1. Introduction to Direct Marketing 1
Introduction 1
Defining Direct Marketing 2
1-800-FLOWERS 3
Scope of Direct Marketing 4
Direct Marketing's Special Competencies 7
Reasons for the Growth of Direct Marketing 11
What Can Be Sold via Direct Marketing? 13
Decision Variables in Direct Marketing 16
Direct Markting Media 19
Direct Marketing Program Objectives 29
New Direct Marketing Approaches 31
Summary 33
Review Questions 33
Notes 33
Sources 33
2. Direct Marketing Strategies 36
Introduction 36
Lands' End 37
The Nature of Strategic Markting 40
Sustainable Competitive Advantage 42
The Strategic Marketing Planning Process 43
Summary 59
Review Questions 60
Sources 60
3. Segmentation and Target Marketing Introduction 62
Targeting Individuals 63
Targeting Businesses 64
Segmentation Alternatives 65
Requirements for Segmentation 66
Types of Segmentation 67
Summary 76
Review Questions 76
Notes 77
Sources 77
4. Direct Marketing and Technology 78
Introduction 78
A 500-Channel System 80
Interactive Television 81
Infomercials 82
Home Shopping Channels 82
Online Services 83
The lnternet 84
Surviving the Technological Revolution 87
Summary 88
Review Questions 89
Note 90
Sources 90
5. Database Marketing 92
Introduction 92
What Is Database Marketing? 93
Bear Creek Builds a Marketing Database 101
Database-Related Privacy Issues 106
Summary 108
Review Questions 109
Notes 109
Sources 109
6.List Selection and Management 112
Introduction 112
The List Industry 114
NBO 115
Types of Lists 116
Renting a List 120
List Segmentation 123
Summary 127
Review Questions 128
Notes 128
Sources 128
Appendix to Chapter 6 Mailing List Software 130
7. Positioning and Offer Planning 134
Introduction 134
The Sharper Image 134
Customer Motivations 138
Developing a Positioning Strategy 140
Offer Planning 143
The Pleasant Company 146
Summary 148
Review Questions 149
Notes 149
Sources 149
8. Creative Strategy and Execution 151
Introduction 151
Creative Strategy Development 152
Franklin Mint 152
The Creative Strategy Statement 154
Determining Creative Executions 156
Managing the Creative Process 157
Creative Strategy and Execution for Direct Marketing Media 157
Summary 168
Review Questions 168
Notes 168
Sources 169
9. Direct-Mail Marketing 171
Introduction 171
Casinos Gamble on Direct Mail 171
The Direct-Mail Industry 172
The Advantages of Direct Mail 174
Scott Paper Uses Business-to-Business Direct Mail 177
The Direct-Mail Package 178
Timing and Sequencing of Mailings 181
The Mailing List 181
Direct Mail and Privacy 181
Government Postal Rates 184
Worldwide Mail-Order Marketing 184
Issues and Trends 186
Summary 188
Review Questions 188
Notes 188
Sources 189
Appendix to Chapter 9 Direct Marketing Association Guidelines for Mailing List Practices 190
10. Catalog Marketing 197
Introduction 197
The History of Catalogs 199
Types of Catalogs 200
Three Innovative Catalog Marketers 201
The Catalog Shopper of the 1990s 206
Catalog Attribute Preferences 208
Catalog Design 211
Catalogs and Database Technology 216
Perceived Risk in Catalog Shopping 219
Summary 222
Review Questions 223
Notes 223
Sources 224
11. Telemarketing 225
Introduction 225
The Scope of Telemarketing 226
Telemarketing at Amoco 230
Telemarketing at Ryder System 232
Scripts and Telephone Marketing 233
Integrating Telemarketing with Other Media 235
Service Bureaus versus In-House Telephone Operations 236
Managing and Motivating Telemarketing Representatives 239
FTC Telemarketing Rules 243
Summary 245
Review Questions 246
Notes 247
Sources 247
Appendices to Chapter 11 249
Appendix A: Telemarketing and the Law 249
Appendix B:Telemarketing Sample Script 251
Appendix C: Direct Marketing Association Guidelines for Telemarketing 259
12. Direct-Response Television 264
Introduction 264
Direct-Response Television Commercials 266
Dial-A-Mattress 267
Why Direct-ResPOnse TV Commercials? 267
Ryder Trucks 270
Media Planning for Direct-Response Television Commercials 270
Infomercials 273
Home Shopping Channels 275
Summary 276
Review Questions 277
Notes 278
Sources 278
Appendix to Chapter 12 Direct Marketing Association Guidelines for the Acceptance of Direct-Response Broadcast Advertising 280
13. Direct-Response Radio 283
Signet Bank 283
Introduction 284
The Essence of Direct-Response Radio Advertising 285
Dial-A-Mattress 287
Making Good Use of Radio 288
Summary 292
Review Questions 292
Notes 293
Sources 293
14. Direct Response in Print Media 294
Introduction 294
Making Magazine and Newspaper Advertising Work 296
Typeof Magazines 300
Direct Marketing in Magazines 305
Direct Response in Newspapers 306
Advantages and Disadvantages of Newspapers 309
Summary 311
Review Questions 313
Note 313
Sources 313
Appendix to Chapter 14 Direct Marketing Association Guidelines for the Acceptance of Print Mail-Order Advertising 315
15.Business-to-Business Direct Marketing 318
Introduction 318
The Scope of Business-to-Business Direct Marketing 319
The Objectives of Business-to-Business Direct Marketing 320
Business-to-Business versus Consumer Markets 321
Segmenting and Targeting Business Markets 323
The Media of Business-to-Business Direct Marketing 326
Successful Business-to-Business Direct Marketers 337
Summary 339
Review Questions 340
Notes 340
Sources 341
16. International Direct Marketing 342
Introduction 342
Successful International Direct Marketing 344
Benefits of International Business 346
International Strategies 348
Direct Marketing and tbe Global Economy 353
Summary 359
Review Questions 359
Notes 360
Sources 360
17. Direct Marketing Decision Support Tools 363
Introduction 363
Direct Marketing Research 365
Direct Marketing Testing and Experimentation 366
A Basic Direct Markting Test 367
A Basic Direct Marketing Experiment 368
The TV Guide Online Experiment 369
Direct Marketing Models 374
The AmEx Mail-Order Catalog Campaign Model 376
Summary 378
Review Questions 379
Notes 379
Sources 379
18. Direct Marketing Profitability 381
Introduction 381
Ways to make Money 382
Basic Catalog Start-up Numbers 383
A Sample Infomercial Campaign 385
An American Express Travel Services Card Member Campaign 389
The Net Present Value of a New Venture 390
The Lifetime Value of Customers 391
J.C. Penney's Life Insurance Company's Discovery of the Long-Term 391
Value of a Customer 396
Summary 397
Review Questions 398
Notes 398
Sources 398
19. The Fulfillment Process 400
Introduction 400
What Is Fulfillment? 400
Fulfillment In-House or Outside? 404
Ficking a Fulfillment Service 405
Fulfillment in Action 406
Summary 408
Review Questions 408
Notes 408
Sources 409
Appendices to Chapter 19 410
Appendix A: Fulfillment Centers 410
Appendix B: Fulfillment Software 414
20. The Future of Direct Marketing 418
Introdction 418
Forces of Change 419
New Media 421
The Internet 424
Marketing in Cyberspace 428
The Future of Television 430
The Emergence of Hybrid Channels 432
Summary 434
Review Questions 435
Notes 436
Sources 436
Cases 439
Case 1: Avon Products, Inc. 439
Case 2: Barney ( Friends) 447
Case 3: Deal-A-Meal USA 453
Case 4: Dell Computer 462
Case 5: Dial-A-Mattress 470
Case 6: Fidelity Investments 477
Case 7: The Franklin Mint 483
Case 8: The Home Shopping Network 489
Case 9: id Software, Inc. 499
Case 10: NordicTrack 510
Index 521