Session 29 Direct Marketing

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    DIRECTMAR

    KEDIRECTM

    ARKE

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    Direct Marketing is the process by which a- -firm approaches its customers on one to one

    basis and markets its products directly to

    .them

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    Deals customers directly

    ,Interactive marketing-with two way

    communication

    Does not involve marketing/channels stores

    Does not involve/advertising mass

    promotion

    Deals customers.indirectly

    -One way activity

    Relies heavily on

    marketing/channels stores

    Relies heavily on/advertisement mass

    .promotion

    irect Marketing onventionalMarketing

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    Advantages of Direct Marketing over Mass Marketing

    -Near Perfect Solutions to Customers Problems

    Provides for customization : -Example Levis Strauss introduced web linked

    ,kiosks in its stores where customers can design, .their own pair of jeans choosing from a no of

    , .styles colours shapes and sizes The information is.instantly delivered to its Tennessee factory

    Helps achieve Excellence in Products andServices

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    Requisites for success of Direct Marketing

    Comprehensive, Reliable and Updated Database

    Careful and Close Targeting of Markets/Prospects

    Service Guarantee and Product Warranty.

    Backroom Logistics

    Mechanisms for attending the responses promptly.

    Eye for Details Care should be taken in designing the mailer. Outside envelope,

    the sales letter, the reply form and the reply envelope all mustbe developed carefully.

    Effort

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    Forms of Direct Marketing

    1.Mail Order Marketing/Catalogue Marketing

    2.Direct Mail Marketing

    3.Direct Response Marketing

    4.Database Marketing

    5.Telemarketing6.Teleshopping (Home Shopping)

    7.Online Marketing/Marketing on the Web.

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    1. Mail Order Marketing (MOM) /Catalogue Marketingalso known as Mail Order Business (MOB)

    Use catalogues for communication with the consumer. Interested consumers respond by placing a mail order

    on the marketer, the product is supplied to theconsumer by mail.

    Examples: Anjali Textiles - Sarees

    Mother care India Kids Products

    Surat Diamond Jewellery Products

    Music Today - Entertainment

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    2. Direct Mail Marketing

    When a manufacturer markets his products by the same asprevious method.

    In direct mail marketing not only letters/brochures aremailed to the prospects, but free product samples, giftsand compliments are also mailed, depending on thecontext.

    Examples: Denim after shave direct mail to the elite clubs in the

    metros. Mailed a brouchure. Order forms were includedin the brouchure.

    Lux Soap a special concessional offer to prospects.Ordered item will be delivered at the doorsteps of thecustomer and cash could be paid on delivery.

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    2. Database Marketing

    Data base is the foundation for the direct marketing.

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    3. Telemarketing Marketing

    Call Centre

    Planning and Preparation

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    4. Teleshopping/Home Shopping

    Marketers hawks the product on the air and the consumerwatches it on his TV screen at home, phones up the

    marketer and buys his requirements. Benefits the customers:

    Lower prices, discount, gift offers etc.

    Wide range of selection

    Demonstration about product

    Benefits the manufacturer: Promotes their sales and reduces their costs.

    Provides direct link to the consumer.

    Save the margins, as it bypass channels.

    Low-cost retailing system

    Benefits the marketer/teleshopping network

    Benefits the TV Channel

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    Teleshopping in INDIA

    CHANNEL - NETWORK

    DD - Dees Home Shopping

    DD - Teleshopping Network

    Zee - Asian Sky Shop

    United Television - United Teleshopping

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    MARKETING ON THE WEB

    Access to all markets

    Renders global marketing feasible for even small firms

    Helps constraints free growth

    Scope for enhancing customer value and customer service

    Helps target the customer individually

    Helps relationship with customers.

    Helps reduce costs

    Business costs

    Marketing cost

    Channel costsCommunication/Promotion costs

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    MARKETING ON THE WEB

    Enhances marketing productivity

    Keeps sales people together electronically and enables them

    work as a team in serving the customers.Allows companies to fucntion to flexible

    Enables to adjust quickly to market conditons.

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    MARKETING ON THE WEB

    Benefit to the customers :

    Convenience

    Scope for informed and competitive buying

    Search advantage and options

    Can get more for less.

    Transparency

    Accuracy

    Shifting of the poor equation in favour of the consumer.