Writing
 Direct Marketing for Public Radio, Part 1: Introduction to Direct Marketing By B. R. Forbes Originally published in the Development Exchange journal i.e. development, October 1988 Introduction: Direct marketing Even the term sounds impressive. Like you know exactly what you're doing. Like you don't have to apologize for what you do. Yes, the term is alluring -- much more attractive than "fund raising." But is "direct marketing" the same as old fashioned "fund raising" — like calling a janitor a "maintance engineer?" No. In fact, direct marketing refers to a clearly defined cycle of communication which depends on three distinct elements -- which will be discussed in this installment. Over the next few months, the Development Exchange will explore the theory and the practical applications of direct marketing to public radio stations. We have kept both experienced development professionals and newcomers in mind as we review the basics of direct marketing, present actual station examples and offer guidelines for self-evaluation of current efforts. Here, we'll examine what direct marketing is, how it can be used, the importance of market research, and the role of computerized databases. The next installment will cover the elements and uses of direct mail. In the third article of the series, we'll cover telemarketing and take a look at some successful telemarketing programs. The fourth installment will present some guidelines for developing a direct marketing plan. The final installment will put all this information to work by using a case study of a public radio station. We'll study the station's strengths and weaknesses and then develop an appropriate direct marketing plan. I. An Overview of Direct Marketing Marketing, according to Direct Marketing magazine, is "the total of activities of moving goods and services from seller to buyer." Many approachea to marketing are available and viable. You can use a bullhorn at a busy city intersection. Or you can invite a prospective member to lunch. These two approaches are fair examples of two types of marketing: "mass" marketing and "direct" marketing. Mass Marketing Mass marketing depends on mass communication -- it's what most people think of as marketing because of its high visibility. Some examplea are broadcast television commercials and major newspaper advertisements. Mass marketing seeks a wide audience and engages in one-way communication. The effectiveness can only be gauged by measuring such broad responses as the number of people who buy a particular product, vote for a particular candidate, or respond to an audience survey. Since mass communication reaches a vast number of people, the costs of mass marketing can be very high, and the competition for audience attention can be very tough. For companies who actually wish to reach a smaller target audience, mass marketing dollars can be "wasted" by reaching a lot of the "wrong" people. Direct Marketing Direct marketing, on the other hand, uses two-way communication, reaches distinct specialized audiences (or "target markets") and can directly measure its impact (which helps direct marketers in refining their approaches through testing). Where mass marketing is a spotlight, direct marketing is like a laser beam. The Three Elements of Direct Marketing While mass marketing depends on mass communication advertising and on an inexact measurement of "sales," direct marketing depends on three elements:
Advertising Media Options As with mass marketing, direct marketing employs many different ways of communicating. However, direct marketing is different because each option can be targeted to a specific audience and the responses can be directly measured. Some examples are:
II. Uses of Direct Marketing Direct marketing can help improve development efforts in the following ways:
III. Market Research Purposes of research Before beginning any kind of marketing, the target market must be clearly defined and understood. The more information on the target market, the more effective the direct marketing efforts will be. This is why research of your own local market is particularly critical. For example, in 1987, WGUC in Cincinnati wisely spent a portion of its budget on focus groups, telephone surveys and mail surveys. With this information, the station was able to understand more clearly the perceptionsof its listeners. They were then able to launch a five-part direct mail campaign which netted $38,801 and cultivated both new and renewing members. Types of Information Good research can provide the following types of information about the target market:
Sources of Market Information Two types of market research information can help define the target audience: primary research (which actually samples a part of the target audience) and secondary research (which is generalized from a similar audience or from a national sample). Examples of the more useful primary research include:
Some examples of secondary research are:
Conducting Local Market Research For stations who wish to conduct their own local market research, the Development Exchange has produced a "how-to" approach which was published in the October 1987 issue of i.e. development. The four steps outlined in this approach, titled The Ultimate Membership Survey are;
IV. Computer Databases Type of Information The types of information necessary for successful direct marketing to current and lapsed members are:
Computer Database Segnentation: F.A.I.R. Computer databases should be geared for FAIR segmentation — that's "F" as in frequency, "A" as in amount, "I" as in interests, and "R" as in recency.
Computer Database Maintenance The computer database is only as accurate as it is "clean" or up to date with accurate information. The best way to maintain an accurate list is to mail to members at least once a month and include the message "address correction requested" on all carrier envelopes. The cost of thirty cents or so per piece of returned mail is well worth acquiring an accurate address. Also, records of lapsed members should be kept until mailings are less profitable than acquisition mailings -- usually after five or six years. Computer Database Applications A fully functional and accurate computer database can enhance direct marketing efforts by assisting in:
The next two installments of this series on direct marketing cover direct mail and telemarketing. |