The document discusses various aspects of direct marketing including definitions, growth factors, benefits, major channels, and key concepts like database marketing. Direct marketing involves non-store retailing where customers purchase through phone or mail after exposure to products through an impersonal medium. It has grown due to changing lifestyles, technology growth, and other economic factors. Benefits include convenience for customers and data-driven targeting for companies. Major channels include direct mail, catalogs, telemarketing, and digital/online channels. Database marketing uses customer data to generate personalized communications.

2. DIRECT MARKETING - 1. (retailing definition) A form of
non-store retailing in which customers are exposed to
merchandise through an impersonal medium and then
purchase the merchandise by telephone or mail. 2.
(channels of distribution definition) The total of activities by
which the seller, in effecting the exchange of goods and
services with the buyer, directs efforts to a target audience
using one or more media (direct selling, direct mail,
telemarketing, direct-action advertising, catalog selling,
cable selling, etc.) for the purpose of soliciting a response
by phone, mail, or personal visit from a prospect or
customer.
- American Marketing Association

3. DIRECT MARKETING - Communications where data are
used systematically to achieve quantifiable marketing
objectives, and where direct contact is invited or made
between the company and its customers.
- UK Direct Marketing Association

4. The Growth of Direct Marketing
§ Sales thru DM growing at 5.3 %, sales thru other
channels at 4.5% in the USA
§ Changing lifestyles
§ Working women
§ Increased cost of traditional marketing, personal
selling
§ Growth of technology
§ Need for Instant gratification
§ Rise in income, “me” population
§ Rising cost of fuel, lack of parking space
§ Rising credit card base
§ Availability of mailing lists

5. Benefits of Direct Marketing
 For customer
1. Fun, convenient, hassle-free
2. Saves time
3. More options, better comparison, better choice
4. Can order for self as well as others
5. Privacy
6. Can get items otherwise not available easily
 For Company
1. Mailing list available for almost any market, geography
no barrier
2. Better customer understanding, Customized offer
3. Ongoing relationship with customers
4. Higher sales success rate
5. Privacy in marketing strategy
6. Measurable response

6. Database Marketing
 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. The
method of communication can be any addressable
medium.
 Sources of data
 Consumers
 Inferred by the data compiler
 Sweepstakes, contests, on-line registrations
 Analytics and Modeling. Should not be data rich,
information poor

7. Benefits of Database Marketing
 Information of customer demographics, psychographics,
tastes, preferences
 Helps in developing customized offers
 Helps in formulating cost effective strategies
 Helps in generating right leads for sales people
 Better segmentation

8.  Major Channels for Direct Marketing
§ Face-To-Face Selling
§ Direct Mail
§ catalog
§ Telephone, Fax
§ kiosk
§ television
§ email, voicemail, website

9. Major Channels for Direct Marketing

12. Voicemail (or voice mail, vmail or VMS, sometimes called messagebank)
is a centralized system of managing telephone messages for a large
group of people. In its simplest form it mimics the functions of an
answering machine, uses a standard telephone handset for the user
interface, and uses a centralized, computerized system rather than
equipment at the individual telephone. Voicemail systems are much more
sophisticated than answering machines in that they can:
• answer many phones at the same time
• store incoming voice messages in personalized mailboxes
associated with the user's phone number
• enable users to forward received messages to another voice
mailbox
• send messages to one or more other user voice mailboxes
• add a voice introduction to a forwarded message
• store voice messages for future delivery
• make calls to a telephone or paging service to notify the user a
message has arrived in his/her mailbox
• transfer callers to another phone number for personal assistance
• play different message greetings to different callers.

13.  Direct marketing has passed through a
number of stages:
1. Carpet bombing: mass mailing
2. Database marketing: selective mailing
3. Interactive marketing: two-way
4. Real-time personalized marketing
5. Lifetime value marketing

14.  Constructing a Direct-Mail Campaign
 “sales people with wings”
 Objectives
 Sales
 Generating prospect leads
 Strengthening customer relationships
 Informing and educating customers
 Reminding customers about offers
 Reinforcing recent customer purchase decisions
 Target Markets and Prospects
 Segmentation variables
 Recency, Frequency, Monetary amount (R-F-M)
 Obtain customer database

15.  Constructing a Direct-Mail Campaign
 Offer Elements
 Product
 Offer (discounts, etc)
 Medium
 Distribution method
 Creative strategy
 Design / drafting of
 Envelop, Sales letter, reply form, reply envelop
 Attractive envelop with some colorful illustration, a
catchy reason to open it, personal salutation, good
quality paper, signature of some one very senior, toll
free number, web site, postage-paid reply envelop
 Testing Elements
 Testing of the impact of the mail campaign
 Measuring Campaign Success

16.  Catalog Marketing
 Full-line merchandise catalog in print / CD / VHS /
Online
 Success depends on:
 Managing customer list carefully – no duplication, no bad
debt
 Care inventory management
 Quality merchandise
 Logistics
 Return policy
 Long-term customer relationship management

17.  Telemarketing and M-Commerce
 Inbound telemarketing
 Outbound telemarketing
 Four types of telemarketing:
 Telesales: taking orders from catalogs/ads,
making sales calls
 Telecoverage: maintaining and nurturing key
account relationships
 Teleprospecting: generating leads of prospects
 Customer service and technical support

18.  Other Media for Direct-Response Marketing
 Direct-response advertising on TV
 At-home shopping channels: dedicated Home
Shopping Networks
 Videotext and interactive TV
 Kiosk Marketing

21.  E-commerce
 Electronic commerce, EC, e-commerce or ecommerce consists
primarily of the distributing, buying, selling, marketing, and
servicing of products or services over electronic systems such
as the Internet and other computer networks. The information
technology industry might see it as an electronic business
application aimed at commercial transactions. It can involve
electronic funds transfer, supply chain management, e-
marketing, online marketing, online transaction processing,
electronic data interchange (EDI), automated inventory
management systems, and automated data collection systems.
It typically uses electronic communications technology such as
the Internet, extranets, e-mail, e-books, databases, and mobile
phones.

22.  M-commerce
 M-commerce or mobile commerce stands for electronic
commerce made through mobile devices, e.g. mobile phones,
PDAs.
 M-commerce is currently mainly used for the sale of mobile
phone ring-tones and games, although as 3G services roll out it
is increasingly used to enable payment for location-based
services such as maps, as well as video and audio content,
including full length music tracks. Other services include the
sending of information such as football scores via SMS.
 Currently the main payment methods used to enable m-
commerce are:
 premium-rate calling numbers,
 charging to the mobile telephone user's bill or
 deducting from their calling credit, either directly or via
reverse-charged SMS.

23.  Internet Marketing
 use of the Internet to advertise and sell goods and
services. Internet Marketing includes pay per click
advertising, banner ads, e-mail marketing, search
engine marketing, blog marketing, and article
marketing.
 Designing attractive websites: Context (layout &
design), Content (text, pictures, sound, vdo),
Customization, Communication (two-way),
Connection (to other websites), Commerce, Constant
change

24.  Internet Marketing - Ads
 Banner ads : small rectangular boxes
 Sponsorships : sponsoring special content
 Microsite : a limited area on the web managed by
and paid for, low interest products like insurance
 Pop Ups and Pop under
 Interstitials: pop ups between changes on a website
 Search-related ads
 Affiliate programs

25.  E-Marketing
 Permission Marketing
 Levels of Permission Marketing:(Seth Godin)
 No permission level
 Low permission level
 Medium permission level
 High permission level
 Transaction level
 E-Marketing Guidelines
 Give the customer a reason to respond
 Personalize the content of your e-mails
 Offer something the customer could not get via direct mail
 Make it easy for the customer to “unsubscribe”