Description
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
Direct Marketing (DM)
2
Definition
• DMA defines it as:
“Direct marketing is and interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location”
3
Characteristics of DM
• Interactive • Response mechanism for 2-way communication • Transaction medium • Database – generation and maintenance • Measurable response
4
DM v/s Mass Marketing
Direct Marketing
Prospects are targeted individually DM is a 2-way communication Objective is to close the sale DM focuses on offers and sales promos
Mass Marketing
Prospects are targeted at the same time Mass marketing is a one-way street Objective is to create awareness, build brands and preferences Focuses on products and features
5
Choosing the right product for DM
• Products not readily available at stores / novelty • Complex products that require explanation • Products having a broad appeal but a well defined user base • Products where there is a dream element as well as a perception of value
6
Choosing the right product for DM
• Products with high worth of individual sale • Products that a customer may want to buy privately
• Products that have a greater customer involvement
7
www.Telebrandsindia.com
8
Elements of DM
• The List • The offer
• The message
9
The List
• List of customers who would be targeted in the campaign • Usually from a pre-existing database • Types:
? House List – In house ? Response List – Generated from direct response ? Compiled List – From secondary sources
10
The Offer
• The value being offered to the customer • All variables projected to satisfy the needs of the consumer are part of the offer • These could include the price, maintenance, service, shipping and handling, optional features, special promos, guarantees, warranties etc
11
The Message
• That piece in the advertising that lures the customer • Things that work:
? ? ? ? Customer responds when it easier for him to do so Payment through Cards increases response Time bound offers improve response Free gifts are more effective than discounts in most cases ? The longer the customers read the mail, the more likely they are to respond
12
Direct Marketing Media
• Direct Mail • Catalogs
• Internet
• Telemarketing
13
Direct Mail
• It is an advertising message delivered by mail – post / courier / hand delivered • It could also be a product sample / brochure / catalog etc
14
15
Direct Mail
• Advantages
? Descriptive system ? Less competition ? Can be personalized
? Inbuilt feedback mechanism
16
Direct Mail
• Disadvantages:
? High Cost ? Junk Mail ? Privacy Concerns
? Low Response Rate (2-3%)
17
Catalogs
• A publication that shows the products to be sold • Provides all info required to place the order
• Can sell multiple products at the same
• Can be clubbed with exclusive offers
18
The Internet
• Direct Marketing Mails • Virtual Stores
• Increasing security (PayPal / Verisign) has made shopping safer • Can be used for networking based on personal preferences
19
Telemarketing
• Promotion over the telephone – calls / SMS • Most debated form of DM
• Is more of a nuisance than advantage
20
Advantages of DM
• • • • • • • • Quicker Sales Better Targeting Tailored Messages Relationship Building Enhanced Profits Predictable investment and return Less Competition Aide to Marketing Research
21
Ethics in DM
• DM tends to encroach on privacy
? Unsolicited calls / mails / SMS
• Database stores personal which can be misused
? Bank employees selling information
• Personal information is distributed / sold without permission
22
References
• www.catalogshopping.us • www.mailing-lists-direct-blog.com • www.catalogs.com
23
doc_309797774.pptx
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
Direct Marketing (DM)
2
Definition
• DMA defines it as:
“Direct marketing is and interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location”
3
Characteristics of DM
• Interactive • Response mechanism for 2-way communication • Transaction medium • Database – generation and maintenance • Measurable response
4
DM v/s Mass Marketing
Direct Marketing
Prospects are targeted individually DM is a 2-way communication Objective is to close the sale DM focuses on offers and sales promos
Mass Marketing
Prospects are targeted at the same time Mass marketing is a one-way street Objective is to create awareness, build brands and preferences Focuses on products and features
5
Choosing the right product for DM
• Products not readily available at stores / novelty • Complex products that require explanation • Products having a broad appeal but a well defined user base • Products where there is a dream element as well as a perception of value
6
Choosing the right product for DM
• Products with high worth of individual sale • Products that a customer may want to buy privately
• Products that have a greater customer involvement
7
www.Telebrandsindia.com
8
Elements of DM
• The List • The offer
• The message
9
The List
• List of customers who would be targeted in the campaign • Usually from a pre-existing database • Types:
? House List – In house ? Response List – Generated from direct response ? Compiled List – From secondary sources
10
The Offer
• The value being offered to the customer • All variables projected to satisfy the needs of the consumer are part of the offer • These could include the price, maintenance, service, shipping and handling, optional features, special promos, guarantees, warranties etc
11
The Message
• That piece in the advertising that lures the customer • Things that work:
? ? ? ? Customer responds when it easier for him to do so Payment through Cards increases response Time bound offers improve response Free gifts are more effective than discounts in most cases ? The longer the customers read the mail, the more likely they are to respond
12
Direct Marketing Media
• Direct Mail • Catalogs
• Internet
• Telemarketing
13
Direct Mail
• It is an advertising message delivered by mail – post / courier / hand delivered • It could also be a product sample / brochure / catalog etc
14
15
Direct Mail
• Advantages
? Descriptive system ? Less competition ? Can be personalized
? Inbuilt feedback mechanism
16
Direct Mail
• Disadvantages:
? High Cost ? Junk Mail ? Privacy Concerns
? Low Response Rate (2-3%)
17
Catalogs
• A publication that shows the products to be sold • Provides all info required to place the order
• Can sell multiple products at the same
• Can be clubbed with exclusive offers
18
The Internet
• Direct Marketing Mails • Virtual Stores
• Increasing security (PayPal / Verisign) has made shopping safer • Can be used for networking based on personal preferences
19
Telemarketing
• Promotion over the telephone – calls / SMS • Most debated form of DM
• Is more of a nuisance than advantage
20
Advantages of DM
• • • • • • • • Quicker Sales Better Targeting Tailored Messages Relationship Building Enhanced Profits Predictable investment and return Less Competition Aide to Marketing Research
21
Ethics in DM
• DM tends to encroach on privacy
? Unsolicited calls / mails / SMS
• Database stores personal which can be misused
? Bank employees selling information
• Personal information is distributed / sold without permission
22
References
• www.catalogshopping.us • www.mailing-lists-direct-blog.com • www.catalogs.com
23
doc_309797774.pptx