Marketing Management Text and Cases Direct Marketing

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Chapter
17-1 17-1

Direct Marketing

SHH Kazmi, 2007

Marketing Management Text and Cases, S H H Kazmi

Excel Books Excel Books

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.

SHH Kazmi, 2007

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Marketing Management Text and Cases, S H H Kazmi

Excel Books

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.

SHH Kazmi, 2007

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Marketing Management Text and Cases, S H H Kazmi

Excel Books

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.

SHH Kazmi, 2007

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Marketing Management Text and Cases, S H H Kazmi

Excel Books

Direct Marketing

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

SHH Kazmi, 2007

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Marketing Management Text and Cases, S H H Kazmi

Excel Books

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.

SHH Kazmi, 2007

17-6

Marketing Management Text and Cases, S H H Kazmi

Excel Books

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.
Marketing Management Text and Cases, S H H Kazmi
SHH Kazmi, 2007

Excel Books

Direct Marketing

D ir e c t M a r k e t in g M a r k e t in g R e s e a r c h

Direct Marketing Flow Chart

M a rke t S e g m e n ta tio n

D ir e c t R e s p o n s e A d v e r t i s in g

A d v e r t i s in g C r e a t io n

M e d ia

D ir e c t M a il

T e le p h o n e

B ro a d c a s t

In t e rn e t

N ew spaper

M a g a z in e

O th e rs

D ir e c t R e s p o n s e E x p e n d it u r e s

D ir e c t M a il

T e le p h o n e

B ro a d c a s t

In t e rn e t

N ew spaper

M a g a z in e

O th e rs

D is t r ib u t io n C h a n n e ls

M e a s u r a b le R e s p o n s e

V e n d in g M a c h in e s

M a il O r d e r, M a il / P h o n e

P e r s o n a l V is it t o S e lle r

P e r s o n a l V is it o r C a ll t o B u y e r

C u s to m e r / P ro s p e c t D a ta b a s e R e s p o n s e / T r a n s a c t io n C o m p le t io n

(Source: G. Belch and M. Belch, Advertising and Promotion. Based on figure by Martin Bair, Henry R. Hoke, Jr., and Robert Stone).
SHH Kazmi, 2007

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Marketing Management Text and Cases, S H H Kazmi

Excel Books

Direct Marketing

Direct Marketing Offer and Media

There are five important decision areas: product, offer, medium, distribution method, and creative strategy.         
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One-Step Approach Two-Step Approach Direct Mail Catalogues Broadcast Media Print Media Telemarketing Electronic Shopping Direct Selling
SHH Kazmi, 2007

Marketing Management Text and Cases, S H H Kazmi

Excel Books

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.
SHH Kazmi, 2007

17-10 Marketing Management Text and Cases, S H H Kazmi

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