An interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.
Common purposes of direct marketing:
Solicit and close a sale
Identify prospects for future contacts
Provide in-depth information
Seek information from consumers
Foster brand loyalty
Direct Marketing Today
More than just mail-order.
A complex, diverse tool used by organizations throughout the world.
Direct marketing often is not integrated with other advertising efforts.
Three Principle Purposes:
close a sale with a customer
ID prospects and develop customer database
Engage customers, seek their advice and
generate brand loyalty
What’s Driving Direct Marketing?
CONVENIENCE! for today’s dual income and single parent households.
More liberal attitudes toward using credit.
Greater access to toll-free calling.
Computer technology/new media facilitate online transactions.
More precise segmentation.
Opportunity for relationship building.
Cost per inquiry (CPI) and cost per order (CPO) advantages of direct marketing.
Knowing who the best customers are as well as what and how often they buy.
The Marketing Database
Includes data collected directly from individual customers
RFM Analysis of customers: recency, frequency, monetary
Goal: Develop communication intimacy
Marketing database applications
Do not call registry
Media Applications in Direct Marketing
Direct response advertising
Bulk e-mail is known as “spam”
Fraudulent email know as “phishing”
However e-mail is an increasingly popular tool for marketers
Good response rates
Netiquette suggests getting consumer permission to send product information
Avoid bulk e-mailings
Closing the Sale with Direct Marketing and/or Personal Selling
Functional specialists across several media need to work together.
Marketing databases can lead to interdepartmental rivalries.
Growth of direct marketing often means cuts in other promotional budgets.
One solution: the MARCOM manager.
The Critical Role of Personal Selling
The face-to-face communication and persuasion process.
Most effective with products or services that are:
Complicated to use
Tailored/customized to users’ needs
Offer a trade-in option
Judged at the point of purchase
Types of Personal Selling
Order taking: accepting orders for merchandise or scheduling services; deal with existing customers who are lucrative to a business due the low cost of generating additional revenues from them. Order taking is the least sophisticated of selling efforts.
Creative selling: selling where customers rely heavily on the salesperson for technical information, advice, and service. It is the most sophisticated and complex selling effort.
System selling: entails selling a set of interrelated components that fulfill all or a majority of a customer’s needs in a particular area. System selling is often executed by a “team” of sales people.
The missionary salesperson: calls on accounts with the purpose of monitoring the satisfaction of buyers and updating buyers’ needs. They may provide product information after a purchase.
Customer Relationship Management (CRM)
Salespeople play a critical role in cultivating long-term relationships with customers—which often is referred to as a customer relationship management (CRM) program.
CRM views the relationship with buyers as a partnership and a problem solving situation.