Direct Marketing

direct marketing marketing that uses media vehicles created by the marketer (jphone messages, email, postal mailings) to send persuasive messages asking that the consumers who receive them respond to the marketer

databases lists of customers and potential customers that can be used to determine what those people might purchase in the future

database marketing practice of constructing computerized lists of customers and potential customers that can be used to determine what those people might purchase in the future. The marketer then contacts the people on these lists with advertising or PR messages

relationship marketing involves a determination by the firm to maintain long-term contact with its customers through regular mailings of custom magazines, brochures, or letters or through frequent user programs that encourage repeat purchases and keep the person connected to the firm

marketing services companies firms that provide a spectrum of activities to help firms promote and sell their products

Direct marketing uses media vehicles created by the marketer (phone messages, email, postal mailings) to send persuasive messages asking that the consumers who receive them respond to the marketer. Think of any of the late-night 1V commercials you’ve watched that urge you to phone them via an 800 number, or a Web ad that asks you to click to buy a product or service. Nowadays, most direct marketing involves databases. These are lists of customers and potential customers that can be used to determine what those people might purchase in the future. The marketer contacts the people on these lists with advertising or PR messages. The practice of using these computerized lists is called database marketing.

Although the use of lists in marketing dates back to at least the 1800s, the past few decades have seen a huge growth in the use of computers to store information about people and their habits. This growth in marketers' ability to cross-link and retrieve huge amounts of information about people took place at the same time that the introduction of toll-free numbers, more efficient mailing techniques, and fast deliv­ery firms made shopping from home easier than ever. These changes led to a huge increase in targeted persuasion through direct marketing.

Relationship Marketing

Relationship marketing involves a determination by the firm to maintain longterm contact with its customers. This can be done by regular mailings of custom magazines, brochures, or letters or through frequent user programs that encourage repeat purchases and keep the person connected to the firm.

Agency Holding Companies

As we have noted both here and in Chapter 15, many of the major companies in each area are owned by one of the five agency holding companies that have emerged in the past twenty years to control the major advertising, public relations, and marketing communication firms around the globe. Sometimes called marketing services companies, these firms are deeply involved in advertising, PR, and other media activities in the United States-WPP owns the JWT agency network, for example They are also involved in helping their multinational clients with all sorts of communication services-from media research to branding-in a multitude of countries.

WPP provides an example of the scope of these firms. It has 145 000 employees, more than 2,400 offices in 107 countries, and at the end of 2008 had billing of more than $70 billion with profits of over $11 billion. Its website states that:

Within WPP, clients have access to all the necessary marketing and communicaions skills. [WPP] is structured as follows:

Advertising

Global, national and specialist advertising services from a range of top inter-

national and specialist agencies, amongst them Grey, JWT, Ogilvy & Mather United Network and Y&R

Media Investment Management

Above- and below-the-line media planning and buying and specialist sponsor­ship and branded entertainment services from GroupM companies Mediacom, Mediaedge:cia, MindShare, Maxus and others