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MODULE 5 MARKETING APPLICATIONS 34.

1 DIRECT MARKETING
 Direct marketing has several forms. The major ones are: Mail Order Marketin !Catal" #e Marketin Dire$t Mail Marketin Dire$t Re%&"n%e Marketin Data'a%e Marketin Tele(arketin Tele%)"&&in *+"(e S)"&&in , Online Marketin !Marketin "n t)e -e'

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 DM has so many forms essentially because it incorporates a variety of media/tools. Corresponding to the specific media/tools used, specific forms of DM have emerged.  or e!, in direct mail marketing, "hich is one major method of marketing in DM, customi#ed mailing through carefully developed databases $ %(ail.(er e& facility of "ord processing is the medium/tool used. 't provides one "ay of reaching a mass of customers individually.  'n telemarketing, "hich is another form of DM, the phone is the medium/tool used. Catalogue marketers use the catalogue as the tool. (ll these direct marketing methods basically do the same thing) they gather customer names $ sell their products direct to them.  *hile in the earlier days, direct marketing tools "ere confined to the mail $ the phone, today DM uses ne"er tools such as computers $ the 'nternet for reaching prospects/customers individually.

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.urlington markets a "ide range of products through this method. 't concentrates on credit card holders. Their availability at a reasonable cost has substantially enlarged direct marketing opportunities. another M+. has set its target on mothers "ho buy items meant for kids. the "ell/kno"n shirt maker in Mumbai.  An3ali Te4tile%: Mail order marketing is resorted to even to products like te!tiles./ MAIL ORDER MARKETING!CATALOGUE MARKETING  Mail Order (arketin *MOM. MODULE 5 MARKETING APPLICATIONS 34. is also sending out mailers to prospective customers $ does some business over the mail.angalore. 0iving 2 . has been marketing a substantial part of its saris through mail order. . for e!.  1ir%t Mail Order C"(&an2: irst Mail +rder Company has been focusing on customers in the smaller cities. 't is no" e!panding its business $ is also planning a video catalogue. 't advertises through the print media $ substantial catalogues to those "ho evince interest in mail order purchases. S#rat Dia("nd. since many mail order marketers use catalogues for communication "ith the consumer) this form of marketing is often referred to as catalogue marketing. is also doing some M+.. C)ara ) Din. (njali Mills. also kno"n as Mail +rder .. ( je"eler.!Catal" #e Marketin .urlington is an established M+. people "ho have the money but do not have the access to products.  Ott" 0#rlin t"n: . is one of the "ell/established methods of DM.usiness -M+...  Ot)er E4a(&le%: M"t)er$are India. . The ne"er tools actually permit more effective $ more sophisticated direct marketing.

the e!tent to "hich the mailing campaign decidees accomplish the marketing task "hether it is direct mail marketing. 'n other "ords. the DM division of 5rey *orld"ide 3 . the DM subsidiary of 3esponse 'ndia/Dick 2haver  +$M M#dra Di5er%i6ied.  *hen the direct mail campaign encompasses the "hole range of marketing tasks including order booking. The DM division of 4T(    of Mudra +$M Direct +gilivy +ne *orld"ide. direct mail here takes care of communication alone.Media has been selling a large volume of its % M#%i$ T"da2& cassettes through mail order. MODULE 5 MARKETING APPLICATIONS 34. it is dire$t (ail &r"("ti"n. the DM division Communications  +TA Dire$t. the DM division of  1C0.Ulka -Direct $ interactive.  *hen a direct mail campaign stops "ith the objective of generating a"areness $ interest about the product in the minds of the target customers. 'n other "ords. product delivery etc..3 DIRECT MAIL PROMOTION!DIRECT MAIL MARKETING  1nderstanding the difference bet"een direct mail promotion $ direct mail marketing is necessary. it becomes dire$t (ail (arketin .  2elect 0ist of Direct Marketing +utfits in 'ndia: Dire$t Re%&"n%e. the DM division of 1lka Gre27% Dire$t.

(7 0intas8s 5lobal Market 0inks M$Cann Eri$k%"n7% integrated communications net"ork Saat$)i 9 Saat$)i Dire$t. but not e!actly the same as direct mail marketing. rely totally on T9 %in6"(er$ial%& -commercials "hich give information about products. letters/mailers for obtaining the response. *hat distinguishes direct mail marketing $ direct response marketing from each other is the media/instruments used. 't is similar to. radio.e.4 DIRECT RESPONSE MARKETING  Direct 3esponse marketing -D3. net"ork    2aatchi  Redi66#%%i"n D89R7% -#nder(an Cat" :")n%"n -*C6.  *hile direct mail marketing relies on mail. usually a coupon is also attached to enable response. the DM division of 2aatchi $ Data(ati$% Dire$t. like telephone.. for e!ample. 'n the case of press.  2ome direct response marketing campaigns. T9 $ computer /// response is elicited by giving a contact address/phone number/fa! number. is another e!pression that is seen in DM. T9 $ computer. direct response marketing uses more instruments/media -including letters/mailers.. radio. i. benefits $ usage aspects. an independent DM net"ork MODULE 5 MARKETING APPLICATIONS 34.  Depending on the media used /// press. 4 .

 2econd. MODULE 5 MARKETING APPLICATIONS 34. it gives the marketer a better chance to influence the prospects. Moreover. although all forms of DM are database/driven. Toll/free telephones help better ordering by the customer.T"ll. +ne can thus concentrate on select prospects. Compared to mass marketing programs. though not face/to/face contact "ith prospects.6ree tele&)"ne n#('er%  Toll/free telephones too serve as a usual tool of direct response marketing.5 DATA0ASE!TELEMARKETING Data'a%e Marketin  Database marketing is also seen in DM. it can be used in respect of 5 . some e!perts treat database marketing as a distinct form of DM. telemarketing is less e!pensive compared to most other forms of selling. Those "ho are not at all inclined are disposed off at the first tele/calls.  Third. Ad5anta e% "6 Tele(arketin  Telemarketing facilitates personali#ed contact. it enhances marketing productivity by providing a screening $ selection facility through preparatory conversations "ith the prospects. better dialogue bet"een the customers $ the company $ better service to the customer.

= TELEMARKETING .different types of products. especially. it suits MC5 too. The script for the calls are "orked out jointly by the telemarketer $ professional consultants hired by the telemarketer. =ormally. each supervisor handling one such team. 2everal tele/callers are hired for the tele/call operation. The telemarketer must be clear about the campaign @ its objectives. =ormally. The call center usually has a manager in overall charge. a fe" supervisors $ the re. Many useful lessons can be learnt through the pilot project. The campaign should first be pre/tested on a small scale.. The tele/callers sit in front of a computer terminal $ speak into their headsets as telephone operators do in a telephone e!change. d"e% Tele(arketin . the tele/callers are grouped into teams of > or ? callers. they access information on the terminal $ add fresh data on it as the tele/calling progresses. Contact is established "ith ::8s prospects in a campaign that normally runs through a fe" days. +". They are also pre/tested "ith a fe" prospects. e!pected call traffic etc. The supervisor is al"ays available close at hand) she keeps track of productivity of her tam. MODULE 5 MARKETING APPLICATIONS 34. CALL CENTRES  Call Center is the real operation theatre in telemarketing.uired < of tele/callers. Plannin 9 Pre&arati"n  Telemarketing campaigns need careful planning. durables. *hile it suits industrial products $ services better.  The tele/callers are usually provided "ith a script "ith "hich they practice the game. duration. "hich "ill help improve the effectiveness of the campaign $ help cut loss/"astage that might other"ise affect the venture."rk<  Telemarketing is usually done through specific campaigns. 2imultaneously. an outside 6 .

7reparation has to be emphasi#ed all the more because telemarketing being a relatively ne" techni.uirement. Developing a precise list is indeed critical. 0ene6it% all t)e r"#&% in t)e a(e  0ene6it% t)e $#%t"(er: 2hrinking leisure time on the part of the consumers has contributed to the gro"th of teleshopping. 't ensures focused follo"/up calls $ also facilitates detailed analysis of the entire process.  Meticulous preparation is very essential.> TELES+OPPING!+OME S+OPPING  Teleshopping.professional agency is hired to be of help.. there is a dearth of trained callers.e.ue in 'ndia. as firms normally lack in/ house e!pertise in this area. including success rate of the operation. alternatively kno"n as home shopping. The telemarketer has to build a relevant database of potential customers $ segment them appropriately. is one of the relatively more recent editions of direct marketing. good trainers $ professional consultants. ( teleshopping net"ork corresponds to the 7 . MODULE 5 MARKETING APPLICATIONS 34. phones up the marketer $ buys his re.a2@ 2"# et di%$"#nt% a% . it means a novel business activity that brings sustained revenue."rk: To the marketer. the marketer ha"ks the product on the air $ the consumer "atches it on his T9 at home. % T)e &r"d#$t% 2"# %ee "n t)e T? are 3#%t a &)"ne $all a. 4ere. i.  0ene6it% t)e (arketer!tele%)"&&in net.  0ene6it% t)e (an#6a$t#rer: Manufacturers are happy "ith the idea. as it promotes their sales $ reduce their costs. To them. the teleshopping net"ork.ell & is the catchy slogan. teleshopping serves as a good substitute for conventional marketing.

marketing channel in conventional marketing. or T9 channels. teleshopping is a ne" source of revenue. after all. depend on commercials for their income. 't usually gets a good distribution margin.  0ene6it% t)e T? $)annel: Teleshopping benefits the T9 channel as "ell. DD gained a share from every item sold by the net"ork. 8 . DD. They naturally see teleshopping as an attractive source of income as it is totally %$"((er$ial&. for e!. allo"ed its channel for teleshopping by Dee8s net"ork on a profit/ sharing basis. T9 channels.