2. Session Coverage
•
•
•
•
•
DM and its Importance
Growth of Direct Marketing
Customer Database and Direct Marketing
Channels of Direct Marketing
Online Marketing-Internet and ECommerce
3. The Rise of Direct Marketing
– Use of consumerdirect channels to
reach and deliver
goods and services
to customers without
using market
middlemen.
4. Importance & Benefits of Direct
Marketing-For Buyers:
– Convenient
– Easy to use
– Private
– Access to a wealth of information
– Immediate
– Interactive (Two Way Communication)
5. Importance & Benefits of Direct
Marketing-For Sellers
– Powerful tool for building relationships
– Allows for targeting of small groups or
individuals with customized offers in a
personalized fashion
– Offers access to buyers that couldn’t be
reached via other channels
– Low-cost, effective alternative for reaching
specific markets
7. 1. Mail Order Marketing
Entire Marketing takes place by mail
• Sending an offer, announcement,
remainders or other items to ind. customer
• Interested customers respond by placing
mail order
• Order response rate of 2 % considered
good
• Cost / thousand people reached higher
than mass media but people are much
better prospects
8. Mail Order Marketing
Elements Considered
• Outside Envelope should be colourful or
catchy reason to open it.
• Sales letter should be brief on a good
quality paper.
• Should be personally addressed
• Should have a toll Free No and Weblink
• Postage free envelop drastically increases
response rate.
9. Mail Order Marketing
Best Prospects DATABASE
• Customers who have bought products in
past OR DM can buy Database from list
Brokers (Problem: Oblelete, Duplication,
Outdated, incomplete data)
• Writing to people will get only 1-2 percent
response
• Better Approach-Create your own list.
10. ICICI Bank-Creating Database
• Objective: Develop mailer list for “Children Growth
Bond”.
• Painting Competition for School Children
• “What is your Dream Career?”
• 40,000 Children in Three Cities participate
• Parents of participating children receive letter about their
Children Choice of Career
• It also shared their Child’s Painting
• Than Provided details of GROWTH BOND
• RESULT: RESPONSE WAS MORE THAN 20 %
GENERATING HEALTHY BUSINESS AT VERY LOW
MARKETING EXPENSE.
• Writing to people would have got 1-2% response
11. 2. Catalogue Marketing
• Avon Sells Cosmetics, IKEA Sells Furniture,
Saks Sells Clothing.
• Putting entire catalogue online provide better
access to global customers, saving on printing
and mailing costs
• Success depends on managing customer lists
–
–
–
–
Avoid Duplication
Offer quality products
Operate special hotline to answer questions
Send gifts to best customers
12. E-Catalogues
• www.futurebazaar.com (Pantaloon Retail)
Thousands of products, price, features,
payment gateway, promises delivery within 7
days.
• www.phoolwala.com – Displays flowers on ECatalogue, Promises next day delivery to
most cities of India.
• www.indiamart.com – Link to different sites,
business marketplace, wholesale catalogues
14. 3. Telemarketing
Use of Telephone & Call Centers to attract prospects & Selling to
existing customers
• Inbound Telemarketing-Receiving Calls
• Outbound Telemarketing- Making Calls
• L’Oreal India (Cosmetic Company)- Offers
advice about “How to look Good”
• JK Tyres “ Vans with trained Machanics in NCR,
who deliver and fit new tyres at customers
homes.
• Although it is major DM tool, GOI has put
restrictions on Banks/F.Institutions regarding its
use.
15. 4. Other Media and Direct Response Marketing
Use all major media-Radio, Magazines, N.Papers, TV via toll free Nos
• Infomercials:
• 30-60 minutes video to promote products
that are complicated and technology
advanced or require great deal of
information.
• At Home Shopping Channels: Showing
various products by showing features, use,
advantages and price (Toll Free No with
48 Hrs Delivery).
16. 4. Other Media and Direct Response
Marketing Cont….
• Asian Sky Shop (Essel Group-1995):
• Distribution 75 cities, caters to Dubai,
B’Desh, Pakistan, Nepal etc.
• Reach out to customers across 10
different channels of Essel Group.
(Backed by 24 hour, 7 days a week hotline
• Benefits to TV Channels: New Source of
Revenue, In some cases profit sharing on
per unit basis.
17. Public Issues in Direct Marketing
Irritation
Unfairness
Deception/fraud
Invasion of privacy
18. Direct Marketing VS Direct Selling
Some Marketers consider them same as both do-not involve Store
Retailing
Direct Selling
Direct Marketing
Two Different Terms
(Part of Non Store Retailing, A
Part of Marketing)
Direct Selling or Home Selling
are same
•Larger than Non Store Retailing
•Tackles all tasks of Marketing (Customer
Identification, Demand Generation,
Packaging, Modification, distribution,
price negotiation, promotion, sales
promotion in integrated compressed
manner.
•Home Selling: Done by
Employees/Sales Person. One to
One, Takes products to buyers
home
•Direct Selling: Done by
Independent
Salesperson/Distributors, If done
in a group, referred to party
selling, Home or Workplace
19. Direct Selling Facts
• World-wide $ 200 Billion Industry
• Employs 50 Million Workforce
• Over 35,000 companies
Examples: Avon, Tupperware, Oriflame,
Amway, Encyclopedia Britannica
20. Direct Selling Companies
Avon (Century Old)
Amway
•133 Countries
•85 Countries
•Turnover $ 4.5 Billion
•Turnover $ 7 Billion
•4 Lakh DS persons
•480 Products, 380 Petents
•Cosmetics, Jewellery, Healthcare,
Baby care Products
•Personal Care, Health Care,
Cosmetics, Nutrition, Wellness etc
•Hires Housewife's for Selling to
neighborhood
•Over 3 million independent sales
cum distributors
21. Online Marketing Facts-India
•
•
•
•
Clocked 53000 Crores
30% User time used for shopping
Juxt Consultants “India Online Survey Research”
Sample: 12,500 Households, 40 Cities, 160
Villages.
• Findings:
• 1 out of every 10 urban customer connected to
net
22. Juxt Consultants “India Online Survey
Research”
• 70% on internet users reside outside
metro.
• 50 million users (40-U, 10-R)
• Regular Users-50 Million (40-U, 10-U)
• Rural Penetration-5 Percent
• 77% users between 19-35 years.
• Faith in online shopping increasing
gradually, 80% of regular users buying
through net.
23. Maruti’s “Dil Se Program”
www.marutinri.com
• Interactive marketing to tap NRIs
• People residing overseas can purchase gift for
their friends/relatives to show love, affection and
gratitude.
• Multiple payment Options: Credit Card, Money
Transfer, Bank Installment.
• Coverage: 200 Cities, Special Discount Price
• Delivery: Arranges gift wrapping, free
• Website: Shares experiences of emotional
satisfaction.
24. Placing Ads and Promotion Online
• Websites
• Micro sites: Limited area on web,
managed and paid by external ad
company. Can create micro site on
different common websites.
• Search Ads (40% online ads): Pay only if
people click on links.
25. Placing Ads and Promotion Online
• Display Ads: Small rectangular boxes
containing text and picture that company
pay to place on website.
• Online Communities: Companies
sponsor online communities whose
members communicate through postings
about special interests related to
companies products and brands.
