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Direct marketing


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  • 1. Direct Marketing Akash C.MathapatiAkash C.Mathapati
  • 2. Direct Marketing – Defined Consists of direct one-to-one connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. - Kotler Dibb and Simkin (2001) define direct marketing as:  a decision by a company’s marketers to select a marketing channel that avoids dependence on marketing channel intermediaries, and to focus marketing communications activity on promotional mix ingredients that contact directly targeted customers Akash C.Mathapati
  • 3.  Direct marketing originated in the early 1900s  Direct Marketing Association (DMA) was established in the USA in 1917 Direct marketing 1950s and 1960s started early 1900s developments in Includes e- – concerned with direct mail, telephone commerce, door-to-door selling marketing and a more www and IT and limited direct professional approach applications mail to personal selling Early 1900s 1950s and 1960s Present dayTIME Source: Geoff Lancaster Akash C.Mathapati
  • 4. What is the Objective of Direct Marketing ? Akash C.Mathapati
  • 5. Direct Marketing - FormsDirect Mail Reader’s Digest (1922 estb) was early in deploying this technique in a large scale international operation 1960 Mid this was sensation Hanna Anderson is a mail order children’s clothing business in Portland, USA Hannadowns Concept Akash C.Mathapati
  • 6. Porsche Targets Prospects with Direct Mail Akash C.Mathapati
  • 7.  Repetitive person-to-person selling – salesperson visits the buyers home, job or other location to sell frequently purchased items. Amway uses this technique. Nonrepetitive person-to-person selling – salesperson visits the buyers home, job or other location to sell infrequently purchased items, such as insurance Akash C.Mathapati
  • 8.  Party Plans – Tupper Akash C.Mathapati
  • 9. Catalogs Majority of companies use catalogs not only to sell directly but also inform consumers of products offering in the stores. Online Catalog: http://www.neimanmarcus. com/store/sitelets/christma sbook/christmasbook.jhtmlAkash C.Mathapati
  • 10. Tupperware India. Another example from TupperwareAkash C.Mathapati
  • 11. Direct Response Television (DRTV) TV advertising that asks consumers to respond directly to the company  Short form is any DRTV commercial  Infomercials (1984) Akash C.Mathapati
  • 12. Telemarketing Outbound Inbound Telephone calling by the marketer Marketers facilitate and invite or marketer’s agent to individual prospects to call a central location prospects, seeking purchase, via a long distance number, by a subscription, membership, or toll-free 800 number, or a fixed- participation by the call recipient. cost 900 number. Akash C.Mathapati
  • 13. Online Marketing Akash C.Mathapati
  • 14. Traffic Rank Comparison of,,, & Source: siteinfo/ of the SiteSource: Akash C.Mathapati
  • 15. Page views/user Source: siteinfo/ Spent on SiteSource: Akash C.Mathapati
  • 16. QVC $6.5 billion a year 2nd most profitable channel Once sold 4,000 silver rings ($70) in just 3 ½ minutes 91 million homes Akash C.Mathapati
  • 17. Direct Marketing Advantages Selective reach Segmentation capabilities Frequency potential Flexibility Timing Personalization Costs Measures of effectiveness Akash C.Mathapati
  • 18. Direct Marketing Disadvantages Image Content factors support Do Not Rising Contact lists costs Akash C.Mathapati