Direct Marketing

Meaning of Direct Marketing(DM)Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting or enduring customer relationships.

Direct Marketing MethodDirectmarketingis a sometimes controversial sales method by which companies approach potential customers directly with products or services. The most common forms ofdirectmarketingare telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons.Zero Level Channel is also called as Direct Marketing Physical flowTitle FlowPayment FlowInformation FlowPromotional flowManufacturerConsumerStrategies of DMDirect mail : The most commonly used medium for direct marketing is mail, in which marketing communications are sent to customers using the postal service.Any low-budget medium that can be used to deliver a communication to a customer can be employed in direct marketingDirect mail includesadvertisingcirculars, catalogs, free trialCDs, pre-approvedcredit cardapplications, and other unsolicitedmerchandisinginvitations delivered bymailor to homes and businesses, or delivered to consumers' mailboxes by delivery services other than the Post Office.

Strategies of DMTelemarketing : Another common form of direct marketing istelemarketing, in which marketers contact consumers by phone.Email Marketing : Email Marketingis a third type of direct marketingDoor-to-Door Leaflet Marketing : Leaflet distributionservices are used extensively by the fast food industries, and many other business focusing on a local catchment. This method is targeted purely by area, and costs a fraction of the amount of a mailshot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants.Broadcast faxing : A fourth type of direct marketing, broadcastfaxing, is now less common than the other forms.Voicemail Marketing : A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice.

Strategies of DMCouponing : Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts out and presents to a super-store check-out counter to avail of a discount. Coupons in newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that cost.Direct-response television marketing : Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a Web site).Direct selling : Direct sellingis the sale of products by face-to-face contact with the customer, by having sales people approach potential customers.History of DMIn 1872,Aaron Montgomery Wardproduced the first mail-order catalogue for hisMontgomery Ward mail order business. By buying goods and then reselling them directly to customers, Ward was consequently removing the middlemen at the general store and, to the benefit of the customer, drastically lowering the prices.Companies using DMDirect marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognizedbrandmessage. A well-executed direct advertising campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.List of Companies using DMEureka Forbes - The Direct Marketing PioneerICICI PrudentialLead India Campaign / Times Of IndiaBata steps into direct marketing with Bata DirectIndian TerrainHUL's Online Social Networking Initiative

Merits of DMThere are many benefits of direct marketing--both to buyers and sellers.From Customer perspectiveCustomers enjoy the convenience of direct marketing as they do not have to battle traffic, find a parking space, or shop through stores.They can simply order from a catalog using the telephone or while shopping online and never even have to leave their home as good are shipped directly to their doors.Direct marketing is immediate and good can be purchased immediately in the exact desired configuration.Direct marketing is immediate and good can be purchased immediately in the exact desired configuration.Merits of DMSellers also enjoy many benefits of direct marketingIt is a great tool in customer relationship building as it provides direct communication with customers.Direct marketers can also gather a great deal of information about their customers that not only enables them to provide addition value through new products and services, but it also allows them to more precisely target who likely customers are. Direct marketing also can reduce costs (minimize overhead of retail space, utilities, etc.) while increasing the speed and efficiency of the operation. direct marketing allows sellers to customize offerings, create ongoing relationships directly with customers, preserve privacy, and constantly adjusted to improve response rates.Merits of DMIn short Advantages of DMDirect marketing involves direct business. So it is cost beneficial for consumers, as there is no price hike due to wholesalers or retailers.- Marketing executives can state certainly of the exact response to their products.- The profit or loss can be more accurately judged.Demerits of DMDirect mailing offends the customers and many do not endorse it as they say it inhibits their private lives.Some direct marketing efforts using particular media have been criticized for generating unwanted solicitations, not due to the method of communication but because of poorly compiled demographic databases, advertisers do not wish to waste money on communicating with consumers not interested in their products.