The direct and database marketing can be differentiated from classic marketing as it is an individual approach of the customer. As the consumer behaviours are in constant evolution, direct and database marketing help companies integrate rapidly consumer needs and attempts. This is an interactive system of marketing which uses one or more advertising media to manage a measurable response and/or transaction at any location. Database marketing is a supporting discipline for the direct marketing. It gives direct marketers the opportunity to build strong objectives and strategies as this tool is a very measurable help for marketers' researches and give a large volume of information.
DM has huge advantages for organisations. They can have relevant information about the customer contributing to the development of a database. Marketers here can control the product, they have no intermediaries also. DM is a good support to in marketing communication efforts. It has been shown that its components help in a more effective promotion. It really contributes to advertising.
DM strategy is developed around five basic steps. Setting objectives and making strategies/Communication of an offer/Response or customers ordering/Handling exchanges and return/Database maintenance.The DM strategy will also turn around two main points. Keeping existing customers by developing a strong customers' loyalty, and in the same time acquiring new customers.
[...] Contrary to currently direct marketing strategy, the product in the new customers' acquisition is also fundamental; we are more here focusing on the four Ps than on the relationship and services. Marketers must know that a new customer does not mean a future loyal or profitable customer. That is why the process of new customers' acquisition must be very selective. The arrival of news customers can damage the actual brand image. So, the analyse of the new customers' profile called “profiling”, is an interesting instrument in order to prospect in the same way from existing customers. By comparing the current customers with the prospected ones, the company can output its first conclusions on the expected profitability. [...]
[...] Keeping existing customers The purpose of any direct marketing is in getting measurable responses. So, Companies will measure customers' life time value (LTV). The LTV can be defined as the total net contribution that a customer generates during his/her lifetime on a house-list. The LTV calculation is a part of the direct marketing strategy. Companies will calculate how much each customer is likely to be for the company. Thanks to this forecast, the company will predict the gross profit from customers and then construct a budget. [...]
[...] Adrian Sargeant, Douglas C.West.2001 P11, P19, P141, P178 “Marketing communications” PR Smith, J Taylor.2002 P313 “Cornerstones of direct marketing” Holder Warren MacFarlane, Business Harvard. customers are not created equals”Garth Hallberg Bitran Mondschein P109 Pareto principle: 80-20 rule”. Dr Joseph M. Juran “Management decision”. Philip Kotler Internet http://www.poste.ch/fr/pm_dp_directexpert_teil2.pdf http://www.the-dma.org/ http://www.emarketing.fr/ http://www.dmnews.com/cgi-bin/index.cgi http://www.catalogconference.com/attendees/ebay/ http://www.microsoft.com/france/securite/ Direct marketing agencies http://www.le-marketing-direct.net/offre_du_marketing_direct.html http://www.agence- aeronet.com/web_agency/nord/references/creations_graphiques.asp Principles of direct and internet marketing Alan Tapp. P22 “Direct and database marketing”. Kogan Page P28 “Direct and interactive marketing”Adrian Sargeant, Douglas C. West P19 “Direct and database marketing”. P30 Cornerstones of direct marketing Holder “Direct and interactive marketing”Adrian Sargeant, Douglas C. West P11 [...]
[...] The strategic importance of direct marketing The next step after analysing the market and the customers' needs is to set up marketing objectives. First of all, it is important that DM objectives match with general marketing objectives of the company. The marketing is crossing a phase of strategic reorientation; the base of this change is from a strategy oriented around the product towards a strategy around the relationship. The return volume depends now on the relationship the buyer has with the product. [...]
[...] mails, catalogues, phone, internet These records are the basis for marketing analysis, planning, implementation of programmes, and control of all this activity. Nevertheless, we can make a distinction between direct and database marketing. As database marketing is the way of using customers' information in order to create strategies, the direct marketing is the way of using that information to communicate directly to customers and so to attract a direct response. We are now more talking about customer dialogue and relationship. [...]
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