Dr. I.B.


Basic characteristics/ properties of Direct marketing : 1. .Definition : is an interactive marketing system that uses one or more advertising media to effect a measurable response and / or transaction at any location. All necessary information provided to make a decision. A definite offer to customer. 2.

Basic characteristics/ properties of Direct marketing ( Cont…… ) : 3. catalogues. A mechanism to respond to the offer . telemarketing .  Fund raisers  Book publishers  House hold durables . Within this frame work fall all direct marketing options : Sales letters. TV advertisements and internet. Businesses that rely heavily on Direct marketing :  Magazines and news letter publishers  Mail order merchandisers. direct response .

Reasons to find Direct marketing attractive : 1. 4. Investment required is low.com . 3. 2. 5. Domino’s delivery system Dell Computers Amazon. All that is required is a data base with consumer profiles. It does not require any specialized skill. Examples : Free delivery of items as in Amway. Consumer reaction can be known immediately. Returns are quick and its effectiveness can be measured.

6. 8. 2.No. 4. 5. Mass Marketing Average customer Customer anonymity Standard Product Mass Production Mass Distribution Mass Promotion Share of Market All Customers Customer Attraction Direct Marketing Individual customer Customer profile Customized Market Offering Customized Production Individualised distribution Individual messages Share of Customers Profitable Customers Customer Retention . 3. 9. 1. 7.Sl.

Wider use of debit and credit card. 2. (ecommerce) 4.    1. . Reaching out to non-metro/non-urban markets depends on infrastructure available and increased use of mobile phones. Emergence of specialised data base firms. 3. Enhancing credibility of the offer: Experience of customer plays an important role.

They convince the customers about value of the product or service and fix appointment with him/her. . Tele-marketing/selling over phone: .This works through Trained telemarketers who make calls to potential clients and customers and establish direct contact with them. .The back-up team of field personnel them approaches the client and finalises the deal. 1. .

Orders received through internet.Payment are to be collected by cash.Example: Life Insurance. real estate. selling function is performed without intervention of .database is given to telecaller with instruction that 100 calls must be made. Sales on Internet: . 2. Banking products. Mail Order Sales: Orders are received by post and goods are dispatched by VPP . Vehicle Insurance.Sales of grocery and other items through internet. 3. . Deliveries made with assurance of quality and quantity. . In this case. customer.

electronic goods. watches. leather goods. Eureka Forbes have been using Direct Selling. 4. Medicare. Direct Selling: Companies like Amway.personal salesman. . patented medicines. In this customer relationship is built. There should be sufficient margins also. product of nonperishable nature and wide demand. even before the actual sales takes place. Goods of well known brand are sold by this method. Example: Books.

Identify the customer .Create direct selling process .Value addition in Direct Selling: . .Close the deal .Follow up with prompt service. .Choose suitable time for demo and pitch. .Ensure product performance at demo. .Make appointment with customer.

Public and ethical issues :  Irritation : Increasing number of hard sells and   direct. Deception and fraud : Some direct marketers design mailers and write copy intended to mislead the buyers . . Unfairness : Impulsive and less sophisticated buyers become target of excessive claims and demonstrations specially on TV . They may exaggerate product size .marketing solicitations become nuisance for many people. performance and price leading to deception and fraud.

. These companies make the information public resulting in invasion of privacy. income level . Invasion of privacy : Direct marketing companies maintain data bases for customers and they use the same for their company and also share data base with other companies . Data base include age . which is personal in nature . etc . marriage status .

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