4. The Growth of Direct Marketing
§ Sales thru DM growing at 5.3 %, sales thru other
channels at 4.5% in the USA
§ Changing lifestyles
§ Working women
§ Increased cost of traditional marketing, personal
selling
§ Growth of technology
§ Need for Instant gratification
§ Rise in income, “me” population
§ Rising cost of fuel, lack of parking space
§ Rising credit card base
§ Availability of mailing lists
5. Benefits of Direct Marketing
For customer
1. Fun, convenient, hassle-free
2. Saves time
3. More options, better comparison, better choice
4. Can order for self as well as others
5. Privacy
6. Can get items otherwise not available easily
For Company
1. Mailing list available for almost any market, geography
no barrier
2. Better customer understanding, Customized offer
3. Ongoing relationship with customers
4. Higher sales success rate
5. Privacy in marketing strategy
6. Measurable response
6. Database Marketing
a form of direct marketing using databases of
customers or potential customers to generate
personalized communications in order to promote a
product or service for marketing purposes. The
method of communication can be any addressable
medium.
Sources of data
Consumers
Inferred by the data compiler
Sweepstakes, contests, on-line registrations
Analytics and Modeling. Should not be data rich,
information poor
7. Benefits of Database Marketing
Information of customer demographics, psychographics,
tastes, preferences
Helps in developing customized offers
Helps in formulating cost effective strategies
Helps in generating right leads for sales people
Better segmentation
8. Major Channels for Direct Marketing
§ Face-To-Face Selling
§ Direct Mail
§ catalog
§ Telephone, Fax
§ kiosk
§ television
§ email, voicemail, website
12. Voicemail (or voice mail, vmail or VMS, sometimes called messagebank)
is a centralized system of managing telephone messages for a large
group of people. In its simplest form it mimics the functions of an
answering machine, uses a standard telephone handset for the user
interface, and uses a centralized, computerized system rather than
equipment at the individual telephone. Voicemail systems are much more
sophisticated than answering machines in that they can:
• answer many phones at the same time
• store incoming voice messages in personalized mailboxes
associated with the user's phone number
• enable users to forward received messages to another voice
mailbox
• send messages to one or more other user voice mailboxes
• add a voice introduction to a forwarded message
• store voice messages for future delivery
• make calls to a telephone or paging service to notify the user a
message has arrived in his/her mailbox
• transfer callers to another phone number for personal assistance
• play different message greetings to different callers.
13. Direct marketing has passed through a
number of stages:
1. Carpet bombing: mass mailing
2. Database marketing: selective mailing
3. Interactive marketing: two-way
4. Real-time personalized marketing
5. Lifetime value marketing
14. Constructing a Direct-Mail Campaign
“sales people with wings”
Objectives
Sales
Generating prospect leads
Strengthening customer relationships
Informing and educating customers
Reminding customers about offers
Reinforcing recent customer purchase decisions
Target Markets and Prospects
Segmentation variables
Recency, Frequency, Monetary amount (R-F-M)
Obtain customer database
15. Constructing a Direct-Mail Campaign
Offer Elements
Product
Offer (discounts, etc)
Medium
Distribution method
Creative strategy
Design / drafting of
Envelop, Sales letter, reply form, reply envelop
Attractive envelop with some colorful illustration, a
catchy reason to open it, personal salutation, good
quality paper, signature of some one very senior, toll
free number, web site, postage-paid reply envelop
Testing Elements
Testing of the impact of the mail campaign
Measuring Campaign Success
16. Catalog Marketing
Full-line merchandise catalog in print / CD / VHS /
Online
Success depends on:
Managing customer list carefully – no duplication, no bad
debt
Care inventory management
Quality merchandise
Logistics
Return policy
Long-term customer relationship management
17. Telemarketing and M-Commerce
Inbound telemarketing
Outbound telemarketing
Four types of telemarketing:
Telesales: taking orders from catalogs/ads,
making sales calls
Telecoverage: maintaining and nurturing key
account relationships
Teleprospecting: generating leads of prospects
Customer service and technical support
18. Other Media for Direct-Response Marketing
Direct-response advertising on TV
At-home shopping channels: dedicated Home
Shopping Networks
Videotext and interactive TV
Kiosk Marketing
19.
20.
21. E-commerce
Electronic commerce, EC, e-commerce or ecommerce consists
primarily of the distributing, buying, selling, marketing, and
servicing of products or services over electronic systems such
as the Internet and other computer networks. The information
technology industry might see it as an electronic business
application aimed at commercial transactions. It can involve
electronic funds transfer, supply chain management, e-
marketing, online marketing, online transaction processing,
electronic data interchange (EDI), automated inventory
management systems, and automated data collection systems.
It typically uses electronic communications technology such as
the Internet, extranets, e-mail, e-books, databases, and mobile
phones.
22. M-commerce
M-commerce or mobile commerce stands for electronic
commerce made through mobile devices, e.g. mobile phones,
PDAs.
M-commerce is currently mainly used for the sale of mobile
phone ring-tones and games, although as 3G services roll out it
is increasingly used to enable payment for location-based
services such as maps, as well as video and audio content,
including full length music tracks. Other services include the
sending of information such as football scores via SMS.
Currently the main payment methods used to enable m-
commerce are:
premium-rate calling numbers,
charging to the mobile telephone user's bill or
deducting from their calling credit, either directly or via
reverse-charged SMS.
23. Internet Marketing
use of the Internet to advertise and sell goods and
services. Internet Marketing includes pay per click
advertising, banner ads, e-mail marketing, search
engine marketing, blog marketing, and article
marketing.
Designing attractive websites: Context (layout &
design), Content (text, pictures, sound, vdo),
Customization, Communication (two-way),
Connection (to other websites), Commerce, Constant
change
24. Internet Marketing - Ads
Banner ads : small rectangular boxes
Sponsorships : sponsoring special content
Microsite : a limited area on the web managed by
and paid for, low interest products like insurance
Pop Ups and Pop under
Interstitials: pop ups between changes on a website
Search-related ads
Affiliate programs
25. E-Marketing
Permission Marketing
Levels of Permission Marketing:(Seth Godin)
No permission level
Low permission level
Medium permission level
High permission level
Transaction level
E-Marketing Guidelines
Give the customer a reason to respond
Personalize the content of your e-mails
Offer something the customer could not get via direct mail
Make it easy for the customer to “unsubscribe”