1.

is a form of advertising which allows businesses to communicate directly to customers (thereby

eliminating middlemen) through a variety of media including text messaging, email, websites, online
adverts, database marketing and targeted television, newspaper and magazine advertisements as
well as outdoor advertising and face to face marketing.

Slide 2 - The DMA estimates that every dollar spent on direct marketing yields a return on
investment of $11.73 - compared with an estimated $5.23 for indirect advertising such as newspaper
or magazine ads.  The Direct Marketing Association (DMA) reported in 2015 that more than half of
all advertising expenditures went toward direct advertising. To the tune of around $513 Billion
(Source: www.stastica.com)

1. Since direct marketing is specific and targeted, it begins with data. Marketers examine the
categories of customers that the product would be most suited to and who maybe interested in the
products and then make or procure lists for contacting them.

2. This data can be procured through various sources, both public and commercial.

For example, the number of people who signed up to receive notifications for a particular offer or the
number of people between the ages of 18 and 25 in a particular area.

3. The marketer then uses various channels like mails, e-mails, telephone calls, face to face
interaction or a combination of these to reach out to that identified

4. Then comes a call to action. It is basically an instruction to the audience to give an

immediate response to the advertisement just witnessed by them by urging them to “call
now” or visit your nearest store today”.

5. Next comes measuring and tracking responses. After potential customers have performed
their ‘call to action’, there needs to be a mechanism to track their responses in order to build
on this data for future action.

Finally, the responses tracked above could be used to gauge how successful the campaign
has been and if any changes need to be made in order to reach out

Benefits of Direct Marketing BENEFITS TO BUYERS

1. Convenient.  Ready access to many products.  Access to comparative information about

companies, products, and competitors.  Interactive and immediate.
2. Benefits of Direct Marketing BENEFITS TO SELLERS  Tool to build customer relationships. 
Low-cost, efficient, fast alternative to reach markets.  Flexible and changes can be made quickly.
 Access to buyers not reachable through other channels.
 1. Direct market
2. Identify and qualify potential customers (called prospects)
 Pre-approach
 Learn as much as possible about prospects before making sales calls
 Approach
 Meet potential customer for first time

3. Example of Personal Selling Mary Kay Cosmetics, unlike most other consumer product companies,
relies primarily on personal selling which takes place in independent interactions or at Mary Kay
parties where sellers and buyers meet. Mary Kay products are not available in retail stores.

2 Direct-mail marketing Direct-mail marketing involves an offer, announcement,

reminder, or other item to a person at a particular address  involves mailing of
letters, ads, samples, foldouts… sent to potential customers on mailing lists.  The
mailing lists are developed from customer lists or obtained from mailing-list houses. 
It permits high target market selectivity, can be personalized, is flexible and allows
easy measurement of results.  It costs more than TV or magazine advertising per
person.
4. Example of Direct-mail marketing Direct marketing is often used as a tool to promote food
products, with chocolate manufacturers Nestle also getting in on the act. They sent out a
mailer that was made to look like the card left by postmen when they’re unable to deliver a
parcel. Instead of saying that a package couldn’t be delivered, however, the mailer claimed
that the package (KitKat chunky) was unable to be posted as it was ‘too chunky for your
letterbox’. The lucky recipients were able to exchange their card at
5. Example of Direct-mail marketing Designed as a direct mail campaign to raise awareness
about the amount of energy that we waste when we leave our lights on overnight, The Earth
Hour Candle Box was a triumph of direct mail. As the candle was pulled out of the box, its
design allowed it to simulate lights being switched off. The uniquely packaged Earth Hour
Candle Box
 6. Catalog direct marketing


7. Example of Catalog direct marketing •Avon is a good example of a company successfully
leveraging this channel to sell its range of cosmetics. Avon Campaign 24, 2016 has been
recently launched which contains variety of products. •Futurebazaar.com, a subsidiary of
Pantaloon Retail, provides e-catalogs on its Website with lists, photographs and prices of
thousands of products along

1. Telephone direct marketing Telephone direct marketing involves using the telephone to sell
directly to consumers and business customers  Outbound telephone marketing sells directly to
consumers and businesses  Inbound telephone marketing uses toll-free numbers to receive orders
from television and print ads, direct mail, and catalogs  Provides purchasing convenience and
increased product or service information.  However, too much use it can annoy customers.  It is
also a major fund-raising tool for nonprofit organizations.
2. Inbound/Outbound Telemarketing  Inbound – the reception of calls by the order desk, customer
inquiry, and direct –response calls often generated through the use of toll-free 1-800 or 1- 888
numbers  Outbound – calls that a company makes to customers to develop new accounts,
generate sales leads, and even close a sale. Call Centre Outbound Inbound

1. Consumer’s Right to Privacy  In 2005, the federal government passed “do-not- call” legislation to
further protect unwanted phone calls. Below are more details on the CMA’s privacy code.
2. Telemarketing  Telemarketing is cost efficient. It is much less expensive than personal selling
and mass advertising.  Proper training and preparation of representatives is crucial.  The
message delivered is as important as the medium itself.  Scripting plays a significant role in the
success of a telemarketing campaign. Here are some basic tips for the telemarketer:  Focus on the
relationship  Adjust the script approach for your audience  Empathize with the receivers 
Establish rapport and gain attention quickly
3. Examples of Telephone direct marketing  There are large number of call centers for both inbound
and outbound telemarketing. Wipro BPO Solutions and Daksh by IBM are two such major players in
this sector.  ICICI, HDFC, Reliance have their own call centers to attend to customers to queries. 
 Bank and credit card companies.  Offers for “instant loans”.  Cosmetic company L’Oreal India has
toll free number on which it offers expert advice about looking good.

1. Direct-response television Direct-response television (DRTV) marketing involves

advertisements that describe products or give customers a toll-free number or Web site to purchase.
There are three forms of direct response television: 1. 60-second or shorter commercials 2.
Infomercials 3. Direct home shopping  In each case, the use of toll-free telephone numbers,
websites, and credit cards makes the advertising  Short-form  Vary in length from 15-120 seconds
 Long-form  Commonly referred to as infomercials  May last 30-60 minutes

1. Examples of DRTV DRTV as sales channel Example:  The Dirt Devil Broom Vacuum Cleaner was
only available on TV for three months before retail launch. Mass merchant retailers often have "as
seen on TV" sections in their stores. DRTV as advertising for brand marketers and retailers
Example:  P&G, Toyota, Philips Consumer Electronics, DuPont (Teflon), Hamilton-Beach, Space
Bag, Rubbermaid  DRTV has also become a commonly used advertising medium for insurance
companies, mortgage companies, cell phone providers, credit card companies, and a host of other
services.

1. Digital direct marketing  Due to new digital technologies, direct marketers today can reach
customers anywhere, anytime, about almost anything. New digital tools include; E-mail Mobile
phone marketing Podcasts and Vodcasts Interactive TV
2. Mobile phone marketing Mobile phone marketing Mobile marketing is marketing on or with a
mobile device, such as a smart phone. It is defined as "any marketing activity conducted through a
ubiquitous network to which consumers are constantly connected using a personal mobile device" :
 SMS Marketing(Dominos, Pizza Hut)  Ring-tone giveaways  Mobile games  Ad-supported
content
3. Digital direct marketing Podcasts and vodcast involve the downloading of audio and video files via
the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s
convenience. Eg. New York Times Podcasts Yoga Journal - Podcasts Interactive TV (ITV) lets
viewers interact with television programming and advertising using their remote controls and
provides marketers with an interactive and involving means to reach targeted audiences.

ONLINE MARKETING

1. #2 SEARCH ADS Marketers bid in a continuous auction on search items that serve as a proxy for
the consumer’s product or consumption interest  The cost per click depends on how highly the link
is ranked on the page and the popularity of the keyword  Increased popularity of paid search has
 increased competition among bidders  It has raised search ad prices  Choosing best keywords,
bidding on them strategically and monitoring their effectiveness is imperative
2. SEARCH ENGINE OPTIMIZATION Activities designed to improve the likelihood that a link for a
brand is as high as possible in the rank of order of all non paid links when consumers search for
relevant items

3. AdWords: The advertisements that show up on the top of Google search result pages.

1. DISPLAY ADS Small, rectangular boxes containing text and perhaps a picture that companies pay
to place on relevant websites.  The larger the audience the higher the cost  Display ads hold great
promise compared to popular search ads given that they are:  More attention-getting  Better
targeted  More closely tracked
2. INTERSTITIALS Advertisements, often with video or animation, that pop up between page
changes with a website or across websites Example: Ads for Johnson and Johnson’s Tylenol
headache reliever would pop up on broker’s websites whenever the stock market fell by 100 points
or more. BUT Consumers find such pop up ads intrusive and distracting, and therefore many use
softwares to block them
3. Coverfox wanted a fun way to remind people to renew their insurance.  Working with Google and
agency BBH India, the firm tracked down people who had visited Coverfox, but didn't end up
renewing their insurance  Since no-one reads boring email reminders, the firm decided to take over
the things they actually pay attention to  They used unskippable videos that intercepted YouTube
for several days, and continued to show up until the target renewed his insurance  The brand
succeeded because they created entertaining and timely reminders that were hard to miss