Lesson plan 3830 - Assumption University plan/Lesson plan 3830.pdf · characteristics and the...

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Martin de Tours School of Management

Department of Marketing

Lesson Plan

MKT 3830

Direct marketing

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Lesson Plan

MKT3830

COURSE DESCRIPTION

A comprehensive study of the elements of direct marketing and its fit into the strategy to

reach target audiences effectively. Topics include comparison of consumer and business-

to-business direct marketing techniques, uses of databases, circulation planning, creative

executions, list and media planning, direct mail, catalog marketing, telemarketing,

internet marketing and response analysis.

COURSE OBJECTIVES

• To provide an overview of the role and importance of Direct marketing as an activity

in the marketing mix.

• To help students understand the many facets of the firm's internal and external

environments that influences the formation and implementation of direct marketing

strategy.

• To provide an exposure to the organization and process of direct marketing activities.

• Through the use of case analysis and group project, enable students to practice

managerial decision-making.

• To provide an insight into to techniques for direct marketing evaluation and

measurement.

REQUIRED TEXT

Contemporary Direct Marketing, Lisa Spiller, Martin Baier, Pearson Prentice Hall

MARK ALLOCATION:

Participations 5 %

Assignments 10%

Project /Presentation 20 %

Mid-term exam. 25 %

Final exam. 40 %

Total 100 %

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CONTENTS

Chapter 1: Elements of direct marketing ...................................................................................2

Chapter 2: Direct Marketing Lists and Segmentation ...............................................................4

Chapter 3: Database Driven Direct Marketing ..........................................................................5

Chapter 4: Planning the Offer....................................................................................................6

Chapter 5: Creative Strategy in Direct Marketing .....................................................................7

Chapter 6: Direct mail and other print media ............................................................................9

Chapter 7: Broadcase and other Electronic Media .................................................................11

Chapter 8: Telemarketing ........................................................................................................13

Chapter 9: The Internet ............................................................................................................14

Chapter 10: Customer Service and fullfillment ......................................................................15

Chapter 11: Direct Marketing Research: Survey and Experimentation...................................16

Chapter 12: Regulatory Environment: The Ethical and Legal Issues in Direct Marketing .....18

Chapter 13: Business-to-Business (Industrial) Direct Marketing............................................19

Chapter 14: Direct Marketing for Nonprofit Organization ....................................................20

Chapter 15: International Direct Marketing.............................................................................21

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(WEEK1) Brief Course Introduction and Course Outline Distribution.

Lecture start From Week2. CHAPTER 1: Elements of Direct Marketing. Time Allocation: 2 hrs and 10 minutes (Week 2)

Learning objectives

Brief contents Teaching/ Learning Strategies

Teaching Aids/ Materials

Evaluation

-Understand

the differences

between direct

and traditional

marketing …

and that direct

marketing is an

extension of

and not an

alternative to

traditional

marketing

- Be familiar

with the

elements of

direct

marketing,

especially

those which

distinguish it

from

traditional

marketing

- Understand

the marketing

concept and

the impact it

has had on the

management

of customer

relationships

- Be able to

define and

discuss the

special

characteristics

of direct

marketing …

especially

measurement

and

accountability

• Elements of Direct Marketing

• The Marketing Concept and Customer

Relationship Management

• Direct Marketing Is an Extension of

Traditional Marketing

• Characteristics of Direct Marketing

• Who Uses Direct Marketing and How

° Users of Direct Marketing

° Applications of Direct Marketing

• Trends in Direct Marketing

° Creating In-Store Traffic

° Directing On-Line Traffic

° Membership (Affinity) Clubs

° Issues of Privacy and Security

Friendly, ice breaking discussion, asking question about basic marketing knowledge

Power Point slides

• Test their knowledge of basic marketing

• Testing student’s understan-ding in Direct marketing cycle.

Encouraging students to apply in different environment (either domestic or foreign countries) Case study.

3

; lists and

databases

- Know the

variety of

media: print,

broadcast, and

electronic

4

CHAPTER 2: Direct Marketing Lists and Segmentation Time Allocation: 2 hrs and 10 minutes (Week 3)

Learning objectives



Evaluation

-Understand

the importance

of market

segmentation

and the role

that lists serve

in direct

marketing

- Be familiar

with the five

bases

(geographic,

demographic,

social,

psychological

and

behavioral)

used in

segmenting

the consumer

market

- Be able to

differentiate

between

house,

response and

compiled lists

and be able to

critically

evaluate the

value of each

for direct

marketers

- Be able to

explain how

the list

industry

operates and

the interaction

between the

various

members in

this industry

The Nature of Market Segmentation:

° Product Differentiation

° Product Positioning

° Industrial Market Segmentation

The Bases for Market Segmentation:

° Geographic

° Demographic

° Social

° Psychological

° Behavioral

Lists As Market Segments:

A Perishable Commodity

Types of Lists: House, Response, Compiled

Development of House Lists

The List Industry :

List Users

List Owners

List Managers

List Compilers

List Brokers

Service Bureaus

Examples Power Point slides

Question and Answers Case study.

5

CHAPTER 3: Database-driven direct marketing Time Allocation: 2 hrs and 10 minutes (Week 4)

Learning objectives



Evaluation

- Understand

what a

customer

database is,

how to create

one and its

value and

uses for direct

marketing

- Explain the

function of a

customer

loyalty

program and

overview

examples of

customer

loyalty

programs

- Be familiar

with R-F-M

assessment

- Be able to

explain the

various

database

maintenance

activities that

direct

marketers

should

implement on

a regular basis

- Customer Database

- Database Development

° Customer Loyalty Programs

° Examples of Loyalty Programs

° Source Data

° The Recency/Frequency/Monetary

Assessment

- Database Maintenance

° Match Codes & Merge-Purge

° Multi-buyers

° Keeping Records Current

- Database Security

° Information Privacy

° Proper Database Storage

° List Seeding

- Database Uses & Applications

° Seven Ways a Direct Marketer Can Use

a Customer Database

- Database Enhancement

Presentation on the related topics and examples

Power Point slides


6

CHAPTER 4: Planning the offer Time allocation: 2 hours 10 mins(Week 5)

Learning objectives



Evaluation

- Understand

the role of an

offer along

with the

elements of

any effective

offer

- Know the

required steps

in planning an

effective offer

- Be familiar

with the basic

components

of an offer

and the

decisions that

direct

marketers

must make

with regard to

the offer

- Understand

the five step

process that

should be

followed

when creating

an offer

- Be able to

overview

some the

popular offers

used by direct

marketers

What is the Offer?

The Offer as a Component of Direct

Marketing Strategy

Elements of an Effective Offer

Planning the Offer :

° Step 1: Establish Objectives of the Offer

° Step 2: Decide on the Attractiveness of

the Offer

° Step 3: Reduce Risk of the Offer

° Step 4: Select a Creative Appeal

Components of the Offer:

° Product or Service

° Pricing & Payment Terms

° Trial or Examination Period

° Guarantees

° Sweepstakes and Contests

° Gifts and Premiums

° Time Limits

Creating an Offer :

Step 1: Perform Market Research

Step 2: Determine the Terms of the Offer

Step 3: Target the Offer Step 4: Test the Offer

Step 5: Execute the Offer


Power Point slides


7

CHAPTER 5: Creative strategies in Direct Marketing Time allocation: 2 hours and 10 minutes (Week 6)

Learning objectives



Evaluation

- Understand

that Offers +

Databases +

Promotions =

Customers

- Understand

that the

purpose of

promotion is

to generate

action

- Understand

that

promotion is a

means and not

an end in and

of itself

- Understand

the nuances

which

differentiate

brand/image

advertising

from

response/trans

action

advertising

- Be able to

distinguish

between the

ability to buy

and the

proneness to

spend

- Know the

tools and

techniques of

copywriting

and graphic

design

Offers + Databases + Promotions = Customers

Brands and Image-Building Versus Responses

and Transactions

Buyer Behavior: The Ability to Buy Versus the

Proneness to Spend

Copywriting and Graphics Techniques for

Creating Promotions

° Features Versus Advantages Versus.

Benefits

° Writing the Copy

° Using Design and Graphics

Creating Messages for Specific Media:


Power Point slides


8

- Know the

various

advertising

media and

how to create

messages for

each

- Know the

variety of

media: print,

broadcast, and

electronic,

including the

Internet

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CHAPTER 6: Direct mail and other print media Time allocation: 2 hours (Week 7)

Learning objectives



Evaluation

- Be able to

distinguish

among

printed media,

broadcast

media, and

electronic

media,

including the

Internet

- Know the

characteristics

and the

formats of

direct mail,

still the

medium most

utilized by

direct

marketers

- Know the

categories of

magazines,

advantages

and

disadvantages

of the

medium,

impact of

positioning

and timing,

and the

possibilities

for market

segmentation

- Know the

categories of

newspapers,

advantages

and

disadvantages

, impact of

Direct Mail as a Printed Medium

° Market Segmentation

° Catalogs

° Syndication Mailings

° Coupons

° Cooperative Mailings

° Statement/Invoice Stuffers

° Package Inserts

° Take-One Racks

Magazines as a Printed Medium


° Categories of Magazines

° Advantages and Disadvantages

° Position and Timing

Newspapers as a Printed Medium


° Categories of Newspapers


° Position and Timing


Power Point slides

Question and Answers .

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positioning

and timing,

and the

possibilities

for market

segmentation

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CHAPTER 7: Broadcast and other electronic media Time allocation: 2 hours (Week8)

Learning objectives



Evaluation

- Know the

characteristics

and the direct

marketing

uses of

television as

well as its

advantages

and

disadvantages

and especially

the

opportunities

it presents for

market

segmentation

- Know the

advantages

and

disadvantages

of radio as a

direct-

response

medium,

possibilities

for market

segmentation

in utilizing

the medium

- Know how to

use the

interactive

electronic

media … the

telephone and

the

revolutionary

Internet with

its partner, the

World Wide

Web. Know

how market

segmentation

Television:

Market Segmentation

Characteristics of Television Time

Direct Marketing Uses of Television

Home Shopping and Infomercials

Advantages and Disadvantages

Radio:

Market Segmentation

Rate Structure

Advantages and Disadvantages

Interactive Electronic Media:

Telemarketing


Power Point slides

Question and Answers Mid-Term Preparation. Ch1~7 30%

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fits in with

these media

- Be alert to the

opportunities

being

presented by

the emerging

technology of

television/tele

phone hook-

ups

13

CHAPTER 8: Telemarketing Time allocation: 2 hours (Week 9)

Learning objectives Brief contents Teaching/ Learning Strategies


Evaluation

- Be able to

differentiate

between inbound

and outbound calls

and each of their

particular uses

- Understand the

steps in planning a

telemarketing

program

- Be familiar with

the different types

of call centers that

exist - .

The Telephone as a Marketing Medium

° Inbound vs. Outbound Calls

° Advantages & Disadvantages

° History

° Telemarketing Technology

Planning the Telemarketing Program

Preparing the Telephone Script

° Training Telephone

Operators

° Integrating with other

Media

Call Centers

° In-House

° Outsourcing


Power Point slides


14

CHAPTER 9: The Internet Time allocation: 1 hour and 15 minutes (Week 10)



Evaluation

- Understand the

characteristics,

including the

advantages and

disadvantages,

associated with the

Internet

- Be familiar with

the various

applications of

interactive media

- Know how to

measure and

increase web site

traffic

The Newest Interactive Medium

Growth of Internet Marketing

Business-to-Business Transactions

° Differences Between the Internet and

The World Wide Web


Applications of Interactive Media

° e-mail Marketing

Online Market Research

° Web Advertising

° e-Branding

Measuring and Increasing Site Traffic &

Stickiness

Web Site Promotion

° Creating Web Site Stickiness

Media Measurement – “e-metrics”


Power Point slides


15

CHAPTER 10: Customer Service and Fulfillment. Time allocation: 2 hours (Week 11)



Evaluation

- Understand the

importance of and

activities involved

in delivering good

customer service

- Be able to explain

what is involved in

customer

relationship

management

- Be able to define

fulfillment and

overview

traditional

fulfillment

standards

- Be familiar with

the six step

fulfillment process

- Compare and

contrast the

various fulfillment

and delivery

options

The Importance of Customer Service

° Customer Relationship Management

° Evaluating CRM

° Keeping Customers Happy

Fulfillment

° What is Fulfillment?

° Traditional Fulfillment Standards

The Fulfillment Process

° The Offer

° The Response

° Processing

° Shipping

° Billing

° Customer Service

Fulfillment Options

° In-House Fulfillment

° Outside Fulfillment Centers

° On-Line Fulfillment

Delivery Options

° Multi-Channel Distribution

° United States Postal Service

° Alternative Delivery Systems

Fulfillment Problems

° Sources of Fulfillment Problems

° Ways to Avoid Fulfillment Problems


Power Point slides


16

CHAPTER 11: Direct Marketing Research: Survey and Experimentation Time allocation: 1 hour and 30 minutes (Week 12)



Evaluation

- Understand the

importance and

place of both

quantitative and

qualitative

research;

distinguish that

which is survey

from that which is

experimentation;

know when and

how to conduct

research.

- Understand the

significance of

statistics and know

terms used in

statistics.

- Distinguish

between secondary

and primary data

and know how to

obtain each.

- Know how to

design and

conduct an

experiment and

track its results.

- Be able to

determine a

sample size

statistically,

considering

confidence level,

limit of error and

predicted (or

actual) response.

- Be able to measure

difference in

response rates

between control

The Nature of Research

° Surveys Versus Experiments

° Problem Structure

° What to Test

Data: Types, Sources, and Collection

° Secondary Data

° Primary Data

Experimentation as Testing

° Design of the Experiment

° Tracking Responses

° Response Rate and Break-Even

Analysis

Samples and Estimations

° Random Samples

° Determining the Sample Size

°


Power Point slides


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and test segments.

- Understand the

procedure for

hypothesis testing -

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CHAPTER 12: Regulatory Environment: The ethical and Legal issues in Direct Marketing Time allocation: 2 hours and 10 minutes (Week 13)



Evaluation

- Be familiar with

the basic rights of

consumers


the primary issues

regarding

information

privacy

- Be familiar with

the regulatory

authorities of

direct marketing -

Ethics of Direct Marketing

° DMA’s Guidelines for Ethical Business Practices

° The DMA Ethics & Consumer

Affairs Department

Basic Consumer Rights

° Right to Safety

° Right to Be Informed

° Right to Selection

° Right to Confidentiality

° Right to Privacy

Legislative Issues

° Intellectual Property

° Security

° Privacy

Privacy Legislation

° Privacy Protection Study Commission

° Privacy Today: Anti-Spam Laws

Privacy Issues

° Annoyance and Violation

° Type of Information

° Consumer Privacy Segments

° Corporate Response to Privacy

° DMA Privacy Promise

Regulatory Authorities of Direct Marketing

° Federal Communication Commission

° Federal Trade Commission

° United States Postal Service

° State and Local Regulations

° Private Organizations


Power Point slides


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CHAPTER 13: Business-to-Business (Industrial) direct marketing Time allocation: 2 hour and 10 minutes (Week 14)



Evaluation

- Understand the

distinction

between consumer

and industrial

markets and the

implications for

marketing in each

- Know the

characteristics that

distinguish

industrial demand

and those that

identify industrial

goods

- Address the

perceived

“differences”

between consumer

and industrial

markets

- Identify and relate

to uses and users

of B2B direct

marketing

- Know the

techniques of

industrial market

segmentation

- Understand the

special importance

of database in B2B

direct marketing

The Nature of Industrial Markets

○ Types of Industrial Goods

○ Characteristics of Industrial

Demand

Uses and Users of B2B Direct Marketing

○ A Special Case: Industrial

Computer Installations

○ Another Special Case:

Industrial Vending

Machine Installations

○ FedEx is a Model B2B

Marketer

Challenges of B2B Direct Marketing

How to Identify B2B Market Segments

○ Standard Industrial

Classification System

(SIC)

○ North American Industrial

Classification System

(NAICS)

○ Input-Output Analysis of

Industrial Markets

○ The Census Bureau’s TIGER

System

○ Business Clusters


Power Point slides


20

CHAPTER 14: Direct marketing for Nonprofit Organizations Time allocation: 1 hour and 15 minutes (Week 15)



Evaluation

- Understand the

various

applications of

direct marketing

for nonprofit

organizations


the importance of

customer

relationship

management for

nonprofit

organizations

- Overview the

elements of an

effective

fundraising

campaign

- Be familiar with

the various media

strategies that are

used by nonprofit

organizations

Direct Marketing for Nonprofit Organization

Direct Marketing Applications

Customer Relationship Building

° Customer Relationship Maintenance

° Corporate Partnerships

Fundraising

° Basic Fundraising Principles

° The Fundraising Appeal

Media Strategies and Award Winning

Campaigns

° Direct Mail

° Telephone

° Television

° Internet


Power Point slides


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CHAPTER 15: International Direct marketing Time allocation: 1 hour and 15 minutes (Week 15)



Evaluation

- Understand the

unique differences

between domestic

and foreign

markets for direct

marketers

- Be familiar with

the steps that

should be followed

when entering a

foreign market

- Be able to

overview of the

common modes of

market entry

including direct

exporting,

licensing, joint

venture, contract

manufacturing and

direct investment

- Understand the

unique

infrastructure

needed to support

direct marketing

operations in

foreign countries

including lists and

database,

fulfillment

operations, media

and creative

Direct Marketing Around the World

Differences Between Domestic and International Dir

° Making the Decision to Go Internationa

° Modes of Market Entry

° Exporting

• Licensing

• Joint Venture

• Contract Manufacturing

• Direct Investment

• Management Contracting

International Direct Marketing Infrastructure.

° Lists/Database

• Fulfillment

• Media

• Creative


Power Point slides


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