2. WHAT IS DIRECT MARKETING? HOW IS IT
DIFFERENT FROM CONVENTIAL
MARKETING?
DIRECT MKT IS A PROCESS BY WHICH THE CO APPROACHES
ITS’ CUSTOMERS ON AN INDIVIDUAL BASIS
DM DEALS WITH THE CUSTOMER DIRECTLY
--DM IS INTERACTIVE MARKETING
--DM DOES NOT INVOLVE MARKETING CHANNELS
--DM DOES NOT RELY HEAVILY ON ADVT/SALES PROMOTION
3. WHY DIRECT MARKETING?
--DELIVERS NEAR PERFECT SOLUTIONS TO CUSTOMERS
--HELPS IN ACHIEVING EXCELLENCE IN PRODUCTS/SERVICES
--HELPS IN IDENTIFYING SHARPER SEGMENTS AND PRECISE
TARGETING
--FACILITATES CUSTOMER RELATIONSHIP
--HELPS IN CUSTOMER RETENTION
--RESULTS MORE MEASURABLE THAN IN MASS MARKETING
4. --MORE COST EFFECTIVE
--AVOIDS WASTAGES WHICH ARE INHERENT IN CONVENTIAL
MARKETING
--CAN FOCUS ON LARGE & VITAL ACCOUNTS
--VERY USEFUL IN TIMES OF DOWNTURN
--BENEFITS THE CONSUMER TOO
--WITH PROGRESS IN IT, THE EFFICIENCY OF DM IS
INCREASING AND COSTS ARE GOING DOWN
5. GROWTH OF DIRECT MKT IN
INDIA
TILL A SHORT WHILE AGO, DIRECT MKT WAS LARGELY
CONFINED TO INDUSTRIAL PRODUCTS AND SERVICES
THOUGH INDUSTRIAL PRODUCTS ACCOUNT FOR A
MAJOR PROPORTION OF DIRECT MKT. IT IS
SPREADING TO CONSUMER GOODS ALSO
--WIPRO
--PHILIPS INDIA
--MODI XEROX
-- MADURA COATS
--WELCOM GROUP
--TVS-SUZUKI
6. DIRECT MARKETING IS OFTEN UNDERSTOOD AS MAINTAINING A
DATA BASE TO WHOM MAILERS ARE SENT/TELEPHONE CALLS
MADE REGULARLY
IN REALITY IT IS A VERY SCIENTIFIC WAY OF MARKETING OF
MARKETING WITH THE BASICS REMAINING THE SAME
7. REQUISITES FOR DIRECT
MARKETING
COMPREHENSIVE & RELIABLE DATA BASE
A CAREFUL AND PRECISE TARGETING OF
MARKETS/PROSPECTS
SERVICE GAURANTEE AND PRODUCT WARRANTY
SUPPORT SYSTEMS/LOGISTICS
EYE FOR DETAIL
SUSTAINED EFFORTS
8. GROWTH OF DIRECT
MKT
--DUE TO LACK OF TIME/WORK PRESSURES
--FUEL COSTS/TRAFFIC CONGESTIONS/LONG QUEUES
--ENTRY OF MNCs IN FIELD OF DM
--RISING MEDIA COSTS/CLUTTER
--PRODUCT/BRAND CLUTTER IS MAKING
SEGMENTATION/TARGETING DIFFICULT
--PRODUCT DIFFERENTIATION GETTING BLURRED
DIRECT MARKETINGIS BECOMING AN ATTRACTIVE
ALTERNATIVE
9. TYPES OF DIRECT
MARKETING
MAIL ORDER MARKETING/CATALOG MARKETING
DIRECT MAIL MARKETING
DIRECT RESPONSE MARKETING
DATABASE MARKETING
TELEMARKETING
TELESHOPPING
ON-LINE MARKETING
KIOSKS MARKETING
10. WEB MKT
E-COMMERCE HAS THREE BROAD COMPONENTS
i) B
Ii) BTO B
Iii) B TO C
WEB MKT HAS THE FOLLOWING TWO COMPONENTS
i) B TO B
Ii) B TO C
IT IS THE LATTER WHICH IS GAINING IN PROMINENCE
WITH PASSAGE OF TIME
THE INTERNET CAN BE VIEWED AS
-- A MEDIUM
--A BUSINESS
--A MKT CHANNEL
--COMPLETE MKT PLACE
12. GROWTH OF WEB WORLD
THE GROWTH IN E-COMMERCE HAS MANIFESTED
ITSELF IN FOLL WAYS
--INCREASE IN VOL OF BUSINESS OVER THE NET
--INCREASE IN RANGE OF PRODUCTS OVER THE NET
--INCREASE IN THE SUSCRIBER BASE OF THE NET
EG
PUBLISHING HOUSE McMILLAN INDIA Ltd OFFERS
MANAGEMENT DEVELOPMENT PROGRAMSOVER THE
NET IN COLLABORATION WITH IIM-CALCUTTA
13. LIMITATIONS OF WEB MKT
IT IS NECSSSARY TO GO BEYOND THE HYPE TO SEE THE
OTHER SIDE TOO
ALL PRODUCTS CANNOT BE MARKETED ON THE WEB
COSTS ARE NOT INCONSQUENTIAL
PROFITABILITY….?
LIMITATIONS IN THE INDIAN CONTEXT
--LEGAL/REGULATORY
--INFRASTRUCTURAL
--CIMMERCIAL
-- OTHER ISSUES
14. LEGAL/REGULATORY
--E-DOCUMENTS NOT A LEGAL ENTITY
--ABSENCE OF TAXATION LAWS ON E-TRANSANCTION
--ABSENCE OF LEGAL FRAMEWORK TO COVER CYBERTRANSACTION
INFRASTRUCTURAL
--LOW DENSITY OF PCs/TELEPHONES
--BANDWIDTH LIMITATION
--NETWORKING LIMITATION
--DELIVERY ENDS CONSTRAINTS
PAYMENT ROBLEMS
OTHER ISSUES
--LOW CONFIDENCE IN THE SYSTEM
--DANGERS OF HACKING