DIRECT MARKETING

Chapter - 10

DIRECT MARKETING
While most companies continue to rely primarily on the other promotional mix elements to move their products and services through intermediaries, an increasing number are going directly to the consumer. These companies believe that while the traditional promotional mix tools such as advertising, sales promotion, and personal selling are effective in creating brand image, conveying information, and/or creating awareness, going direct with these same tools can generate an immediate behavioral response. Direct marketing is a valuable tool in the integrated communications program, though it seeks somewhat different objectives.

Tuesday, February 07, 2012

Integrated Marketing Communication

DEFINING DIRECT MARKETING

The total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer.

Tuesday, February 07, 2012

Integrated Marketing Communication

DIRECT MARKETING OBJECTIVES

The direct marketer usually seeks a direct response. The objectives of the program are normally behaviors for example, test drives votes, contributions, and/or sales. Atypical objective is defined through a set response, perhaps a 2 to 3 percent response rate.

Tuesday, February 07, 2012

Integrated Marketing Communication

DEVELOPING A DATABASE
Direct-marketing programs employ these principles even more than others, since the success of a direct-marketing program is in large part tied to the ability to do one-to-one marketing. To segment and target their markets, direct marketers use a database, a listing of customers and/or potential customers. This database is a tool for database marketing the use of specific information about individual customers and/or prospects to implement more effective and efficient marketing communications.

Tuesday, February 07, 2012

Integrated Marketing Communication

DEVELOPING A DATABASE (CONT.)

Databases are used to perform the following functions: 1. Improving the selection of market segments 2. Stimulate repeat purchases 3. Cross-sell 4. Customer relationship management

Tuesday, February 07, 2012

Integrated Marketing Communication

ADVANTAGES OF DIRECT MARKETING

Selective reach: Direct marketing lets the advertiser reach a reach : large number of people and reduces or eliminates waste coverage. Segmentation capabilities: Marketers can purchase lists of capabilities : recent product purchasers, car buyers, bank-card holders, and so on. These lists may allow segmentation on the basis of geographic area, occupation, demographics, and job title, to mention a few. Frequency : . Depending on the medium used, it may be possible Frequency: to build frequency levels The program vehicles used for directresponse TV advertising are usually the most inexpensive available, so the marketer can afford to purchase repeat times. Flexibility : Direct marketing can take on a variety of creative Flexibility: forms.

Tuesday, February 07, 2012

Integrated Marketing Communication

ADVANTAGES OF DIRECT MARKETING

Timing : While many media require long-range planning and Timing: have long closing dates, direct-response advertising can be much timelier. Direct mail, for example, can be put together very quickly and distributed to the target population. Personalization : No other advertising medium can personalize Personalization: the message as well as direct media. Parents with children at different age levels can be approached, with their child s name included in the appeal. Measures of effectiveness: No other medium can measure the effectiveness : effectiveness of its advertising efforts as well as direct response. Feedback is often immediate and always accurate.

Tuesday, February 07, 2012

Integrated Marketing Communication

DISADVANTAGES OF DIRECT MARKETING

Image factors: As we noted earlier, the mail segment of this factors : industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited. Accuracy : One of the advantages cited for direct mail and Accuracy: telemarketing was targeting potential customers specifically. But the effectiveness of these methods depends on the accuracy of the lists used. People move, change occupations, and so on, and if the lists are not kept current, selectivity will decrease. Rising costs: As postal rates increase, direct-mail profits are costs : immediately and directly impacted. The same is true for print costs, which drives up the costs of mailers and catalogs. The low cost of e-mail has led many companies to switch to this medium.
Tuesday, February 07, 2012 Integrated Marketing Communication 9