DDM 2006 Chapter2

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Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Databases: Lecture 2

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Class Rules: Attend every class 100% & never be late. Attention to be focused on the class Be courteous to other students No late assignments Participate in class

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Learning Objectives: Define “direct & database marketing” (DDM) Understand & apply DDM concepts and methods Understand concept of integrated marketing & the role of DDM “Hands-on” practice with DDM software

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 “The New Direct Marketing is an information driven marketing process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.” New Direct Marketing, 3rd Edition, by David Shepard Associates

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 What are the tangible elements of direct marketing? Consists of ways of thinking, principles and tangible elements

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Direct Marketing’s Tangible Elements The database itself Communications that invite a direct response Direct distribution of goods

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Database Definition: A marketing database is a comprehensive collection of interrelated data serving multiple applications, allowing timely and accurate on-demand retrieval of relevant data, and having a data management system independent of application.

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Key aspects: Interrelated data Multiple applications Data management system

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Alternative Definition: A marketing database is a list of customers and prospects records that enables strategic analysis, and individual selections of communication and customer service support. That data is organized around the customer.

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 The Database - Interactive Marketing’s Essential Difference: who our customers are what they buy leads to what they want from us how much they are worth to us = create relationships over time

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Handling Customers ‘Over Time’ : The customer database allows you to understand your customers history with you and so predict their future needs

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Database marketing: customer focus get to know customer because you start recording your transactions with them company initiates contact that invites a response

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Direct & Database Marketing: Uses mass media when addressing new prospects Uses personal media-direct mail, telemarketing, when developing relationships with existing customers Focus on customers, rather than products get to know customer because you start recording your transactions with them

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Example: Why Databases Fail (.ppt) CRM Strategies inHealthcare (.ppt) Customer Acquisition & Modeling (.ppt) Data Mining 101

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Direct & Database Marketing: measurement Marketers analyse behaviour to predict best responding people & the best offers to make

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Direct & Database Marketing: Is more expensive, on a per-customer basis A way of buying a closer relationship customer First individual information Subsequent precision & control in customer contact I.e., Marketers analyse behaviour to predict best responding people & the best offers to make

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 A Complete System of Marketing: market analysis and research segmentation and positioning making an offer creating relationships … are all done within a database marketing framework

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 Reasons for growth: Business: Ever more competition Drive for cost-effectiveness Interest in consumer retention & loyalty Continuing drop in computer processing costs

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 DDM Advantages: Lead grading Customized targeting at the right time New information & past results help formulate strategy

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006 DDM Advantages: Information can drive new programs & fuel new revenue sources Information can foster new new services & generate repeat orders Ongoing communication efforts can increase customer loyalty

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006

Direct & Database Marketing 2006 : 

Zhong Qiao Ji Tuan 2006 Direct & Database Marketing 2006