Direct marketing
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Transcript of 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
4
What’s Driving Direct Marketing?
1. Quicker sales
2. Better targeting (data base)
3. Tailored messages
4. Relationship building
5. Enhanced profits
6. Predictable investment & return (DELL)
7. Less competition
8. Aide to market research
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)
ELEMENTS OF DIRECT MARKETING
– THE LIST
1. House list
2. Response list
3. Compiled list
4. List brokers
• THE OFFER
• THE MESSAGE
• Easy message, easy response
• Payment option
• Time bound offers• Free gifts than discounts
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 writersFormat of the body copy
• Problem
• Promise of a solution
• Explanation of the promise
• Proof
• Reassurance
• Call to action
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
Catalog Marketing• Originally a way to reach rural and “off-
the-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
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
geographies, social class and cultures