Direct Marketing


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Direct Marketing

  1. 1. Direct & Database Marketing Presented by: Siddharth S. Sharma PG 06-02 ISMC 1 ST Batch (2006-08) Assignment
  2. 2. Direct & Database Marketing <ul><li>Direct Marketing is a planned system of contacts seeking to produce a lead or an order. It uses any media which has direct reach to the present or potential customers. Direct Marketing requires the use of a database and can be measured in costs and results. </li></ul><ul><ul><li>Direct interaction with the customers. </li></ul></ul><ul><ul><li>It attempts to gather the direct response from the consumers. </li></ul></ul><ul><ul><li>It relies heavily on the consumer database. </li></ul></ul>
  3. 3. Database Marketing <ul><li>Database marketing is 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. </li></ul><ul><ul><li>Gathering of customer data. </li></ul></ul><ul><ul><li>Warehousing of customer data. </li></ul></ul><ul><ul><li>Analysis of the data. </li></ul></ul><ul><ul><li>Develop a consumer behavior pattern on the base of database. </li></ul></ul><ul><ul><li>Directly contacting with the customers. </li></ul></ul><ul><ul><li>Analysis of the customer response. </li></ul></ul>
  4. 4. Tools of Direct & Database Marketing <ul><li>Direct mailing </li></ul><ul><li>Door hangers </li></ul><ul><li>Magazines </li></ul><ul><li>Newspapers </li></ul><ul><li>Brochures </li></ul><ul><li>Pamphlets </li></ul><ul><li>Radio </li></ul><ul><li>Television </li></ul><ul><li>E-mail </li></ul><ul><li>Internet banner ads </li></ul><ul><li>Billboards </li></ul><ul><li>Transit ads </li></ul>
  5. 5. How it is different from other tools <ul><li>There are two main definitional characteristics which distinguish it from other types of marketing or advertising. </li></ul><ul><ul><li>The first is that it attempts to send its messages directly to consumers, without the use of intervening media. </li></ul></ul><ul><ul><li>The second characteristic is that it is focused on driving purchases that can be attributed to a specific &quot;call-to-action.&quot; This aspect of direct marketing involves an emphasis on trackable, measurable results. </li></ul></ul>
  6. 6. Advantages of using Direct Marketing <ul><li>Targeting – it targets a selected group of people and directly contact them and make personal interaction with them. </li></ul><ul><li>Personalization - Direct mail can address the customer personally and be tailored to their needs based on previous transactions and gathered data. </li></ul><ul><li>Optimization of cost and resources. </li></ul><ul><li>Analysis - The bulk mailing is large enough to allow statistical analyses. For example the results can be analysed to see in detail the performance of individual offers in say a squinch report which shows sales per square inch. These enable better selection of offers and lists for future mailings. </li></ul><ul><li>Direct responses can be measured and provide ease to the cost befit analysis. </li></ul>
  7. 7. Disadvantages of using Direct Marketing <ul><li>Cost - The cost per thousand will be higher than almost any other form of mass promotion (although the wastage rate may be much lower). Also, development costs in database acquisition/development. </li></ul><ul><li>Waste - Large quantities of paper are thrown away. </li></ul><ul><li>Low rate of response and less attention paid by the customer as they receive huge amount of mails from the companies. </li></ul>
  8. 8. Direct Marketer Reader’s Digest <ul><ul><li>Preeminent Global Direct Marketer (FY06 USD 2.4 Billion in Revenue) </li></ul></ul><ul><ul><li>Their product lines in Asia </li></ul></ul>Magazine Select Editions Card & Binder General Books Recorded Music
  9. 9. Direct Marketing - Global <ul><li>One of the leading Direct Marketers in the world with significant database marketing expertise and knowledge. </li></ul><ul><li>Global customer base of more than 100 million households across 70 countries. </li></ul><ul><li>Global sharing of best practices for promotions: </li></ul><ul><ul><ul><li>Sweepstakes </li></ul></ul></ul><ul><ul><ul><li>Creative packages </li></ul></ul></ul><ul><ul><ul><li>Offers </li></ul></ul></ul>
  10. 10. How We Use Sweepstakes in our Mailings <ul><li>Every mailing carries the Official Prizelist and Rules. </li></ul><ul><li>No purchase is required to enter the main Contest or Sweepstakes they offer customers the chance to win whether they say “Yes” or “No” to the offer. </li></ul><ul><li>They depend on repeat custom, and their customers appreciate going in the draw, and they also want to thank them for considering the offers. </li></ul><ul><li>Deadlines on certain prizes encourage customers to reply quickly, while the offer is fresh in their mind. </li></ul><ul><li>They only want orders from people who want the product, so they clearly state the offer in the letter and the Yes reply envelope. </li></ul>
  11. 11. What is Sweepstakes? <ul><li>Sweepstakes is a lucky draw from entries received, entry is free and by invitation, which can be a life-changing experience for the winners. </li></ul><ul><li>They’ve run the Sweepstakes in Asia since 1983, and since then they’ve given away more than USD$10,000,000 in prizes to over 100,000 lucky winners. </li></ul><ul><li>Runs for 12 months in conjunction with various offers. </li></ul><ul><li>They offer “extra” prize draws including “yes-only” draws as a “thank you” to purchasers. </li></ul><ul><li>Also may have Campaign Prizes as an additional “Thank You” for buying. </li></ul><ul><li>People can enter the Sweepstakes more than once, provided they do so with an official entry form in their name. </li></ul>                                                                                         
  12. 12. How Reader’s Digest do Direct Mailing