Direct Marketing Submitted

by

Vinutha Ramya

Meaning…..• Direct marketing(DM) is the process by

which a firm approaches its customers on one-to-one basis and markets its products directly to them.

• In simple, it is a selling method that establishes a one-to-one relationship with the customer.

• It is also called as “dialogue marketing”, “personal marketing”, Relationship marketing”, “Data base marketing”.

• Ex- Eureka Forbes the most successful DM in India

Features ……….

Continuity

Targeting

Interaction

Control

Objectives……The Objectives of direct marketing are as follows:• To Reach Target Markets. • To gain Name Recognition.• To move Specific Products.• To Achieve Maximum Economy.

Methods …..• Direct Selling Marketing.• Mail order marketing/Catalogue

Marketing. • Direct Mail Marketing.• Telemarketing.Tele-Shopping /Home Shopping.• Database marketing.

• Direct(face-to-face)selling:- it is defined as “The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs”.• Direct marketing is about business organisations seeking a relationship with

their customers without going through an agent/consultant/retail outlet.Ex- Amway.

• Mail order marketing-(MOM)It is also known as mail order Business(MOB), it is one of the well established

methods of direct marketing.In this method, the consumers become aware of a

product through information furnished to them by the marketer through Catalogues dispatched by mail. the entire marketing takes place by mail.

Interested consumers respond by placing a mail order on the marketer ,the product is supplied to the consumer by mail; payment by the consumer is also made by mail, either by cheque,or by credit cards.

Direct Mail Marketing(DMM) • DMM is similar to Mail order Marketing• In DMM ,not only letters/brochures are mailed to the Prospects, but free product samples, gifts

and compliments are also mailed ,depending on the context.

Tele marketingIt describes the use of telephone operators to attract new customers, to contact existing customers to ascertain satisfaction levels, or to take orders. 1. It is cheaper than personal selling 2. Reaching customers is faster3. The response is the best, since it is person-to-person dialogue

Tele-shopping Tele-shopping alternatively known as Home shopping, is one of the method of direct marketing .Here the marketer hawks the product on the air and the consumers watches it on his TV screen at home,calls up to the marketer and buys his requirement.

Data base MarketingDatabase marketing is a form of direct Marketing using databases of customers or potential customers to generate personalised communications in order to promote a product or service for marketing purposes.Here a record is kept of each customer and his backgrond,purchase patterns, intersests and soon.this provides an source for precisely targeting future marketing efforts in direct marketing.if you know your customer better than your competitor ,you shall have a clear selling advantage.

Functions …..The following functions of direct marketing are:• To get sales needs• To help build new customers• To retain or Increase the business

from existing customers• To Stimulate repeat purchase• To improve selection of market

segment• To generate goodwill.

Difference b/w…..

Advertising Direct Marketing• Mass selling. buyers are identified as

broad groups sharing common demographic and psychological characteristics

• It is about selling to individuals. customers are identified by address and name

• The retailer outlet is the market place • The medium is the market place, i.e., the product is ordered through telephone-email ,etc.

Mass Media cannot build personal relation DM can build personal relation with each other

Effectiveness of mass media such as advertising is more difficult to measure .

Effectiveness of DM can be measured accurately.

• It is used to build image, awareness recall, loyalty ,etc.

It is used to motivate an immediate order and enquiry

Advantages…….• Selective reach: Wastage is eliminated due to

selective reach• Segmentation capability: segmentation can be

done based on demographics ,psychographics• Personalization: the product & services can be

tailor made to suit the individuals requirement• Effectiveness: can be measured accurately .

Disadvantages…..

• Image factor: many people think that the mail received by them, is a piece of junk.

• Accuracy: Direct mail effectiveness depends upon the accuracy of the list prepared.

• If telephone numbers change, call-made will go waste.

• Lack of privacy.