BMGT 411: Assignment #4 Direct and Targeted Marketing


In the last class, we took a deep dive into marketing that leveraged mass communications to reach an audience, TV, Radio, Newspaper, Magazines, Billboards, etc.  In Chapter 17, we are going to take a look at methods marketers use to target consumers in a very intimate way, using Direct Mail, email, and targeted interactive marketing.

While targeted marketing is not as glamorous as mass media advertising, it is becoming increasingly popular as brands look to increase their ROI, target their most profitable customers, and measure results.

Good Direct Marketing has a couple of key ingredients:

1. Data. There is a reason you are being targeted.  Whether it be because you meet a certain demographic profile (Age, Income) or you meet a companies desired target based on their goals (Lapsed customer, heavy user, etc) – there is a reason why you are being contacted.  The best Direct Marketers usually have very robust CRM systems to target the right customers at the right time.

2. It’s personal.  Unlike mass media advertising, Direct Marketing is often addressed and communicated in a 1:1 style, with the best Direct Marketers speaking in a way that feels like it is individual for each customer.

3. It has a CTA.  CTA stands for call to action.  Unlike in mass media where the CTA is often unclear, in direct marketing, the advertiser usually makes it pretty clear what they want you to do next.  Use a coupon.  Visit a store.  Call a number.  Good Direct Marketing has great CTA’s.

4. It is measurable.  Direct Marketing has the advantage on the quality of measurement over mass media.  Send an email?  Easily get open rates, click-through rates, conversion rates, and even heat maps to where customers are looking.  And these results can often come in a few days vs a few months in mass media.

Marketers are also going to extreme lengths to make Direct Marketing more personal – we will discuss next week.  Here is a quick video to see how far you can go:

So you were given examples of Direct Marketing in class last week (if you missed class – grab an email or direct mail from home) and answer the questions below:

1. Who is the brand marketing to you?

2. Who do you think the target was?

3. What data do you think they used to get the name?  Was it external or internal data source?

4. What was the CTA?

5. How will the results, in your opinion, be measured?

This will be a great way for us to get warmed up into the Direct Marketing discussion next week.

Chris Lovett

5 thoughts on “BMGT 411: Assignment #4 Direct and Targeted Marketing”

  1. 1. Victoria’s Secret, I used to buy a lot from this store during the summer, until I had to go back to school, so they are always sending me these cards from them that tells me what they have new.

    2. I think the target was someone who buys their brand a lot, or just a couple of times, so people continue to buy things.

    3. It was an internal data source

    4. In the card they send, there are 2 or 3 coupons in there, so it’s them wanting you to go out and buy the product that has the coupon.

    5. Depending when those cards get sent out and when the coupons expire, and see how many people use them within that time period.

  2. 1. Northern Tool, I purchased everything I needed to complete a project involving a hydraulics system at work, in doing so I created an account with Northern Tool and I gave them my email address. They send numerous emails to me but they are targeted to the products I have purchased from them and also products that I have viewed on there web site.

    2. Their target audience is someone who has purchased or has viewed certain products on their web site.

    3. Internal data source

    4. They send out emails showing the promotions on items that I have previously purchased or have looked at. They want you to ultimately purchase the products that are advertised in their specialized ads

    5. I am sure that if they can see what I am viewing they can track what I look at online and what I purchased from viewing their ads.

  3. 1. Company I personally know who does direct marketing well in my household is Honda. Whenever I first got my license and my parents had bought me a car, between the four of us that lived at my house, we all owned Honda’s. Mainly becuase my dad loves Honda’s. Ever since then though, around the time that one of the leases were up on any of the car’s, Honda made it a point to send brochures, letters, and emails to my dad addressed to him.

    2. They noticed that my dad has purchased a Honda for over the past 30 years, so they see him as a loyal customer. They see this loyalty and try to keep it that way by any means possible.

    3. I would have to say they used internal data based upon his name under the numerous Honda vehicles that he has either bought or leased over several years.

    4. In their brochures, they mainly mention they see the lease is coming up on a certain car and will present him with the best options in either buying the car or maybe looking into leasing a newer version of the vehicle, or possibly test driving some other models that may have emerged during the time of the current leased car.

    5. The amount of Honda’s we now own in our family has decreased to two, with myself and my dad driving the only ones in the family. That being said, between the Honda dealers, the prices, and the life-span of Honda’s I cant see my dad ever not owning at least one vehicle made by Honda. If they continue to send brochures and emails about Honda, I don’t think the results will change much given the body of the cars continue to prove worthy.

  4. 1. Costco
    2. The target of this ad seemed to be families looking to save money by purchasing in bulk.
    3. An internal data warehouse would be used to get the name in this situation, because it is being marketed to people who have Costco memberships.
    4. The call to action in this direct mail would be to encourage consumers to come shop. They want you to purchase the items that are advertised in the flyer, but they hope that while they are there, they will also purchase other items.
    5. The results from this ad could be measured in two different ways. First, some of the items featured had coupons in the booklet, so they would analyze the number of coupons that were redeemed vs. the number that were distributed. Secondly, other features were instant savings that required no coupon, so they would have to analyze the number of the advertised products that were sold vs. the number of advertisements that were sent out.

  5. I chose to do the WWF which stands for the World Wildlife Fundation. They send personal letters to your house that are addressed to you personally and are typed in a “hand written” font to make it seem very personal. In the letters they give small giveaways such as stickers, magnets, and also give you return address stamps/material to make it more convenient for you.

    1. The brand they are marketing to you is the World Wildlife Fundation.
    2. I think the target is parents and older folk. Obviously people who are still in school or right out of school aren’t going to have the money to be donating so I think they are targeting retired people and people with higher paying jobs.
    3. I think they did some type of income search as well as job search. Who makes the money in the household so they know who to address the letter to. I think the data is external because WWF sends these letters to new people who aren’t members, they are trying to get new members, therefore their internal data wouldn’t be much help to them.
    4. Their call to action is to get these letter recipients to become members and donate throughout the year.
    5. I think they measure their results by separating the donations made from current member to donations made by new members every month or year.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s