营销管理（亚洲版 第6版）英文课件 科特勒 Chapter 19 Managing Digital；Chapter 20 Managing Personal；Chapter 21 New Market Offerin

CommunicatingValue2

ManagingDigitalCommunications:Online,SocialMedia,andMobile19LearningIssuesforChapterNineteenWhataretheprosandconsofonlinemarketing?Howcancompaniescarryouteffectivesocialmediacampaigns?Whataresometipsforenjoyingpositivewordofmouth?Whatareimportantguidelinesformobilemarketing?3ChapterOutlineInthefaceoftheInternetrevolution,marketingcommunicationstodayincreasinglyoccurasakindofpersonaldialoguebetweenthecompanyanditscustomers.Companiesmustasknotonly“Howshouldwereachourcustomers?”butalso“Howshouldourcustomersreachus?”and“Howcanourcustomersreacheachother?”

Newtechnologieshaveencouragedcompaniestomovefrommasscommunicationtomoretargeted,two-waycommunications.Asaresult,consumerscannowplayamuchmoreparticipatoryroleinthemarketingprocess.4ChapterOutlineTheInternetprovidesmarketersandconsumerswithopportunitiesformuchgreaterinteractionandindividualization.Weconsiderhowmarketerscanuseonlinemarketing,socialmedia,andmobilemarketingtocreateloyalcustomers,buildstrongbrands,and

generateprofits.5OnlineMarketingMarketersdistinguishpaidandownedmediafromearned(orfree)media.Paidmediaincludescompany-generatedadvertising,publicity,andotherpromotionalefforts.EarnedmediaisallthePRandword-of-mouthbenefitsafirmreceiveswithouthavingdirectlypaidforanything—allthenewsstories,blogs,andsocialnetworkconversationsthatdealwithabrand.Alargepartofownedmediaconsistsofonlinemarketingcommunications6AdvantagesandDisadvantagesofOnlineMarketingCommunicationsFourofthemaincategoriesofonlinemarketingcommunicationswhichwediscusshere,are:Websites,searchads,displayads,andEmail7AdvantagesandDisadvantagesofOnlineMarketingCommunicationsDigitaladoptionisveryhighinAsia.PeopleinthePhilippinessendmoretextmessagesontheirphonesthananyothercountry.Jakartaistheno.1cityfortweets.SoutheastAsiaishometomorethan250millionsmartphoneusers.Ofthese,100millionhavemadeadigitalpurchase,while150millionresearchproductsorengagewithsellersonline.8AdvantagesandDisadvantagesofOnlineMarketingCommunicationsOnlinemarketingcommunicationshaveotheradvantages.Marketerscaneasilytracetheireffectsbynotinghowmanyuniquevisitorsor“UVs”clickonapageorad,howlongtheyspendwithit,whattheydoonit,andwheretheygoafterward.Theycanalsoplaceadvertisingbasedonkeywordscustomerstypeintosearchenginestoreachpeoplewhenthey’veactuallystartedthebuyingprocess.9OnlineMarketinginChina10OnlinemarketinginChina—China’sonlineretailmarketistheworld’slargest,nearly80percentbiggerthantheUnitedStates.E-commerceaccountsforabout14percentofallretailspendinginChina.ResearchhasfoundthatChina’sdigitalconsumersusemultipledevicestoaccesstheInternet.Multi-deviceusers(smartphones,tablets,andcomputers)aremoreintenseconsumers.Theyspend17percentmoreone-commercethanmobileonlyconsumers.TheyalsoshoponlineinmorecategoriesandinteractmorewithbusinessesthroughsocialnetworksusingWeChataccounts.Withe-commerceoptionsavailable,moreandmoreChineseshoppersarenotonlybuyingmorelocally,theyarealsobuyingmoreacrossborder.Chinesemiddle-classconsumersarelookingtotradeuptoforeignclothingandgadgetsthatarenotyetavailableinChina.Hence,Alibaba,whichownsTaobaoandTmall,China’spremiere-commercesites,hassetupTmallGlobal,whichisacross-bordersite.AdvantagesandDisadvantagesofOnlineMarketingCommunicationsGoingonlinehasdisadvantagestoo.Consumerscaneffectivelyscreenoutmostmessages.Marketersmaythinktheiradsaremoreeffectivethantheyreallyareifbogusclicksaregeneratedbysoftware-poweredWebsites.Advertisersalsolosesomecontrolovertheironlinemessages,whichcanbehackedorvandalized.11AdvantagesandDisadvantagesofOnlineMarketingCommunications12EstéeLauderhasalwaysreliedonwordofmouthtobuilditsbrandsbutnowhasaddedasizabledigitalcomponent.OnlineMarketingCommunicationOptionsAcompanychooseswhichformsofonlinemarketingwillbemostcost-effectiveinachievingcommunicationandsalesobjectives.13WebSitesCompaniesmustdesignWebsitesthatembodyorexpresstheirpurpose,history,products,andvisionandthatareattractiveonfirstviewingandinterestingenoughtoencouragerepeatvisits.SeeFigure19.1:theSevenCs.14Figure19.1:SevenKeyDesignElementsofanEffectiveWebsite15AttractivenessofWebsitesVisitorswilljudgeasite’sperformanceoneaseofuseandphysicalattractiveness.Easeofusehasthreeattributes:thesitedownloadsquickly,thefirstpageiseasytounderstand,anditiseasytonavigatetootherpagesthatopenquickly.Physicalattractivenessisdeterminedbythesefactors:individualpagesarecleanandnotcrammedwithcontent;typefacesandfontsizesareveryreadable;andthesitemakesgooduseofcolor(andsound).Websitesmustalsobesensitivetosecurityandprivacy-protectionissues.16MicrositesIndividualWebpagesorclustersofpagesthatfunctionassupplementstoaprimarysite.They’reparticularlyrelevantforcompaniessellinglow-interestproducts.Example:peoplemightrarelyvisitaninsurancecompany’sWebsite,butthecompanycancreateamicrositeonused-carsitesthatoffersadviceforbuyersofusedcarsandatthesametimeagoodinsurancedeal.17SearchAdsAhotgrowthareaininteractivemarketingispaidsearchorpay-per-clickads.Inpaidsearch,marketersbidinacontinuousauctiononsearchtermsthatserveasaproxyfortheconsumer’sproductorconsumptioninterests.18SearchAdsWhenaconsumersearchesforanyofthewordswithGoogle,Yahoo!,orBing,themarketer’sadmayappearaboveornexttotheresults,dependingontheamountthecompanybidsandanalgorithmthesearchenginesusetodetermineanad’srelevancetoaparticularsearch.Searchengineoptimization(SEO)hasbecomeacrucialpartofmarketinggiventhelargeamountofmoneybeingspentbymarketersonsearch.19GuidelinesforSEOandpaidsearchBroadersearchterms(“MP3player”or“iPod”)areusefulforgeneralbrandbuilding;morespecificonesidentifyingaparticularproductmodelorservice(“AppleiPodclassic160GB”)areusefulforgeneratingandconvertingsalesleads.Searchtermsneedtobespotlightedontheappropriatepagesofthemarketer’sWebsitesosearchenginescaneasilyidentifythem.20GuidelinesforSEOandpaidsearchAnyoneproductcanusuallybeidentifiedbymeansofmultiplekeywords,butmarketersmustbidoneachkeywordaccordingtoitslikelyreturnonrevenue.Italsohelpstohavepopularsiteslinkbacktothemarketer’sWebsite.Datacanbecollectedtotracktheeffectsofpaidsearch.21SearchEnginesNisKorea’sleadingsearchengine,withamarketshareofover70percent.22Naver—NaverisapopularsearchengineinSouthKorea,themostwiredAsianeconomy.Naver

comesfromthewordnavigate,asitlookstonavigatevisitorstowardwhattheyarelookingfor.One-thirdoftheKoreanpopulationvisitsNeveryday,with25millionusingNaverastheirdefaultbrowserhomepage.Itaccountsfor70percentofsearchqueriesinKorea.IthasalsolaunchedJuniorNaver,whichgoesbytheshortenedtermJuniver.Thisisaportalsiteaimedatkids,withspecialservicessuchasgames,email,avatars,educationallinks,quizzes,stories,jokes,andahomeworkhelper.JuniorNaverutilizesapanelofexpertsandeducatorstofilteroutharmfulcontentforasafeInternetexperienceforchildren.Italsooffersaquestion-and-answerservice.DisplayAdsDisplayadsorbanneradsaresmall,rectangularboxescontainingtextandperhapsapicturethatcompaniespaytoplaceonrelevantWebsites.Interstitialsareadvertisements,oftenwithvideooranimation,thatpopupbetweenpagechangeswithinaWebsiteoracrossWebsites.23EmailE-mailallowsmarketerstoinformandcommunicatewithcustomersatafractionofthecostofa“d-mail,”ordirectmail,campaign.E-mailsmustbetimely,targeted,andrelevant.MarketingMemo:“HowtoMaximizetheMarketingValueofE-Mails.”Itlistsfivewaystolaunchproductivee-mailcampaigns.24MarketingMemo:HowtoMaximizetheMarketingValueofE-Mails25SocialMediaSocialmediaareameansforconsumerstosharetext,images,audio,andvideoinformationwitheachotherandwithcompanies,andviceversa.Marketerscanbuildortapintoonlinecommunities,invitingparticipationfromconsumersandcreatingalong-termmarketingassetintheprocess.26SocialMediaPlatformsTherearethreemainplatformsforsocialmedia:Onlinecommunitiesandforums,Blogs(individualblogsandblognetworkssuchasSugarandGawker),andSocialNetworks(likeFacebook,Twitter,andYouTube).27OnlineCommunitiesandForumsOnlinecommunitiesandforumscomeinallshapesandsizes.Manyarecreatedbyconsumersorgroupsofconsumerswithnocommercialinterestsorcompanyaffiliations.Onlinecommunitiesandforumscanbeavaluableresourceforcompaniesandfillmultiplefunctionsbybothcollectingandconveyingkeyinformation.Akeyforsuccessinonlinecommunitiesistocreateindividualandgroupactivitiesthathelpformbondsamongcommunitymembers.28BlogsBlogs,regularlyupdatedonlinejournalsordiaries,havebecomeanimportantoutletforwordofmouth.Therearemillionsinexistence,andtheyvarywidely,somepersonalforclosefriendsandfamilies,othersdesignedtoreachandinfluenceavastaudience.Oneobviousappealofblogsisthattheybringtogetherpeoplewithcommoninterests.29Blogs30Lenovo—LenovousesRyanHiga,YouTubesensationandblogger,asitssocialmediaambassador.Higahasappealbecausehecomesacrossashonest,down-to-earth,andauthenticinhisoutlook,withanunabashedgoofinessinhisvideos.Butmorethanthat,LenovoasabrandintheUnitedStates(whereHiga’smainaudienceofMillennialslives)isbetterknownforitsbusinesscomputersthanitstablets.ChoosingHigaisonesteptowardsgettingthebrandanditsgadgetsbetterknowntoanaudiencethatisunfamiliarwithLenovo’slegacyfromIBM.AccordingtoLenovo,itdoesnotlimitortrytoguideHigainwhathesaysordoeswiththeproduct;ittruststhatHigawillknowwhattodoandwillnotjeopardizethebrand.SocialNetworksSocialnetworkshavebecomeanimportantforceinbothbusiness-to-consumerandbusiness-to-businessmarketing.MajoronesincludeFacebook,theworld’sbiggest;LinkedInwhichtargetscareer-mindedprofessionals;andTwitter.Differentnetworksofferdifferentbenefitstofirms.Forexample,Twittercanbeanearlywarningsystemthatpermitsrapidresponse,whereasFacebookallowsdeeperdivestoengageconsumersinmoremeaningfulways.31ImportanceofSocialNetworksMarketersarestilllearninghowtobesttapintosocialnetworksandtheirhuge,well-definedaudiences.Givennetworks’non-commercialnature—usersaregenerallytherelookingtoconnectwithothers—attractingattentionandpersuadingaremorechallenging.Also,giventhatusersgeneratetheirowncontent,adsmayfindthemselvesappearingbesideinappropriateorevenoffensivecontent.32ImportanceofSocialNetworksAdvertisingisonlyoneavenue,however.Likeanyindividual,companiescanalsojointhesocialgroupsandactivelyparticipate.HavingaFacebookpagehasbecomeavirtualprerequisiteformanycompanies.Twittercanbenefiteventhesmallestfirm.33SocialNetworks34Tencent,China’sgamingandsocialnetworkingsite,isalsointoe-commerceandonlinepayments.UsingSocialMediaSocialmediaallowsconsumerstobecomeengagedwithabrandatperhapsadeeperandbroaderlevelthaneverbefore.Marketersshoulddoeverythingtheycantoencouragewillingconsumerstoengageproductively.Butasusefulastheymaybe,socialmediacanneverbecomethesolesourceofmarketingcommunications.35UsingSocialMediaSocialmediamaynotbeaseffectiveinattractingnewusersanddrivingbrandpenetration.Researchsuggeststhatbrandsandproductsvarywidelyinhowsocialtheyareonline.Consumersaremostlikelytoengagewithmedia,charities,andfashionandleastlikelytoengagewithconsumergoods.Althoughconsumersmayusesocialmediatogetusefulinformationordealsandpromotionsortoenjoyinterestingorentertainingbrand-createdcontent,amuchsmallerpercentagewantusesocialmediatoengageintwo-way“conversations”withbrands.36UsingSocialMediaEmbracingsocialmedia,harnessingwordofmouth,andcreatingbuzzalsorequirecompaniestotakethegoodwiththebad.Frito-Lay’s“DoUsaFlavor”contestinvitedU.S.fanstosuggestnewpotatochipflavorsforachancetowinahugecashprize,theFacebookappforsubmissionscrashedthefirstdayduetohightraffic.TheFrito-Layexampleshowsthepowerandspeedofsocialmedia,butalsothechallengestheyposetocompanies.37UsingSocialMedia38Frito-Layusedasocialmediacampaignfornewconsumer-createdflavorsitintroduced.WordofMouthSocialmediaareoneexampleofonlinewordofmouth.Wordofmouth(WOM)isapowerfulmarketingtool.AT&Tfounditwasoneofthemosteffectivedriversofitssales,alongwithunaidedadvertisingawareness.Somebrandshavebeenbuiltalmostexclusivelybywordofmouth.39FormsofWordofMouthContrarytopopularopinion,mostwordofmouthisnotgeneratedonline.ResearchandconsultingfirmKellerFaynotesthat90percentoccursoffline,specifically75percentfacetofaceand15percentoverthephone.“WOMhasproventobehighlycredibleandlinkedtosales;advertisinghasproventohelpsparkconversation.”40ViralMarketingViralmarketingisaformofonlinewordofmouth,or“wordofmouse,”thatencouragesconsumerstopassalongcompany-developedproductsandservicesoraudio,video,orwritteninformationtoothersonline.User-generatedcontentsitessuchasYouTube,Vimeo,andGoogleVideo,consumersandadvertiserscanuploadadsandvideostobesharedbymillionsofpeople.41CreatingWord-of-MouthBuzzProductsdon’thavetobeoutrageousoredgytogenerateword-of-mouthbuzz.Abrandisseenasnovel,exciting,orsurprisinghaslittleeffectonwhetheritisdiscussedinface-to-face,oralcommunications.Brandsdiscussedofflineareoftenthosethataresalientandvisibleandcomeeasilytomind.42CreatingWord-of-MouthBuzzAcustomer’svaluetoacompanydependsinpartonhisorherabilityandlikelihoodofmakingreferralsandengaginginpositivewordofmouth.Asusefulasearningpositivewordofmouthfromaconsumercanbe,gettingconsumerstodirectlyengagewiththecompanyandprovideitwithfeedbackandsuggestionscanleadtoevengreaterloyaltyandsales.43CreatingWord-of-MouthBuzzTherearefourrungsonthecustomerloyaltyladder(inascendingorder):1.Satisfaction—Stickswithyourorganizationaslongasexpectationsaremet.2.Repeatpurchase—Returnstoyourcompanytobuyagain.3.Wordofmouth/buzz—Putshisorherreputationonthelinetotellothersaboutyou.4.Evangelism—Convincesotherstopurchase/join.5.Ownership—Feelsresponsibleforthecontinuedsuccessofyourorganization.44MarketingMemo:“HowtoStartaBuzzFire”45MeasuringtheEffectsofWordofMouthMarketersareexploringarangeofmeasurestocaptureword-of-moutheffects.Possiblemeasuressuchascampaignscale(howfaritreached),speed(howfastitspread),shareofvoiceinthatspace,shareofvoiceinthatspeed,whetheritachievedpositiveliftinsentiment,whetherthemessagewasunderstood,whetheritwasrelevant,whetherithadsustainability(andwasnotaone-shotdeal),andhowfaritmovedfromitssource.Otherresearchersfocusmoreoncharacterizingthesourceofwordofmouth.46MeasuringtheEffectsofwordofMouthManymarketersconcentrateontheonlineeffectsofwordofmouth,giventheeaseoftrackingthemthroughadvertising,PR,anddigitalagencies.Throughdemographicinformationorproxiesforthatinformationandcookies,firmscanmonitorwhencustomersblog,comment,post,share,link,upload,friend,stream,writeonawall,orupdateaprofile.47MarketingInsight:TrackingOnlineBuzz48Gatorade’sHQ-basedMissionControlCentertracksbrandbuzz24/7.Marketershavetodecidewhattheyaregoingtotrackonlineaswellashowtheyaregoingtotrackit.MobileMarketingGiventhepresenceofsmartphonesandtabletseverywhereandmarketers’abilitytopersonalizemessagesbasedondemographicsandotherconsumerbehaviorcharacteristics,theappealofmobilemarketingasacommunicationtoolisobvious.49TheScopeofMobileMarketingDavidBellnotesfourdistinctivecharacteristicsofamobiledevice:Itisuniquelytiedtooneuser;itisvirtuallyalways“on”givenitistypicallycarriedeverywhere;itallowsforimmediateconsumptionbecauseitisineffectachannelofdistributionwithapaymentsystem;anditishighlyinteractivegivenitallowsforgeotrackingandpictureandvideotaking.50MobileAppsMobileapps—bite-sizedsoftwareprogramsthatcanbedownloadedtosmartphones.Appscanperformusefulfunctions—addingconvenience,socialvalue,incentives,andentertainmentandmakingconsumers’livesalittleoralotbetter.Inashortperiodoftime,thousandsofappshavebeenintroducedbycompanieslargeandsmall.InEurope,itlaunchedtheVWTiguanwithamobileappaswellastextmessagesandaninterstitialWebsite.51MobileAppsSmartphonesarealsoconducivetoboostingloyaltyprogramsinwhichcustomerscantracktheirvisitstoandpurchasesfromamerchantandreceiverewards.Theabilityofmobiletomakemorerelevantandtimelyofferstoconsumersatornearthepointofpurchasehaspiquedtheinterestofmanymarketers.52DevelopingEffectiveMobileMarketingProgramsTheWebexperiencecanbeverydifferentforusersgivensmallerscreensizes,longerdownloadtimes,andthelackofsomesoftwarecapabilities.Expertspointoutthatbeingconciseiscriticalwithmobilemessaging,offeringthefollowingadvice:Mobileadcopyshouldoccupyonly50percentofthescreen,avoidingcomplexviewingexperiencesthatmaytakeatollonconsumers’batteryanddataavailabilityaswellasontheirtime.53DevelopingEffectiveMobileMarketingProgramsBrandsshouldlimittheiradstoapairofphrases—theofferandthetagline.Brandsshouldplacetheirlogointhecornerofthemobileadframe.Adsshoulduseatleastonebrightcolor,butnomorethantwo.Callstoactionshouldbehighlightedwithabrightcolor.54MobileMarketingacrossMarketsAlthoughagrowingpopulationsegmentusessmartphonesandtabletsforeverythingfromentertainmenttobanking,differentpeoplehavedifferentattitudestowardandexperienceswithmobiletechnology.55MobileMarketingacrossMarkets56MarketerslikeCoca-ColaarelearningmuchaboutmobilemarketinginChinaandotherAsiancountriesgiventhehighsmartphonepenetrationandusagethere.MobileMarketingacrossMarkets57IndevelopedAsianmarketssuchasHongKong,Japan,Singapore,andSouthKorea,mobilemarketingisfastbecomingacentralcomponentofcustomerexperiences.Indevelopingmarkets,highsmart-phonepenetrationalsomakesmobilemarketingattractive.Thereisnoquestionthatsuccessfulmarketinginthecomingyearswillinvolveahealthydoseofmobilemarketing.ThankyouCommunicatingValue60

ManagingPersonalCommunications:

DirectandDatabaseMarketingandPersonalSelling20LearningIssuesforChapterTwentyHowcancompaniesintegratedirectmarketingforcompetitiveadvantage?Howcancompaniesdoeffectiveinteractivemarketing?Howcanmarketersbesttakeadvantageofthepowerofwordofmouth?Whatdecisionsdocompaniesfaceindesigningandmanagingasalesforce?Howcansalespeopleimprovetheirselling,negotiating,andrelationship-marketingskills?61ChapterOutlineMassanddigitalcommunicationsprovidemanybenefits,therearetimeswhenpersonalcommunicationsarenecessarytoberelevantandcloseasale,especiallyincountrieswherepersonalrelationshipsarecritical.Personalizingcommunicationsandsayinganddoingtherightthingfortherightpersonattherighttimearecriticalformarketingeffectiveness.Inthischapter,weconsiderhowcompaniespersonalizetheirmarketingcommunicationstocreatemoreimpact.62DirectMarketingDirectmarketingistheuseofconsumer-directchannelstoreachanddelivergoodsandservicestocustomerswithoutusingmarketingmiddlemen.Thesechannelsincludedirectmail,catalogs,telemarketing,interactiveTV,kiosks,Websites,andmobiledevices.63DirectMarketingDirectmarketersseekameasurableresponse,typicallyacustomerorder.Directmarketingisafast-growingavenue,partlyinresponsetothehighandincreasingcostsofreachingbusinessmarketsthroughasalesforce.Salesproducedthroughtraditionaldirectmarketingchannels(catalogs,directmail,andtelemarketing)havebeengrowingrapidly,alongwithdirect-mailsales.64BenefitsofDirectMarketingMarketdemassificationhasresultedinanever-increasingnumberofmarketniches.Consumers,shortoftimeandtiredoftrafficandparkingheadaches,appreciatetoll-freephonenumbersandWebsitesavailable24hoursaday,sevendaysaweek,anddirectmarketers’commitmenttocustomerservice.Inaddition,manychainstoreshavedroppedslower-movingspecialtyitems,creatinganopportunityfordirectmarketerstopromotetheseitemstointerestedbuyers.65BenefitsofDirectMarketingSellersbenefitaswell.Theycancustomizeandpersonalizemessages.Theycanbuildacontinuousrelationshipwitheachcustomer.Directmarketingcanbetimedtoreachprospectsattherightmoment.Canreceivehigherreadershipbecauseitissenttomoreinterestedprospects.Permitsthetestingofalternativemediaandmessagesinacost-effectiveapproach.Directmarketerscanmeasureresponsestotheircampaignstodecidewhichonehasbeenmoreprofitable.66BenefitsofDirectMarketingSuccessfuldirectmarketersviewacustomerinteractionasanopportunitytoup-sell,cross-sell,orjustdeepenarelationship.Thesemarketersmakesuretheyknowenoughabouteachcustomertocustomizeandpersonalizeoffersandmessagesanddevelopaplanforlifetimemarketingtoeachvaluablecustomer,basedontheirknowledgeoflifeeventsandtransitions.Theyalsocarefullyintegrateeachelementoftheircampaigns.67DirectMailDirect-mailmarketinginvolvessendinganoffer,announcement,reminder,orotheritemtoaperson.Directmarketingisapopularmediumbecauseit:PermitstargetmarketselectivityCanbepersonalizedIsflexibleAllowsforearlytestingandresponsemeasurement68DirectMailandLocalCulturesForAsianconsumers,itisimportanttopitchtotheminamediumthatisculturallyrelevantandmeetsalocalneedortargetsparticularcharacteristicsofaconsumersegment.Whatworksbestistappingintomodesofcommunicationthatresonatewithlocalcultures,whetheritisthroughmailingsortelemarketing.69DirectMailCampaignInconstructinganeffectivedirect-mailcampaign,directmarketersmustdecideon:theirobjectives,targetmarketsandprospects,offerelements,meansoftestingthecampaign,andmeasuresofcampaignsuccess.701.ObjectivesMostdirectmarketersaimtoreceiveanorderfromprospectsandjudgeacampaign’ssuccessbytheresponserate.Anorder-responserateof2percentisnormallyconsideredgood,althoughthisvarieswithproductcategoryandprice.Directmailcanachieveothercommunicationobjectivesaswell,suchasproducingprospectleads,strengtheningcustomerrelationships,informingandeducatingcustomers,remindingcustomersofoffers,andreinforcingrecentcustomerpurchasedecisions.712.TargetMarketandProspectsR-F-Mformula:Recency,frequency,monetaryamounttoselectcustomers.PointsareestablishedforeachlevelofRFMtoselectthemostattractivecustomers.Marketersalsoidentifyprospectsonthebasisofage,sex,income,education,previousmail-orderspurchases,andoccasions.72TargetProspectsinB2BMarketsInB2Bdirectmarketing,theprospectisoftennotanindividualbutagroupofpeopleoracommitteethatincludesbothdecisionmakersandmultipledecisioninfluencers.Eachmemberneedstobetreateddifferently,andthetiming,frequency,nature,andformatofcontactmustreflectthemember’sstatusandrole.73IdentifyingProspectsfromListsThecompany’sbestprospectsarecustomerswhohaveboughtitsproductsinthepast.Additionalnamescanbeobtainedbyadvertisingsomefreeoffer.Thedirectmarketercanalsobuylistsofnamesfromlistbrokers.Thebetterlistsincludeoverlaysofdemographicandpsychographicinformation.743.OfferElementsTheofferstrategyhasfiveelements:TheproductTheofferThemediumThedistributionmethodCreativestrategy754.TestingElementsOneofthegreatadvantagesofdirectmarketingistheabilitytotest,underrealmarketplaceconditions,differentelementsofanofferstrategy,suchasproducts,productfeatures,copyplatform,mailertype,envelope,prices,ormailinglists.Responseratestypicallyunderstateacampaign’slong-termimpact.Toderiveamorecomprehensiveestimateofthepromotion’simpact,somecompaniesaremeasuringdirectmarketing’simpacton:AwarenessIntentiontobuyWordofmouth765.MeasuringCampaignSuccess:LifetimeValueByaddinguptheplannedcampaigncosts,thedirectmarketercanfigureoutinadvancetheneededbreak-evenresponserate.Thisratemustbenetofreturnedmerchandiseandbaddebts.Returnedmerchandisecankillanotherwiseeffectivecampaign.Thedirectmarketerneedstoanalyzethemaincausesofreturnedmerchandise(lateshipment,defectivemerchandise,damageintransit,notasadvertised,incorrectorderfulfillment).77CatalogMarketingIncatalogmarketing,companiesmaysendfull-linemerchandisecatalogs,specialtyconsumer,andbusinessc