Direct marketing and direct selling

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Direct marketing and direct selling

  1. 1. Direct marketing and direct selling By: Shwetanshu Gupta MBA-49-2013
  2. 2. Direct marketing: ▪ Direct marketing is the use of consumer direct channels to reach and deliver goods and services to consumers without using marketing middlemen. ▪ It helps the companies to opening dialogue directly between themselves & the end consumers of their products. ▪ It is targeted at individual users rather than through intermediaries. ▪ Company markets through various advertising media that interact directly with consumers, generally encouraging the consumer to make a direct response.
  3. 3. Cont’d ▪ In other words, direct marketing consists of direct communications with carefully targeted consumers to obtain an immediate response. ▪ However, the ultimate purpose of direct marketing is to establish and manage direct long term relationships with customers by capturing personal information in a database. ▪ Marketer send birthday cards, information materials and small premiums to certain customers.
  4. 4. Advantages To Businesses: ▪ Direct marketing can help sales to grow when used along with sales promotions and advertising campaigns. ▪ It is also useful for small businesses through guest books, visitors lists, and lists of enquiries. These operations rely on repeat business. ▪ Direct marketing builds relationships; it is an important tool in customer relationship management (CRM). ▪ It helps to measure response to campaigns to decide which media is most profitable. ▪ It helps to find cost effective approach of media.
  5. 5. To consumers: ▪ Home shopping can be fun, convenient & hassle free. ▪ Buyers get good services from the company like toll free numbers for purchasing or ordering goods. ▪ It provides quick delivery of goods to the consumers. ▪ It saves time and introduces consumer to a larger selection of merchandise. ▪ Consumer can do comparative shopping by browsing through mail catalogs and online shopping services.
  6. 6. Forms of direct marketing: Direct mail marketing Catalog marketing TelemarketingTelevision Kiosk marketing
  7. 7. Direct mail marketing: ▪ It involves sending an offer, announcement , reminder or other item to a person through mail ▪ Marketers send out millions of mail pieces each year, using highly selective mailing lists. ▪ It is a popular medium as it permits target market selectivity, can be personalized, is flexible. ▪ Cost involved is very high than the mass media but the people reached are better prospects.
  8. 8. Catalog marketing: In this type of marketing seller prepares catalogues of merchandise or products and sells directly to customers. Catalogues are generally in printed form but can also be distributed in the form of CDs . To reduce printing and distribution costs catalogues are being increasingly made online. Products from various companies or vendors may be combined into a single catalogue to provide a one point shop for customer looking out for a particular type of product
  9. 9. Telemarketing: ▪ Telemarketing is the use of telephone and call centers to attract prospects , sell to existing customers and provide service by taking orders and answering questions. ▪ Companies use call centers for inbound telemarketing- receiving calls from customers and outbound marketing- initiating calls to prospects and customers. ▪ Effective telemarketing depends on choosing the right telemarketer , training them well & providing performance incentives. ▪ Advantages: Likely to replace more expensive field-sales call. ▪ Reduces amount of personal selling effort. ▪ Reduce field-force travelling calls.
  10. 10. ▪ Telemarketing pioneer. ▪ It offers more than a thousand products backed by a 24*7 call center. ▪ Diversified its operations by opening an online store.  Cosmetic company L’Oreal India has a toll free number on which it offers expert advice about looking good.
  11. 11. Direct response marketing Television: ▪ Direct marketing via television (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) & short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website). ▪ Infomercials promote products that are complicated or technologically advanced, or require a great deal of explanation.
  12. 12. Company promotes the concept of home shopping by a way of media and television advertisements of various products by showing their features, use and advantages. A toll free number is flashed on the television screen when infomercials are screened. The consumer can call the number for the demonstration and delivery of the product.
  13. 13. Kiosk- A small, temporary, stand-alone booth used in high-foot-traffic areas for marketing purposes.  A kiosk will usually be manned by one or two individuals who help attract attention to the booth to get new customers. Kiosks are machines kept in shopping malls and other such places by organizations to spread the information and generate orders from customers who visit such Free standing, semi-permanent display or retail outlet, within a large retail establishment or a shopping mall Kiosk marketing :
  14. 14.  Ambi Pur , a perfume company dealing in room fresheners organized a kiosk marketing campaign in the Nirmal lifestyle, Mumbai.  Attracted a lot of parents who came in with their children and stopped by the kiosk & got information about the co.  The objective of the campaign was to create awareness about the product among the target consumers, mainly the households.
  15. 15. Disadvantages : Irritation Unfairness Deception and fraud Invasion of privacy
  16. 16. Direct selling: Traditional selling Direct selling It is the sale of a consumer product or service, person-to- person, away from a fixed retail location. Direct sellers are not employees of the company but are independent contractors, also referred to as consultants or distributors who market & sell the products or services of a company in return for a commission on those sales.
  17. 17. ▪ In this era of competition no company can rely on single direct marketing form. ▪ So companies use one of the form of direct marketing or a combination of these marketing forms in order to stand out of the rest. ▪ For example :AVON Conclusion :

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