Direct marketing definition
An interactive system of marketing which uses one
or more advertising media to effect a
measurable response at any location, forming a
basis for creating and further developing an
ongoing relationship between an organisation
and its customers.
Charecteristic of Direct
• Response mechanism
(tel no., e-mail, bus. Reply …)
• Transaction medium
• Data base
• Measurable response
What’s Driving Direct Marketing?
Better targeting (data base)
Predictable investment & return (DELL)
Aide to market research
Characteristics of product for
• Novelty product (Tupper ware)
• Complex product (Insurance)
• Products that have broad appeal but well defined
user base (readers digest)
• Product of High perception value (Mahindra
• Product with a high worth of individual sale (bank
products like mutual funds)
• Product that customer may want to buy privately
• Products that have a greater customer
involvement (luxury homes)
ELEMENTS OF DIRECT
– THE LIST
• THE OFFER
• THE MESSAGE
Easy message, easy response
Time bound offers
Free gifts than discounts
Media Applications in
---- Descriptive system, Less
competition, personalize able, In-built
feed back mechanism.
---- High cost, Junk mail, Privacy
concerns, Low response rate.
Tips for direct mail copy
Format of the body copy
• Promise of a solution
• Explanation of the promise
• Call to action
• Buy one, Take one free.
• 50% Off, On purchase of Two.
• Two for the price of One.
– The impact of programs is easy to track.
– Experimentation with different scripts and delivery formats is
simple and practical.
– Telemarketing involves live constructive dialogue.
– Contacts can be selectively targeted
Telemarketing shares many of direct mail’s limitations:
– Very expensive on a cost-per-contact basis.
– Names and addresses go bad as people move, so too do phone
numbers - 15 percent of the numbers called are inaccurate.
– Telemarketing does not share direct mail’s flexibility in delivery
options. When you reach people in their home or workplace, you
have a limited span of time to convey information and request
– Telemarketing is becoming a highly maligned practice in
– By 2007, over 70 percent of US households had registered their
phone numbers with the “Do not call registry.”
Bulk e-mail is known as “spam”
Fraudulent email know as “phishing”
However e-mail is an increasingly popular
tool for marketers
– Good response rates
Netiquette suggests getting consumer
permission to send product information
Avoid bulk e-mailings
• Originally a way to reach rural and “offthe-beaten-path” prospects.
• Nowadays most paper catalogs have
gone digital (i.e. online)
• Expected catalog sales in
2008: $200 billion.
• Advantages and disadvantages
– Paper vs. Online
catalog makes it
Insert photo 10.8, p. 316
J. Crew catalog cover
Position = 2.9” horiz.,
Size = 5.7” WIDE
Resolution: 300 dpi
• Ordering machines
generally found in
stores, airports, and
Ethics in Direct marketing
• Confidentiality of the personal
information is suspect
Direct marketing agencies
• Infomedia India Ltd
• Rushabh Direct Marketing …
What is Product Placement?
• Product placement, or embedded
marketing, a form of advertisement,
where branded goods or services are
placed in a context usually devoid of
ads, such as movies, the story line of
television shows, or news programs.
How does it work?
• The tendency is to move away from
in-your-face ads, where the product is
the star, to vignettes that feature
"real-life scenarios" with the product
hovering in the background.
Objectives & Methods
• New product launching
• Reinforce its brand image or restate
• To high light the utility of the product
Advantage & Impact of product
placement in Films
• Provides captive audience for
promoting one’s products
• Appears more natural and realistic
• Presented in a clutter free
• Great exposures (viewers see movies
• Celebrity endorsement cost lot of
• Wide audience across different