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1. Introduction to Direct Marketing1

Introduction1

Defining Direct Marketing2

1-800-FLOWERS3

Scope of Direct Marketing4

Direct Marketing's Special Competencies7

Reasons for the Growth of Direct Marketing11

What Can Be Sold via Direct Marketing?13

Decision Variables in Direct Marketing16

Direct Markting Media19

Direct Marketing Program Objectives29

New Direct Marketing Approaches31

Summary33

Review Questions33

Notes33

Sources33

2. Direct Marketing Strategies36

Introduction36

Lands' End37

The Nature of Strategic Markting40

Sustainable Competitive Advantage42

The Strategic Marketing Planning Process43

Summary59

Review Questions60

Sources60

3. Segmentation and Target Marketing Introduction62

Targeting Individuals63

Targeting Businesses64

Segmentation Alternatives65

Requirements for Segmentation66

Types of Segmentation67

Summary76

Review Questions76

Notes77

Sources77

4. Direct Marketing and Technology78

Introduction78

A 500-Channel System80

Interactive Television81

Infomercials82

Home Shopping Channels82

Online Services83

The lnternet84

Surviving the Technological Revolution87

Summary88

Review Questions89

Note90

Sources90

5. Database Marketing92

Introduction92

What Is Database Marketing?93

Bear Creek Builds a Marketing Database101

Database-Related Privacy Issues106

Summary108

Review Questions109

Notes109

Sources109

6．List Selection and Management112

Introduction112

The List Industry114

NBO115

Types of Lists116

Renting a List120

List Segmentation123

Summary127

Review Questions128

Notes128

Sources128

Appendix to Chapter 6 Mailing List Software130

7. Positioning and Offer Planning134

Introduction134

The Sharper Image134

Customer Motivations138

Developing a Positioning Strategy140

Offer Planning143

The Pleasant Company146

Summary148

Review Questions149

Notes149

Sources149

8. Creative Strategy and Execution151

Introduction151

Creative Strategy Development152

Franklin Mint152

The Creative Strategy Statement154

Determining Creative Executions156

Managing the Creative Process157

Creative Strategy and Execution for Direct Marketing Media157

Summary168

Review Questions168

Notes168

Sources169

9. Direct-Mail Marketing171

Introduction171

Casinos Gamble on Direct Mail171

The Direct-Mail Industry172

The Advantages of Direct Mail174

Scott Paper Uses Business-to-Business Direct Mail177

The Direct-Mail Package178

Timing and Sequencing of Mailings181

The Mailing List181

Direct Mail and Privacy181

Government Postal Rates184

Worldwide Mail-Order Marketing184

Issues and Trends186

Summary188

Review Questions188

Notes188

Sources189

Appendix to Chapter 9 Direct Marketing Association Guidelines for Mailing List Practices190

10. Catalog Marketing197

Introduction197

The History of Catalogs199

Types of Catalogs200

Three Innovative Catalog Marketers201

The Catalog Shopper of the 1990s206

Catalog Attribute Preferences208

Catalog Design211

Catalogs and Database Technology216

Perceived Risk in Catalog Shopping219

Summary222

Review Questions223

Notes223

Sources224

11. Telemarketing225

Introduction225

The Scope of Telemarketing226

Telemarketing at Amoco230

Telemarketing at Ryder System232

Scripts and Telephone Marketing233

Integrating Telemarketing with Other Media235

Service Bureaus versus In-House Telephone Operations236

Managing and Motivating Telemarketing Representatives239

FTC Telemarketing Rules243

Summary245

Review Questions246

Notes247

Sources247

Appendices to Chapter 11249

Appendix A: Telemarketing and the Law249

Appendix B：Telemarketing Sample Script251

Appendix C: Direct Marketing Association Guidelines for Telemarketing259

12. Direct-Response Television264

Introduction264

Direct-Response Television Commercials266

Dial-A-Mattress267

Why Direct-ResPOnse TV Commercials?267

Ryder Trucks270

Media Planning for Direct-Response Television Commercials270

Infomercials273

Home Shopping Channels275

Summary276

Review Questions277

Notes278

Sources278

Appendix to Chapter 12 Direct Marketing Association Guidelines for the Acceptance of Direct-Response Broadcast Advertising280

13. Direct-Response Radio283

Signet Bank283

Introduction284

The Essence of Direct-Response Radio Advertising285

Dial-A-Mattress287

Making Good Use of Radio288

Summary292

Review Questions292

Notes293

Sources293

14. Direct Response in Print Media294

Introduction294

Making Magazine and Newspaper Advertising Work296

Typeof Magazines300

Direct Marketing in Magazines305

Direct Response in Newspapers306

Advantages and Disadvantages of Newspapers309

Summary311

Review Questions313

Note313

Sources313

Appendix to Chapter 14 Direct Marketing Association Guidelines for the Acceptance of Print Mail-Order Advertising315

15．Business-to-Business Direct Marketing318

Introduction318

The Scope of Business-to-Business Direct Marketing319

The Objectives of Business-to-Business Direct Marketing320

Business-to-Business versus Consumer Markets321

Segmenting and Targeting Business Markets323

The Media of Business-to-Business Direct Marketing326

Successful Business-to-Business Direct Marketers337

Summary339

Review Questions340

Notes340

Sources341

16. International Direct Marketing342

Introduction342

Successful International Direct Marketing344

Benefits of International Business346

International Strategies348

Direct Marketing and tbe Global Economy353

Summary359

Review Questions359

Notes360

Sources360

17. Direct Marketing Decision Support Tools363

Introduction363

Direct Marketing Research365

Direct Marketing Testing and Experimentation366

A Basic Direct Markting Test367

A Basic Direct Marketing Experiment368

The TV Guide Online Experiment369

Direct Marketing Models374

The AmEx Mail-Order Catalog Campaign Model376

Summary378

Review Questions379

Notes379

Sources379

18. Direct Marketing Profitability381

Introduction381

Ways to make Money382

Basic Catalog Start-up Numbers383

A Sample Infomercial Campaign385

An American Express Travel Services Card Member Campaign389

The Net Present Value of a New Venture390

The Lifetime Value of Customers391

J.C. Penney's Life Insurance Company's Discovery of the Long-Term391

Value of a Customer396

Summary397

Review Questions398

Notes398

Sources398

19. The Fulfillment Process400

Introduction400

What Is Fulfillment?400

Fulfillment In-House or Outside?404

Ficking a Fulfillment Service405

Fulfillment in Action406

Summary408

Review Questions408

Notes408

Sources409

Appendices to Chapter 19410

Appendix A: Fulfillment Centers410

Appendix B: Fulfillment Software414

20. The Future of Direct Marketing418

Introdction418

Forces of Change419

New Media421

The Internet424

Marketing in Cyberspace428

The Future of Television430

The Emergence of Hybrid Channels432

Summary434

Review Questions435

Notes436

Sources436

Cases439

Case 1: Avon Products, Inc.439

Case 2: Barney ( Friends)447

Case 3: Deal-A-Meal USA453

Case 4: Dell Computer462

Case 5: Dial-A-Mattress470

Case 6: Fidelity Investments477

Case 7: The Franklin Mint483

Case 8: The Home Shopping Network489

Case 9: id Software, Inc.499

Case 10： NordicTrack510

Index521