Direct Marketing

Direct Marketing

 Direct marketing consists of direct

connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate
lasting customer relationships.
– One-on-one communication in which
offers are tailored to needs of narrowly
defined segments.
– Usually seeks a direct, immediate, and
measurable consumer response.
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 The New Direct-Marketing Model

 Some firms use direct marketing as a

supplemental medium.
 For many companies, direct marketing
constitutes a new and complete model
for doing business.
 Some firms employ the direct model as
their only approach.
 Some see this as the new marketing
model of this millennium.
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 Benefits of Direct Marketing

 Benefits to Buyers:
– Convenient.
– Easy to use.
– Private.
– Ready access to products and information.
– Immediate and interactive.

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 Benefits of Direct Marketing

 Benefits to Sellers:
– Powerful tool for building customer relationships.
– Can target small groups or individuals.
– Can tailor offers to individual needs.
– Can be timed to reach prospects at just the right
moment.
– Gives access to buyers they could not reach
through other channels.
– Offers a low-cost, efficient way to reach markets.

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 Customer Databases

 An organized collection of
comprehensive data about individual
customers or prospects, including
geographic, demographic,
psychographic, and behavioral data.

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 Direct Marketing Forms

 Telephone marketing
 Direct-mail marketing
 Catalog marketing
 Direct-response TV marketing
 Kiosk marketing
 Online marketing

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 Telemarketing

 Used in both consumer and B2B

markets.
 Can be outbound or inbound calls.
 Do-Not-Call legislation has impacted
the telemarketing industry.

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 Direct-Mail Marketing

 Involves sending an offer, reminder,

announcement, or other item to a
person at a particular address.
 Permits high target-market selectivity.
 An be personalized, and is flexible.
 Higher CPM yields better prospects
than mass media.
 Easy to measure results.
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 Catalog Marketing

 With the Internet, more and more

catalogs are going digital.
 Print catalogs still the primary medium.
 Expected sales in 2008 = $175 billion.
 Web catalogs have specific advantages
and disadvantages when compared to
printed catalogs.

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 Direct Response TV Marketing

 Direct-response advertising:
– TV spots that are 60 or 120 seconds long.
 Infomercials:
– A 30 minute or longer advertising program
for a single product.
 Home shopping channels:
– Entire cable channels dedicated to selling
multiple brands, items, and services.

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 Kiosk Marketing

 Information and ordering machines

generally found in stores, airports, and
other locations.
– Example: In-store Kodak kiosks allow
customers to transfer pictures from digital
storage devices, edit them, and produce
high-quality color prints.

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 Integrated Direct Marketing

 Involves carefully coordinated multiple-

media, multiple-stage campaigns.
– Marketers try to improve response rates
and profits by adding media and stages
that contribute more to additional sales
than to additional costs.
– Example: Integrating a paid ad with
response channel (Web or phone), direct
mail, outbound telemarketing, face-to-face
sales call, continuing communication.

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 Public Policy and Ethical
Issues in Direct Marketing

 Irritating to consumers
 Taking unfair advantage of impulsive or
less sophisticated buyers
 Targeting TV-addicted shoppers
 Deception, fraud
 Invasion of privacy

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