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DIRECT
MARKETING
 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
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
 --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
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
 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
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
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
TYPES OF DIRECT
MARKETING

 MAIL ORDER MARKETING/CATALOG MARKETING
 DIRECT MAIL MARKETING
 DIRECT RESPONSE MARKETING
 DATABASE MARKETING
 TELEMARKETING
 TELESHOPPING
 ON-LINE MARKETING
 KIOSKS MARKETING
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
ONLINE MARKETINGADVANTAGES








PRECISE INFORMATION
PRODUCT INFO DIRECT FROM MFG
REQUIREMENTS CAN BE CUSTOMISED
QUICK ADJUSTMENTS TO MARKET PLACE
LOWER COSTS
RELATIONSHIP MARKETING
AUDIENCE SIZING
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
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
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

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Sem ii-t-3-direct marketing

  • 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
  • 11. ONLINE MARKETINGADVANTAGES        PRECISE INFORMATION PRODUCT INFO DIRECT FROM MFG REQUIREMENTS CAN BE CUSTOMISED QUICK ADJUSTMENTS TO MARKET PLACE LOWER COSTS RELATIONSHIP MARKETING AUDIENCE SIZING
  • 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