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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
Summary
This chapter introduced you to the
rapidly growing field of direct marketing,
which involves a variety of
methods and media beyond direct
mail and telemarketing. The versatility
of direct marketing offers
many different types of companies
and organizations a powerful promotional
and selling tool.
Direct marketing continues to
outpace other advertising and promotional
areas in growth; many of
the Fortune 500 companies now
use sophisticated direct-
Key Terms
direct marketing, 463
direct-response media,
463
database, 467
database marketing, 467
RFM scoring method, 471
14. Direct Marketing © The McGraw−Hill
Companies, 2003
marketing strategies. Database
marketing has become a critical
component of many marketing
programs.
Advantages of direct marketing
include its selective reach,
segmentation, frequency, flexibility,
and timing. Personalized and
custom messages, low costs, and
the ability to measure program
effectiveness are also advantages
of direct-marketing programs.
At the same time, a number of
disadvantages are associated with
one-step approach, 471
two-step approach, 471
mailing list, 473
direct-response
advertising, 475
Discussion Questions
1. Many marketers felt that the
Internet would hurt the direct mail
catalog industry. In fact, this has
not been the case. Explain some of
the similar characteristics of catalog
shopping and shopping on the
Internet. Then explain why you feel
the mail catalog business has not
been hurt.
2. What is the difference between
direct marketing and direct
selling? Describe the various
forms of direct selling and some
of the characteristics of the industry
that make it unique.
3. What are the characteristics of
the infomercial watcher? In viewing
this profile, does it surprise you?
Explain why or why not.
4. Explain why companies like
those cited in the lead in to Chapter
14 have been successful in
support advertising, 475
infomercial, 475
advertorial, 477
telemarketing, 477
audiotex, 477
adopting direct marketing
techniques. Describe the
conditions that contribute to the
successful implementation of
direct marketing programs.
5. Identify some of the factors that
have contributed to the growth of
direct marketing. Do you see these
factors being as relevant today?
Discuss why or why not, and the
impact they will have on direct
marketing in the future.
6. The catalog has become an
important part of the shopping
lives of many consumers. Describe
different groups that you think
might find catalogs useful in the
consumer market, and explain
what aspects of catalogs would
attract them to this medium.
7. Most of the methods for measuring
effectiveness of direct market-
the use of direct marketing. Image
problems, the proliferating sale
and use of databases (some of
them based on inaccurate lists),
lack of content support, and the
intrusive nature of the medium
make some marketers hesitant to
use direct-marketing tools.
However, self-policing of the industry
and involvement by large,
sophisticated companies have led
to significant improvements. As a
result, the use of direct marketing
will continue to increase.
telemedia, 477
electronic teleshopping,
478
direct selling, 478
cost per order (CPO), 480
ing have to do with behaviors like
sales, cost per order, etc. Explain
how the adoption model discussed
in Chapter 5 might also be employed
to measure effectiveness.
8. One of the disadvantages associated
with direct-marketing
media is the high cost per exposure.
Some marketers feel that this
cost is not really as much of a disadvantage
as is claimed. Argue for
or against this position.
9. Why have companies like Volvo,
Cadillac, and General Motors
increased their use of infomercials?
Is this a wise strategy?
10. Give an example of how companies
might use direct marketing as
part of an IMC program. Provide
examples of both consumer and
business marketers.
483