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Direct Marketing is the process by which a firm approaches its customers on one-to-one basis and markets its products directly to them.

Direct Marketing

Conventional Marketing

► Deals customers directly ► Interactive marketing, with two-way communication ► Does not involve marketing channels/stores ► Does not involve advertising/mass promotion

► Deals customers indirectly. ► One-way activity ► Relies heavily on marketing channels/stores ► Relies heavily on advertisement/mass promotion.

Advantages of Direct Marketing over Mass Marketing ► ► Near-Perfect Solutions to Customers Problems ► ► Provides for customization
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Example: Levis Strauss – introduced web-linked kiosks in its stores, where customers can design their own pair of jeans, choosing from a no. of styles, colours shapes and sizes. The information is instantly delivered to its Tennessee factory.

► Helps achieve Excellence in Products and Services

Requisites for success of Direct Marketing

► Comprehensive, Reliable and Updated Database ► Careful and Close Targeting of Markets/Prospects ► Service Guarantee and Product Warranty. ► Backroom Logistics
► Mechanisms for attending the responses promptly.

► Eye for Details
► Care should be taken in designing the mailer. Outside envelope, the sales letter, the reply form and the reply envelope all must be developed carefully.

► Effort ►

Forms of Direct Marketing

1.Mail Order Marketing/Catalogue Marketing 2.Direct Mail Marketing 3.Direct Response Marketing 4.Database Marketing 5.Telemarketing 6.Teleshopping (Home Shopping) 7.Online Marketing/Marketing on the Web.

1. Mail Order Marketing (MOM) /Catalogue Marketing also known as Mail Order Business (MOB)  Use catalogues for communication with the consumer.  Interested consumers respond by placing a mail order on the marketer, the product is supplied to the consumer by mail.  Examples:

 Anjali Textiles

- Sarees  Mother care India – Kids Products  Surat Diamond – Jewellery Products  Music Today - Entertainment

2. Direct Mail Marketing  When a manufacturer markets his products by the same as previous method.  In direct mail marketing not only letters/brochures are mailed to the prospects, but free product samples, gifts and compliments are also mailed, depending on the context.  Examples:  Denim after shave – direct mail to the elite clubs in the metros. Mailed a brouchure. Order forms were included in the brouchure.  Lux Soap – a special concessional offer to prospects. Ordered item will be delivered at the doorsteps of the customer and cash could be paid on delivery.

2. Database Marketing  Data base is the foundation for the direct marketing.

3. Telemarketing Marketing  Call Centre  Planning and Preparation

4. Teleshopping/Home Shopping  Marketers hawks the product on the air and the consumer watches it on his TV screen at home, phones up the marketer and buys his requirements.  Benefits the customers:

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Lower prices, discount, gift offers etc. Wide range of selection Demonstration about product Promotes their sales and reduces their costs. Provides direct link to the consumer. Save the margins, as it bypass channels. Low-cost retailing system

Benefits the manufacturer:
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Benefits the marketer/teleshopping network  Benefits the TV Channel
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Teleshopping in INDIA

CHANNEL - NETWORK  DD - Dee’s Home Shopping  DD - Teleshopping Network  Zee - Asian Sky Shop  United Television - United Teleshopping

MARKETING ON THE WEB Access to all markets Renders global marketing feasible for even small firms Helps constraints free growth Scope for enhancing customer value and customer service Helps target the customer individually Helps relationship with customers. Helps reduce costs Business costs Marketing cost Channel costs Communication/Promotion costs

MARKETING ON THE WEB Enhances marketing productivity Keeps sales people together electronically and enables them work as a team in serving the customers. Allows companies to fucntion to flexible Enables to adjust quickly to market conditons.

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Benefit to the customers : Convenience Scope for informed and competitive buying Search advantage and options Can get more for less. Transparency Accuracy Shifting of the poor equation in favour of the consumer.

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