DIRECT MARKETING
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
marketing
• Interactive
(personalization)
• Response mechanism
(tel no., e-mail, bus. Reply …)
• Transaction medium
• Data base
• Measurable response
What’s Driving Direct Marketing?
1.
2.
3.
4.
5.
6.
7.
8.

Quicker sales
Better targeting (data base)
Tailored messages
Relationship building
Enhanced profits
Predictable investment & return (DELL)
Less competition
Aide to market research
4

PPT 19-4
Characteristics of product for
direct marketing
• 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
holidays)
• Product with a high worth of individual sale (bank
products like mutual funds)
• Product that customer may want to buy privately
(sanitary napkins)
• Products that have a greater customer
involvement (luxury homes)
DIRECT MARKETING
AWARENESS
INTEREST
DESIRE
ACTION
ELEMENTS OF DIRECT
MARKETING
– THE LIST

1.
2.
3.
4.

House list
Response list
Compiled list
List brokers
• THE OFFER
• THE MESSAGE
•
•
•
•

Easy message, easy response
Payment option
Time bound offers
Free gifts than discounts
Media application in Direct marketing
Media Applications in
Direct Marketing





Direct Mail
Telemarketing
E-mail
Catalogs
Direct mail
 Advantages
---- Descriptive system, Less
competition, personalize able, In-built
feed back mechanism.
 Disadvantages
---- High cost, Junk mail, Privacy
concerns, Low response rate.
Tips for direct mail copy
writers
Format of the body copy
• Problem
• Promise of a solution
• Explanation of the promise
• Proof
• Reassurance
• Call to action
• Buy one, Take one free.
• 50% Off, On purchase of Two.
• Two for the price of One.
Telemarketing
 Telemarketing Advantages
– 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
some response.
– Telemarketing is becoming a highly maligned practice in
consumers.
– By 2007, over 70 percent of US households had registered their
phone numbers with the “Do not call registry.”
E-Mail
 Bulk e-mail is known as “spam”
 Fraudulent email know as “phishing”
 However e-mail is an increasingly popular
tool for marketers
 Advantages
– Cheap
– Good response rates

 Netiquette suggests getting consumer
permission to send product information
 Avoid bulk e-mailings
CATALOGS
Catalog Marketing
• 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
J. Crew’s
catalog makes it
convenient for
customers to
order the
company’s
products from
home

Insert photo 10.8, p. 316
J. Crew catalog cover
phot
Position = 2.9” horiz.,
1.5” vertical
Size = 5.7” WIDE
Resolution: 300 dpi
Kiosk Marketing
• Ordering machines
generally found in
stores, airports, and
other locations
Ethics in Direct marketing
• Confidentiality of the personal
information is suspect
Direct marketing agencies
• DIREM
• Infomedia India Ltd
• Rushabh Direct Marketing …
PRODUCT PLACEMENTS IN
FILMS
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
its positioning
• 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
environment
• Great exposures (viewers see movies
many times)
• Celebrity endorsement cost lot of
money
• Wide audience across different
THANK YOU

Direct marketing

  • 1.
  • 2.
    Direct marketing definition Aninteractive 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.
  • 3.
    Charecteristic of Direct marketing •Interactive (personalization) • Response mechanism (tel no., e-mail, bus. Reply …) • Transaction medium • Data base • Measurable response
  • 4.
    What’s Driving DirectMarketing? 1. 2. 3. 4. 5. 6. 7. 8. Quicker sales Better targeting (data base) Tailored messages Relationship building Enhanced profits Predictable investment & return (DELL) Less competition Aide to market research 4 PPT 19-4
  • 5.
    Characteristics of productfor direct marketing • 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 holidays) • Product with a high worth of individual sale (bank products like mutual funds) • Product that customer may want to buy privately (sanitary napkins) • Products that have a greater customer involvement (luxury homes)
  • 6.
  • 7.
    ELEMENTS OF DIRECT MARKETING –THE LIST 1. 2. 3. 4. House list Response list Compiled list List brokers
  • 8.
    • THE OFFER •THE MESSAGE • • • • Easy message, easy response Payment option Time bound offers Free gifts than discounts
  • 9.
    Media application inDirect marketing
  • 10.
    Media Applications in DirectMarketing     Direct Mail Telemarketing E-mail Catalogs
  • 11.
    Direct mail  Advantages ----Descriptive system, Less competition, personalize able, In-built feed back mechanism.  Disadvantages ---- High cost, Junk mail, Privacy concerns, Low response rate.
  • 12.
    Tips for directmail copy writers Format of the body copy • Problem • Promise of a solution • Explanation of the promise • Proof • Reassurance • Call to action
  • 13.
    • Buy one,Take one free. • 50% Off, On purchase of Two. • Two for the price of One.
  • 14.
    Telemarketing  Telemarketing Advantages –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 some response. – Telemarketing is becoming a highly maligned practice in consumers. – By 2007, over 70 percent of US households had registered their phone numbers with the “Do not call registry.”
  • 15.
    E-Mail  Bulk e-mailis known as “spam”  Fraudulent email know as “phishing”  However e-mail is an increasingly popular tool for marketers  Advantages – Cheap – Good response rates  Netiquette suggests getting consumer permission to send product information  Avoid bulk e-mailings
  • 16.
  • 21.
    Catalog Marketing • Originallya 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
  • 22.
    J. Crew’s catalog makesit convenient for customers to order the company’s products from home Insert photo 10.8, p. 316 J. Crew catalog cover phot Position = 2.9” horiz., 1.5” vertical Size = 5.7” WIDE Resolution: 300 dpi
  • 23.
    Kiosk Marketing • Orderingmachines generally found in stores, airports, and other locations
  • 24.
    Ethics in Directmarketing • Confidentiality of the personal information is suspect
  • 25.
    Direct marketing agencies •DIREM • Infomedia India Ltd • Rushabh Direct Marketing …
  • 26.
  • 27.
    What is ProductPlacement? • 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.
  • 28.
    How does itwork? • 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.
  • 29.
    Objectives & Methods •New product launching • Reinforce its brand image or restate its positioning • To high light the utility of the product
  • 30.
    Advantage & Impactof product placement in Films • Provides captive audience for promoting one’s products • Appears more natural and realistic • Presented in a clutter free environment • Great exposures (viewers see movies many times) • Celebrity endorsement cost lot of money • Wide audience across different
  • 31.