Direct marketing


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Direct marketing

  1. 1. Direct Marketing Akash C.MathapatiAkash C.Mathapati
  2. 2. Direct Marketing – Defined Consists of direct one-to-one connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. - Kotler Dibb and Simkin (2001) define direct marketing as:  a decision by a company’s marketers to select a marketing channel that avoids dependence on marketing channel intermediaries, and to focus marketing communications activity on promotional mix ingredients that contact directly targeted customers Akash C.Mathapati
  3. 3.  Direct marketing originated in the early 1900s  Direct Marketing Association (DMA) was established in the USA in 1917 Direct marketing 1950s and 1960s started early 1900s developments in Includes e- – concerned with direct mail, telephone commerce, door-to-door selling marketing and a more www and IT and limited direct professional approach applications mail to personal selling Early 1900s 1950s and 1960s Present dayTIME Source: Geoff Lancaster Akash C.Mathapati
  4. 4. What is the Objective of Direct Marketing ? Akash C.Mathapati
  5. 5. Direct Marketing - FormsDirect Mail Reader’s Digest (1922 estb) was early in deploying this technique in a large scale international operation 1960 Mid this was sensation Hanna Anderson is a mail order children’s clothing business in Portland, USA Hannadowns Concept Akash C.Mathapati
  6. 6. Porsche Targets Prospects with Direct Mail Akash C.Mathapati
  7. 7.  Repetitive person-to-person selling – salesperson visits the buyers home, job or other location to sell frequently purchased items. Amway uses this technique. Nonrepetitive person-to-person selling – salesperson visits the buyers home, job or other location to sell infrequently purchased items, such as insurance Akash C.Mathapati
  8. 8.  Party Plans – Tupper Akash C.Mathapati
  9. 9. Catalogs Majority of companies use catalogs not only to sell directly but also inform consumers of products offering in the stores. Online Catalog: http://www.neimanmarcus. com/store/sitelets/christma sbook/christmasbook.jhtmlAkash C.Mathapati
  10. 10. Tupperware India. Another example from TupperwareAkash C.Mathapati
  11. 11. Direct Response Television (DRTV) TV advertising that asks consumers to respond directly to the company  Short form is any DRTV commercial  Infomercials (1984) Akash C.Mathapati
  12. 12. Telemarketing Outbound Inbound Telephone calling by the marketer Marketers facilitate and invite or marketer’s agent to individual prospects to call a central location prospects, seeking purchase, via a long distance number, by a subscription, membership, or toll-free 800 number, or a fixed- participation by the call recipient. cost 900 number. Akash C.Mathapati
  13. 13. Online Marketing Akash C.Mathapati
  14. 14. Traffic Rank Comparison of,,, & Source: siteinfo/ of the SiteSource: Akash C.Mathapati
  15. 15. Page views/user Source: siteinfo/ Spent on SiteSource: Akash C.Mathapati
  16. 16. QVC $6.5 billion a year 2nd most profitable channel Once sold 4,000 silver rings ($70) in just 3 ½ minutes 91 million homes Akash C.Mathapati
  17. 17. Direct Marketing Advantages Selective reach Segmentation capabilities Frequency potential Flexibility Timing Personalization Costs Measures of effectiveness Akash C.Mathapati
  18. 18. Direct Marketing Disadvantages Image Content factors support Do Not Rising Contact lists costs Akash C.Mathapati