Direct Marketing

Direct Marketing Direct Marketing

Introduction • Direct Marketing is a discipline, which permits us to carry out certain marketing tasks more efficiently. • It does this by gathering, analyzing and using information about individual customers and prospects. • This information enables marketers to identify, which of the people on the customers-prospects base are likely to be interested in a particular product or service. • Only interested customers are contacted, messages are communicated to them, eliminating wastage inherent in other forms of advertising Direct Marketing

Definition • Direct Marketing is defined as any marketing or advertising activity which creates and exploits a direct relationship between the seller and its prospects or customers as individuals. • Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing: • The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, telemarketing) with consumers or businesses, usually unsolicited. • The second characteristic is that it is focused on driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on traceable, measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium. Direct Marketing

Benefits of Direct Marketing • Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. • By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successful direct marketing. • Yet since the start of the Internet-age the challenges of Chief Marketing Officers(CMOs) are tracking direct marketing responses and measuring results Direct Marketing

Benefits of Direct Marketing • A new and innovative way to reach to the customers directly. • Eliminates cost of middlemen. • Technology inspired marketing. Direct Marketing

Channels of Direct Marketing • Direct mail • Telemarketing • Email Marketing • Door to Door Leaflet Marketing • Broadcast faxing • Voicemail Marketing • Couponing • Direct response television marketing • Direct selling • Integrated Campaigns Direct Marketing

Channels: • Direct Mail: • The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. • Probably the most commonly used medium for direct marketing is mail, in which marketing communications are sent to customers using the postal service. • The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "admail" or "crap mail" and may involve bulk mail. • Junk mail includes advertising circulars, catalogs, free trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail or to homes and businesses, or delivered to consumers' mailboxes by delivery services other than the Post Office. • Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. For example a person who has demonstrated an interest in golf may receive direct mail for golf related products or perhaps for goods and services that are appropriate for golfers Direct Marketing

Channels: • Telemarketing: • The second most common form of direct marketing is telemarketing, in which marketers contact consumers by phone. • This process may be outsourced to specialist call centers. • E-mail Marketing: • Door-to-door leaflet marketing: • Leaflet Distribution services are used extensively by the fast food industries, and many other business focusing on a local catchment Business. • This method is targeted purely by area, and costs a fraction of the amount of a mail shot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants. Direct Marketing

Channels: • Broadcast Faxing: • A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. This is partly due to laws in the United States and elsewhere which makes it illegal. • Voicemail Marketing: • A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice. • More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing Direct Marketing

Channels: • Television Marketing: • TV-response marketing—i.e. infomercials—can be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. • This allows marketers to reasonably conclude that the calls are due to a particular campaign, and allows the marketers to obtain customers' phone numbers as targets for telemarketing. • Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form which refers to typical 0:30 second or 0:60 second commercials that ask viewers for an immediate response . • E.g: Home Shop 18 etc. Direct Marketing

Channels: • Direct Selling: • Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approaching potential customers in person, or through indirect means such as Tupperware parties. • Integrated Campaigns: • For many marketers, a comprehensive direct marketing campaign employs a mix of channels. • It is not unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as online channels such as email, search marketing, social networking and video. Direct Marketing

How is DM different from other disciplines like advertising…… • Advertising: • Usually speaks to people in masses. • Does not aim at immediate response from the people. • Sales Promotions: • Generally designed to get action at the point of sale. • Often uses the same methods as DM. • It can generate lists, but hardly there are efforts to build continuing relationships with customers. • Public Relations: • Media controlled by others to build a favorable climate. • Can be used to create database. Direct Marketing

Benefits to DM (Changing customers) • Mass media: • Why to invest in less profitable promotion activities, which are expensive. • People as individuals: • One of the major tasks in DM – to treat each customer individually. • Increased purchasing power: • Greater prospects of business. • Impact of technology • Makes more medias available, for communication with customers. Direct Marketing

Giving customers a better service • Collecting information, analyzing and making sense out of information. • How and when to communicate with customers. • What interests the customer. • New customer recruitment, not fast but intelligent. • Saying and providing more than retail shops • Satisfying even the shy customers • Easing the communication with them, making the conversation comfortable, pleasant. • Clarifying more. • Understand the worth of a single customer, establish value • Greater competitive edge. • Building trust • Maintaining relationships Direct Marketing

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Direct Marketing