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Direct Marketing

Marketing Management Text and Cases

Excel Books17-1

Direct Marketing17Chapter 

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Direct Marketing

³Direct marketing is an interactive system of marketing which uses one or more

advertising media to affect a measurable response and/or transaction at any

location.´

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Direct Marketing

 A number of factors are promoting the attractiveness of direct marketing. The

main factors are:

Availability of consumer credit cards.

Availability of professional agencies.

Competitive Pressures, Rising Media Costs, and Market Fragmentation.

Increasing family incomes, including dual-income families.

Technological advances.

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Direct Marketing

Direct Marketing DecisionsFor successful implementation of direct-marketing, marketers must establish

objectives, specify target market, choice of strategies, and set evaluation

criteria.

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Direct Marketing

Direct-Marketing ObjectivesObjectives of direct marketing usually focus on seeking direct response in

terms of behaviour.

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Direct Marketing

Market SegmentationMarket segmentation and targeting the right customers are critical to the

success of promotional programme. Customers can be grouped on the basis

of age, sex, income, education, lifestyle, and stage in family life cycle etc.

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Direct Marketing

Direct marketers use a database.

The database should provide the answers to the following questions:

Where do they live?

How did they make contact first time?

What have they purchased?

How often have they purchased?

What is the monetary value of their purchases?

How do they order or purchase, through the Internet, mail, phone, or in

person?

What is known about them and their families, occupation, education,children, interests, attitudes, and payment histories etc.?

In case of B2B, who are the influencers, users, deciders, and

purchasers?

Location of corporate office and branch offices.

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Direct Marketing

Direct

Marketing

Flow Chart

D i r e c t M a r k e t in g

M a r k e t i n g R e s e a r c h

M a r k e tS e g m e n t a t i o n

D i re c t R e s p o n s e A d v e r t i s i n g

 A d v e r t i s i n gC r e a t i o n

M e d i a

D i re c t M a i l T el ep h o n e B r o a d c as t I nt e rn e t N e w s p a p e r M a g a z i n e O t h e r s

D i re c t M a i l T el ep h o n e B r o a d c as t I nt e rn e t N e w s p a p e r M a g a z i n e O t h e r s

D i re c t R e s p o n s e E x p e n d i t u re s

D i s t ri b u t io n C h a n n e l s

M e a s u r a b le R e s p o n s e

V e n d i n gM a c h i n e s

M a i l O r d e r ,M a i l / P h o n e

P e r s o n a l V i s itt o S e l l e r  

P e r s o n a l V i s it o r  C a l l to B u y e r  

C u s t o m e r / P r o s p e c tD a t a b a s e

R e s p o n s e / T r a n s a c t io n

C o m p l e ti o n

(Sourc e: G. Belch andM. Belch, Adver tising 

and P romoti on. Basedon figure by MartinBair, Henry R. Hoke,Jr., and Robert Stone).

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Direct Marketing

Direct Marketing Offer and MediaThere are five important decision areas: product, offer, medium, distribution

method, and creative strategy.

One-Step Approach

Two-Step Approach

Direct Mail

Catalogues

Broadcast Media

Print Media

Telemarketing

Electronic Shopping

Direct Selling

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Direct Marketing

Advantages of Direct Marketing Direct marketing offers the advantage of reaching large number of well-

defined target customers and almost eliminates waste coverage.

Good quality databases are available from independent suppliers and

the marketer can segment customer groups with considerable precision.

Direct marketer can personalise the message.

Direct marketing can deliver almost perfect offers to customers.

Marketer can build desired frequency level based on media.

Direct marketing offers creative flexibility in different media.

D

irect marketer can quickly develop a list of specific profiles for directmail.

Direct marketing is more effective in building customer relationship.

It is very cost effective considering the sale generated per contact.

The results can be measured most accurately.