Direct Marketing By: Rajiv P. Kumar (Buddhist)


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Direct Marketing By: Rajiv P. Kumar (Buddhist)

  1. 1. Changing face in Direct Marketing Rajiv P. Kumar (Buddhist) [email_address] HCTM-Kaithal
  2. 2. Directly to Consumers Call to Action Direct Marketing Send the message directly to consumers by involving commercial communication i.e. telemarketing, direct mail etc, Persuade customer for immediate purchasing or action against approach by the marketer
  3. 3. IMPORTANCE OF DIRECT MARKETING IN TODAYS BUSINESS WORLD <ul><li>Cost Effective </li></ul><ul><li>Effectiveness can be measured in direct marketing. </li></ul><ul><li>Direct contact with the consumers/Direct response marketing </li></ul><ul><li>Convenience for both customer as well as marketer </li></ul><ul><li>Quick action on purchase of a product. </li></ul><ul><li>Time saving & easy to reach </li></ul>
  4. 4. Channels of Direct Marketing in Current Scenario <ul><li>Direct Mail </li></ul><ul><li>Leaflet Distribution (Fast food industries i.e. KFC, McDonalds, publishers, electronics goods etc. </li></ul><ul><li>Telemarketing </li></ul><ul><li>E-mail marketing </li></ul><ul><li>Direct marketing through mass media </li></ul><ul><li>Voice mail marketing </li></ul><ul><li>Multi Level marketing </li></ul><ul><li>Business to Business direct marketing </li></ul>
  5. 5. Planning The Direct Marketing Programme <ul><li>Marketing Planning Involve: Selection & Implementation of marketing strategy Key Market Trends Key Customer Segment Modern market planning is based on SWOT analysis Marketing plan is refers as the process in which a marketer decide , What to Do, How to Do, Who to Do, & Why to Do </li></ul>
  6. 6. Rules for Direct Marketing Planning <ul><li>Segmentation of the market </li></ul><ul><li>Identification of the target Market </li></ul><ul><li>Positioning </li></ul><ul><li>Marketing mix decisions </li></ul><ul><li>Strategic marketing Plans </li></ul><ul><li>Scanning of Environment & SWOT Analysis </li></ul>
  7. 7. Direct Marketing Planning Process <ul><li>The application of marketing resources to achieve marketing objectives. </li></ul><ul><li>Idea Generation & Objective Setting </li></ul><ul><li>Situation Analysis or Idea Screening </li></ul><ul><li>Concept development( 5 W) </li></ul><ul><li>Implementation of the plans </li></ul>
  8. 8. Market Planning, Implementation & control Idea Generation & Objective Setting Organizing & Implementation Measuring Result Diagnosing Result Taking Corrective Action Planning Implementing Controlling
  9. 9. Strategic Planning Process MKG Objectives & Goal External Environment Internal Environment Goal Formulation MKG Strategy Formulation Prrogramme Formulation Implementation Feedback & Control
  10. 10. Industrial Direct Marketing
  11. 11. What is Industrial Marketing <ul><li>Business to Business Marketing </li></ul><ul><li>Marketing of product & services to the business organization or manufacturing units, government undertaking, private sector organization, institution, hospitals, distributors & dealers etc. </li></ul>
  12. 12. Example <ul><li>A company manufacturing & marketing precision steel tubes to bicycle manufacturing is doing business marketing. Industrial marketer of the precision steel tube company must understand the need of bicycle manufacturer such as Hero Cycle & Atlas Cycle, in terms their quality requirements usability of tubes, availability or delivery on daily weekly basis & so on. </li></ul>
  13. 13. Industrial vs. Consumer Marketing <ul><li>Industrial Marketing </li></ul><ul><li>Geographically concentrated </li></ul><ul><li>Relatively fewer buyer </li></ul><ul><li>Customized product </li></ul><ul><li>Service timely delivery is very important </li></ul><ul><li>Purchase decision are mostly made on rational/ performance basis </li></ul><ul><li>Stable interpersonal relationship b/n buyer & seller </li></ul><ul><li>Technical expertise </li></ul><ul><li>Consumer Marketing </li></ul><ul><li>Geographically disbursed </li></ul><ul><li>Mass Market </li></ul><ul><li>Standardize product </li></ul><ul><li>Somehow important </li></ul><ul><li>Purchase decisions are mostly made on psychological / social needs </li></ul><ul><li>Non personal relationship </li></ul><ul><li>Less technical expertise </li></ul>
  14. 14. <ul><li>Direct marketing & selling is used </li></ul><ul><li>Fewer intermediaries & middleman </li></ul><ul><li>Emphasis on personal selling </li></ul><ul><li>Price are negotiated & list price for standardize product </li></ul><ul><li>Indirect marketing </li></ul><ul><li>Multiple layers of Intermediaries </li></ul><ul><li>Emphasis on advertising </li></ul><ul><li>List price or MRP </li></ul>
  15. 15. <ul><li>( A)  What is Industrial (Business) marketing? </li></ul><ul><li>It is marketing of products / Services to business firms. </li></ul><ul><li>In contrast consumer marketing is marketing products / services to individuals & households. </li></ul><ul><li>(B)  What is the difference between industrial marketing, B2B marketing, Business marketing & Organizational Marketing? </li></ul><ul><li>No Difference! </li></ul><ul><li>(C) What are the differences between Industrial & Consumer Marketing? </li></ul><ul><li>Basic tasks of marketing are same difference Exists in the characteristics shown next. </li></ul>
  16. 16. <ul><li>(D) Why Industrial Demand is called “Derived Demand” ? </li></ul><ul><li>Because Industrial demand is derived from (or depends on) demand for consumer goods / services. </li></ul><ul><li>E.G. Steel is demanded for production of consumer durable products like Cars & Refrigerators, which are demanded by household consumers. Hence, Demand for Steel is derived from forecast of consumer demand for Cars, Refrigerators, Washing Machines, Etc., </li></ul>
  17. 17. Industrial customers <ul><li>Commercial Enterprises </li></ul><ul><li>Government Customers </li></ul><ul><li>Institutional Customer </li></ul><ul><li>Cooperative societies </li></ul>
  18. 19. Commercial Enterprise <ul><li>Commercial enterprise are private sector, profit seeking organizations, consisting of </li></ul><ul><li>Industrial distributor or dealer. </li></ul><ul><li>Original Equipment Manufacturer </li></ul><ul><li>Manufacturing firms (Telco Bajaj auto) </li></ul><ul><li>Non Manufacturer (Advertising firms & training providers, Industrial marketers) </li></ul>
  19. 20. How are Industrial Products / Services Classified? Classification into 3 Groups shown below.
  20. 21. Marketing Implications for different types of products & customers <ul><li>For Materials & Parts, Direct selling is done to large OEMs (Original Equipment Manufacturers) and users, but indirect selling through industrial distributors / dealers becomes cost effective for smaller volume OEMs and users. </li></ul><ul><li>For Capital items, Direct selling through company sales force is common, with extensive interactions on technical & commercial factors. </li></ul><ul><li>For Supplies Industrial distributors / dealers are mostly used but for marketing of services, word-of-mouth plays an important marketing role, with quality & price of service as key factors. </li></ul>
  21. 22. <ul><li>Learning Objectives : </li></ul><ul><li>Develop an effective communication (or promotional) program. </li></ul><ul><li>Understand the role of advertising </li></ul><ul><li>Understand the importance of sales promotion, publicity, public relation (PR), and direct marketing. </li></ul>BUSINESS (INDUSTRIAL) COMMUNICATION
  22. 23. DEVELOPING AN EFFECTIVE COMMUNICATION / PROMOTIOAL PROGRAMME FOR BUSINESS MARKETS <ul><li>The steps involved are : </li></ul><ul><li>(i) Decide communication objectives. </li></ul><ul><li>(ii) Identify the target audience. </li></ul><ul><li>(iii) Decide the promotional budget. </li></ul><ul><li>(iv)  Develop the message strategy. </li></ul><ul><li>(v)   Select the media. </li></ul><ul><li>(vi)  Evaluate the promotion’s results. </li></ul><ul><li>(vii) Integrate the promotion’s programme. </li></ul>
  23. 24. ROLE OF ADVERTISING IN BUSINESS MARKETING <ul><li>While advertising is relatively less important than personal selling in business marketing, it is used as support to personal selling. The functions performed by advertising are </li></ul><ul><li>  </li></ul><ul><li>(i)     Creating awareness. </li></ul><ul><li>(ii)    Reaching members of buying center. </li></ul><ul><li>(iii)  Increasing sales efficiency and effectiveness. </li></ul><ul><li>(iv)  Efficient reminder media. </li></ul><ul><li>(v)    Sales – lead generation. </li></ul><ul><li>(vi)  Support channel members. </li></ul>
  24. 25. IMPORTANCE / ROLE OF DIRECT MARKETING (DM) <ul><li>Definition Direct marketing is an interactive marketing system that seeks a measurable response and /or transaction. Direct marketing is also referred to as direct response marketing. </li></ul><ul><li>Benefits For business marketers, benefits of DM are many : Can personalize / customize communication messages, builds a continues relationship with each customer, can measure responses from alternative media, and direct relationship marketing company strategy less visible to competitors. </li></ul><ul><li>Main Channels or tools of DM . Direct mail, telemarketing and on-line marketing. In addition, kiosk marketing and catalog marketing are also DM channels, but are less popular in India. </li></ul><ul><li>Direct mail is not only paper based postal service or courier service, but can be fax mail, e-mail, or voice mail. Direct marketers send not only letters, but also audio and videotapes, CDs, and diskettes. Response rate is about 2%. </li></ul>
  25. 26. <ul><li>Telemarketing uses telephone to contact existing customers, to attract new customers, or to take orders. Telemarketing gives immediate feedback, identifies and qualifies prospects, and reduces sales force travel costs. Both inbound (incoming calls from prospects / customers) and outbound (out going calls) are important. Practice, training, pleasant voices and right timing (late morning to afternoon) are needed for effective telemarketing. </li></ul><ul><li>On-Line Marketing can be done by establishing an electronic presence (by opening own website or buying space on a commercial on-line service), placing ads on-line, and using e-mail. A web site should be attractive on first view and interesting enough to encourage repeat visits. Marketers use on-line marketing to find, reach, communicate and sell to business customers. </li></ul><ul><li>  </li></ul>
  26. 27. <ul><li>Major Benefits to marketers are : Lower costs, relationship building and quick adjustments to changing market conditions. Major Benefits for buyers are: convenience, information availability, and less hassle. Although small & medium size marketers can reach global markets at affordable costs, there is chaos and clutter as the internet offers millions of web sites, and also as concerns on security and privacy </li></ul>
  27. 28. ROLE OF PUBLICITY & PUBLIC RELATIONS (PR) Public Relations (PR) performs certain tasks to promote or protect a company’s image or its products. The tasks / functions performed by PR are: press relations, corporate communication, lobbying, and counseling. PR department deals with various categories of people like press, legislators, Govt. officials, public, employees, suppliers, customers, and hence it tends to neglect marketing objectives.   Publicity or Marketing Public Relations (MPR) has more credibility and lower cost compared to advertising, MPR includes placing technical articles from the company’s technical persons in trade journals, business magazines, and / or news papers. MPR should be planned with advertising and should be given larger budget allocation
  28. 29. Retail Direct Marketing
  29. 30. Retailing <ul><li>Retailing is the set of activities related to the sales of product & services to the ultimate consumer i.e. delivery of product, advertisement & promotion, negotiating prices, awareness & demand etc. </li></ul><ul><li>A retailer or retail store is any business enterprise, whose sales volume comes primarily from retailing. </li></ul>
  30. 31. Major Retailer Types <ul><li>Specialty Store: Narrow product Line </li></ul><ul><li>Departmental Store: Several product line with more choice. </li></ul><ul><li>Supermarket: large, low cost, low margin, high volume self service store designed to meet total needs for food & household products. </li></ul><ul><li>Convenience Store: Small stores in residential area often open 24/7. </li></ul><ul><li>Off price retailer: sold at less than market price like company outlet </li></ul><ul><li>Super store: Huge selling space, routinely purchased household & food items , services like laundry, hair saloon, beauty parlor , dry cleaners, ATM’s, Movies etc. </li></ul>
  31. 32. Level of retailing services <ul><li>Self services </li></ul><ul><li>Self selection </li></ul><ul><li>Limited services (credit & merchandise return) </li></ul><ul><li>Full services (sales person assist to customer in buying process) </li></ul>