Direct Marketing By: Rajiv P. Kumar (Buddhist)Presentation Transcript
Changing face in Direct Marketing Rajiv P. Kumar (Buddhist) [email_address] HCTM-Kaithal
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
IMPORTANCE OF DIRECT MARKETING IN TODAYS BUSINESS WORLD
Effectiveness can be measured in direct marketing.
Direct contact with the consumers/Direct response marketing
Convenience for both customer as well as marketer
Quick action on purchase of a product.
Time saving & easy to reach
Channels of Direct Marketing in Current Scenario
Leaflet Distribution (Fast food industries i.e. KFC, McDonalds, publishers, electronics goods etc.
Direct marketing through mass media
Voice mail marketing
Multi Level marketing
Business to Business direct marketing
Planning The Direct Marketing Programme
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
Rules for Direct Marketing Planning
Segmentation of the market
Identification of the target Market
Marketing mix decisions
Strategic marketing Plans
Scanning of Environment & SWOT Analysis
Direct Marketing Planning Process
The application of marketing resources to achieve marketing objectives.
Idea Generation & Objective Setting
Situation Analysis or Idea Screening
Concept development( 5 W)
Implementation of the plans
Market Planning, Implementation & control Idea Generation & Objective Setting Organizing & Implementation Measuring Result Diagnosing Result Taking Corrective Action Planning Implementing Controlling
Marketing of product & services to the business organization or manufacturing units, government undertaking, private sector organization, institution, hospitals, distributors & dealers etc.
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.
Industrial vs. Consumer Marketing
Relatively fewer buyer
Service timely delivery is very important
Purchase decision are mostly made on rational/ performance basis
Purchase decisions are mostly made on psychological / social needs
Non personal relationship
Less technical expertise
Direct marketing & selling is used
Fewer intermediaries & middleman
Emphasis on personal selling
Price are negotiated & list price for standardize product
Multiple layers of Intermediaries
Emphasis on advertising
List price or MRP
( A) What is Industrial (Business) marketing?
It is marketing of products / Services to business firms.
In contrast consumer marketing is marketing products / services to individuals & households.
(B) What is the difference between industrial marketing, B2B marketing, Business marketing & Organizational Marketing?
(C) What are the differences between Industrial & Consumer Marketing?
Basic tasks of marketing are same difference Exists in the characteristics shown next.
(D) Why Industrial Demand is called “Derived Demand” ?
Because Industrial demand is derived from (or depends on) demand for consumer goods / services.
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.,
Commercial enterprise are private sector, profit seeking organizations, consisting of
Industrial distributor or dealer.
Original Equipment Manufacturer
Manufacturing firms (Telco Bajaj auto)
Non Manufacturer (Advertising firms & training providers, Industrial marketers)
How are Industrial Products / Services Classified? Classification into 3 Groups shown below.
Marketing Implications for different types of products & customers
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.
For Capital items, Direct selling through company sales force is common, with extensive interactions on technical & commercial factors.
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.
Learning Objectives :
Develop an effective communication (or promotional) program.
Understand the role of advertising
Understand the importance of sales promotion, publicity, public relation (PR), and direct marketing.
BUSINESS (INDUSTRIAL) COMMUNICATION
DEVELOPING AN EFFECTIVE COMMUNICATION / PROMOTIOAL PROGRAMME FOR BUSINESS MARKETS
The steps involved are :
(i) Decide communication objectives.
(ii) Identify the target audience.
(iii) Decide the promotional budget.
(iv) Develop the message strategy.
(v) Select the media.
(vi) Evaluate the promotion’s results.
(vii) Integrate the promotion’s programme.
ROLE OF ADVERTISING IN BUSINESS MARKETING
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
(i) Creating awareness.
(ii) Reaching members of buying center.
(iii) Increasing sales efficiency and effectiveness.
(iv) Efficient reminder media.
(v) Sales – lead generation.
(vi) Support channel members.
IMPORTANCE / ROLE OF DIRECT MARKETING (DM)
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.
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.
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.
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%.
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.
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.
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
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
Retail Direct Marketing
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.
A retailer or retail store is any business enterprise, whose sales volume comes primarily from retailing.
Major Retailer Types
Specialty Store: Narrow product Line
Departmental Store: Several product line with more choice.
Supermarket: large, low cost, low margin, high volume self service store designed to meet total needs for food & household products.
Convenience Store: Small stores in residential area often open 24/7.
Off price retailer: sold at less than market price like company outlet
Super store: Huge selling space, routinely purchased household & food items , services like laundry, hair saloon, beauty parlor , dry cleaners, ATM’s, Movies etc.
Level of retailing services
Limited services (credit & merchandise return)
Full services (sales person assist to customer in buying process)