Direct and online marketing 2015


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Direct and online marketing 2015

  1. 1. Direct and Online / Interactive Marketing
  2. 2. Session Coverage • • • • • DM and its Importance Growth of Direct Marketing Customer Database and Direct Marketing Channels of Direct Marketing Online Marketing-Internet and ECommerce
  3. 3. The Rise of Direct Marketing – Use of consumerdirect channels to reach and deliver goods and services to customers without using market middlemen.
  4. 4. Importance & Benefits of Direct Marketing-For Buyers: – Convenient – Easy to use – Private – Access to a wealth of information – Immediate – Interactive (Two Way Communication)
  5. 5. Importance & Benefits of Direct Marketing-For Sellers – Powerful tool for building relationships – Allows for targeting of small groups or individuals with customized offers in a personalized fashion – Offers access to buyers that couldn’t be reached via other channels – Low-cost, effective alternative for reaching specific markets
  6. 6. Direct Marketing Channels Direct mail Catalogs Telemarketing Other direct response
  7. 7. 1. Mail Order Marketing Entire Marketing takes place by mail • Sending an offer, announcement, remainders or other items to ind. customer • Interested customers respond by placing mail order • Order response rate of 2 % considered good • Cost / thousand people reached higher than mass media but people are much better prospects
  8. 8. Mail Order Marketing Elements Considered • Outside Envelope should be colourful or catchy reason to open it. • Sales letter should be brief on a good quality paper. • Should be personally addressed • Should have a toll Free No and Weblink • Postage free envelop drastically increases response rate.
  9. 9. Mail Order Marketing Best Prospects DATABASE • Customers who have bought products in past OR DM can buy Database from list Brokers (Problem: Oblelete, Duplication, Outdated, incomplete data) • Writing to people will get only 1-2 percent response • Better Approach-Create your own list.
  10. 10. ICICI Bank-Creating Database • Objective: Develop mailer list for “Children Growth Bond”. • Painting Competition for School Children • “What is your Dream Career?” • 40,000 Children in Three Cities participate • Parents of participating children receive letter about their Children Choice of Career • It also shared their Child’s Painting • Than Provided details of GROWTH BOND • RESULT: RESPONSE WAS MORE THAN 20 % GENERATING HEALTHY BUSINESS AT VERY LOW MARKETING EXPENSE. • Writing to people would have got 1-2% response
  11. 11. 2. Catalogue Marketing • Avon Sells Cosmetics, IKEA Sells Furniture, Saks Sells Clothing. • Putting entire catalogue online provide better access to global customers, saving on printing and mailing costs • Success depends on managing customer lists – – – – Avoid Duplication Offer quality products Operate special hotline to answer questions Send gifts to best customers
  12. 12. E-Catalogues • (Pantaloon Retail) Thousands of products, price, features, payment gateway, promises delivery within 7 days. • – Displays flowers on ECatalogue, Promises next day delivery to most cities of India. • – Link to different sites, business marketplace, wholesale catalogues
  13. 13. Types of Telemarketing • • • • Telesales Telecoverage Teleprospecting Customer service and technical support
  14. 14. 3. Telemarketing Use of Telephone & Call Centers to attract prospects & Selling to existing customers • Inbound Telemarketing-Receiving Calls • Outbound Telemarketing- Making Calls • L’Oreal India (Cosmetic Company)- Offers advice about “How to look Good” • JK Tyres “ Vans with trained Machanics in NCR, who deliver and fit new tyres at customers homes. • Although it is major DM tool, GOI has put restrictions on Banks/F.Institutions regarding its use.
  15. 15. 4. Other Media and Direct Response Marketing Use all major media-Radio, Magazines, N.Papers, TV via toll free Nos • Infomercials: • 30-60 minutes video to promote products that are complicated and technology advanced or require great deal of information. • At Home Shopping Channels: Showing various products by showing features, use, advantages and price (Toll Free No with 48 Hrs Delivery).
  16. 16. 4. Other Media and Direct Response Marketing Cont…. • Asian Sky Shop (Essel Group-1995): • Distribution 75 cities, caters to Dubai, B’Desh, Pakistan, Nepal etc. • Reach out to customers across 10 different channels of Essel Group. (Backed by 24 hour, 7 days a week hotline • Benefits to TV Channels: New Source of Revenue, In some cases profit sharing on per unit basis.
  17. 17. Public Issues in Direct Marketing Irritation Unfairness Deception/fraud Invasion of privacy
  18. 18. Direct Marketing VS Direct Selling Some Marketers consider them same as both do-not involve Store Retailing Direct Selling Direct Marketing Two Different Terms (Part of Non Store Retailing, A Part of Marketing) Direct Selling or Home Selling are same •Larger than Non Store Retailing •Tackles all tasks of Marketing (Customer Identification, Demand Generation, Packaging, Modification, distribution, price negotiation, promotion, sales promotion in integrated compressed manner. •Home Selling: Done by Employees/Sales Person. One to One, Takes products to buyers home •Direct Selling: Done by Independent Salesperson/Distributors, If done in a group, referred to party selling, Home or Workplace
  19. 19. Direct Selling Facts • World-wide $ 200 Billion Industry • Employs 50 Million Workforce • Over 35,000 companies Examples: Avon, Tupperware, Oriflame, Amway, Encyclopedia Britannica
  20. 20. Direct Selling Companies Avon (Century Old) Amway •133 Countries •85 Countries •Turnover $ 4.5 Billion •Turnover $ 7 Billion •4 Lakh DS persons •480 Products, 380 Petents •Cosmetics, Jewellery, Healthcare, Baby care Products •Personal Care, Health Care, Cosmetics, Nutrition, Wellness etc •Hires Housewife's for Selling to neighborhood •Over 3 million independent sales cum distributors
  21. 21. Online Marketing Facts-India • • • • Clocked 53000 Crores 30% User time used for shopping Juxt Consultants “India Online Survey Research” Sample: 12,500 Households, 40 Cities, 160 Villages. • Findings: • 1 out of every 10 urban customer connected to net
  22. 22. Juxt Consultants “India Online Survey Research” • 70% on internet users reside outside metro. • 50 million users (40-U, 10-R) • Regular Users-50 Million (40-U, 10-U) • Rural Penetration-5 Percent • 77% users between 19-35 years. • Faith in online shopping increasing gradually, 80% of regular users buying through net.
  23. 23. Maruti’s “Dil Se Program” • Interactive marketing to tap NRIs • People residing overseas can purchase gift for their friends/relatives to show love, affection and gratitude. • Multiple payment Options: Credit Card, Money Transfer, Bank Installment. • Coverage: 200 Cities, Special Discount Price • Delivery: Arranges gift wrapping, free • Website: Shares experiences of emotional satisfaction.
  24. 24. Placing Ads and Promotion Online • Websites • Micro sites: Limited area on web, managed and paid by external ad company. Can create micro site on different common websites. • Search Ads (40% online ads): Pay only if people click on links.
  25. 25. Placing Ads and Promotion Online • Display Ads: Small rectangular boxes containing text and picture that company pay to place on website. • Online Communities: Companies sponsor online communities whose members communicate through postings about special interests related to companies products and brands.