Direct and online marketing

PRESENTATION ON
DIRECT MARKETING
AND ONLINE
MARKETING
PRESENTED BY –
HASHMEEN KAUR- 19/15
MEHAK SHARMA – 29/15

In direct marketing,
 there is a direct interaction of the customers with the seller without
any intermediaries. Here, the role of the intermediaries is nil.
 The medium used is more direct using telephone, mail, internet
where the seller can directly reach out to the consumer.
 Examples of such marketing include telemarketing, email, voicemail
marketing, door-to-door selling etc.
 This kind of marketing is more time saving as the problem of distance
which may otherwise exist between the buyer and seller is eliminated
and is also cost effective as it minimizes commuting costs
SOURCE: http://www.careerride.com/view.aspx?id=6301

HOW DOES IT DIFFER FROM
CONVENTIONAL MASS MARKETING?
Let us examine this in a greater detail

Direct Marketing Conventional Marketing
 Sells to a multitude of
customers treating them as
a mass;
 Uses Mass Production;
 Mass Communication;
 Mass Distribution
Devices;
 Incentives on Mass basis.
 Marketer approaches the
customers individually;
 Customized Production;
 Individualized
Communication;
 Individualized
Distribution;
 Individualized incentives.
Conventional Marketing is Mass Marketing; Direct Marketing is
Demassified Marketing
Source: Marketing Management by VS RAMASWAMY & S NAMAKUMARI

 Marketer knows his
customer
 has on his hands a
specific profile of each
individual customer.
 Marketer sells to the
customers indirectly.
 the customer is an
anonymous entity to the firm.
Direct Marketing Deals Customers Directly; Conventional
Marketing Deals Them Indirectly

It enjoys the advantage of
two way communication ,
between the firm and every
one of the customers.
Both sides are able to seek
and obtain clarifications in
an interactive way
It remains content with
one-way messages, flowing
from the firm to the market .
Direct Marketing is Interactive Marketing; Conventional Marketing is a
One-Way Activity

Marketing activity takes place
without marketing channels/
stores.
The marketer secures the
sale directly from the
customer and enables the
latter to receive the product
without having to visit a retail
store.
Marketing activity normally
takes place through
marketing channels/
intermediaries/ stores.
Direct Marketing does not involve Marketing Channels/
Stores; Conventional Marketing relies heavily on it.

Direct Marketing does not Involve Advertising/ Mass
Promotion; Conventional Marketing relies heavily on it.

DIRECT MARKETING & NON-STORE
RETAILING
Not synonymous;
 DM is a Marketing Method; Non-Store
Retailing is just a retailing method
 DM is a larger process than non-store
retailing.

DIRECT MARKETING SCORES OVER
MASS MARKETING
• Makes individual attention to customers possible
• Facilitates finalising offers through interaction
• Enables customization; delivers near- perfect solutions to
customer’s problems
• Helps achieve excellence in products
• Eliminates the hassles of going through marketing
channels and stores.

• Facilitates sharper segmentation and targeting
• Helps customer relations building
• More cost effective
• Avoids the wastage inherent in mass
marketing
• With the development in IT, DM’s efficiency
keeps increasing and cost keep decreasing.

• A versatile form of marketing
• Can be selective
• Particularly useful in times of recession
• Particularly useful to small firms
• Benefits the consumers too

REQUISITES FOR SUCCESS OF DIRECT
MARKETING
Comprehensive,
reliable and
updated
database
Careful and
close targeting
of markets/
prospects
Service
guarantee and
product
warranty
Backroom
logistics
An eye for
details
Sustained effort

FORMS OF DIRECT MARKETING
Mail Order Marketing/ Catalogue
Marketing
Direct Response Marketing
Database Marketing

Teleshopping
Telemarketing
Direct Mail Marketing
Online Marketing

MAIL ORDER MARKETING/
CATALOGUE MARKETING
Consumers become aware of the product through
information furnished to them by marketer through
catalogues dispatched by mail.
The entire marketing takes place by mail.
 Interested consumers respond by placing mail
order on the marketer;
 The product is supplied to consumer by;
 Payment is also made by mail ( VPP/ Cheque /
Credit cards)

Source: Marketing Management (A South Asian Perspective) by PHILIP KOTLER
There are several Web sites that facilitate e-commerce by
publishing e-catalogs.
Provides e-catalogs on its Web site, with lists,
photographs, & prices of a large array of
products & a payment gateway.
Site promises delivery within 7 working days.
Another Web site for cameras, mobile phones and
other electronic items.
It has links to different sites classified as
business marketplaces, wholesale
catalogs, industry portals and gift
shopping to facilitate e-transactions.

Catalogue business depends on
 Managing customer lists carefully to avoid
duplication or bad debts,
 Controlling Inventory;
 Offering good quality merchandise so returns are
low
 projecting a distinctive image
Putting their entire catalogue online provides business
marketers with better access to global consumers
than ever before,
saving printing and mailing costs.

DIRECT RESPONSE
MARKETING
•Direct response marketing uses more instruments/media
(including; letters/mailers) , like telephone, radio, TV and computer.
•Some Direct Response Marketing campaigns, for example, rely
totally on television ‘infomercials’ (commercials which give
information about products, benefits and usage aspects.)
Toll Free Telephone Numbers
These too serve as a useful tool of direct response marketing. Toll-
free telephone help
Better ordering by the customer,
Better dialogue between the customer and the company
Better service to the customer

Source:
DATABASE
MARKETING
 Database marketing is a form of direct marketing that uses
databases of customers to generate targeted lists for direct
marketing communications.
 Such databases include customers’ names and
addresses, phone numbers, e-mails, purchase histories,
information requests, and any other data that can be legally
and accurately collected Information for these databases
might be obtained through application forms for free
products, credit applications, contest entry forms, product
warranty cards, and subscriptions to product newsletters.
http://www.marketing-schools.org/types-of-marketing/database-
marketing.html

Teleshopping/ Home Shopping
Here, the marketer
 hawks the product on the air and
 the consumer watches it on his T.V. screen at home,
 Phones up the marketer and
 buy his requirement.

Benefits
all
groups
customers
marketer
TV
channel
manufacture
r

THE EARLY ENTRANTS: THREE CHANNELS &
FOUR NETWORKS
Three TV channels grabbed the idea early and set apart a good
slice of their telecast time for the new concept:
• DD
• Zee
• United Television (UTV)
Similarly, Four teleshopping networks entered the arena as
pioneers:
• Dee’s Home Shopping (Dee’s)
• Teleshopping Network (TSN)
• United Teleshopping (UTS)
• Asian Sky Shop (ASS)
UTS was a division of UTV; ASS a division of Zee TV; Dee’s and
TSN were independent networks.

REQUISITES OF SUCCESSFUL
TELESHOPPING
1. The product hawked and the consumers targeted must match
closely.
2. There has also to be a proper matching of programme time
3. The networks must recognize that certain categories of products
blend particularly well for teleshopping: incl: household appliances,
jewellery, toys, cosmetics, leather products. Also products that are
novel and unique like roti maker
4. Networks can tie up with makers of good unbranded products
who lack marketing capability.
5. Delivering products on time is an important task
6. Selection of right kind of people as the hosts and hostesses is
also important. {not celebs(as focus might shift) but are people
whose personality goes well with the product they sell}
7. Control of cost is another major task. (such as cost of channel time,
studio charges, manpower costs, cost of equipment etc).

TELEMARKETING
Telemarketing is a very common form of marketing
companies use to connect with potential customers of
their products or services.
Historically, telemarketing consisted of companies making
telephone calls to existing or potential customers.
With new technology, telemarketing has expanded to include video
conferencing calls, as well, although those are typically conducted
with existing customers.
Telemarketing is often used to try to sell a product or service, but it
can also take the form of surveys or information gathering. For
instance, political campaigns use telemarketing heavily prior to
elections to inquire about voting preferences.
Source: http://study.com/academy/lesson/what-is-telemarketing-definition-examples-laws.html

Source: http://study.com/academy/lesson/what-is-telemarketing-definition-examples-laws.html
When companies call new customers, the activity is referred to as
cold calling. This means the consumer has not purchased from
the company before nor have they requested a call from the
company.
There are many industries that rely heavily on telemarketing,
such as:
1. Cable and Internet services
2. Home security systems
3. Financial services etc.

ADVANTAGES OF
TELEMARKETING
1. Telemarketing facilitates personalized
contact, though not face-to-face contact
with prospects. Compared to mass
marketing programmes, it gives the
marketer a better chance to influence the
prospects.
2. It enhances marketing productivity by
providing
(i) screening and
(ii) selection facility
3. It is less expensive
4. It can be used in respect of different types
of products.

Planning and Preparation
Planning:
• Telemarketer must be clear about the campaign objectives,
duration, expected call traffic, etc.
•The campaign should first be pre-tested on a small scale.
• Many useful lessons can be learnt through the pilot project,
(i) which will help improve the effectiveness of the campaign
(ii) help cut loss/wastage that might otherwise affect revenue.
• An outside professional agency is hired  because of lack of in-
house expertise in this area.
Preparation:
• Telemarketer has to build a relevant database of potential customers
and segment them appropriately.
• Developing a precise list is indeed critical.
• It ensures focused follow-up calls and facilitates detailed analysis of
the entire process, including success rate of operation.

Source: Marketing Management by VS RAMASWAMY & S NAMAKUMARI + KOTLER
DIRECT MAIL
MARKETING
When a manufacturer markets his products by sending mails  DMM
 Not only letters/ brochures are mailed to the prospects, but free product
samples, gifts and compliments are also mailed, depending on the
context.
POPULAR because:
• it permits target market selectivity
•Can be personalized;
•Is flexible
•Allows early testing and response measurement.
•Although cost per thousand is higher than for mass media, the people
reached are much better prospects

Constructing an effective direct-mail campaign, Marketers must
choose their objectives, target markets and prospects, offer
elements, means of testing the campaign and measures of
campaign success.
HUL using DM for Denim aftershave – Hul had relied
on direct mail to a sizeable extent in marleting its
aftershave brand,Denim. The target was the members
of elite clubs in the metros. Each prospect was mailed
a 3 color brochure with a Sratch n Sniff coating as a
sample. HUL also included an attractive incentive
scheme in this direct mail campaign.Giftsformed one
part of the incentivesand a contest the other. A Kenyan
Safari was the top prize of the contest. Order forms
were included in the brochure.

DIRECT MAIL PROMOTION &
DIRECT MAIL MARKETING
When a direct mail campaign stops with the objective of
generating awareness and interest about the product in
the minds of target customers, it is DIRECT MAIL
PROMOTION.
When the direct mail campaign encompasses the whole
range of marketing tasks including order booking,
product delivery etc, it becomes DIRECT MAIL
MARKETING

MARKETING ON THE
WEB
(ONLINE MARKETING)

MARKETING ON THE WEB, A PART OF
E- COMMERCE
E – Commerce involves the exchange
of
PRODUCTS SERVICES PAYMENTINFORMATION
THRO
UGH
ELECTRONIC MEDIUM OF COMPUTERS/ NETWORKS

E COMMERCE

COMPONENTS OF E-
COMMERCE
E COMMERCE
B B TO B B TO C

TWO COMPONENTS OF WEB
MARKETING
WEB MARKETING
MARKETING TO
BUSINESS BUYERS
MARKETING TO
ULTIMATE
CONSUMERS

UNDERSTANDING THE WEB
AND WEB MARKETING
Web/Internet can be viewed in 4 ways
 A Business
 A Medium
 A Marketing Channel
 A Complete Marketplace
For Example – To an ISP, the internet is a business in itself. To an
advertiser or an information provider, it is either a marketing
channel, or a complete market place.
The interesting point is that all these are integral to the web, but
none of them in isolation constitutes a proper description of the
web. The web represents a larger concept.

BENEFITS OF WEB MARKETING
BENEFITS
BENEFITS
THE
SELLER
BENEFITS
THE
CUSTOMER

BENEFITS THE SELLER
 Access to All Markets
 Scope for Unimpeded, Constraints- Free growth
 Scope for Enhancing Customer value and
Customer service
 Helps Build Relationship’ with Customers
 Helps Reduce costs
 Enhances Productivity of Sales people
 Enables the Marketer adjust to market conditions
Quickly
 A Versatile Medium of Communication

BENEFITS THE CUSTOMER TOO
 Convenience
 Scope for Informed and Competitive Buying
 Search advantages and options
 Consumer can bargain on the net with a host of
sellers
 Can get ‘More or less’
 Transparency
 Accuracy
 Shifting of the power equation in favor of the
customer

LIMITATIONS OF WEB
MARKETING
 All products do not lend equally well for Web
marketing
 Costs involved are not Inconsequential
 Question Marks about Profitability.

TASKS IN ESTABLISHING WEB
MARKETING
1.) PREPARATION - To succeed here, one needs strategies,
competitive advantages, resources and execution abilities.
 THE NEED FOR A STRATEGY AND A BUSINESS PLAN
Until the firm decides precisely what its strategy should be, it
will have no clarity as to what kind of IT infrastructure is
required.
The fact that the net is more suitable for
certain product categories compared to the
others must be kept in view.

2.) EFFECTIVE TARGETING AND INDEPTH
UNDERSTANDING OF THE TARGET AUDIENCE
Marketer has to know what excites the customers. Only
then, can he provide an online offer that is irresistible.
3.) SETTING UP THE IT INFRASTRUCTURE
First step in establishing a website. This includes the
creation of the required satellite and internet connectivity.
Two attributes of networking are online/real time
communication and interactive/ two way communication.

4.) SETTING UP AN ELECTRONIC STOREFRONT
2 CHOICES
CAN START A FOREFRONT OF
HIS OWN ON THE INTERNET
BUY A LOCATION FOR HIMSELF
FROM AN INDEPENDENT
COMMERCIAL ONLINE SERVICE
HIRE STORAGE SPACVE ON
THE INDEPENDENT SEVICE’S
COMPUTER
ESTABLISH A GATEWAY
FROM HIS COMPUTER TO
THE SERVICE’S
SHOPPING MALL

FOR EXAMPLE – IBM IS PROVIDING A PRODUCT/SOFTWARE,
CALLED NET. COMMERCE THAT WILL SET UP AN ONLINE SHOP
INSTANTLY. IT CAN BE CUSTOMIZED TO MEET INDIVIDUAL
REQUIREMENTS. REDIFF USES THIS PRODUCT FOR ITS WEB
MARKETING

 ATTRIBUTES OF A GOOD WEBSITE – Must be simple,
interesting, interactive, up –to – date and user-friendly.
5.) MAKING THE SITE INTERSESTING, AND GETTING
HIGH TRAFFIC – More the traffic, more the chances of
transaction taking place.
For example – Yahoo! Is the most trafficked site on the
Internet. With its high traffic, it helps Amazon, of which it is
an affiliate, to get a huge business. At every visit Yahoo!
Shows the user a list of books which would be of interest to
the visitor and which can be bought from Amazon.

6.) DEVICES FOR SECURING TRAFFIC – Web marketers
usually try to attract their site through e-mail,
advertisements in newspapers, magazines and online
billboards.
7.) DISCOUNTS, GIFTS, SWEEPSTAKES, CONTESTS
AND GAMES – Web marketers use these attractions. For
participating in them, the users will usually be required to
give their names and addresses. This way the web
marketer accomplishes his initial step in customer
database building.
8.) MAKING THE SITE INTERACTIVE – More interactive
the site, Greater is the success.

 ADVANTAGE OF DYNAMIC FILE SITE OVER FLAT
FILE SITE – Both allow the surfers/potential buyers to
navigate the site by pointing and clicking; and customer
information is passed on in the same way in both cases.
The difference comes when a customer visits the site
next time. With a flat – file site, the customer now gets
the very same information in the very same order. With a
dynamic site, he gets fresh information every time he
revisits the site.
9.) KEEPING THE SITE UPDATED – Content must be rich,
relevant and latest. Users visiting the site should find
some fresh content every time they visit.

10.) MAKING THE SITE USER FRIENDLY- Communication
has to be pithy. The user should be guided through each and
every step of the buying process. He should not be
pressurized to buy. Users like a site that facilitates speedy
loading.
 OPERATING DISCUSSION GROUPS AMONG USERS –
Successful websites usually operate discussion groups
where users air their opinions.
For example- Amazon has
A provision for consumers
To post their own review.
Source: Marketing Management by VS
RAMASWAMY & S NAMAKUMARI

 BUILDING RELATIONSHIPS AND WINNING TRUST –
Web marketers must look at the complete profiles of the
web customers and see how they can provide customized
products and personalized services to them, and build
abiding relationships with them.
 DATA WAREHOUSING – Can be used for providing
specific customers with specific price offers, discounts, and
promotions based on their purchasing habits.
11.) SPECIALISATION- PRODUCT MAGNETS AND
CUSTOMER MAGNETS – Product magnets are web
marketers who specialize in one product category.
Customer magnets usually organize themselves around a
specific segment of customers and keep meeting their
needs. Amzon is an example of product magnet and is
synonymous with retailin g on the web.

12.) SECURING AFFILIATES – Affiliate programmes also
known as revenue sharing programs. Web marketers
using affiliates usually pay them handsome commission,
which often goes up to 25% on sale.
EXAMPLE… ???????????????
13.) WEB PORTALS – They serve as gateways to a fantasy
land of a multitude of web outfits. They provide gateways
for websites that are major starting site for users ,
especially those who are newly connected to the web.
FOR EXAMPLE – Google, Yahoo, You tube, Facebook etc..
Are the popular web portals.

14.) BRAND BUILDING - In brand building in web
marketing, the manufacturers build their brand. The
additional task here is to reinforce brand value on the web.
Then the second level corresponds to independent,
commercial web marketers. Their interset is in building
their site as such into a brand and promoting it
aggressively. Portals account for third level. Like the
independent web marketers , they too try to build their
sites into brands.
For example – Portals in particular, try aggressively to
establish themselves as a brand. Yahoo, Google etc are
basically brands pulling customers.

 MESSAGES MUST BE DEVELOPED WITH
IMAGINATION – Online messages must be true,
significant, interesting,. Essential and simple. All
messages must be subjected to these 4 tests before they
are put on the web.

15.) CREATING A SYSTEM FOR DELIVERY OF
PRODUCT – The marketer must subject himself to a
crunched delivery schedule, as the surfers want quick
delivery. Those who cannot set and meet exacting
standards in delivery make a mark in web marketing.

ONLINE MARKETING : INDIAN
SCENE
INTERNET USERS AND POPULATION
STATISTICS

PROBLEMS ONLINE
MARKETING FACES IN INDIA
LEGAL
PROBLE--
MS
INFRAST-
RUCTUR-
AL
PROBLE-
MS
COMMER-
CIAL
PROBLE-
MS
OTHER
PROBLEMS

LEGAL / REGULATORY
PROBLEMS
 E- DOCUMENTATION NOT YET LEGALLY
ADMISSIBLE
Current Indian laws do not provide for digital signatures,
digital certification, electronic payment systems and
online filing of statutory documents.
 ABSENCE OF TAXATION LAW
The government is yet to come up with taxation laws for
e- commerce systems. It has to address itself to
questions such as how much tax should be charged
and how it should be collected.

INFRASTRUCTURAL PROBLEMS
 LOW DENSITY OF TELEPHONE, PC’s AND
INTERNET: The telephone density, PC population and
density of internet access are all too low to support
viable e- business.
 BANDWIDTH LIMITATIONS : The bandwidth available
is not enough to meet the user load
 NETWORKING LIMITATIONS: Though many
companies do have networks of their own, they cannot
be shared with anyone else because of India’s telecom
policy
 INFRASTRUCTURAL BOTTLENECKS AT THE
DELIVERY END : Example : Indian roads and airways
are unable to support 24 hr or 48 hr delivery schemes.

COMMERCIAL PROBLEMS
 PROBLEM RELATING TO PAYMENT : The number
1 malady is the low density of credit cards, debit
cards and smart cards in India.

OTHER PROBLEMS
 CONFIDENCE IN THE SYSTEM IS LOW : Surveys
indicate that even those who are considered as
prospects for the system are not happy to buy on
the net; they feel that they cannot be sure of the
quality of the products bought or their timely
delivery
 PROBLEM OF HACKING : The possibility of
hackers misusing e- commerce is another issue,
though it is not peculiar to India.
SOURCE -http://www.forbes.com/sites/jaysondemers/2015/09/29/the-top-7-online-
marketing-trends-that-will-dominate-2016/

TOP 6 ONLINE MARKETING
TRENDS THAT WILL
DOMINATE 2016

 VIDEO ADDS WILL START DOMINATING – Video ads
are certainly nothing new, with social channels like
YouTube dedicated to hosting billions of videos and
advertising platforms like Facebook and Bing already
offering advertisers video options. 2016 is set to be
different because Google is finally getting on board with
in-SERP video advertising.
 APP INDEXING WILL LEAD TO AN EXPLOSION OF
APPS - Google has offered app indexing for a while, but
as the ranking possibilities for apps become more
complex, 2016 will be the year more business owners
realize the online visibility advantages of a dedicated
app.

 DIGITAL ASSISTANTS WILL LEAD TO A NEW KIND
OF OPTIMIZATION - Search engine optimization (SEO)
and pay-per-click (PPC) advertising are two highly
popular strategies for getting your site seen by
thousands of previously unknown visitors. But the rise of
digital assistants is going to lead to a new kind of
optimization. Digital assistants like Siri and Cortana do
utilize traditional search engines, but only when
necessary to find information.
 VIRTUAL REALITY WILL EMERGE- There are dozens
of different virtual reality devices set to release in the
next few years, some of which are dedicated for specific
applications like video games, and others which are
available for general use. Oculus Rift, arguably the most
hyped VR device, is set to release in the first quarter of
2016.

 WEARABLE TECHNOLOGY AND THE INTERNET OF
THINGS (IOT) WILL PAVE NEW GROUND- While not
quite to the level of virtual reality, wearable “smart”
devices should start gaining more traction into 2016.
2015 saw the unveiling of the Apple Watch, a first-
generation smart watch, but more smart watches and
similar wearable devices should start emerging next
year.
 ADVERTISING WILL BECOME MORE EXPENSIVE -
Competition in the online marketing world has increased
dramatically over the course of the past few years. 2016
will see it increase even more. As the basic laws of
economics suggest, an increase in demand is often
accompanied by an increase in price, so all those new
online marketing competitors will drive the prices for
online advertising even higher.
marketing-trends-that-will-dominate-2016

Direct and online marketing

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