Direct Marketing                                                      

 

Fall 2007

MKT 510                                                                                               Faculty: Baber Khairi

Office Timings: Saturday 11-2 or 12- 1                                                     Saturday 8 to 11

 

Direct Marketing is a field whose time has come. It has grown from obscure beginnings to become one of the most important tools in the kit of a marketing manager. Leading companies today have a marked preference for direct marketing usually in conjunction with advertising, although by 2010 most expect advertising to occupy no more than a quarter of their promotion budgets. The attraction of direct marketing has been its ability to focus directly on, and to service, customer needs. In addition unlike so much else in marketing, it is highly quantifiable. In other words, because results can be measured, this allows for substantial cost savings, accurate allocation of expenses and better customer relationships. In addition direct marketing is not just about traditional mail & catalogue methods; it has become a field using advanced technology, quantitative applications, call centers and the Internet to get these results. Number crunching, data mining and quantified forecasting are the main tools a direct marketer uses.

 

Also sometimes referred to as 1:1 marketing, the main problem faced has always been the high expense associated with gathering, tracking, monitoring and digesting customer information at such a finite level. Fortunately advances in technology have led to solutions such as CRM (Customer Relationship Management software) that enable direct marketers to understand and influence customer behaviour through meaningful communication. This in turn has helped improve customer retention, loyalty levels and profitability per customer. Over $100Billion alone are spent every year in the USA on direct mail promotions with the result that today it has become almost a $One Trillion industry.

 

Prerequisites: Marketing Management, microeconomics, ITC, IBF, OB.

 

Course reading:

Recommended reading:                       

Profitable Direct Marketing                     by Ros Jay (International Thomson Business Press: 1998)

 

Course Description:

 

            Direct Marketing, or DM for short, is a creative, conceptually oriented course. It consists of 3 assignments, 2 midterms and a final examination. It assumes substantial academic knowledge about marketing on the part of the student and encourages the student to read the many articles and readings on the extensively used course website. The assignments are always topical and change from semester to semester, as does the content. In addition to readings and quizzes, there are class workshops, technical games and learning exercises. A sense of humour goes a long way in the course. The course uses a fair amount of simplistic mathematical formulae. If you study your equations you will find them simple and it is possible to score very high in this part of the course. Students completing this course should be able to carry out a DM campaign entirely on their own.

 

About your instructor: (nothing you really want to know)

 

Baber Khairi landed on this planet a very, very, very, very long time ago, that is, when he still had some hair on his head ---- obviously that was some time back. He immediately discovered a passion for chocolates which enabled him to complete his BA from Columbia and some years later his MBA from Bentley College. Historians have seriously questioned where he would have been able to do anything at all without chocolates and whether it was not the chocolates rather than him that did the graduating. Um, ah, um -- anyway.

He then proceeded to work at a number of firms, marketing mainly financial products – instead of himself -- at Bankers Equity, Orix, LTVM and Citibank. If you have not heard of any of these, that’s alright, neither has he. Baber Khairi consulted on a number of privatization issues in the banking, power and the petroleum sectors. Of course no one listened to anything he said, which is just as well, since paying for consultancy services doesn’t really mean having to do what you pay for. This is his 9th year in college instruction academia. He has lived in several countries and even speaks a few foreign languages such as English, Urdu, Spanish and a little French (which consists of speaking illegibly and waving one’s arms). His passions remain chocolate and science fiction.

Ah, um….may the force be with you….and all that jazz

 

Grades Structure:

4 quizzes + other class work       5 points

3 Assignments                          15 points (5pts each)

Cases Discussion                     10 points (4 case studies)

2 Midterms                                30 points

Final                                         40 points

                                                ------------

Total                                         100points

Course Schedule:        

 

  • Sept 15             Introduction – Kotler Chapter 24: tools – ‘How Consumers cope w/ info…’
  • Sept 22             LTVA applications/ quantifying DM effort  & Range Rover case study* –

 Quiz1

  • Sept 29             Telemarketing; Sales Promotion tools
  • Oct 6                Assignment 1 due -  ‘Customer Retention is not enough’ Case study*
  • Oct 13               ‘Do you Value customer value?’ Case study*; Dbase Marketing
  • Oct 20               1st Midterm examinations
  • Oct 27               Quantifying LTVA; Publicity tools – Quiz 2
  • Nov 3               Customer Relationship Management (CRM-1) Lecture– Quiz 3
  • Nov 10              Assignment 2 due - Data mining; Target marketing
  • Nov 17              CRM & call centers
  • Nov 24              2nd Midterm examinations
  • Dec 1               A Multi-channel world: BT Case Study
  • Dec 8               CRM-2: Database Marketing Case study*  & BK’s notes 
  • Dec 15              1:1 Marketing Case study – Quiz 4
  • Dec 22              Assignment 3 due - Tesco.com (case on website)*

Final examinations

 

* Case studies may be replaced at instructor’s discretion

 

To contact in case of tears, unhappiness, questions and concerns:

 

Office:               Room 302 Academic Bldg –x290                       Office Hours:     Saturday 12 - 1 pm

E-mail:              [email protected]         

 

When e-mailing your instructor kindly state your name and ID and the course you are in. Then state what your problem or concern is. Do not assume I know who or what you are.

 

Ten simple ways to ace this course:

 

  1. Study
  2. Study
  3. Study
  4. Study
  5. Bring along a towel, chocolates and some reading
  6. Don’t believe everything you read, some of it might actually be true
  7. Zzzz…..zzzzzzzz…..zzzzzzzzzzzzzzzzzz….zzzzzzzzzzzzzzzzzzz
  8. Huh?
  9. Bring a pillow and try not to yawn
  10. Thank you for visiting!

 

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