Direct Marketing

Direct & Database Marketing Presented by: Siddharth S. Sharma PG 06-02 ISMC 1 ST Batch (2006-08) Assignment

Direct & Database Marketing
Direct Marketing is a planned system of contacts seeking to produce a lead or an order. It uses any media which has direct reach to the present or potential customers. Direct Marketing requires the use of a database and can be measured in costs and results.
Direct interaction with the customers.
It attempts to gather the direct response from the consumers.
It relies heavily on the consumer database.

Database Marketing
Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes.
Gathering of customer data.
Warehousing of customer data.
Analysis of the data.
Develop a consumer behavior pattern on the base of database.
Directly contacting with the customers.
Analysis of the customer response.

Tools of Direct & Database Marketing
Direct mailing
Door hangers
Magazines
Newspapers
Brochures
Pamphlets
Radio
Television
E-mail
Internet banner ads
Billboards
Transit ads

How it is different from other tools
There are two main definitional characteristics which distinguish it from other types of marketing or advertising.
The first is that it attempts to send its messages directly to consumers, without the use of intervening media.
The second characteristic is that it is focused on driving purchases that can be attributed to a specific "call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable results.

Advantages of using Direct Marketing
Targeting – it targets a selected group of people and directly contact them and make personal interaction with them.
Personalization - Direct mail can address the customer personally and be tailored to their needs based on previous transactions and gathered data.
Optimization of cost and resources.
Analysis - The bulk mailing is large enough to allow statistical analyses. For example the results can be analysed to see in detail the performance of individual offers in say a squinch report which shows sales per square inch. These enable better selection of offers and lists for future mailings.
Direct responses can be measured and provide ease to the cost befit analysis.

Disadvantages of using Direct Marketing
Cost - The cost per thousand will be higher than almost any other form of mass promotion (although the wastage rate may be much lower). Also, development costs in database acquisition/development.
Waste - Large quantities of paper are thrown away.
Low rate of response and less attention paid by the customer as they receive huge amount of mails from the companies.

Direct Marketer Reader’s Digest
Preeminent Global Direct Marketer (FY06 USD 2.4 Billion in Revenue)
Their product lines in Asia
Magazine Select Editions Card & Binder General Books Recorded Music

Direct Marketing - Global
One of the leading Direct Marketers in the world with significant database marketing expertise and knowledge.
Global customer base of more than 100 million households across 70 countries.
Global sharing of best practices for promotions:
Sweepstakes
Creative packages
Offers

How We Use Sweepstakes in our Mailings
Every mailing carries the Official Prizelist and Rules.
No purchase is required to enter the main Contest or Sweepstakes they offer customers the chance to win whether they say “Yes” or “No” to the offer.
They depend on repeat custom, and their customers appreciate going in the draw, and they also want to thank them for considering the offers.
Deadlines on certain prizes encourage customers to reply quickly, while the offer is fresh in their mind.
They only want orders from people who want the product, so they clearly state the offer in the letter and the Yes reply envelope.

What is Sweepstakes?
Sweepstakes is a lucky draw from entries received, entry is free and by invitation, which can be a life-changing experience for the winners.
They’ve run the Sweepstakes in Asia since 1983, and since then they’ve given away more than USD$10,000,000 in prizes to over 100,000 lucky winners.
Runs for 12 months in conjunction with various offers.
They offer “extra” prize draws including “yes-only” draws as a “thank you” to purchasers.
Also may have Campaign Prizes as an additional “Thank You” for buying.
People can enter the Sweepstakes more than once, provided they do so with an official entry form in their name.

How Reader’s Digest do Direct Mailing

Direct Marketing

by Siddharth Sharma on Feb 27, 2008

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Direct Marketing Presentation Transcript