The document discusses direct marketing. Direct marketing involves reaching customers directly without intermediaries. It has benefits like targeting niche markets, convenience for time-short customers, and access to mailing lists. Common direct marketing methods are direct mail, telemarketing, database marketing, and mail order. Direct marketing allows for tailored messaging, rapid delivery, and relationship building but can also be intrusive, costly, involve fraud risks, and raise privacy concerns. The top direct selling companies globally are Avon, Amway, and Herbalife.
2. Direct Marketing
Direct marketing is the use of
consumer-direct channels to
reach and deliver goods and
services to customers without
using market middlemen.
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3. Benefits of DM
Market Demassification has resulted in
number of market niches
Consumer Short of times
Tired of traffic & Parking
Toll free Numbers
Website availabe 24 * 7
Marketers commitment to service
Growth of Courier Industry
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4. Avialablity of mailing list of almost any group
Free Email Services
SMS
Less visibility to competitors
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6. Methods of Direct Marketing
Face to Face selling
Direct Mail Marketing
Direct Response
Marketing
Data Base Marketing Mail order Marketing
Telemarketing
Tele/Home shopping
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7. Constructing a Direct Mail
Campaign
1 • Establish objectives
2 • Select target prospects
3 • Develop offer elements
4 • Test elements
5 • Execute
6 • Measure Sucess
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8. Telemarketing
To attract new
customers
Order goods &
services
Inbound & Outbound
telemarketing
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9. Asian Sky Shop
Customer watch a TV
program
demonstrating
merchandise & then
place for order by
telephone
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11. Chose & Select on net
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12. Data Base Marketing
Planet M Database
marketing activity
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16. Public & Ethical Issues in DM
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17. 1 Avon Products, Inc
2011 Net Sales: $11.3 billion ,Country: USA
Avon is the founder of modern direct selling and the acknowledged world
leader in cosmetics, fragrances and toiletries. Avon’s well-known product
lines include Avon Color, Anew, Skin So Soft™, Advance Techniques Hair
Care and Avon Naturals and mark™.
2010 Rank: 1
2010 Net Sales: $10.9 billion
Sales Method: Person-to-person
Compensation Structure: Single-level and multi-level
Products: Beauty, fashion jewelry, apparel
Markets: 100
Salespeople: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Executive: Sheri McCoy
Year Founded: 1886
Stock Symbol: AVP—NYSE
www.avon.com
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18. 2. Amway
2011 Net Sales: $10.9 billion,Country: USA
Amway offers consumer products and business opportunities in more than
80 countries and territories worldwide through more than 3 million
distributors. Top-selling brands for Amway are NUTRILITE vitamin, mineral
and dietary supplements, ARTISTRY skin care and color cosmetics, and
eSpring water treatment systems. Alticor is the parent company of Amway.
2010 Rank: 2
2010 Net Sales: $9.2 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, home care,
wellness
Markets: 80
Salespeople: 3 million
Employees: 20,000
Headquarters: Ada, Mich.
Executives: Steve Van Andel and Doug DeVos
Year Founded: 1959
www.amway.com
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19. 3. Herbalife Ltd.
2011 Net Sales: $3.5 billion,Country: USA
Herbalife is a global nutrition company that sells nutritional supplements
and weight-management and personal-care products. Its products have
been developed by scientists, physicians and nutrition experts, including
Nobel laureate in medicine Louis Ignarro, Ph.D.
2010 Rank: 5
2010 Net Sales: $2.7 billion
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics and personal care
Markets: 79
Salespeople: 2.7 million
Employees: 5,000
Headquarters: Los Angeles, Calif.
Executive: Michael O. Johnson
Year Founded: 1980
Stock Symbol: HLF—NYSE
www.herbalife.com
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20. 7. Tupperware Brands Corp.
2011 Net Sales: $2.6 billion,Country: USA
Tupperware is a global direct seller of innovative, premium products across
multiple brands and categories through an independent salesforce. Product
brands and categories include design-centric preparation, storage and
serving solutions for the kitchen and home as well as beauty and personal-
care products.
2010 Rank: 7
2010 Net Sales: $2.3 billion
Sales Method: Person-to-person and party plan
Compensation Structure: Single-level and multi-level
Products: Storage and serving products; beauty, personal care
Markets: 100
Salespeople: 2.6 million
Employees: 13,500
Headquarters: Orlando, Fla.
Executive: Rick Goings
Year Founded: 1946
Stock Symbol: TUP—NYSE
www.tupperware.com
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21. Direct Selling Versus Direct
Marketing
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22. Strength of Direct Marketing
Focused
Cost effective
Immediate & Flexible
Tailored Messages
Rapid delivery
Relationship building
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23. Weakness Of DM
Intrusive
Costly
Fraud
Lack of awareness
Privacy Concern
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