Introduction to direct marketing

1. I N T R O D U C T I O N T O D I R E C T M A R K E T I N G
Chapter 1
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2. What Is Direct Marketing?
“Strategy planning and execution activities which
focuses on motivating buyers to place orders
through the mail or some other non store channel
such as the telephone.”
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3. Characteristics of Direct Marketing
 Manufacturers directly approach their consumers for
immediate purchase.
 Response of direct marketing is easily measurable.
 Creates a convenience for buyer to order from
anywhere and anytime via telephone, internet etc.
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4. Some Examples of Direct Marketing in Pakistan
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5. Elements of Direct Marketing
1. Interactive
2. Measurable
3. Any location
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6. Interactive
 Both marketer and prospective customers can
interact with each other immediately.
 Gives the target market an opportunity to respond.
 Establishes a two-way communication.
 Audience are always encouraged to call or enquire
for further information.
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7. Measurable
 Unlike general marketing each marketing effort can
be measured such as calls, email, coupons etc.
received from customers.
 Each response helps seller to maintain the organized
information in form of database that helps them
design the next marketing campaigns.
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8. Any Location
 It is not necessary for prospects to come into a retail
store or to be visited by a salesperson.
 Direct marketing communications can take place at
any location.
 Contact can be made mail, over the phone, online via
internet.
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9. Direct Marketing’s Special Competencies
 Special competencies derive from the fact that the
communication are directed at specific individuals
and not a mass markets via mass media.
 Ability to precisely target individuals.
 Ability to create personalized messages that call for
immediate action.
 Prominence of customer service.
 Finally, the results of direct marketing campaigns
can be monitored and measured.
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10. Direct Marketing’s Special Competencies
1. Combinations of advertising and selling.
2. Customer service.
3. Precision targeting.
4. Personalization
5. Call for immediate action.
6. measurement
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11. Combinations of Advertising and Selling
 In the process, the communication performs both an
advertising and selling function without an
intermediary.
 Eliminate the markups of intermediaries.
 Increases the profitability
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12. Customer Service
 Maintaining customer loyalty via providing customer
with valued customer services such as.
 customer helpline with toll-free numbers.
 technical support.
 Eased warranty terms and replacements.
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13. Precision Targeting
 Communication are frequently aimed at individuals.
 Direct mail and telemarketing campaigns based on
the use of segmented lists that come from
information contained in the databases.
 Targeted marketing reduces the waste.
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14. Personalization
 Individual consumer should be addressed by name,
while business prospects should be addressed by
name and title.
 Beyond the names, information from database may
be used to produce some specific appeal such as
buying patterns etc.
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15. Call for immediate action
 Direct marketing instigates the consumer for specific
and immediate action..
 The prospect is encouraged to place an order or
request more information by calling a number or
sending in a card.
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16. Measurement
 Campaigns can be monitored to determine if they are
successful or not.
 Selection and continuing the successful campaigns.
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17. Reasons for the growth of direct marketing
1. Changing lifestyles and demographics.
2. Evolving economy and international competition.
3. Technological advances and innovations.
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18. Changing Lifestyles and Demographics
 Age distribution of the population as of a certain
date.
 Age correlates with key events such as college
attendance, marriage, and childbearing.
 Increase in the number of women in the workforce
has changed women’s role as homemakers and
consumers.
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19. Evolving Economy and International Competition
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 South Korea's foreign demand has stimulated a
tripling of manufacturing output over the past
decade.
 Malaysia, rising incomes from new factories have led
Toys “R” Us Inc. to open two new stores.
 Spain, exports have more than doubled since the fall
of fascism.

20. Technological advances and innovations
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 Technology allows one to order from its living room.
 Media options are growing exponentially telephone,
mobiles, fax, email, web blogs etc.
 Computer databases allows companies to store
desired information about consumers and their
purchases.

21. What can be sold via direct marketing?
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 Today almost any product or service can be sold
through direct marketing.
 Products that are very perishable that have small
selling price like a can of coke etc. are not suitable to
sell through direct marketing.
 Most products that are sold direct have relatively
high unit sales prices and profit margins.

22. Decision variables in direct marketing
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 Offer : complete proposition made to a prospective
customer by the firm selling good or service.
 Creative: design of packaging.
 Media: source of communication i.e. TV, Radio,
Internet, Mail etc.
 Timing/sequencing: message to be sent once or
multiple, frequency of repetition.
 Customer service: quick response to orders and
complaints, products are delivered within an 24 hrs.

23. Direct Marketing Media
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1. Telemarketing
2. Direct mail marketing
3. Direct-response television
4. Direct-response print media
5. Direct-response radio
6. Database marketing

24. Telemarketing
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 Telemarketing makes use of the latest technologies
including hardware, software, database technology
and communication to reach out to the potential
customers.
 In-bound and out-bound call centers are one
example of it.
 Interaction with the customer or prospect is
personal, even though it is not face to face.

25. Direct Mail Marketing
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 Direct mail includes individual mailings of brochures
and other offers as well as catalogs containing many
pages of merchandise.
 Individual Mailings: Widely used generally emphasize a
single product or service.
 Catalogs: Catalogs contain a line of merchandise usually with
specialty focus.

26. Direct Response Television
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 Both direct mail and direct-response television ask
for an immediate decision from individuals.
 In this ad aims to talk directly to a more specialized
target audience and contains a telephone number to
encourage viewers to place orders or request more
information.
 Ad itself contains the testimonial.

27. Direct-Response Print Media
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 It usually involves the placement of an advertisement
in a magazine, newspaper, or some specialty
print media advertisements.
 Advertisement always includes at least one reply
mechanism.

28. Direct Response Radio
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 Radio has the special ability to reach people as they
pursue their daily lives in their cars or at work where
television viewing is not practical.
 It’s not convenient to stop a car note down the
number to call on radio ad, in the meanwhile ad is
over.
 Still radio is effective medium to sell mattresses,
flowers and cellular phones.

29. Direct marketing objectives
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1. Product or service sales.
2. Lead generation.
3. Lead qualification.
4. Customer relationship building and maintenance.

30. Product or service sales
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 The most common objective of direct marketing
programs is to sell products or services.
 Some direct marketers are first concerned with
producing well-qualified leads (prospective
customers) for their field salespeople and
subsequently with selling.

31. Lead Generation
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 Lead generation involves a combination of targeted
communications delivered at one time with the goal
of generating a response.
 Multimedia lead generation requires that all
communication deliver the same message with the
same desired action by the target.

32. Lead Qualification
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 Lead qualification is designed to screen out bad leads
or non serious prospects.

33. Customer Relationship Building and Maintenance
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 Reaching out to qualified prospects intermittently
for the product sale.
 Sending them personalized messages such as
birthday greeting, eid greetings etc.
 Reminding customer about their last purchase.

34. New Direct Marketing Approaches
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 Online and internet: With the salient features of online banking
and internet consumers can now order 24/7 from any part of the world.
 Relationship marketing:
 Building and sustaining customer loyalty for long-term.
 Make them feel special.
 Relatively small investment required to maximize profit of
existing customers
 Home shopping shows: The channels use entertainment in an
effort to make the shopping experience an attractive leisure-time
activity.

35. THANK YOU!
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