4MMC7A9 Direct and

Interactive Marketing
May 2014
Revision I want you to pass ..
But.

Why might you fail?

Too little preparation

Failure to answer questions
Lack of knowledge
Too little theory
Too much theory
Lack of application to case

Exam format

Case study: pre seen

Section A compulsory 60 marks
2 questions
DIM campaign, evaluation 35 Marks
mailing list choice question
20 marks
Pre-prepared situation analysis 5 marks
Section B free choice 2 question from 6
20 marks each

Preparation case study

You should bring your copy of the case with you to
the examination. The examination questions will be
given to you at the examination.
You may bring into the examination with you 3
double sided typed A4 pages of notes on this case
study NOT LESS THAN .10 PRINT SIZE
Any papers brought into the examination must be
handed in with your answer.
BRING A ( non-programmable)CALCULATOR WITH
YOU - you wont be able to use your mobile phone!

Case study Preparation

Overall marketing objectives
Market target quantification, customer
habits and purchase behaviour, profiles
Competitive situation
Resource constraints
Media ideas for DIM and creative
ideas/message
Budget & evaluation methods

Preparation- the 6 pages

The environmental analysis and background carries 5
marks.
You should take the opportunity to prepare properly
Think carefully about what you include in your 6 pages
If you work in groups your 6 pages and your answers
must be different they must be your own work
Do not copy directly from the 6 pages write your own
answer in your own words in the answer book
You may refer to tables, diagrams, creative ideas in your
6 pages as appendices to your answer but do not refer
me to large chunks of text which you expect me to read
Your main outline must be written in the answer book

The 6 pages - content

Situation analysis;
Market trends, size
The organisation - SWOT,
Competition
Segmentation;
Customer profiles

These are the parts you will be marked on

DO NOT COPY THESE OUT AGAIN IN
YOUR ANSWER BOOK AS I WILL MARK
THEM FROM THE 6 PAGES

Other Useful information to

include
An outline plan
Creative ideas and examples of collateral
if you wish
Budget breakdown although you must
include the main headings and total in
your answer book

Avoid collusion
What you write in the 6 pages must be
yours alone not a group effort.
Do not write it out as a report make it
bullet points and notes.
Use these as the basis of your answer and
not the total answer
Do not copy directly it into the answer
book word for word

 Do include examples of collateral

Do include the quantification to support your
choice of target market
Do work out your budget.
I will look at tables, diagrams and the budget
in your 6 pages BUT I will not read sections
of text.
Therefore the rationale for your proposal
MUST be written in the answer book

Answer the set question

While you may develop ideas in your preparation you
should read the question carefully and make sure you
answer the question I have set.
Make sure you answer all parts of the question
Make sure you label clearly which part of the question
you are answering and do not roll all parts into one
answer
Start each question on a new page
Check the marks versus the amount you write

Q2
The maths/mailing list choice question is
separate from your own DIM proposal
the mailing list and fulfilment costs may be
entirely different from those you have used
in your plan this does not matter.

The case study..

why you might fail

Failure to understand what the product is!

Failure to relate to the questionFailure to be specific
Failure to specify market segmentations and choose
appropriate target markets remember DIM is about
small specific target markets and not broadcast anyone
will do markets!
Failure to attempt all parts of the question
Failure to quantify objectives or provide realistic
objectives
Failure to include a budget
Not differentiating pre and post campaign evaluation

Exam technique
Prepare the case study thoroughly but adapt
your thoughts to answer the question I have set
Question 1 will be compulsory make sure you
attempt all parts. It is worth 60 marks including
the pre-analysis there are 2 parts
You will then need to answer 2 out of 6 further
questions looking at theory and its application
to examples
20 marks each

Timing
Do not spend all your time on Section A and then fail to
have time to do justice to yourself and your knowledge
on the other questions.
They carry another 40 marks you should spend at least
35 minutes on each optional question - if not more.
On Q1 you should allocate 1 hour
dont spend all your time on the proposal and ignore the
maths question 40 mins
You will be unlikely to pass by JUST answering section A
although it carries 60 marks so the extra time spent
on writing it would be better spent on the other 2
questions. Pace yourself!

Suggested timings in the exam

Case DIM proposal

Maths questions
Option question 1
Option question 2
Reading paper and
Re- reading answers

60 mins
40 mins
35 mins
35 mins
10 mins

Section A Q1
Compulsory questions

The case study and pre-preparation

Proposal
Think through your target markets dont try to serve all
segments TARGET a specific group remember this is DIM
which is aimed as a specific target you may well be given a
hint on the target market in the case
Set or repeat objectives - quantified
Tactic what are you going to say and how which media
post, digital, telephone. DR adsmake sure you offer DIM
tools and not general ones ( such as OOH)
Flow: when and how much
Budget break down for each stage, and expected outcome
RR,CR and ROI
Pre, during and post evaluation what and how

Cover key areas of DIM for

acquisition
e.g.
Database development or choice,
RR and CR for various media or the ones you
chose
Targeting- will the methods used be different for
different target groups?
Specific campaign elements how and where
Campaign planning and testing
Traditional and electronic media
Implementation, evaluation and control

 Look back at the Borgia di Colleoli

case study for an example of details in a
DIM led campaign

Acquisition v retention
Is the question asking about both?
Is it ok to include retention if you are
discussing acquisition?
If you decide both are needed make sure
you differentiate between them and say
which methods refer to each
You dont have to do both

Budget
Budgets not required to be accurate but they must be
there. Round up your figures to the nearest 000
You may wish to include assumptions about costs for
various media/RR and CR.
If you dont know accurately for the exam make an
educated guess it is your rationale and reasoning I am
marking not your total recall of media costs
If you are given a budget and a target number of
customers work out your ACPO and ensure your
rationale uses this
Write your budget headings and total in the answer book
together with your ROI for the campaign. I will look at
the 6 pages to see the details.

Evaluation techniques
What can you pre-test or post-measure ?
How?
Will this cost extra?

The calculations question:

You know you love doing the sums
now..
We have practised this in class
I will include a grid for you to use
But dont panic.

Calculations know the

formulae:
What are RR,CR,ACPO,CPS,ROI for
DIM?
How do you calculate these?
Given a RR and/or CR how do you
calculate the size of the mailing you need?
Are there enough names in the list?
How do you calculate the costs so you can
calculate ROI?

formulae
RR %-response rate 1000xRR/100
CR conversion rate meaning 1 in x number of
responses will go on to buy calculate by responses / CR
ACPO allowable cost per order
= Target budget/ target sales
CPS = cost per sale = total costs ( list cost + fulfilment per
response)/sales
ROI return on investment in campaign not the same as
company ROI
Calculate: Sales revenue/cost of campaign

Once you have the grid:

Which lists are ranked best against the ACPO?

Does the best cps list have sufficient numbers to allow you to
reach your target?
( calculate Left to Right on the grid)
If not how many sales and how much budget left? Calculate
the new ACPO
How many names do you need from the new list? ( calculate
right to left on the grid)
Now look at actual costs and not cost per 1000 to look at the budget
Estimate Income from campaign
What is the ROI on allowable budget?

 The free choice questions

A choice of 2 out of 6 questions

Answer the questions

When there are 2 or 3 parts to a question
make sure you answer both/all parts
Indicate where each section begins do not
write it all as one essay
Where marks are shown for each part make
sure the length and detail for each part is
appropriate to the marks
Dont write 2 pages for 5 marks and only 2
paragraphs for 15 marks

The areas to revise

Our business runs on data:

Data privacy regulations and practice
Data collection
Permissive marketing touch points for collection, how to engage and get
customers to give data

Media choice:
AIMRITE model and how it is applied all media DRTV, SM, traditional
methods telemarketing, direct mail, email, SMS
Mobile marketing

Engagement:
How to generate engagement and how to measure the effects think of the
companies you have been following this year and how well they have done it
all SM and not just facebook and twitter

Data privacy acts

Do you remember the key laws?

Do you remember the key 8 points of the DP act?
What changed about cookies?
What are the phone and mail preference schemes?
Do you remember regulation 22?
How has Google changed its privacy policy and what are
the implications?
What are the implications for direct marketing
companies?

Data collection
What data needs to be collected?
How do you encourage customers to give
their data
Are incentives needed and what types
Remember the touch points
Remember Chaffeys rules

 Companies use plug-ins, widgets and

algorithms in an attempt to understand their
audience better
But why not just ask them?
People will often happily provide personal
details and preferences if asked in an
appropriate way then this data can be
used to create more effective 1:1
camopaigns

Permission marketing
Customers agree (opt-in) to be involved in
an organisations marketing activities
may be as a result of an incentive
What does double opt-in mean?

Why is it important?

AIMRITE

Audience
Impact
Message
Response mechanism ease for
customer
Internal management ease of
implementing
The End result expected outcomes (RR)

DIM platforms
Direct Mail, email, SMS
Outbound telephone
DRTV, Radio, Cinema ( hands up rather
than targeted?)
Interactive media
Search, banner ads, PPC
Social video triggers and themes
Social networks

AIMRITE
Make sure you revise looking at examples
of products related to different media

WHAT TO REVISE (2)

Objectives
Why should they be quantified
How should they be quantified
how do they differ for acquisition and
retention

WHAT TO REVISE 3
Using Mobiles for direct marketing
Social media and social networks
Engagement

Mobile usage
Smart phones account for 62% of the
mobile market
65% of mobile subscribers have used their
phone every day in the last 7
23% of consumers would rather give up
TV than their smartphone
25% of internet users are mobile only

Usage prediction in billions

2013

2017

App users

1.2

4.4

App downloads

102

268

App revenue

$20.4

$63.5

Mobile App Behaviours

70% of mobile searches lead to action
within an hour
82% of mobile media time is spent in apps
26% of apps downloaded are only used
once!
29 apps are installed on average
10 are used every month
8 are paid apps

Top 10 apps downloaded by

Android

Apple

Google Search
Gmail
Facebook
Google Maps
YouTube
Pandora Radio
Twitter
Adobe Reader
Advanced Task Killer
The Weather Channel

Maps
Facebook
YouTube
Stocks
Weather
Facebook Messenger
The Weather Channel
Twitter
Pandora Radio
Instagram

Social networks
Brands need to see social media channels
as online environments where customers
and prospects can interact with them
No heavy handed sales techniques
This is enagaging with their followers

Social networks
But is this softly softly approach working?
Is engagement enough?
Can branded content alone really help to
Sell more?
sell more often?
and to more people?
Which is the whole point in investing in
marketing activity!

To sell or not?
Social media platforms such as Facebook
and twitter are a great way for a brand to
discover who likes them
But
Selling to these seemingly hot prospects
seems to be a no-no in social space.

 Genuine empathy is the right key and the

right tone
It may take practice to get this right
How do you engage customers?

So revision and preparation

Make sure you know the case study thoroughly
Prepare your 6 pages with care these must be
your own work
Think ahead of possible media and their typical
costs, RR and CR
Know how to calculate ACPO/RR/CR/ROI/CPS
Think ahead about possible budgets- how much
does the product cost so what might be a feasible
ACPO?
Think in terms of examples

and finally.

Good luck