DISTRIBUTION ISSUE

IN
MAIL ORDER MARKETING

PRESENTED BY : “EQUINOX”
MD IFTEKHAR
TILAK KESHRI
ASHA SHARMA
KULSUM AFRIN
ZEESHAAN IQMAR AHMED
 Understanding Mail Order
Marketing
 Mail order is a term which describes the buying of goods
or services by mail delivery.

 The buyer places an order for the desired products with

the merchant using some remote methods such as
telephone call or web site.

 Finally the products are delivered to the customer to their

given address by courier service or post.
arketing and Promotions in Mail Order
 Mail-order businesses usually
use direct-marketing techniques
and direct mail to reach potential
customers and make sales.

 It also employs a range of other

advertising media to get its
message across to target audiences.

 Mail-order advertisements are

commonly found in direct mail
(including catalogs), classified ads,
and display ads.
Types of Mail Order Merchandise

 Direct Mail Merchandise

 Space Merchandise

 Catalog Merchandise
 Direct Marketing Channels

 Personal Selling
 Telemarketing.
 Door-to-Door Leaflet
Marketing
 Catalog order
 Fax order
 Mail order
 E Commerce
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 Direct Marketing Value Chain

Initial Communication

Response

Fulfillment
Transportation Medium
Important Considerations

Customer Acquisition
Customer Up-sell/Cross-sell
Customer Retention
Customer Relationship Management
 Advantage
s marketing involves direct business. So it is cost beneficial for consumers, as
 Direct
there is no price hike due to wholesalers or retailers. 
 Mail-order businesses today offer consumers a wide array of products and services
at reasonable prices.
 Marketing executives can state certainly of the exact response to their products. 
 No need to go to stores, consumers can do shopping by sitting at home or anywhere
through online or just by making a call.
 Seller get the customer information like his name, address, buying habits from the
online credit card transaction.
 Direct communication from seller to buyer.
 Large market penetration.
 Faster delivery of products due to less intermediaries in between.
 Cost effective for the seller.
 Targeted directly to the potential customer.
 Easy Customer feedback.
Issues and Problems in Mail Order
Distribution
 Cost and its effectiveness
 Timely Delivery
 Safely delivery of products
 Names and addresses which are undeliverable clearly result in wasted
expenditure.
 Infrastructural Problems.
 Low density of telephone, Pc’s and Internet.
 Problem of Hacking of Customer’s details.
 25% of deliveries require multiple delivery attempts (increase costs) + 30%
of packages are left on doorsteps when no one is home (theft issue).

Source : Wikipedia
Solution For the Hindrances
 Focused Approach: It is important to identify specific target market using direct
mail. It is very useful promotion tool for niche products.

 Guarantee from the company : The customers can be provided guarantee on the
products i.e. if the products are not delivered in the perfect working conditions, it
would be replaced. It is already being practiced by some companies like DELL etc.

 Cultivating customers : Each direct mail package can be made interesting through
use of various devices. It should be effectively used to build customer relationships
in the long run.

 Package inserts : ‘Ride Alongs’ are inserts which are sent along with packages of
other companies after careful negotiations with them, at a fraction of original costs.
 Conclusion : Future of Mail Order
Marketing.
 The mail-order industry has grown during the 1990s, and there is every
indication it will continue to do so into the 21st century.
 Total revenues derived from catalog and mail-order marketing stood at $78.6
billion in 1997, according to the Direct Marketing Association (DMA).
 About 30 percent of all U.S. households remained heavy mail-order shoppers in
the late 2000s and is expected to grow 20 percent annually, according to
Vanderwey.
 Mail-order shopping has increased by about 11 percent per year in Japan since it
was first introduced in the 1970s, according to Nikkei Weekly. Although 10 large
Japanese companies control about 50 percent of the market, they employ out-dated
marketing techniques such as sending out large general catalogs.
 People order through the mail for a variety of reasons. Historically, mail-order
businesses became successful because they offered a wider variety of goods than
could be found in local retail outlets.
 In addition, several recent socioeconomic factors have contributed to the growth
of "at-home shopping." These include changing lifestyles, most notably an increase
in the number of women working outside the home. Source : Wikipedia
THANK YOU