Shared Flashcard Set

Details

MKTG 380 Direct Marketing
Exam 2
73
Marketing
Undergraduate 4
02/28/2012

Additional Marketing Flashcards

 


 

Cards

Term

8 Reasons Why Advertisers 

Purchase Ads in Magazines?

Definition

1. Magazine advertising engages readers

2. Magazine Advertising is considered 

valuable content

3. Magazine ads motivate readers to act

4. Magazine ads improves overall ROI

5. Magazine ads are relevant and 

targeted

6. Magazines reach desired consumers

7. Magazines influence the “Influentials”

8. Magazines supply credibility

Term
Magazine Industry Today
Definition

 2 Key Types of Magazines

 Consumer

 Business

 $28 Billion Industry

 Circulation Revenue:       $9.1 Billion

 Advertising Revenue:      $18.5 Billion ($14B Cons.) 

 Ad revenues projected to decrease by approx. 2%

 Over 190 Million adults read magazines

 Represents over 85% of the US adult market

 Increase of 10 Million readers in the past 5 years

 Average reader spends 42 minutes reading a 

magazine

 Over 20,700 magazines are published in the US

Term
Magazines Ads & Formats…
Definition
  • Types of Magazine Ads

 Brand / Image Advertising

 Direct Marketing

  • Consumer Magazine Format

 Larger circulations

 Less targeted

 More sales-driven

  • Business to Business Format 

(B2B)

 Smaller circulations

 More lead - generation 

focused

Term

“Magazine 

Jargon”

Definition

1. Rate Card

2. Media Buying 

3. CPM

4. Pilot 

Publications

5. Magazine Cards

6. Timing

7. Frequency

8. Placement

Term

Advantages of Regional Media 

Buying Versus Going National

Definition
  • Saves Direct Marketer money

 Regional testing allows 

Direct Marketer to test an 

ad’s effectiveness at a 

lower rate (> 20%)

  • Some Regions are better suited for selling the DM’s products or services

 Economy, seasons, 

demographics…

  • Regional media buys enable DM to “test” different copy / creative in same edition of the Magazine at the same time

 Split-run testing

 

  • Regional Buying can be defined as either Geographic or Demographic
Term

Disadvantages Of Regional   

Media Buys

Definition

 Less optimal placement 

position

 Ad clutter

 Higher CPM for limited 

media

Term

When Testing Media…

Try “Pilot Pubs” First

Definition
  • Pilot Magazines

 “Proven publications” that 

well represent the targeted 

audience for the DM

 Usually a lower CPM than 

competitive Magazines in 

same category

 Especially effective for DM 

advertisers

 If successful, the DM should 

gradually add other “like” 

pubs into the media mix

Term

3 Types of Magazine Cards 

…Can increase response rates by 6 to 8 times 

…Cuts Cost Per Response by 50% versus an on-page coupon

Definition
  • FSI Cards

 Most common 

  • Bind-In Insert Cards 

 Most costly & most effective

 Range from basic to 

elaborate

  • Reader Service Cards

 Also called BINGO cards

 Least costly

 Multi- advertisers share a 

single card

Term

Other Factors That Will Impact 

Reader Response Rates

Definition
  • Magazine Type

 General / Mass versus Shelter / 

Shelf-life pubs

  • Publication Frequency

 Monthlies - 50% of total response 

in the first month

 Final results can be tabulated 

within a 10% accuracy rate after 3 

weeks

 Weeklies - 50% comes in the first 

two weeks

  • Distribution Channel

 Subscription versus Newsstand

 90:10 / Subscription: Newstand

Term
Timing
Definition
  • Timing

 2 Major 

Advertising 

Seasons for 

Direct Response: 

 Winter: 

January 

through March 

editions

 Fall: August 

through 

November 

editions

 Timing may 

impact ad 

response 

rates by 40%

Term
Determining Ad Size
Definition
  • Ad Space Costs Money

Objective is to take the 

minimum amount of space 

necessary to deliver your 

message effectively and to turn 

a profit.”

  • Considerations:

1 - The type of ad presentation 

may require a certain sized ad 

space. 

2 - Usually, if the goal is to SELL 

versus GENERATE LEADS, a 

larger sized ad is 

required 

 3 - Larger sized ads usually 

appear closer to the front of the 

magazine

 4 - if you are successful with a 

single page ad with a coupon, test 

an Insert Card before adding a 

second ad page

Term
Color & Positioning
Definition
  • Use of Color

Assuming the ad’s message is effective, 

usually converting a 1-color to a 2-color 

ad does not offset incremental costs

To typically be profitable and to offset 

the incremental cost, a 4-color ad 

needs to generate at least 20% more 

responses than a 1-color ad

Split-run testing great way to measure

Term
Positioning
Definition
  • Ad Positioning

The closer to the front of the 

Magazine the better the ad 

will pull

The more visible the 

position, the better the pull 

Table of Contents

Inside Front Cover

Back cover

First 7 pages seems to 

pull a dramatically better 

response

Right side out-pulls left side 

by approximately 15%

Insert cards open a 

magazine DIRECTLY to an 

Advertisers’ specific 

message

Term

Magazine 

Challenges & Opportunities

Definition

 Decline of the “Print” Product as a 

source for ad revenues

 Developing more enhanced 

relationships with their readers / 

customers

 New Technologies

Term

Why Newspapers?

Because Readers are “Engaged”

Definition

“… unlike almost all electronic 

media, when a person is reading a 

newspaper, that is all that they 

are doing… they aren’t surfing 

and the ads don’t beep, flash, popup or interrupt. 

Newspaper ads don’t interrupt the 

experience, they are part of it.”

Term

However, Newspapers Are Facing 

Greater Challenges Than 

Ever Before

Definition

WHY!!

The Internet - Giving away FREE content 

Competitive websites re-using  this FREE content

Tired formats

Term

So Who’s Reading Newspapers & 

What’s the Trend?

Definition
  • 61% of all Adults read newspapers

 Over 100 million adults 

read newspapers (print & 

digital)

  • 78% of readers ages 55+
  • 75% of readers ages 35 to 54
  • 64% of readers ages 18 to 34 
  • 20% of adults ages 18 to 24 read print newspapers
  • 31% of adults ages 18 to 24 don’t follow the news at all… anywhere
Term
MICHAEL “MOORE’S’ LAW”
Definition

1.Poor Economic model - Focus on Ad revenues not subscription fees

2.Lost touch with their audience 

3. Costly overhead and debt causes reduction in staff and  the elimination of key 

local coverage that is important to their readers

4. Changing readership habits

5. Illiteracy and poor reader comprehension

Term

Still a Significant Portion of the 

Overall Advertising Mix

Definition

 Newspaper advertising sales 

revenues for 2011 were $27 Billion

 Ranks # 5 among all ad mediums 

 Being “Local” is their strength

 In the community

 “Feet on the Street”

Ad Revenues decreased by over 8% from 2010 to 2011 

and are forecast to decline at the same rate this year

Term
The NEWSPAPER Paradox
Definition

 Greater than $27 Billion in ad revenues 

in 2011

 Read by over 100 Million adults daily

 The “heart & soul” of local Journalism

 

 BUT they are losing large numbers of 

Readers

 Losing a large share of Advertisers

Are Print Newspapers going the 

way of the Titanic?

Term
Newspaper ad revenues derive from 4 sources
Definition

RETAIL (-9.1%) 

CLASSIFIED (-8.6%)

NATIONAL (-4.6%) 

ONLINE +10.9%

Term
Advertiser Perspectives
Definition

1. ROP (Run of paper) 

ads that appear in 

specified Sections

 - FOOD, SPORTS, 

BUSINESS…

2. Newspaper as a 

Distribution Channel

- SUNDAY COMICS, TV 

GUIDE, FLYERS

3. On-line

- BEHAVIORAL 

TARGETING (SignOn SD)

Term

Production & Placement 

Challenges Still Exist

Definition

1. Poor print quality in some papers 

2. ROP may guarantee specific Section, but 

not specific placement (w/o paying 

Premium)

3. Various newspaper sizes & rates  

 Sizes: 48” Standard versus Tabloid…

 SAUs versus Column Inches 

 National Rate (or General Rate)

 Retail Rate (w/o Agency Commission)

 Classified Rate

Term
Alternative Ad Types - FSIs
Definition

 Free-Standing Inserts (FSIs)

 Aka “Preprints”

 Can be purchased individually 

by newspaper or via Network

 FSIs are far more costefficient than Direct Mail

 Can be distributed anywhere 

from “full-run” to segmented zip 

code areas or by demographic

 Direct Marketer pays for the 

printing of the FSI

 Newspaper charges for 

circulation

Term
Alternative Ad Types - FSIs
Definition

 Unique advantages over regular ROP 

ads

1. Paper quality & printing is controlled by 

Direct Marketer (superior to newsprint)

2. Since they separate from the newspaper, 

they may have a longer “shelf life” with 

prospect

3. Can easily be tested via “Split Runs”

Term

Alternative Ad Types - Syndicated 

Newspaper Supplements

Definition
  • Aka: NATIONAL newspaper mags.
  • Enable the Direct Marketer to reach a vast print audience via limited media buys (estimated at 73 Million readers)

 Parade Magazine

Circ. 32.7 Million - Focus on 

top 100 MSAs

 USA Weekend

Circ. 22.7 Million - < top 150 

MSAs

Term

Alternative Ad Types - Syndicated 

Newspaper Supplements

Definition

 CPM Formula

 Ad Cost x 1000 / Circulation

 General Rate ad costs

 Parade

 $818,200 for a Full Page/ 4C

 Circulation - 32.7 Million

 CPM = ?

Term
Other Ad Types
Definition
  • Local Newspaper Magazines

 Local TV Guides

 Local Restaurant Guide

 Week-end supplement

  • Comics

 Can also be purchased by 

individual paper or via a 

network

 Surprisingly, Comic 

demographic is a median 

age of 40

Term

4 Ways Print is Fighting Back! 

 
Definition

1 -Newspaper 

National Network

 makes buying print 

newspaper in multi-

(local) markets much 

easier for National 

Advertisers

2-Print is converging 

with on-line

 On-line newspapers 

generated over $3 Billion in 

revenues in 2010

 Covers 120 papers with 

websites generating over 50 

Million unique monthly visitors

 Owned by Gannett, Hearst, 

NY Times & Tribune

 Drastically consolidates on-line 

media buying process for 

National advertisers

3-Newspapers are creating more niche 

editions

 Targeted by age

 Targeted by ethnicity

 Targeted by gender preference

4-Transitioning from 

a “print-only” 

product into a 

Direct Marketing 

Services 

company

 Print 

 On-Line

 Internet Radio

 Extensive Digital 

Portfolios: 

SOCIAL 

COMMERCE

Term
A few other “Hopeful” Signs
Definition

Borrell Associates & Pricewaterhouse 

Coopers both project that the decline in 

ad revenues will stabilize this year and 

then gradually increase

44

 Smaller market papers are more 

profitable than large city pubs

 Newspaper cancellation rates have 

diminished greatly

 Publishers are developing ways to 

better entice subscribers to remain with 

them

 By closing bureaus and cutting staff, 

some papers are beginning to turn a 

profit

Term

THE DRTV 

PROCESS

Definition

1  Develop the Product

2  Create the 

Infomercial

3  Buy the 

Media

4 - Run the Ad

5 Take the Orders

6  Fulfillment 

(S&H)

7  Manage 

Customer 

Support

8  Go Retail

Term
3 DRTV Sub-groups
Definition

1. Short Form:

 :30, :60 & :120 second 

ads

2. Long Form:

 Infomercials - less than 

30 minutes

3. TV Home Shopping

 24 / 7 coverage

Term
Long Form: Infomercials
Definition
  • Rapidly growing segment of DRTV

 Between 250 - 300 Infomercial 

programs are airing at any given time

  • Many traditional companies are now using infomericals to market selected products

 Clorox, ESPN, Ford Motor, Jenny Craig 

  • Substantial production & media costs

 Short Form: Average Production can 

range from  $45,000 to $300,000

 Long Form: Average Production can 

range from $100,000 to $750,000

 Market testing varies from $200,000 to 

$750,000

 Average weekly media costs can range 

from $5,000 - $50,000

Term
TV Home Shopping - 24/7
Definition
  • QUALITY VALUE CORPORATION (QVC)

 Owned by Liberty Media

 Over $7 Billion in sales

 Handles over 180 MM calls per 

year

 1,150 products per week

  • HOME SHOPPING NETWORK (HSN)

 Publicly traded

 Over $3 Billion in sales

 Top 30 e-Retailer

Term

DR TV Advertising is the 

“Ultimate Focus Group”

Definition

 In 2 weeks, “The TEST,” you’ll 

know if you have a winner or a 

loser

FORMULA: DRTV sales need to be at 

least 2X the cost of your media to be 

successful

 The costs for “Shipping & Handling” is 

determined by the amount that the 

Public will pay versus what they 

deem is too expensive

Term

What Works Best For DRTV?

Does Your Ad Include…

Definition

1. Immediacy

2. Clarity

3. Distinctive Distribution  

4. Increased Value

5. Limited Options

6. Early Close

7. Less is More

8. Show & Tell (BOLD DEMOs)

9. Integrate the Offer with the 

product

10. Flash the 800 number and 

web address for at least 25 

seconds during ad

Term
Buying Time on Television
Definition
  • Broadcast (Airwave) TV 

 Approximately 1,600 stations 

in US per FCC

 Over $29.2 Billion in 

advertising revenues in 2010

 

  • Cable TV Networks 

 210 National Cable 

Networks & 54 Regional 

Networks

 Over $51.9 Billion in 

advertising revenues in 

2010

Term

Marketing Advantages of 

CATV versus Broadcast TV

Definition
  • CATV (Cable TV) audience is highly defined

 Operators know who their 

customers / subscribers 

are via billing

  • Demo & Psychographic info is shared with Advertisers
  • CATV offers more special Interest programming

 Enhanced targeting

Term
TV Advertising Terms
Definition
  • Commercial Lengths

 :60 & :120 seconds ideal for DRTV

2 minute is standard for direct sale spot

1 minute is effective for lead generation

30 second is great for awareness

Due to inventory limits at key time periods, it is often 

difficult to purchase :120 second spots 

:10 & :15 second support commercials and 

contribute to overall Gross Rating Points

  • Flight Period

 Duration of an ad campaign (Start & Finish)

  • Reach

 Tells the Direct Marketer what % of the total audience (homes or persons) that their ad is 

REACHING at least once during the Flight

  • Frequency

 How often or how FREQUENTLY (on average) during the Flight Period is the targeted 

audience being exposed to the ad (the number of times)

 

 

 Gross Rating Points (GRP)

 Reach x Frequency

 Reach

 GRPs / Frequency

 Frequency

 GRPs / Reach

Term
Buying Media
Definition

 4 Ways Advertisers Can Buy TV Time

1. Specific time-slots, sponsorships or programs 

2. ROS (Run of schedule - similar to ROP in print)

3. Pre-emptible / Scatter

4. Payment Per Inquiry or  Revenue Sharing

Term
Best Times to Air DRTV
Definition

 Lower viewer 

attentiveness is better 

for Direct Marketers

 Independent stations may 

be better DM choice than 

Network (affiliated) 

stations

 More reruns, talk shows & 

old movies

 Seasonality

Term
Rules for DRTV Media Buying
Definition
  • Start Small

 Test TV ads in 2 to 5 markets for 

one to two weeks

 As few as 10 ads per week can 

give you a fairly accurate fix on 

how well your ad is doing

  • Keep Testing

 If response rates hold up, 

monitor until they start to 

decline

 Then, move on to other 

markets and launch in the 

same methodical and 

measurable way

Term
(Broadcast) Radio
Definition

 Over 13,500 licensed broadcast radio stations in US

 Over $9.4 Billion in 2010 Advertising Revenues (+ 5% from 09)

 Clear Channel Communications owns over 1,200 stations

Term
Radio
Definition

 Broadcast Radio’s advantages over Broadcast TV

Radio program formats are better targeted by Advertisers

Typically, radio offers a lower cost for similar time periods as TV (even if viewership / 

listenership is constant)

Creating Ads for Radio

 Radio is the “writer’s medium” in its purest sense

1. Carefully consider a station’s format 

2. Tailor your message to that format (but sometimes, don’t be afraid to “shock” 

your listener by steering away from the typical format as long as its within 

reason)

3. Connection to listener is direct, personal, emotional, primal 

4. Encourage listener to “stretch their imagination” to visualize your message

5. Music and Humor enhance ads

Term
Satellite Radio - FEW ADS
Definition

 PROS

 Over 20 Million Paid 

subscribers

 Average subscriber pays $13 

per month

 50% of all new cars have 

Satellite radio

 Churn rate is just 1.8%

 CONS

 Heavy debt load ($1 Billion)

 90% decline in stock price

Term

Elements Of A Direct Mail Kit (DMK)

The Outer Envelope

Definition
  • The Corner Card
  • Teaser Copy

 Benefit Teaser

 Offer Teaser

 Curiosity Teaser

  • Selected Postage

 Priority, First Class

 Standard / Discounted Mail

Term

Elements Of A Direct Mail Kit (DMK)

The Letter

Definition

 Key Attributes

1. Opening 

Sentence

2. Call to Action

3. Post Script

 Addresses the reader’s 

needs  

 Solves their problem

 Use lots of “you” and “your” 

in copy

 The signature serves as a 

“willing suspension of 

disbelief” 

Term

Elements Of A Direct Mail Kit (DMK)

The Brochure

Definition
  • Compliments the letter
  • Helps reader visualize the product

 Consumer mail: embodies 

emotional concept of the 

mailing (non-profit)

 Business mail: contains 

more detailed information

  • Copy explains product benefits

 Utilize photos, graphics, 

headlines, subheads…

 Provides additional Call to 

Action & Response Devices

Term

Elements Of A Direct Mail Kit (DMK)

The Response Devices

Definition
  • How the reader can contact the Direct Marketer

 Must be clear, 

convenient & easy to 

complete

  • Effective Direct Mail usually provides more than one way for the recipient to respond

 Few prospects respond 

by mail anymore

 Response card is often 

“symbolic” - it focuses 

reader towards another  

“Call to Action”

  • Never called a Response Device

 Order form, Enrollment 

form or Subscription 

form

Term

Additional Elements Of A DMK

Involvement Devices

Definition
  • Involvement Devices

 It’s the Action that makes this concept work

 The response device is the moment of truth for the reader

Term

Why “Lumpy Direct Mail” May Be 

Your Cure For Flat Sales

Definition

 Lumpy 3-dimension packaging generates greater prospect interest

 Generates substantially more responses than traditional “flat mail”

 

Six “Must Haves” for Lumpy Mail

1.Mail something of value

2.Mail something with “head scratcher” value

3.Back up with a strong sales letter

4.Don’t give out too much information

5.Be relevant

6.Follow up with a phone call

Term

Additional Elements Of A DMK

Involvement Devices

Definition
  • Buckslip

 Size of a dollar bill

 Serves to add info

 Visual shorthand

 A mini-flyer

  • Lift Letter

 Restates the Offer & Key 

Bennies in different way

 Reflects an additional 

“personal” point of view

 Usually a different 

signature than the letter

Term
Alternate Direct Mail Options
Definition
  • Self-Mailers

 Favored in B2B

 Used for lead generation, 

seminars or single product 

offerings

 Combine the DMK into one 

piece

 Fast delivery of visual 

appeal & copy

 

  • Postcards

 Low cost

 Ultimate self-mailer

 Should not contain private 

info

Term
Direct Mail Letter Writing Tips
Definition

 Keep It Simple Stupid… 

 ATTENTION, INTEREST, DECISION & ACTION

1. Must have a Headline

2. Must have a PS (Postscript)

3. Must have an Offer

4. Must have a Call to Action

Term
Does size matter & other Personal Stuff
Definition
  • A well crafted Direct Mail letter should be:

 Long enough to adequately cover the subject

 Short enough to retain the Reader’s interest

 The longer you hold a Reader’s interest, the more likely it 

is that your Reader will respond

 Use sub-heads, underscores, CAPS… to divide copy

 Online, this same strategy works (Reader will keep scrolling if 

they are interested)

  • Personalized Direct Mail usually out-pulls non-personalized Direct Mail

 Makes Reader feel that the company “knows” them

 The Reader’s “willing suspension of disbelief”

Term
Legal Protection
Definition

 Deceptive Mail Prevention & 

Enforcement Act of 1999

 Federal Law which clearly defines what 

a Direct Marketer can and cannot do

 Carries significant fines and 

penalties for violators

 Restricts the ways that DM’s can 

communicate with Recipients 

 Designed to protect consumers from 

misleading and unethical Direct Mail

 States still have authority to implement 

additional, more restrictive laws

Term
3 Immediate Threats for Direct Mail
Definition

1. USPS fiscal crisis

2. Consumers increased 

preference for low-cost & faster 

digital communications

3. Green Movement

Term
AIDA
Definition

 AIDA

 The job of the Ad Writer is to STOP 

the reader 

 To first draw  ATTENTION, then 

generate INTEREST.

 Then to create a DECISION and 

lastly, to motivate the reader to take 

ACTION

 Focus on your best prospects 

first! 

 Your “true” target market”

 Afterwards, try to attract and draw 

in additional less optimal prospects

Term
Traditional DR Print Ad
Definition

• Ad does not appear to be 

selling at all

• Headline promises a 

benefit 

• Long copy highlights many 

sales points

• Repeats the Oreck 

guarantees

• Multiple calls to action

• Multiple response options

Term
Advantages & Benefits
Definition

 Advantages belong to 

the product

 Benefits belong to the 

consumer

 2 types of Benefits

 Obvious Benefit

 Ultimate Benefit

Term
Writing the Headline
Definition
  • Know your prospect and speak RIGHT to them

Talk Straight

Tell them 

what is most 

important to 

them

Don’t waste 

their time

Don’t 

condescend

 

Sometimes it’s OK 

to go negative

Term

“Hand - Raiser” Ads 

Sometimes Being Straight-forward Works Best

Definition

 Headline is designed to 

QUICKLY get the attention 

of the RIGHT prospects for 

that product

 Sometimes, clear, direct & 

simple is best These ads 

get prospects to selfselect and self-qualify 

 To achieve 

this, the ad 

can still be 

implemented 

with a high 

level of 

creativity 

 Sometimes, 

clear, direct & 

simple is best 

These ads 

get 

prospects to 

self-select 

and selfqualify 

Term
Ad Copy
Definition

 Direct Marketing Ad Writer’s have a different 

challenge than Brand Writers.

 Brand ads must make an impression

 DM ads must stimulate an immediate action

 DM copy must PILE onto the Reader’s mind, over and over again 

all the reasons, rationales and sales points to persuade them to 

take action NOW!

Term
5 Kinds of Ad Copy
Definition

1. Benefits Copy

2. Descriptive Copy

3. Support Copy

4. Sweetener Copy

5. Facilitating Copy

Term

Classic Copy 

Structure

Definition
  • Problem

“Now you don’t have to leave 

unfinished business behind…”

  • Solution

“Alex cell phone”

  • Explanation of Promise

Here’s what you do…

  • Proof
  • Call to Action

No obligation test drive

Free booklet

Call toll-free number

Term
What works best in print
Definition

1. Headlines

2. Effective prospect identification

3. Ad length

4. Story appeal and pictures

5. Before and after scenarios

6. Captions under photos                   

(over body text)

7. Editorial layouts

8. Repeat the “winners”

Term
A 10-Point Copy Checklist
Definition

1. Has writer included ample product info to tell the story?

2. Has writer identified the correct target market / prospect?

3. Does the writer speak the target prospects’ language? 

4. Does copy ensure that all promises can be delivered

upon?

5. Does copy get to the point quickly?

6. Are the key copy areas relevant to the sales proposition?

7. Is the copy clear and logical?

8. Is the copy enthusiastic and convincing?

9. Is the copy complete (does the whole story get told)?

10. Has the copy been correctly designed to generate the 

desired response?

Term

Internet Applications for the 

Direct Marketer

Definition

 Key Internet Uses

1. Advertising Medium

2. Sales & Marketing 

Channel

3. Distribution Channel

 3 components of E-Biz 

 E-communications

 E-commerce

 E-care

Term
Engaged & Empowered Users
Definition

 Internet has grown faster than 

any other medium

 50 Million Internet users in less 

than 5 years

 TV took 13 years to reach 50 

million viewers

 Radio took 38 years for 50 

million listeners

 Shopping (not Buying) is the 

number one online activity 

 High Speed Access / Broadband 

has made the pace of consumer 

acceptance skyrocket

Term
Issues: Privacy & Security
Definition

 75% of Internet users do not 

like giving out personal data or 

credit card info

 Online Marketers need to 

reassure consumers that their 

info remains private

 No one can truly guarantee 

privacy. Just last week, the 

data base of online 

marketing firm, EPSILON 

was hacked of millions of 

email addresses of 

customers at JP MORGAN, 

TARGET, LL BEAN

Term

Key Internet Benefits for 

Direct Marketers

Definition

1. Reduces costs

1. Reduces overall operating costs

2. Lowers prices

3. Cost savings in order handling via reduced transaction 

costs (Pay for what you need)

4. Optimizes supply base

5. Enhances controls over inventory & spending

2. Saves time

1. Enhances use of personnel via instantaneous 

communications and / or outsourcing

2. Enhanced Marketing & Customer Service 

Term

Internet Direct Response 

Best of Both Worlds

Definition

 The Internet “goes both ways”

1. Builds & increases brand 

recognition for Business & 

Consumer companies like Mass 

Media

2. But can also deliver vast 

amounts of “relevant” info to 

targeted prospects and customers 

like Direct Mail

 Although SEM & SEO 

dominate, online marketers 

have many tools at their 

disposal

Banner ads 

E-mail campaigns 

Affiliate Marketing relationships

Sponsorships

Off-line advertising (other 

media)

Term

4 Main Types Of On-Line 

Business Models

Definition

• Clicks (only)

• Clicks & Mortar

• Online sites of traditional companies 

that enable some or all business to 

move to web  

• Clicks & Mail Order

• Successful DM / catalog companies 

that have experience in remote 

customer fulfillment / service

• Clicks, Bricks & Mail Order

• Firms that see the Internet as just an 

additional sales / distribution channel within 

the shoppers’ experience

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