Direct marketing

1. DIRECT MARKETING

2. 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.

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 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

5. 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)

6. DIRECT MARKETING
AWARENESS
INTEREST
DESIRE
ACTION

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 in Direct marketing

10. Media Applications in
Direct Marketing




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 direct mail 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-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

16. CATALOGS

21. 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

22. 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

23. Kiosk Marketing
• Ordering machines
generally found in
stores, airports, and
other locations

24. Ethics in Direct marketing
• Confidentiality of the personal
information is suspect

25. Direct marketing agencies
• DIREM
• Infomedia India Ltd
• Rushabh Direct Marketing …

26. PRODUCT PLACEMENTS IN
FILMS

27. 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.

28. 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.

29. Objectives & Methods
• New product launching
• Reinforce its brand image or restate
its positioning
• To high light the utility of the product

30. 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

31. THANK YOU