Direct Marketing Direct Marketing Direct Marketing Direct Marketing

Mohammed Abid
Any advertising activity which creates and
exploits a direct relationship between you and
your prospect or customer as an individual.
e.g.: non store sales via mail or telephone.
How is it different? How is it different?
Conventional marketing is mass marketing and
direct marketing is demassified marketing
Directing marketing is two way activity and
conventional marketing is a one way activity.
Direct marketing doesnt involve mass promotion
but conventional marketing relies heavily on it.
Advantages Advantages
(1) (1) Know customers better. Know customers better.
-- -- isolate customers as individuals. isolate customers as individuals.
-- -- discover what differentiates them from others. discover what differentiates them from others.
-- -- develop more convincing appeals. develop more convincing appeals.
-- -- more effective reach. more effective reach.
(2) (2)Continuity. Continuity.
-- -- build continuing relationship by offering build continuing relationship by offering
products they want. products they want.
-- -- binds customer to you for longer period. binds customer to you for longer period.
(3) (3) Measurable. Measurable.
-- -- Test what works and what doesn't. Test what works and what doesn't.
(4) (4) Flexible. Flexible.
-- -- Timing and Costs. Timing and Costs.
-- -- Controllable Controllable
-- -- Able to predict future responses Able to predict future responses
-- -- Less risky Less risky
(5) (5) Motivates action. Motivates action.
(6) (6) Segmentation. Segmentation.
(7) (7) Give customers better service. Give customers better service.
Disadvantages Disadvantages
(1) Poor Image i.e. junk mail.
(2) Unable to create mood.
When to use ? When to use ?
1. Narrowly defined target market.
2. Needs to explain the product.
3. Interested in direct response.
4. Large absolute margin (e.g. dell)
Reasons for growth of Direct Marketing Reasons for growth of Direct Marketing
1) Increased used of consumer credit cards
2) Changing structure of society
3) Money rich, time poor society
4) Companies specializing in list development
5) Technological Advancement
6) Other factors
changing values,
sophisticated marketing techniques,
industrys improved image
Data Base Data Base
A marketing database is a list of customers and
prospects records that enables strategic analysis, and
individual selections of communication and customer
service support. That data is organized around the
customer.
A file containing a list of customers and/or potential
customers along with information about these people.
Data Base includes Data Base includes
Names
Addresses
Products purchased
Dates purchased
Amount spent
Amount profit
Media received
Returns
Complaints
Arranged by
geography
Credit history
Purposes of databases Purposes of databases
Improve selection of market segments
Stimulate repeat purchases
Cross-sell
CRM (Consumer Relationship Mgmt.)
How does your name get in a data base? How does your name get in a data base?
You have done something to indicate that you are a
prospect for some product:
Subscribed to a magazine
Registered an automobile
Filled out a warranty card
Provided information to receive a promotion
Provided information at the cash register or
online
Companies share info. with other companies
Forms of Direct Marketing Forms of Direct Marketing
Telemarketing Telemarketing
Inbound Tele Inbound Tele- -Marketing Marketing Outbound Tele Tele- -Marketing Marketing
(Initiating calls to prospect and customer) (Received calls from customer)
Used in both consumer and B2B markets
Example in India ICICI & HDFC Bank
Do-Not-Call legislation forbids most telemarketers to
contact phone numbers registered on its Web site
Direct Direct- -Mail Mail Marketing Marketing
1) Involves sending a marketing offer to a pre-
qualified prospects address
Paper Base Marketing
E-Mail Base Marketing
Fax-mail Base Marketing
Catalog Marketing Catalog Marketing
1) Company may send full-line merchandise catalog
2) Nowadays most paper catalogs have gone digital
(i.e. online)
3) Expected catalog sales in
2008: $200 billion.
4) In India Indiainfo.com & Indiagiftsportal.com
Direct Response TV Marketing
1) Direct-Response Advertising:
TV spots that are 60 or 120 seconds long.
2) Infomercials:
A 30-minute or longer advertising program for a
single product. Ex-Tele brand
3) Home Shopping Channels:
Entire cable channels dedicated to selling
multiple brands, items, and services.
e.g.: Home shop 18
Kiosk Marketing
Ordering machines generally
found in stores, airports, and
other locations
Online Marketing
1. However e-mail is an increasingly popular tool for
marketers
2. Advantages
Cheap
Good response rates
3. Netiquette suggests getting consumer permission to
send product information
4. Avoid bulk e-mailings
5. Fraudulent email know as phishing
Face to Face Selling
1) Most effective with products or services that are:
Higher priced
Complicated to use
Tailored/customized to users needs
Offer a trade-in option
Judged at the point of purchase
2) Salespeople play a critical role in cultivating long-
term relationships with customerswhich often is
referred to as a customer relationship
management (CRM) program.
Tips for Direct Marketing Tips for Direct Marketing
1. 1. Keep costs low Keep costs low
Do homework Do homework
Go into JV with local partner Go into JV with local partner
Establish brand name at retail level first Establish brand name at retail level first
2. 2. Find the favorable factors for mail order in the Find the favorable factors for mail order in the
country country
3. 3. Provide right service & staff Provide right service & staff
Staff to explain catalog shopping & know how Staff to explain catalog shopping & know how
to fill in sales forms to fill in sales forms
Bilingual sales forms Bilingual sales forms
Understand what customers want Understand what customers want
Thank You Thank You