Direct Marketing

Chapter No. 16 Page No.261 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING DIRECT MARKETING IS NOT AS GLAMOUROUS AS A PRINT OR TV COMMERCIAL, AND REQUIRES MORE EFFORTS. DIRECT MARKETING IS NOT JUST SENDING JUNK MAIL TO CONSUMERS. IT INVOLVES IDENTIFYING THE RIGHT TARGET AUDIENCE SO AS TO ENTER INTO A DIRECT RELATIONSHIP WITH IT.

Chapter No. 16 Page No.261 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING EVALUATION OF ADVERTISING PR AND PERSONAL SELLING IS DIFFICULT. DIRECT MARKETING IS EASY TO EVALUATE ON THE BASIS OF RESPONSES IT GENERATES DIRECTLY. A DIRECT MARKETING CAMPAIGN IS SUCCESSFUL ONLY WHEN IT GENERATES MAXIMUM RESPONSE AT THE LOWEST POSSIBLE COST.

Chapter No. 16 Page No.262 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING WHILE APPROACHING THE CUSTOMERS IN DIRECT MARKETING, ONE HAS TO DO CAREFUL PLANNING. BUYERS ARE STUDIED : 1. DEMOGRAPHICALLY 2. PSYCHOGRAPHICALLY IT IS ADVISABLE , WE SHOULD UNDERSTAND OUR NON-BUYERS AND KNOW THE REASONS FOR THEIR NOT BUYING OUR PRODUCTS.

Chapter No. 16 Page No.262 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING MAIL ORDER SELLING SOMETIMES WORKS BETTER THAN PERSONAL SELLING. IT PROVIDES: ANONYMITY TO THE BUYER. RESPECT TO PRIVACY. SAVES THE HASSELS OF INVOLVING ARGUMENTS AND PRESSURE SELLING. SOMETIMES,DISTANT PRODUCTS CAN BE BOUGHT ONLY BY MAIL, AS THEY ARE NOT AVAILABLE LOCALLY.

Chapter No. 16 Page No.262 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING DIRECT MARKETING IS BASICALLY A PART OF RELATIONSHIP MARKETING. IT IS NOT JUST TRANSACTION MARKETING. IT IS NECESSARY TO CREATE RAPPORT WITH THE CUSTOMERS.THEIR ORDERS MUST BE ACKNOWLEDGED. THEY MUST BE GIVEN THANK-YOU LETTER, AND ACCESS TO SPECIAL PHONE-LINES. THEY MUST BE GIVEN EXCHANGE OR REFUND IF NOT SATISFIED.

Chapter No. 16 Page No.262 Advertising and Sales Promotion ManagementDIRECT MARKETING INITIAL RESISTANCE Advertising and Sales Promotion Management WE MAY HAVE TO APPROACH THE CUSTOMER REPEATEDLY TO CONVERT HIS HOSTILITY TO APATHY. THE MOTIVATION TO OPEN THE MAIL MUST BE INCORPORATED INTO THE DESIGN OF THE ENVELOPE AND COPY ON IT. FRONT COVER GRAPHICS MUST ENCOURAGE RECEIVERS TO OPEN IT UP. ONCE THE MAIL IS OPENED, WE HAVE TO CONVERT THE INDIFFERENCE INTO ENTHUSIASM. IT DEPENDS ON THE QUALITY OF MESSAGE AND READERSHIP VALUE.

Chapter No. 16 Page No.263 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING IS AN ICE BERG ONLY A SMALL PART IS VISIBLE. AND A LARGER IS UNDERNEATH. IT IS FORTHE MARKETERS TO EXPLORE IT.

Chapter No. 16 Page No.263 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING IN INDIA SERVICE MARKETERS ARE THE MAIN USERS OF D M IT IS USED BY BUSINESS-TO-BUSINESS MARKETERS, CONSUMER DURABLES, AND CONSUMER GOODS MARKETERS AND INDUSTRIAL SECTOR MARKTERS . IT IS LIKELY TO BE USED BY COMPETITIVE SECTOR LIKE INSURANCE, AUTO MOBILES, I T, TELECOM AND FINANCIAL SERVICES.

Chapter No. 16 Page No.263 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management BUYERS DIRECT MARKETING IS TARGETED TOWARDS SPECIFIC BUYER GROUP. IT IS A MATTER OF STUDY WHO OUR BUYERS ARE. WHAT ARE THEIR MOTIVATING FACTORS. EACH MAILING HAS ITS OWN LESSONS. DIRECT MARKETING IS LIKE OIL DEPOTS, DEEP INTO THE BOWELS OF THE EARTH AND REQUIRES DRILLING.

Chapter No. 16 Page No.264 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management MEDIA FOR DIRECT MARKETING MAILING NEWSPAPER INSERTS PRESS ADVERTISING MAGAZINES TELEVISION RADIO RETAILING’S NEW FRONTIER

Chapter No. 16 Page No.267 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DATA BASE FOR DIRECT MARKETING DATA MUST BE CORRECT. THE NAMES AND ADDRESSES NEED CONSTANT REVISION. WE HAVE TO MATCH THE DATA BASE IN TERMS OF DEMOGRAPHIC AND PSYCHOGRAPHIC CHARACTERISTICS TO THE OFFER MADE. A LIST CAN BE SEGMENTED ON THE BASIS OF INCOME. CONT….

Chapter No. 16 Page No.267 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DATA BASE FOR DIRECT MARKETING WHEN LISTS ARE MERGED, THERE SHOULD BE AN EFFORT TO ELIMINATE DUPLICATION. WHEN DUPLICATION IS UNAVOIDABLE OUR LETTER SHOULD CARRY THE NOTE THAT THOUGH THIS MAY BE A DUPLICATE MAILING, ON ACCOUNT OF YOU ARE BEING ON PREFERRED LISTS THE PRESENT MAILING SHOULD BE PASSED ON TO A FRIEND MOST LIKELY TO DERIVE THE BENEFITS FROM THE SAID OFFER.

Chapter No. 16 Page No.268 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management PROFESSIONAL VENDORS OF DATA BASE THE DATA BASE IS COMPILED BY A VENDOR FOR HIS OWN PRIVATE USE, BUT CAN BE SOLD LATER TO PARTIES WHO ARE INTERESTED . LIST COMPILER COMPILES THE LIST AS PER REQUIREMENT. LIST BROKER IS A LINK BETWEEN THE LIST OWNER AND THE LIST BUYER. LIST MANAGER MARKETS THE LISTS AND SPARES THE LIST OWNER FROM THE TROUBLE OF NEGOTIATING WITH THE LIST BUYERS.

Chapter No. 16 Page No.269 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management COPYWRTING FOR D M LIKE ANY AD COPY D M COPY MUST HAVE ATTENTION, INTEREST, DESIRE AND ACTION. MUST WRITE CONVINCINGLY. MAKE USE OF THE EXPERIENCES OF THE TARGET AUDIENCE. SHOULD INVITE ATTENTION TO THE PRODUCT. SHOULD ENHANCE THE IMAGE OF THE PRODUCT. SHOULD INDUCE ACTION, LIKE GENERATING AN ENQUIRY , RESPONSES THROUGH A COUPON OR ORDER ITSELF.

Chapter No. 16 Page No.271 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management ENCLOSURES THERE ARE TWO TYPES OF ENCLOSURES 1. SIMPLE, SINY,GIFTS ITEMS,GREETING- CARDS, SMALL CALENDERS etc. 2. PRINTED ENCLOSURES ONE OF THE MOST COMMON ENCLOSURE IS THE ENDORSEMENT TYPE OF ENCLOSURE WHEN SOME CUSTOMERS, OPINION LEADER OR CELEBRITY SPEAKS ABOUT THE PRODUCT. A VALIDATOR e.g. SPECIAL DISCOUNT, REPRINT OF MAGAZINE OR A QUESTION –ANSWER FORMAT.

Chapter No. 16 Page No.272 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management PRODUCTION ASPECTS ONE SHOULD MASTER THE BASICS OF PRINT PRODUCTION. PAPER MUST BE THICK TO TAKE MULTIPLE IMPRESSION OF COLOUR PROCESSING. PAPER SHOULD BE OPAQUE. COLOUR SELECTION. ONE MUST BE CONVERSANT WITH TYPOGRAPHY. MUST BE EXECUTED WITH PROFESSIONAL FINENESS.

Chapter No. 16 Page No.272 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management ENVELOPE D M ENVELOPE IS USED TO MOTIVATE THE RECEIVER TO OPEN IT. ENVELOPE CARRY ACTION-ORIENTED PHRASES AND SHOULD BE BACKED BY BENEFITS ENVELOPE DO APPEAL TO OUR SENSE OF VANITY AND EXCLUSIVITY. ENVELOPE COLOURS SHOULD GO WELL WITH THE PRODUCT AND THE COMPANY. BUSINESS REPLY ENVELOPES ARE PRODUCED AS ECONOMICALLY AS POSSIBLE. ITS SIZE SHOULD BE SUFFICIENT TO ACCOMMODATE THE ORDER FORM.

Chapter No. 16 Page No.273 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management ORDER CARD AND COUPONS IN A DIRECT RESPONSE AD, THE PLACE OF THE AD CARD IS TAKEN BY THE COUPON. IT MUST ENHANCE THE DESIRE TO BUY, AND MAY CARRY THE HEADING LIKE “RUSH YOUR ORDER TODAY”. THE BENEFIT AND PROMISE MADE IN THE MAILING MUST BE REPEATED ON THE ORDER FORM. CONT….

Chapter No. 16 Page No.273 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management ORDER CARD AND COUPONS IT SHOULD INCORPORATE PAYMENT DETAILS. IT SHOULD HAVE THE SPACE FOR NAME OF THE SENDER. ORDER FORM OR COUPON CAN START WITH ACCEPTANCE AS ‘YES’ ,PLEASE ‘RUSH ME’. IT IS NECESSARY TO PRINT COMPANY NAME AND ADDRESS.

Chapter No. 16 Page No.273 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management DIRECT MARKETING CATALOGUES CATALOGUES MUST BE PRODUCED EFFICIENTLY, AND MUST REFLECT SOUND MARKETING PHILOSOPHY. A CATALOGUE COPY PRODUCER HAS TO THINK IN TERMS OF WHAT HE HAS TO OFFER. THE CATALOGUE COPY SHOULD DESCRIBE THE PRODUCT CREATIVELY AND COMPLETELY. SHOW THE PRODUCT IN USE. FUTURE MAILING SHOULD BE TO THOSE GROUP WHO RESPOND TO OUR MAILING. PRODUCER GET A CHANCE TO SELECT A FEW OF THOSE PRODUCTS THAT ARE MOST DEMANDED.

Chapter No. 16 Page No.276 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management TELE MARKETING WE CAN DELIVER OUR OFFER ON A PHONE CALL. A CALL HAS TO BE RECEIVED BY A RESPONSIBLE PERSON, AND THE PERSON MAKING THE CALL SHOULD NOT BE PUT ON HOLD. IF THERE IS NO PERSON TO ATTEND THE CALL, THERE SHOULD BE A VOICE MAIL SYSTEM. THERE CAN BE A TOLL-FREE LINE IN THE ORGANISATION.

Chapter No. 16 Page No.277 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management POST SALES ACTIVITIES CUSTOMER PSYCHOLOGY OF HAPPINESS PRIOR TO THE RECEIPT OF THE PRODUCT, AT THE TIME OF RECEIPT AND BEYOUND THAT SHOULD CONTINUE. DUE CARE TO BE TAKEN TO EXECUTE THE ORDER. PRODUCT IS PROPERLY PACKED WITH INSTRUCTIONS FOR USAGE. GUARANTEE / WARRANTY CERTIFICATE IS ENCLOSED. THE DELIVERY TIME SHOULD BE ADHERED TO .

Chapter No. 16 Page No.277 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management D M COSTS PRODUCT COST HAS THE FOLLOWING COMPONENTS. BARE PRODUCT COST EX-FACTORY. INWARD TRANSPORT COST WHEN THE PRODUCT IS TRNSPORTED FROM THE FACTORY. STORAGE AND WAREHOUSING COST. OUTWARD TRANSPORT COST. ORDER PROCESSING COST. DEVELOPMENT COST PERCENTAGE FOR AN INNOVATION DEVELOPED BY THE ORGANISATION. CONT ….

Chapter No. 16 Page No.277 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management D M COSTS D M ITSELF– PRODUCTION OF ALL MAILING. INSERTIONS OF THESE MAILING AND POSTAGE CHARGES, BUSINESS RESPONSE ENVELOPE. PILFERAGE, SPOILAGE, LOSSES. SALES RETURNS. INSURANCE PREMIA. FIXED OVERHEADS AS PERCENTAGE OF SALES.

Chapter No. 16 Page No.270 Advertising and Sales Promotion ManagementDIRECT MARKETING Advertising and Sales Promotion Management CONSUMER GUIDED MARKETING (CGM) IT IS A NEW APPROACH TO D M, AND IS FAR MORE PERSONAL AND POWERFUL. HERE PERSONAL INFORMATION, THEIR LIKES AND DISLIKES ARE DIRECTLY SOUGHT FROM CONSUMER ITSELF. TARGETING BECOMES PRECISE, IT IS A DATA BASE LOADING RESEARCH. COPYWRITING BECOMES CONSUMER SPECIFIC AND RESPONSE RATE GOES UP. INDIA STILL LACKS THE TOOL TO MEASURE THE EFFECTIVENESS OF D M.

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Direct Marketing

by We Learn - A Continuous Learning Forum from Welingkar's PGDBA-DLP on May 17, 2012

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