Available from: http://businesscasestudies.co.uk [Accessed: 08 Oct 2014].

Emerald (2002),“Bain & Company’s Frederick Reichheld on loyalty as a strategy for success”, Strategic Direction, Vol. 18 Issue 9, pp.17 – 19

Esselunga, 2014, [WWW] Available at: http://www.esselunga.it/Default.aspx?esseiaOtp=none [Accessed: 5th October 2014]

Finnie, W. (2002), “Loyalty as a philosophy and strategy: an interview with Frederick F. Reichheld”, Strategy & Leadership, Vol 30 Issue 2

Groonroos, C. (1996) 'Relationship marketing: strategic and tactical implications', Management Decision, 34 (3), p.13.

Handley, L., 2011. Too posh to push direct? Marketing Week. Available from: http://www.marketingweek.co.uk [Accessed: 05 Oct 2014].

Mcdonald, M. (2008). “Malcom McDonald on Marketing Planning”, Third Edition, Kogan Page

Mondo Fidaty, 2014, [WWW] Available at: http://www.esselunga.it/default.aspx?idPage=1095&esseiaOtp=none [Accessed 8th October 2014]

Nectar, 2014, [WWW] Available at:http://www.nectar.com/NectarHome.nectar [Accessed: 5th October 2014]

Tapp, A. (2005), “Principles of Direct and Database Marketing”, Third Edition,, Essex England, Pearson Education Limited

Tapp et al., (2014), “Principles of Direct and Digital Marketing”, Fifth Edition, England, Pearson Education Limited

Thomas B, Housden, M (2011). Direct and digital marketing in practice. London: A. & C. Black.

Payne, A., Christopher, M. and Peck, H. (1995) 'Relationship Marketing for Competitive Advantage: Winning and keeping customers', Butterworth-Heinemann, Oxford.
Direct Marketing has to be considered according the business structure
Direct Marketing will not be achievable without sophisticated database
Direct Marketing concentrates on customers as individuals rather than as a group
Direct Marketing gives a personalized touch and helps to manage customer relationship and develop customer loyalty easier
"Acquire with product, retain with service
" (Professor Tom O.Jones,1996)

Tapp et al (2014)
Tapp et al (2014)
1)Build a superior customer value proposition

2)Find the right customers

3)Earn customer loyalty

4) Find the right employees

5) Earn employee loyalty

6) Gain cost advantage through superior

7) Find the right investors

8) Earn investor loyalty
The 8 elements of loyalty strategy (Reiccheld, 1996)
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