Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Promotion −
Introduction to Integrated
Marketing
Communications
Text © The McGraw−Hill
Companies, 2002404 Chapter 14
redeem at any Ryder dealer. Equally important, the computerized mailing list
(database) of people who called for the brochure served as a targeted list of prospects
for Ryder’s telemarketing salespeople. When one of them identified a good prospect,
the final personal selling job was turned over to a local Ryder dealer. The dealer’s
personal attention helped to resolve consumer questions and get rental contracts.
Further, because the whole promotion effort was consistent in differentiating Ryder’s
quality services, the dealers were able to charge a higher price than competitors.^10As the Ryder case suggests, direct-response promotion usually relies on a customer
(or prospect) database to target specific individuals. The computerized database
includes customers’ names and addresses (or telephone numbers) as well as past pur-
chases and other segmenting characteristics. Greenpeace and the Cousteau Society
send mail advertisements to people interested in environmental issues. They ask for
donations or other types of support. Individuals (or segments) who respond to direct
promotion are the target for additional promotion. For example, a customer who
buys lingerie from a catalog or a website once is a good candidate for a follow up.
The follow up might extend to other types of clothing.
BMW and other car companies found that videotapes are a good way to provide
consumers with a lot of information about a new model. However, it’s too expen-
sive to send tapes to everyone. To target the mailing, BMW first sends likely car
buyers (high-income consumers who own a BMW or competing brand) personal-
ized direct-mail ads that offer a free videotape. Interested consumers send back a
return card. Then BMW sends the advertising tape and updates its database so a
dealer will know to call the consumer.Direct-response promotion and customer relationship management database tar-
geting have become an important part of many marketing mixes—and more and
more customers find it very convenient. But not everyone is enthusiastic. Some crit-
ics argue that thousands of acres of trees are consumed each week—just to make
the paper for direct response “junk mail” that consumers don’t want. Most e-mail
users also get uninvited messages—“spam.” Other critics worry about privacy issues
related to how a direct-response database might be used, especially if it includes
detailed information about a consumer’s purchases. Similarly, many consumers don’t
like getting direct promotion telephone solicitations at any time, but especially in
the evening and at meal times when they seem to be particularly frequent. Most
states have passed laws prohibiting automatic calling systems that use prerecorded
messages rather than a live salesperson. There is also growing concern by computer
users about receiving e-mail they don’t want. Worse, some firms have been criti-
cized for creating websites that secretly install programs on customers’ computers.
Then, unknown to the user, the program gathers information about other websites
the user visits and sends it back to the firm over the Internet. Most firms that use
direct-response promotion are very sensitive to these concerns and take steps to
address them.^11Target customer
directly with a
database
Direct-response
methods raise ethical
concerns
The Customer May Initiate the Communication Process
Traditional thinking about promotion—and for that matter about the commu-
nication process—has usually been based on the idea that it’s the seller (“source”)
who initiates the communication. Of course, for decades consumers have been look-
ing in the Yellow Pages for information or asking retail salespeople for help.
Similarly, it’s not news that organizational buyers contact potential vendors to ask
questions or request bids.