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Aijaz Shahid
aijazshahid@gmail.com
    fb: directmarketing1
           03315575501
Disclosure Statement 

Calling, texting or playing with your mobile during class,
cross talking, casual behavior, frequent in/outs from class
room, delay submitting your assignments/projects may lead
you to some serious consequences.

Dialogs and relevant questions are highly encouraged
Marks Distribution
Quizzes         (3 Mandatory 2 Optional)
                3.33 Marks each Quiz (10 Marks in Total)

Assignment (Applied and/or Projects)
                10 Marks

Others
                5 Marks Class Participation, Discipline,
                Dressing

Mid Term        25 Marks

Terminal        50 Marks
Exam Guidelines
 Understand the question first, write only what is
  relevant and asked.
 Be focused and to the point.
 Exemplify your argument with relevant
  examples.
 Length of answer does not matter at all, it’s the
  quality of stuff.

Project Guidelines
 The objective of project is to let you try to implement
  what you are leaning theoretically.
 Strictly observe the project out line.
 You are encouraged to come up with a new and unique
  product or service.
 Your performance shall be evaluated on the basis of how
  effective is your media strategy and how creatively you
  executed it.
Group Formation Criteria
 Each group should consist of minimum 2 and maximum
  3 students.
 Solo flights are not allowed nor can a group of 4 students
  be formed.
 Once a group is formed, the member(s) cannot
  change/leave his/her group.
 The dead line to form your group is 3rd Lecture of the
  course.
Chapter-1




            Introduction to Direct Marketing
What is Marketing ???
Lets See !!!




               Video




                       Source: Youtube
According to AMA:
“Marketing is the activity, set of
institutions, and processes for creating,
communicating,        delivering,    and
exchanging offerings that have value for
customers, clients, partners, and society
at large."



                                    Source: Wikipedia
So Marketing Is ???
IMC and Basic Elements
Integrated marketing communications (IMC) is a process for
managing customer relationships that drive brand value primarily
through communication efforts.

There are five basic tools of integrated marketing communication:


                    Basic Elements of IMC
                           1.      Advertising
                      2.        Sales Promotion
                      3.        Public Relations
                      4.        Direct Marketing
                      5.        Personal Selling



                                                               Source:
                                                      http://ezinearticles.com
What is Direct Marketing ???
Direct marketing is just what it sounds like - directly
reaching a market (customers and potential customers) on
a personal (phone calls, private mailings) basis, or mass-
media basis (infomercials, magazine ads, etc.)


A key factor in direct marketing is a "call to action." That is,
direct marketing campaigns should offer an incentive or
enticing message to get consumers to respond (act).
Mr. Lester Wunderman says:

“Direct marketing is a channel-agnostic form of
advertising that allows businesses and nonprofits to
communicate straight to the customer, with advertising
techniques such as mobile messaging, email, interactive
consumer websites, online display ads, fliers, catalog
distribution, promotional letters etc




                                                Source: Wikipedia
Guru’s Viewpoint !!!




                       Video




                               Source: Youtube
Scope of Direct Response
     Marketing ???



           Sme Sizzling Facts !!!
According to “DMA”:
  ☺US Banks and credit institutions spent $13.4 billions
   in 2011on direct marketing advertising and generated
   $178.8 billion in sales. In 2012, these sales are
   forecast to hit $286.2 billion.

  ☺Financial     services  companies’    advertising
   expenditures for commercial email is expected to
   have the largest growth among all media types
   between 2007 and 2012 with a compound annual
   growth of 22.5 percent.
☺ Internet direct marketing advertising spending in this
  sector is projected to grow at the second highest rate, at
  17.8 percent each year from 2007 to 2012

☺ Telephone marketing advertising expenditures for the
  overall financial services sector are expected to reach
  $7.4 billion in 2008 and $8.4 billion in 2012.

☺ Broadcast advertising sales are expected to climb 4.8
  percent each year from 2007 to 2012.

☺ Insert media sales in the financial services arena will
  exceed $1.1 billion in 2008, with banks and credit
  institutions comprising half of sales.
☺ US online advertising spending to surpass print in 2012

☺ Nearly 50% of Internet user in Europe visits newspapers
  sites.

☺ Mobile Banking Service Adoptions to reach over half a
  million users by 2013

☺ US Internet Audiences watched 43.5 billion videos in
  December

☺ Facebook was top search term for the third straight year

                                                     Source: DMA
Direct Marketing’s Special
    Competencies ???
☺ Precession Targeting
  Through the usage of carefully selected mailing lists, and the
  information contained in customer data bases, the direct marketeers
  can direct communications to individual or a specific business
  customers who has been identified as a viable prospect. This reduces
  the waste inherent in many other types of communications that cannot
  be so precisely targeted.



☺ Personalization
   The individual consumers can be and often should be addressed by
  name and business customers can be addressed by name and titles.
  Information from the databases can be used to select an appropriate
  appeal or to encourage additional purchases from a customer who
  have purchased previously.
☺ Call for Immediate Action
  Direct Marketing calls for specific and immediate action, typically the
  purchase of a product or a request for more information about it. This
  call for immediate action works against the prospect’s normal tendency
  to defer action, often permanently. “Limited time offer” “ Will not be
  repeated” and “Your Prompt Reply is Requested” are frequently used
  exhortations.



☺ Measurability
  The most important advantage that direct marketing has over other
  marketing techniques is its ability to track, and to measure the
  effectiveness of specific marketing actions. By knowing precisely what
  worked and what did not, the marketeers can allocate the marketing
  budgets much more effectively.
☺ Invisible Strategies
   ☺ Direct Marketing is Interactive; It initiates a two way process
     “Customer Vs Marketing Team”
   ☺ It removes the "middle man" from the promotion process
   ☺ The strategies and tactics of direct marketeers are less visible to
     competitors than are strategies that must be implemented in the mass
     media

☺ Customer Services
  An emphasis on customer services, including order fulfillment
  functions, is important as a mechanism for encouraging regular
  interactions between the direct marketer and the customer. A
  popular idea now in direct marketing called relationship marketing
  places an emphasis on building long term relationships with the
  customers
Now Can u differentiate ???




                  Commercial



                               Commercial




                                       Source: Youtube
Possible Reasons of Such a
Tremendous Growth in Direct
  Response Marketing ???
☺ Changing Lifestyles and Demographics
      ☺Increasing number of working women. Given less time to
       go shopping, many of these women found it convenient to
       select and examine merchandise in their own homes.
      ☺Rising discretionary income, more single households, and
       the emergence of the "me" generation
      ☺External factors include the rising cost of gasoline (at-home
       shoppers use less gasoline and reduce environmental
       pollution), the availability of toll-free telephone numbers, the
       expanded use of credit cards etc.

☺ An evolving economy and international Competition
☺ Increase Clutter in Media
☺ Its Cost Effective
☺ Technological Advances and Innovations

  The growth of technology in general, and of computer-based
  technologies in particular, has also played an important role in many
  areas of direct marketing. New computer technologies have allowed
  direct marketers to be more precise in the analysis of results, in the
  targeting of messages based on more complex psychographics and
  demographics, in developing more sophisticated customer and
  prospect databases, and even in the creative execution of direct mail
  packages.
Decision Variables of Direct
         Marketing
☺ Offer
  The offer is a complete preposition made by the marketer to a
  prospective customer. It includes the product or service it self, the price
  at which it is offered, any adjustments to the price, and other elements
  of the position strategy for the product

☺ Timing/Sequencing
 The considerations about timing & sequencing includes one *shot
 message versus **campaign, pulsing versus a steady flow of
 communication, seasonal effects, and questions of how much
 repetition is enough ?


   *Sale completed in one step, such as the sale of a book, versus a sale that involves a
   series of steps over time, such as the sale of a subscription, that includes renewal of the
   subscription and delivery of each issue.

   **An advertising campaign is a series of advertisement messages that share a single
   idea and theme which make up an integrated marketing communication (IMC).
☺ Creative
  The Creative component of DM includes the *copy platform, the
  graphic design elements, any involvement techniques, and the
  production considerations such personalization

     *Copy platform are the unique selling points of the product, the product
     advantage over its direct competitor, the target market and other issues that is
     given to you by the advertiser that you can highlight in the advertising copy

☺ Customer Services
  The types of customer services offered includes the “toll free
  telephone numbers, free limited time trial, acceptance of several
  credit cards, service after sale etc, handling of customer inquiries,
  complaints and return policy etc.

☺ Media
  The media used by direct marketers includes direct mail, telephone,
  & world wide web etc
Direct Marketing Media
☺ Direct Mail             ☺ Mobile
   ☺ Insert Media
                          ☺ Data Base Marketing
☺ Telemarketing
                          ☺ Videotext Direct
☺ Catalogue                 Marketing

☺ Direct Response Print   ☺ Voicemail Marketing
  Media
                          ☺ Direct         Response
☺ Couponing                 Broadcast

☺ Online Tools            ☺ Direct Response TV
Direct Marketing Program
        Objectives
☺ Sale of Product or Service

☺ Lead Generation

☺ Lead Qualification

☺ Customer’s Relationship Building and Maintenance
Thank You

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Chapter1

  • 1. Aijaz Shahid aijazshahid@gmail.com fb: directmarketing1 03315575501
  • 2. Disclosure Statement  Calling, texting or playing with your mobile during class, cross talking, casual behavior, frequent in/outs from class room, delay submitting your assignments/projects may lead you to some serious consequences. Dialogs and relevant questions are highly encouraged
  • 3. Marks Distribution Quizzes (3 Mandatory 2 Optional) 3.33 Marks each Quiz (10 Marks in Total) Assignment (Applied and/or Projects) 10 Marks Others 5 Marks Class Participation, Discipline, Dressing Mid Term 25 Marks Terminal 50 Marks
  • 4. Exam Guidelines  Understand the question first, write only what is relevant and asked.  Be focused and to the point.  Exemplify your argument with relevant examples.  Length of answer does not matter at all, it’s the quality of stuff. 
  • 5. Project Guidelines  The objective of project is to let you try to implement what you are leaning theoretically.  Strictly observe the project out line.  You are encouraged to come up with a new and unique product or service.  Your performance shall be evaluated on the basis of how effective is your media strategy and how creatively you executed it.
  • 6. Group Formation Criteria  Each group should consist of minimum 2 and maximum 3 students.  Solo flights are not allowed nor can a group of 4 students be formed.  Once a group is formed, the member(s) cannot change/leave his/her group.  The dead line to form your group is 3rd Lecture of the course.
  • 7. Chapter-1 Introduction to Direct Marketing
  • 9. Lets See !!! Video Source: Youtube
  • 10. According to AMA: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." Source: Wikipedia
  • 12. IMC and Basic Elements
  • 13. Integrated marketing communications (IMC) is a process for managing customer relationships that drive brand value primarily through communication efforts. There are five basic tools of integrated marketing communication: Basic Elements of IMC 1. Advertising 2. Sales Promotion 3. Public Relations 4. Direct Marketing 5. Personal Selling Source: http://ezinearticles.com
  • 14. What is Direct Marketing ???
  • 15. Direct marketing is just what it sounds like - directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass- media basis (infomercials, magazine ads, etc.) A key factor in direct marketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message to get consumers to respond (act).
  • 16. Mr. Lester Wunderman says: “Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters etc Source: Wikipedia
  • 17. Guru’s Viewpoint !!! Video Source: Youtube
  • 18. Scope of Direct Response Marketing ??? Sme Sizzling Facts !!!
  • 19. According to “DMA”: ☺US Banks and credit institutions spent $13.4 billions in 2011on direct marketing advertising and generated $178.8 billion in sales. In 2012, these sales are forecast to hit $286.2 billion. ☺Financial services companies’ advertising expenditures for commercial email is expected to have the largest growth among all media types between 2007 and 2012 with a compound annual growth of 22.5 percent.
  • 20. ☺ Internet direct marketing advertising spending in this sector is projected to grow at the second highest rate, at 17.8 percent each year from 2007 to 2012 ☺ Telephone marketing advertising expenditures for the overall financial services sector are expected to reach $7.4 billion in 2008 and $8.4 billion in 2012. ☺ Broadcast advertising sales are expected to climb 4.8 percent each year from 2007 to 2012. ☺ Insert media sales in the financial services arena will exceed $1.1 billion in 2008, with banks and credit institutions comprising half of sales.
  • 21. ☺ US online advertising spending to surpass print in 2012 ☺ Nearly 50% of Internet user in Europe visits newspapers sites. ☺ Mobile Banking Service Adoptions to reach over half a million users by 2013 ☺ US Internet Audiences watched 43.5 billion videos in December ☺ Facebook was top search term for the third straight year Source: DMA
  • 22. Direct Marketing’s Special Competencies ???
  • 23. ☺ Precession Targeting Through the usage of carefully selected mailing lists, and the information contained in customer data bases, the direct marketeers can direct communications to individual or a specific business customers who has been identified as a viable prospect. This reduces the waste inherent in many other types of communications that cannot be so precisely targeted. ☺ Personalization The individual consumers can be and often should be addressed by name and business customers can be addressed by name and titles. Information from the databases can be used to select an appropriate appeal or to encourage additional purchases from a customer who have purchased previously.
  • 24. ☺ Call for Immediate Action Direct Marketing calls for specific and immediate action, typically the purchase of a product or a request for more information about it. This call for immediate action works against the prospect’s normal tendency to defer action, often permanently. “Limited time offer” “ Will not be repeated” and “Your Prompt Reply is Requested” are frequently used exhortations. ☺ Measurability The most important advantage that direct marketing has over other marketing techniques is its ability to track, and to measure the effectiveness of specific marketing actions. By knowing precisely what worked and what did not, the marketeers can allocate the marketing budgets much more effectively.
  • 25. ☺ Invisible Strategies ☺ Direct Marketing is Interactive; It initiates a two way process “Customer Vs Marketing Team” ☺ It removes the "middle man" from the promotion process ☺ The strategies and tactics of direct marketeers are less visible to competitors than are strategies that must be implemented in the mass media ☺ Customer Services An emphasis on customer services, including order fulfillment functions, is important as a mechanism for encouraging regular interactions between the direct marketer and the customer. A popular idea now in direct marketing called relationship marketing places an emphasis on building long term relationships with the customers
  • 26. Now Can u differentiate ??? Commercial Commercial Source: Youtube
  • 27. Possible Reasons of Such a Tremendous Growth in Direct Response Marketing ???
  • 28. ☺ Changing Lifestyles and Demographics ☺Increasing number of working women. Given less time to go shopping, many of these women found it convenient to select and examine merchandise in their own homes. ☺Rising discretionary income, more single households, and the emergence of the "me" generation ☺External factors include the rising cost of gasoline (at-home shoppers use less gasoline and reduce environmental pollution), the availability of toll-free telephone numbers, the expanded use of credit cards etc. ☺ An evolving economy and international Competition ☺ Increase Clutter in Media ☺ Its Cost Effective
  • 29. ☺ Technological Advances and Innovations The growth of technology in general, and of computer-based technologies in particular, has also played an important role in many areas of direct marketing. New computer technologies have allowed direct marketers to be more precise in the analysis of results, in the targeting of messages based on more complex psychographics and demographics, in developing more sophisticated customer and prospect databases, and even in the creative execution of direct mail packages.
  • 30. Decision Variables of Direct Marketing
  • 31. ☺ Offer The offer is a complete preposition made by the marketer to a prospective customer. It includes the product or service it self, the price at which it is offered, any adjustments to the price, and other elements of the position strategy for the product ☺ Timing/Sequencing The considerations about timing & sequencing includes one *shot message versus **campaign, pulsing versus a steady flow of communication, seasonal effects, and questions of how much repetition is enough ? *Sale completed in one step, such as the sale of a book, versus a sale that involves a series of steps over time, such as the sale of a subscription, that includes renewal of the subscription and delivery of each issue. **An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).
  • 32. ☺ Creative The Creative component of DM includes the *copy platform, the graphic design elements, any involvement techniques, and the production considerations such personalization *Copy platform are the unique selling points of the product, the product advantage over its direct competitor, the target market and other issues that is given to you by the advertiser that you can highlight in the advertising copy ☺ Customer Services The types of customer services offered includes the “toll free telephone numbers, free limited time trial, acceptance of several credit cards, service after sale etc, handling of customer inquiries, complaints and return policy etc. ☺ Media The media used by direct marketers includes direct mail, telephone, & world wide web etc
  • 34. ☺ Direct Mail ☺ Mobile ☺ Insert Media ☺ Data Base Marketing ☺ Telemarketing ☺ Videotext Direct ☺ Catalogue Marketing ☺ Direct Response Print ☺ Voicemail Marketing Media ☺ Direct Response ☺ Couponing Broadcast ☺ Online Tools ☺ Direct Response TV
  • 36. ☺ Sale of Product or Service ☺ Lead Generation ☺ Lead Qualification ☺ Customer’s Relationship Building and Maintenance