Direct Marketing

17
Chapter
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Direct Marketing

Direct Marketing

Direct marketing is an interactive system of marketing which uses one or more advertising media to affect a measurable response and/or transaction at any location.

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Dr S.L Gupta

Direct Marketing

A number of factors are promoting the attractiveness of direct marketing. The main factors are:

Availability of consumer credit cards.

Availability of professional agencies. Competitive Pressures, Rising Media Costs, and Market Fragmentation. Increasing family incomes, including dual-income families. Technological advances.

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Dr S.L Gupta

Direct Marketing

Direct Marketing Decisions

For successful implementation of direct-marketing, marketers must establish objectives, specify target market, choice of strategies, and set evaluation criteria.

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Dr S.L Gupta

Direct Marketing

Direct-Marketing Objectives
Objectives of direct marketing usually focus on seeking direct response in

terms of behaviour.

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Dr S.L Gupta

Direct Marketing

Market Segmentation
Market segmentation and targeting the right customers are critical to the success of promotional programme. Customers can be grouped on the basis of age, sex, income, education, lifestyle, and stage in family life cycle etc.

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Dr S.L Gupta

Direct Marketing

Direct marketers use a database. The database should provide the answers to the following questions:
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Where do they live? How did they make contact first time? What have they purchased? How often have they purchased? What is the monetary value of their purchases? How do they order or purchase, through the Internet, mail, phone, or in person? What is known about them and their families, occupation, education, children, interests, attitudes, and payment histories etc.? In case of B2B, who are the influencers, users, deciders, and purchasers? Location of corporate office and branch offices.
Dr S.L Gupta

Direct Marketing

Direct Marketing

Marketing Research

Direct Marketing Flow Chart

Market Segmentation

Direct Response Advertising

Advertising Creation

Media

Direct Mail Telephone

Broadcast

Internet

Newspaper Magazine

Others

Direct Response Expenditures

Direct Mail Telephone

Broadcast

Internet

Newspaper Magazine

Others

Distribution Channels

Measurable Response

Vending Machines

Mail Order, Mail/Phone

Personal Visit to Seller

Personal Visit or Call to Buyer

Customer / Prospect Database Response / Transaction Completion

(Source: G. Belch and M. Belch, Advertising and Promotion. Based on figure by Martin Bair, Henry R. Hoke, Jr., and Robert Stone).

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Dr S.L Gupta

Direct Marketing

Direct Marketing Offer and Media

There are five important decision areas: product, offer, medium, distribution method, and creative strategy. One-Step Approach

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Two-Step Approach
Direct Mail Catalogues Broadcast Media Print Media Telemarketing Electronic Shopping Direct Selling
Dr S.L Gupta

Direct Marketing

Advantages of Direct Marketing

Direct marketing offers the advantage of reaching large number of welldefined target customers and almost eliminates waste coverage. Good quality databases are available from independent suppliers and the marketer can segment customer groups with considerable precision. Direct marketer can personalise the message.

Direct marketing can deliver almost perfect offers to customers.

Marketer can build desired frequency level based on media. Direct marketing offers creative flexibility in different media. Direct marketer can quickly develop a list of specific profiles for direct mail. Direct marketing is more effective in building customer relationship. It is very cost effective considering the sale generated per contact. The results can be measured most accurately.

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