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Direct marketing
This document discusses various modes of direct marketing, including direct mail advertising, direct response advertising, telemarketing, cataloging, and the internet. Direct mail advertising involves sending promotional materials directly to prospects via mail. Direct response advertising aims to generate an immediate response through mail, phone, or in-person. Telemarketing can be outbound calls made by marketers or inbound calls to a marketer's number. Catalogs provide a wide selection but have high costs. The internet allows infinite selection and access 24/7 but fulfillment may be delayed.
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Direct marketing
- 1. Direct MarketingDirect Marketing ProfessorChip BesioProfessor Chip Besio Fundamentals of MarketingFundamentals of Marketing Marketing 3340Marketing 3340
- 2. Modes of DirectMarketingModes of Direct Marketing Direct Mail AdvertisingDirect Mail Advertising Direct Response AdvertisingDirect Response Advertising Outbound & Inbound TelemarketingOutbound & Inbound Telemarketing CatalogingCataloging The InternetThe Internet
- 3. Direct Mail AdvertisingDirectMail Advertising All forms of advertising sent directly toAll forms of advertising sent directly to prospects through the U.S. Postal Service orprospects through the U.S. Postal Service or through private services.through private services.
- 4. Types of DirectMailTypes of Direct Mail CatalogsCatalogs FlyersFlyers FoldersFolders House OrgansHouse Organs InclusionsInclusions PostcardsPostcards ReprintsReprints Sales LettersSales Letters Self-MailersSelf-Mailers
- 5. Direct Mail AdvantagesDirectMail Advantages ControlControl CoverageCoverage ExclusivityExclusivity FlexibilityFlexibility ImpactImpact ReachReach ResponseResponse SelectivitySelectivity
- 6. Direct Mail DisadvantagesDirectMail Disadvantages Delays in DeliveryDelays in Delivery High Cost per ExposureHigh Cost per Exposure List Quality AssuranceList Quality Assurance No Content SupportNo Content Support Saturation among AudienceSaturation among Audience
- 7. Direct Response AdvertisingDirectResponse Advertising All forms of advertising designed to obtainAll forms of advertising designed to obtain immediate, direct response by mail,immediate, direct response by mail, telephone, or personal visit from individualtelephone, or personal visit from individual audience members.audience members.
- 8. Direct Response AdvertisingDirectResponse Advertising TypesTypes TV and CATV commercials and infomercialsTV and CATV commercials and infomercials selling products by phone or mail order.selling products by phone or mail order. Newspapers, magazines and other print mediaNewspapers, magazines and other print media ads with send-in or call-in coupon order formsads with send-in or call-in coupon order forms Direct mail pieces and inserts solicitingDirect mail pieces and inserts soliciting inquiry, subscription, or orders from recipients.inquiry, subscription, or orders from recipients. Card decks, coupon booklets and mini-catalogsCard decks, coupon booklets and mini-catalogs seeking orders for one or more products.seeking orders for one or more products.
- 9. Direct Response AdvantagesDirectResponse Advantages Advertisers acquire or enhance a dataAdvertisers acquire or enhance a data base of individual customers.base of individual customers. Customers are served with a greaterCustomers are served with a greater selection from a central inventory.selection from a central inventory. Response options enable audience to actResponse options enable audience to act right after exposure occurs.right after exposure occurs. No store is required and customers canNo store is required and customers can buy from their own homes.buy from their own homes.
- 10. Direct Response DisadvantagesDirectResponse Disadvantages Customers can’t handle or inspect theCustomers can’t handle or inspect the product before purchasing.product before purchasing. Merchandise returns and subscriptionMerchandise returns and subscription cancellations may be numerous.cancellations may be numerous. Seller reputation and prestige may beSeller reputation and prestige may be compromised by the poor image of thecompromised by the poor image of the method.method.
- 11. Outbound and InboundOutboundand Inbound TelemarketingTelemarketing OutboundOutbound – Telephone calling by the marketer orTelephone calling by the marketer or marketer’s agent to individual prospects,marketer’s agent to individual prospects, seeking purchase, subscription, membership, orseeking purchase, subscription, membership, or participation by the call recipient.participation by the call recipient. InboundInbound – Marketers’ facilities and invitationsixed cost,Marketers’ facilities and invitationsixed cost, 900 number.900 number.
- 12. Outbound TelemarketingOutbound Telemarketing AdvantagesAdvantages InteractivecontactInteractive contact Extensive reachExtensive reach Caller-controlled timingCaller-controlled timing High impactHigh impact
- 13. Outbound TelemarketingOutbound Telemarketing DisadvantagesDisadvantages IntrusivenatureIntrusive nature Poor image of methodPoor image of method High cost of contactHigh cost of contact Low conversion rateLow conversion rate Caller training extensiveCaller training extensive Namelist inadequaciesNamelist inadequacies High termination ratesHigh termination rates High reneges and returnsHigh reneges and returns
- 14. Inbound TelemarketingInbound Telemarketing AdvantagesAdvantages Responseis highly convenient for theResponse is highly convenient for the audience.audience. Method permits interactive selling andMethod permits interactive selling and service.service. Transactions are facilitated by high rate ofTransactions are facilitated by high rate of credit card holding.credit card holding. Immediacy of method permits great controlImmediacy of method permits great control of inventory in stock.of inventory in stock.
- 15. Inbound TelemarketingInbound Telemarketing DisadvantagesDisadvantages Labor-intensivecall answering facilitiesLabor-intensive call answering facilities may be required.may be required. Personnel direction system may be requiredPersonnel direction system may be required for efficiency.for efficiency. Nonproductive call rates may beNonproductive call rates may be exceedingly or unacceptably high.exceedingly or unacceptably high.
- 16. Cataloging AdvantagesCataloging Advantages Providesbuyers with wide selectionsProvides buyers with wide selections Usually welcomed by shoppersUsually welcomed by shoppers Design offers high impact potentialDesign offers high impact potential Merchandise is centrally inventoriedMerchandise is centrally inventoried Fulfillment facilities closely controlledFulfillment facilities closely controlled Timing can be geared to seasonal needsTiming can be geared to seasonal needs Split-run testing can insure effectivenessSplit-run testing can insure effectiveness
- 17. Cataloging DisadvantagesCataloging Disadvantages Productioncosts are usually very highProduction costs are usually very high Cost per contact is relatively highCost per contact is relatively high Saturation for some markets is likelySaturation for some markets is likely Delivery or fulfillment may be delayedDelivery or fulfillment may be delayed Customer can’t inspect or handle goodsCustomer can’t inspect or handle goods Returns may sometimes be excessiveReturns may sometimes be excessive
- 18. The InternetThe Internet Providesbuyers with infinite selectionProvides buyers with infinite selection Available for access 24-7Available for access 24-7 Buyers chose when to interact withBuyers chose when to interact with informationinformation Similar to cataloguesSimilar to catalogues Services can become sales arms withServices can become sales arms with manufacturer handling fulfillmentmanufacturer handling fulfillment Presentation improves as broadbandPresentation improves as broadband expandsexpands