DIRECT MARKETING - 1. (retailing definition) A form of non-store retailing in which customers are exposed to merchandise through an impersonal medium and then purchase the merchandise by telephone or mail. 2. (channels of distribution definition) The total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalog selling, cable selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer. - American Marketing Association
DIRECT MARKETING - Communications where data are used systematically to achieve quantifiable marketing objectives, and where direct contact is invited or made between the company and its customers. - UK Direct Marketing Association
The Growth of Direct Marketing § Sales thru DM growing at 5.3 %, sales thru other channels at 4.5% in the USA § Changing lifestyles § Working women § Increased cost of traditional marketing, personal selling § Growth of technology § Need for Instant gratification § Rise in income, “me” population § Rising cost of fuel, lack of parking space § Rising credit card base § Availability of mailing lists
Benefits of Direct Marketing For customer 1. Fun, convenient, hassle-free 2. Saves time 3. More options, better comparison, better choice 4. Can order for self as well as others 5. Privacy 6. Can get items otherwise not available easily For Company 1. Mailing list available for almost any market, geography no barrier 2. Better customer understanding, Customized offer 3. Ongoing relationship with customers 4. Higher sales success rate 5. Privacy in marketing strategy 6. Measurable response
Database Marketing 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. The method of communication can be any addressable medium. Sources of data Consumers Inferred by the data compiler Sweepstakes, contests, on-line registrations Analytics and Modeling. Should not be data rich, information poor
Benefits of Database Marketing Information of customer demographics, psychographics, tastes, preferences Helps in developing customized offers Helps in formulating cost effective strategies Helps in generating right leads for sales people Better segmentation
Major Channels for Direct Marketing § Face-To-Face Selling § Direct Mail § catalog § Telephone, Fax § kiosk § television § email, voicemail, website
Voicemail (or voice mail, vmail or VMS, sometimes called messagebank)is a centralized system of managing telephone messages for a largegroup of people. In its simplest form it mimics the functions of ananswering machine, uses a standard telephone handset for the userinterface, and uses a centralized, computerized system rather thanequipment at the individual telephone. Voicemail systems are much moresophisticated than answering machines in that they can: • answer many phones at the same time • store incoming voice messages in personalized mailboxes associated with the users phone number • enable users to forward received messages to another voice mailbox • send messages to one or more other user voice mailboxes • add a voice introduction to a forwarded message • store voice messages for future delivery • make calls to a telephone or paging service to notify the user a message has arrived in his/her mailbox • transfer callers to another phone number for personal assistance • play different message greetings to different callers.
Direct marketing has passed through a number of stages: 1. Carpet bombing: mass mailing 2. Database marketing: selective mailing 3. Interactive marketing: two-way 4. Real-time personalized marketing 5. Lifetime value marketing
Constructing a Direct-Mail Campaign “sales people with wings” Objectives Sales Generating prospect leads Strengthening customer relationships Informing and educating customers Reminding customers about offers Reinforcing recent customer purchase decisions Target Markets and Prospects Segmentation variables Recency, Frequency, Monetary amount (R-F-M) Obtain customer database
Constructing a Direct-Mail Campaign Offer Elements Product Offer (discounts, etc) Medium Distribution method Creative strategy Design / drafting of Envelop, Sales letter, reply form, reply envelop Attractive envelop with some colorful illustration, a catchy reason to open it, personal salutation, good quality paper, signature of some one very senior, toll free number, web site, postage-paid reply envelop Testing Elements Testing of the impact of the mail campaign Measuring Campaign Success
Catalog Marketing Full-line merchandise catalog in print / CD / VHS / Online Success depends on: Managing customer list carefully – no duplication, no bad debt Care inventory management Quality merchandise Logistics Return policy Long-term customer relationship management
Telemarketing and M-Commerce Inbound telemarketing Outbound telemarketing Four types of telemarketing: Telesales: taking orders from catalogs/ads, making sales calls Telecoverage: maintaining and nurturing key account relationships Teleprospecting: generating leads of prospects Customer service and technical support
Other Media for Direct-Response Marketing Direct-response advertising on TV At-home shopping channels: dedicated Home Shopping Networks Videotext and interactive TV Kiosk Marketing
E-commerce Electronic commerce, EC, e-commerce or ecommerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. It can involve electronic funds transfer, supply chain management, e- marketing, online marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. It typically uses electronic communications technology such as the Internet, extranets, e-mail, e-books, databases, and mobile phones.
M-commerce M-commerce or mobile commerce stands for electronic commerce made through mobile devices, e.g. mobile phones, PDAs. M-commerce is currently mainly used for the sale of mobile phone ring-tones and games, although as 3G services roll out it is increasingly used to enable payment for location-based services such as maps, as well as video and audio content, including full length music tracks. Other services include the sending of information such as football scores via SMS. Currently the main payment methods used to enable m- commerce are: premium-rate calling numbers, charging to the mobile telephone users bill or deducting from their calling credit, either directly or via reverse-charged SMS.
Internet Marketing use of the Internet to advertise and sell goods and services. Internet Marketing includes pay per click advertising, banner ads, e-mail marketing, search engine marketing, blog marketing, and article marketing. Designing attractive websites: Context (layout & design), Content (text, pictures, sound, vdo), Customization, Communication (two-way), Connection (to other websites), Commerce, Constant change
Internet Marketing - Ads Banner ads : small rectangular boxes Sponsorships : sponsoring special content Microsite : a limited area on the web managed by and paid for, low interest products like insurance Pop Ups and Pop under Interstitials: pop ups between changes on a website Search-related ads Affiliate programs
E-Marketing Permission Marketing Levels of Permission Marketing:(Seth Godin) No permission level Low permission level Medium permission level High permission level Transaction level E-Marketing Guidelines Give the customer a reason to respond Personalize the content of your e-mails Offer something the customer could not get via direct mail Make it easy for the customer to “unsubscribe”