Direct And Digital Marketing Final

Front 1

Define Direct Marketing

Back 1

A database-driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction.

Front 2

CANSPAM

Back 2

Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003

Front 3

Characteristics of Direct Marketing

Back 3

· Customer/prospect databases that make one-to-one targeting possible

· A view of customers as assets withlifetime value

· Data-based market segmentation

· Benefit-oriented direct response advertising

· Measurement of results and accountability for costs

· Interactivity with customers on a personalized, individual basis

· Multi-channel fulfillmentand distribution

Front 4

DM vs. Traditional Marketing

Back 4

DM: direct selling to individuals with customers identifiable by name, address, and purchase behaviour

Traditional Marketing: mass selling with buyers identified as broad groups sharing common demographic and psychographic characteristics.

Front 5

Primary Objective of DM

Back 5

to generate a response

Front 6

Primary objective of advertising

Back 6

create awareness

Front 7

RFM analysis

Back 7

Recency: last date of purchase
Frequency: number of purchases per year

Monetary: amount of money spent within the season

Front 8

6 Capabilities of Direct Marketing

Back 8

1. Acquire customers

2. Resell customers

3. Upgrade customers

4. Cross-sell customers

5. Build traffic

6. Build loyalty

Front 9

10 R's of Direct marketing Success Formula

Back 9

The right....

1. Audience

2. Product or service

3. Media

4. Offer

5. Creative

6. Format

7. Campaign Integration

8. Tests

9. Systems

10. Analysis

Front 10

Hierarchy of Objectives

Back 10

Company mission and vision

Corporate objectives

Corporate strategies

Divisional objectives

Divisional strategies

Product/brand objectives

Brand strategies

Program objectives

Tactics

Front 11

Strategy is a coherent mix of policy and action designed to surmount a difficult– usually high stakes – challenge.

Front 12

3 Components of a good strategy

Back 12

1. Diagnosis of the challenges and obstacles facingthe organization

2.Guiding policy that outlines how the organization plans to approach or overcome the challenges

3.Coherent action and resourcecommitments to executeon the guiding policy

Front 13

Flat File vs. Relational Database

Back 13

A flat file is a single table (or list)

A relational database incorporates multiple tables with methods for the tables to work together. The relationships between table data can be collated, merged or displayed in database forms.

Front 14

What is a Customer Database

Back 14

A customer database is a list of customer names towhich the marketer has added additional information in a systematic fashion

Front 15

4 Common Types of Marketing Data

Back 15

1. Primary Data: names and addresses of customers, details of product and/or services your organization offers,pricing and campaign details, etc.

2. Secondary Data: data used to qualify primary data, such as demographics, lifestyle information, geographic profiles (PRIZM segments), etc.

3. Performance Data: how your customers have responded, what they bought, how much they spend, and to which campaign they responded.

4. External Data: rent or bought information from lists or other databases.

Front 16

Cluster Analysis

Back 16

The task of grouping a set of customers in such a way that customers in the same group are more similar to each other than those in other groups.

Front 17

Market Basket Analysis

Back 17

Used to help stores place products that are frequently purchased together in the same area or create a “customers who purchased X also purchased Y” output.

Front 18

Neural Networks

Back 18

software applications that mimic the neurophysiology of the brain, in the sense that they learn from examples to find patterns in data.

Front 19

Partner Relationship Marketing (PRM)

Back 19

when companies work closely together with partners in other companies to generate greater value to customers

Front 20

Predictive Modeling

Back 20

is the process of using math to analyze your database todetermine some formulasthat “explain” the behaviour of prospects or customers.

Front 21

Customer Value Hierarchy (from highest to lowest)

Back 21

· Advocates

· Clients

· Customers (have only bought once)

· Prospects

· Suspects

Front 22

Nixie Removal

Back 22

Mail that has been returned by the Postal Service because it is undeliverable as Addressed – remove from database: this is one reason why email is more cost effective

Front 23

Record Status Update

Back 23

Transaction data, marital status, death, etc.

Front 24

House Lists

Back 24

the customer databases of organizations

Front 25

Compiled lists

Back 25

individuals or companies without any previous indication of willingness to respond, but with some defined and identifiable characteristic(s) such as demographics, firmographics, psychographics, or ZIP code.

Front 26

Mailing lists

Back 26

rented, typically for a one-time use. If after testinga portion of a list, the renting organization wants to re-mail or rollout the list, it must pay an additional rental fee

Front 27

Data cards

Back 27

· provide details on the list size, cost per thousand, its source and history, percentage of the list that is direct-mail generated, etc.

Data cards also indicate the presence of hot lead names – customers who made a mail-order purchase within the last 30 to 90 days, and how this list can be segmented

Front 28

What is the process of segmenting

Back 28

Stage 1: Your Market and how it works· Step 1: Defining the market

Step 2: Market Mapping

Stage 2: Decision-makers and transactions

Step 3: Who specifies what

Stage 3: Segmenting the market

Step 4: Why

Step 5: Forming segments

Stage 4: Identifying your target segments Step 6: Segment attractiveness

Step 7: Company competitiveness

Front 29

3 Characteristics of an Effective Offer

Back 29

1. Believability 2. Involvement 3. Creativity

Front 30

Four Steps to Planning the Offer

Back 30

1. Establish objectives

2. Decide on the attractiveness

3. Reduce risk

4. Select a creative appeal

Front 31

14 Components of the offer

Back 31

1. Product or Service (must satisfy the needs or wants of the target consumer)

2. Pricing/Payment Terms (price skimming vs. price penetration)

3. Trial or Examination Period (helps overcome any risk factors)

4. Shipping and Handling (rule of thumb: 10% of basic selling price)

5. Guarantees (help a buyer overcome the reluctance to buying)

6. Sweepstakes or Contests (level of engagement)

7. Gifts and Premiums (stimulate or increase response)

8. Time Limits (limited quantity over a specified time period)

9. Continuity

10. Unit of Sale

11. Optional Features

12. Future Obligation (marketer pays a substantial amount for the first order, knowing that there will be a long term payout)

13. Credit Options(offering the ability to pay on credit)

14. Quantity Limits(only a certain amount ever produced

Front 32

5 Steps to Creating an Offer

Back 32

1. Perform Market Research

2. Determinethe Terms of the Offer

3. Targeting an Offer

4. Test the Offer

5. Execute the Offer

Front 33

Predictive Dialers

Back 33

machines dial and connectonly when a “live caller”reached

Front 34

4 Elements of Outbound Telemarketing

Back 34

1. List or target audience

2. Offering being communicated

3. Telephone sales representative

4. Script or message being communicated

Front 35

Hard Bounce vs. Soft Bounce

Back 35

Hard Bounce: undeliverable emails

Soft Bounce: not able to deliver (overloaded server, full mailbox

Front 36

Open Rates

Back 36

can only measure HTML emails where images are retrieved from the server; 30% is average

Front 37

A/B Testing or Split Testing

Back 37

Compares the effectiveness of two versions of a web page, marketing email, or the like –in order to discover which has better response rates, better sales conversion rates, or the like

Front 38

Multivariate Testing

Back 38

A process by which more than one component of a website may be tested in a live environment. It can be thought of in simple terms as numerous A/B tests performed on one page at the same time

Front 39

What is the content life cycle?

Back 39

Strategy

Plan

Create

Maintain

Audit

Front 40

Content Marketing

Back 40

is a marketing technique of creating and distributing relevant and valuable content to attract, acquire,and engage a clearly defined and understood target audience – with the objective of driving profitable customer actions.

Front 41

What makes social media "social"?

Back 41

Reach

Accessibility

Usability

Timeliness

Impermanence

Front 42

6 Social Media types

Back 42

1. Collaborative Projects (Wikipedia, Reddit)

2. Blogs and Micro-blogs (Tumblr)

3. Content Communities (YouTube, Vimeo, Soundcloud)

4. Social Networking Sites (Facebook, Match.com, LinkedIn)

5. Virtual Game Worlds (World of Warcraft, Sims)

6. Virtual Social Worlds

Front 43

What is the Digital Marketing Trifecta?

Back 43

1. Earned Media: sharing, mentions, reposts, reviews,etc.

2. Paid Media:advertising, pay per click, social media ads, paid influencers

3. Owned Media: website, mobile site, blog site, social media channels

Front 44

Challenges of Social Media

Back 44

Measurement

Control

Trust

Capacity

Front 45

Conversion Rate vs. Amplification Rate vs. Applause rate

Back 45

Conversion rate: # of audience or comments per post

Amplification rate: number of shares, retweet, and such per post

Applause Rate: Number of favorites, likes, and such per post

Front 46

According to Jill Purse what are the keys to great content?

Back 46

1. Buyer Research

2. Content Audit

3. Strategize

4. Write

5. Produce

6. Promote

7. Optimize

Front 47

What are the three pilars for Telus

Back 47

Strategy, Creative, Execution

Front 48

Why use direct response?

Back 48

It is targeted

It is interactive

It is measurable

Front 49

What is Telus' Procces?

Back 49

1. Predevelopment planning

2. Creative Breif

3. Creative Development

4. Creative Presentation

5. Review

6. Production/Deloyment

7. Reporting and Analytics

Front 50

According to Jill Purse what is the conversion funnel?

Back 50

- What do you do?

- Why should I care?

- How do I believe you?

- Where do we begin?

Front 51

7 Steps to making great conent

Back 51

- Buyer research: people who know, sales team,existing contacts

- Content audit: know what is there, change what needs to be changed

- Strategize: possibilities vs risks

- Write: biggest trap

– write too much about product; write about people; write unique stories behind the product/company

- Produce: media? Format?

- Promote: paid, owned, earned media- Optimize: is it working?

Check analytics; use A/B testing,

Front 52

According to Olivia Williams, when should you test?

Back 52

ALWAYS

Front 53

What are campaigns that need measurement/optimization?

Back 53

1. Product Introduction

2. New Market Penetration

3. Increasing Market Share

4. Increasing Profitability

Front 54

How do we calculate Customer Lifetime Value?

Back 54

(Average Monthly Revenue*Gross Margin per customer)/Monthly Churn Rate

Front 55

WHAT IS STRATEGY

Back 55

· Enhances coordination

· Defines resource allocation

· Leads to a superior market position· Should we invest in creating new customers or in building better relationships with our current customers?

· What proportion of our marketing efforts should we spend on loyals?

· What proportion of our marketing efferts should we spend on prospecting?

Front 56

What are the key questions in strategy?

Back 56

Where are you now?

Where do you want to end up?

Whats in between?

Specific course of action

Front 57

What are the 3 characteristics of an Effective Offer?

Back 57

- Believably

- Involvement

- Creativity