In this presentation, we will discuss about the concept of Direct Marketing and its attributes like buyers, B2B marketers and the media required for direct marketing. We will also talk about importance of database, enclosures, catalogues , tele-marketing and consumer guided marketing. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

1. Chapter No. 16 Page No.261
Advertising and Sales Promotion Management
DIRECT MARKETING
Advertising and Sales Promotion Management
DIRECT MARKETING
DIRECT MARKETING IS NOT AS GLAMOUROUS AS A
PRINT OR TV COMMERCIAL, AND REQUIRES MORE
EFFORTS.
DIRECT MARKETING IS NOT JUST SENDING JUNK MAIL
TO CONSUMERS.
IT INVOLVES IDENTIFYING THE RIGHT TARGET
AUDIENCE SO AS TO ENTER INTO A DIRECT
RELATIONSHIP WITH IT.

2. Chapter No. 16 Page No.261
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Advertising and Sales Promotion Management
DIRECT MARKETING
EVALUATION OF ADVERTISING PR AND PERSONAL
SELLING IS DIFFICULT.
DIRECT MARKETING IS EASY TO EVALUATE ON THE
BASIS OF RESPONSES IT GENERATES DIRECTLY.
A DIRECT MARKETING CAMPAIGN IS SUCCESSFUL
ONLY WHEN IT GENERATES MAXIMUM RESPONSE AT
THE LOWEST POSSIBLE COST.

3. Chapter No. 16 Page No.262
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Advertising and Sales Promotion Management
DIRECT MARKETING
WHILE APPROACHING THE CUSTOMERS IN DIRECT
MARKETING, ONE HAS TO DO CAREFUL PLANNING.
BUYERS ARE STUDIED :
1. DEMOGRAPHICALLY
2. PSYCHOGRAPHICALLY
IT IS ADVISABLE , WE SHOULD UNDERSTAND OUR
NON-BUYERS AND KNOW THE REASONS FOR THEIR
NOT BUYING OUR PRODUCTS.

4. Chapter No. 16 Page No.262
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Advertising and Sales Promotion Management
DIRECT MARKETING
MAIL ORDER SELLING SOMETIMES WORKS BETTER
THAN PERSONAL SELLING.
IT PROVIDES:
ANONYMITY TO THE BUYER.
RESPECT TO PRIVACY.
SAVES THE HASSELS OF INVOLVING ARGUMENTS AND
PRESSURE SELLING.
SOMETIMES,DISTANT PRODUCTS CAN BE BOUGHT
ONLY BY MAIL, AS THEY ARE NOT AVAILABLE
LOCALLY.

5. Chapter No. 16 Page No.262
Advertising and Sales Promotion Management
DIRECT MARKETING
Advertising and Sales Promotion Management
DIRECT MARKETING
DIRECT MARKETING IS BASICALLY A PART OF
RELATIONSHIP MARKETING.
IT IS NOT JUST TRANSACTION MARKETING.
IT IS NECESSARY TO CREATE RAPPORT WITH THE
CUSTOMERS.THEIR ORDERS MUST BE
ACKNOWLEDGED.
THEY MUST BE GIVEN THANK-YOU LETTER, AND
ACCESS TO SPECIAL PHONE-LINES.
THEY MUST BE GIVEN EXCHANGE OR REFUND IF NOT
SATISFIED.

6. Chapter No. 16 Page No.262
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INITIAL RESISTANCE
Advertising and Sales Promotion Management
WE MAY HAVE TO APPROACH THE CUSTOMER
REPEATEDLY TO CONVERT HIS HOSTILITY TO APATHY.
THE MOTIVATION TO OPEN THE MAIL MUST BE
INCORPORATED INTO THE DESIGN OF THE ENVELOPE
AND COPY ON IT.
FRONT COVER GRAPHICS MUST ENCOURAGE
RECEIVERS TO OPEN IT UP.
ONCE THE MAIL IS OPENED, WE HAVE TO CONVERT
THE INDIFFERENCE INTO ENTHUSIASM. IT DEPENDS
ON THE QUALITY OF MESSAGE AND READERSHIP
VALUE.

7. Chapter No. 16 Page No.263
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Advertising and Sales Promotion Management
DIRECT MARKETING
IS AN ICE BERG
ONLY
A SMALL PART IS VISIBLE.
AND
A LARGER IS UNDERNEATH.
IT IS FORTHE MARKETERS TO EXPLORE IT.

8. Chapter No. 16 Page No.263
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Advertising and Sales Promotion Management
DIRECT MARKETING IN INDIA
SERVICE MARKETERS ARE THE MAIN USERS OF D M
IT IS USED BY BUSINESS-TO-BUSINESS MARKETERS,
CONSUMER DURABLES, AND CONSUMER GOODS
MARKETERS AND INDUSTRIAL SECTOR MARKTERS .
IT IS LIKELY TO BE USED BY COMPETITIVE SECTOR
LIKE INSURANCE, AUTO MOBILES, I T, TELECOM AND
FINANCIAL SERVICES.

9. Chapter No. 16 Page No.263
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Advertising and Sales Promotion Management
BUYERS
DIRECT MARKETING IS TARGETED TOWARDS SPECIFIC
BUYER GROUP.
IT IS A MATTER OF STUDY WHO OUR BUYERS ARE.
WHAT ARE THEIR MOTIVATING FACTORS.
EACH MAILING HAS ITS OWN LESSONS.
DIRECT MARKETING IS LIKE OIL DEPOTS, DEEP INTO
THE BOWELS OF THE EARTH AND REQUIRES
DRILLING.

10. Chapter No. 16 Page No.264
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Advertising and Sales Promotion Management
MEDIA FOR DIRECT MARKETING
MAILING
NEWSPAPER INSERTS
PRESS ADVERTISING
MAGAZINES
TELEVISION
RADIO
RETAILING’S NEW FRONTIER

11. Chapter No. 16 Page No.267
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Advertising and Sales Promotion Management
DATA BASE FOR DIRECT MARKETING
DATA MUST BE CORRECT.
THE NAMES AND ADDRESSES NEED CONSTANT
REVISION.
WE HAVE TO MATCH THE DATA BASE IN TERMS
OF DEMOGRAPHIC AND PSYCHOGRAPHIC
CHARACTERISTICS TO THE OFFER MADE.
A LIST CAN BE SEGMENTED ON THE BASIS OF
INCOME.
CONT….

12. Chapter No. 16 Page No.267
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Advertising and Sales Promotion Management
DATA BASE FOR DIRECT MARKETING
WHEN LISTS ARE MERGED, THERE SHOULD
BE AN EFFORT TO ELIMINATE DUPLICATION.
WHEN DUPLICATION IS UNAVOIDABLE OUR
LETTER SHOULD CARRY THE NOTE THAT
THOUGH THIS MAY BE A DUPLICATE MAILING, ON
ACCOUNT OF YOU ARE BEING ON PREFERRED
LISTS THE PRESENT MAILING SHOULD BE
PASSED ON TO A FRIEND MOST LIKELY TO
DERIVE THE BENEFITS FROM THE SAID OFFER.

13. Chapter No. 16 Page No.268
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Advertising and Sales Promotion Management
PROFESSIONAL VENDORS OF DATA BASE
THE DATA BASE IS COMPILED BY A VENDOR
FOR HIS OWN PRIVATE USE, BUT CAN BE SOLD
LATER TO PARTIES WHO ARE INTERESTED .
LIST COMPILER COMPILES THE LIST AS PER
REQUIREMENT.
LIST BROKER IS A LINK BETWEEN THE LIST
OWNER AND THE LIST BUYER.
LIST MANAGER MARKETS THE LISTS AND
SPARES THE LIST OWNER FROM THE TROUBLE
OF NEGOTIATING WITH THE LIST BUYERS.

14. Chapter No. 16 Page No.269
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Advertising and Sales Promotion Management
COPYWRTING FOR D M
LIKE ANY AD COPY D M COPY MUST HAVE
ATTENTION, INTEREST, DESIRE AND ACTION.
MUST WRITE CONVINCINGLY.
MAKE USE OF THE EXPERIENCES OF THE
TARGET AUDIENCE.
SHOULD INVITE ATTENTION TO THE PRODUCT.
SHOULD ENHANCE THE IMAGE OF THE
PRODUCT.
SHOULD INDUCE ACTION, LIKE GENERATING AN
ENQUIRY , RESPONSES THROUGH A COUPON OR
ORDER ITSELF.

15. Chapter No. 16 Page No.271
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Advertising and Sales Promotion Management
ENCLOSURES
THERE ARE TWO TYPES OF ENCLOSURES
1. SIMPLE, SINY,GIFTS ITEMS,GREETING-
CARDS, SMALL CALENDERS etc.
2. PRINTED ENCLOSURES
ONE OF THE MOST COMMON ENCLOSURE IS THE
ENDORSEMENT TYPE OF ENCLOSURE WHEN
SOME CUSTOMERS, OPINION LEADER OR
CELEBRITY SPEAKS ABOUT THE PRODUCT.
A VALIDATOR e.g. SPECIAL DISCOUNT, REPRINT
OF MAGAZINE OR A QUESTION –ANSWER
FORMAT.

16. Chapter No. 16 Page No.272
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Advertising and Sales Promotion Management
PRODUCTION ASPECTS
ONE SHOULD MASTER THE BASICS OF PRINT
PRODUCTION.
PAPER MUST BE THICK TO TAKE MULTIPLE
IMPRESSION OF COLOUR PROCESSING.
PAPER SHOULD BE OPAQUE.
COLOUR SELECTION.
ONE MUST BE CONVERSANT WITH TYPOGRAPHY.
MUST BE EXECUTED WITH PROFESSIONAL FINENESS.

17. Chapter No. 16 Page No.272
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Advertising and Sales Promotion Management
ENVELOPE
D M ENVELOPE IS USED TO MOTIVATE THE RECEIVER
TO OPEN IT.
ENVELOPE CARRY ACTION-ORIENTED PHRASES AND
SHOULD BE BACKED BY BENEFITS
ENVELOPE DO APPEAL TO OUR SENSE OF VANITY
AND EXCLUSIVITY.
ENVELOPE COLOURS SHOULD GO WELL WITH THE
PRODUCT AND THE COMPANY.
BUSINESS REPLY ENVELOPES ARE PRODUCED AS
ECONOMICALLY AS POSSIBLE. ITS SIZE SHOULD BE
SUFFICIENT TO ACCOMMODATE THE ORDER FORM.

18. Chapter No. 16 Page No.273
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Advertising and Sales Promotion Management
ORDER CARD AND COUPONS
IN A DIRECT RESPONSE AD, THE PLACE OF THE AD
CARD IS TAKEN BY THE COUPON.
IT MUST ENHANCE THE DESIRE TO BUY, AND MAY
CARRY THE HEADING LIKE “RUSH YOUR ORDER
TODAY”.
THE BENEFIT AND PROMISE MADE IN THE MAILING
MUST BE REPEATED ON THE ORDER FORM.
CONT….

19. Chapter No. 16 Page No.273
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Advertising and Sales Promotion Management
ORDER CARD AND COUPONS
IT SHOULD INCORPORATE PAYMENT DETAILS.
IT SHOULD HAVE THE SPACE FOR NAME OF THE
SENDER.
ORDER FORM OR COUPON CAN START WITH
ACCEPTANCE AS ‘YES’ ,PLEASE ‘RUSH ME’.
IT IS NECESSARY TO PRINT COMPANY NAME AND
ADDRESS.

20. Chapter No. 16 Page No.273
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Advertising and Sales Promotion Management
DIRECT MARKETING CATALOGUES
CATALOGUES MUST BE PRODUCED EFFICIENTLY, AND
MUST REFLECT SOUND MARKETING PHILOSOPHY.
A CATALOGUE COPY PRODUCER HAS TO THINK IN TERMS
OF WHAT HE HAS TO OFFER.
THE CATALOGUE COPY SHOULD DESCRIBE THE PRODUCT
CREATIVELY AND COMPLETELY.
SHOW THE PRODUCT IN USE.
FUTURE MAILING SHOULD BE TO THOSE GROUP WHO
RESPOND TO OUR MAILING.
PRODUCER GET A CHANCE TO SELECT A FEW OF THOSE
PRODUCTS THAT ARE MOST DEMANDED.

21. Chapter No. 16 Page No.276
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Advertising and Sales Promotion Management
TELE MARKETING
WE CAN DELIVER OUR OFFER ON A PHONE CALL.
A CALL HAS TO BE RECEIVED BY A RESPONSIBLE
PERSON, AND THE PERSON MAKING THE CALL
SHOULD NOT BE PUT ON HOLD.
IF THERE IS NO PERSON TO ATTEND THE CALL, THERE
SHOULD BE A VOICE MAIL SYSTEM.
THERE CAN BE A TOLL-FREE LINE IN THE
ORGANISATION.

22. Chapter No. 16 Page No.277
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POST SALES ACTIVITIES
CUSTOMER PSYCHOLOGY OF HAPPINESS PRIOR TO
THE RECEIPT OF THE PRODUCT, AT THE TIME OF
RECEIPT AND BEYOUND THAT SHOULD CONTINUE.
DUE CARE TO BE TAKEN TO EXECUTE THE ORDER.
PRODUCT IS PROPERLY PACKED WITH INSTRUCTIONS
FOR USAGE.
GUARANTEE / WARRANTY CERTIFICATE IS ENCLOSED.
THE DELIVERY TIME SHOULD BE ADHERED TO .

23. Chapter No. 16 Page No.277
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D M COSTS
PRODUCT COST HAS THE FOLLOWING COMPONENTS.
BARE PRODUCT COST EX-FACTORY.
INWARD TRANSPORT COST WHEN THE PRODUCT IS
TRNSPORTED FROM THE FACTORY.
STORAGE AND WAREHOUSING COST.
OUTWARD TRANSPORT COST.
ORDER PROCESSING COST.
DEVELOPMENT COST PERCENTAGE FOR AN
INNOVATION DEVELOPED BY THE ORGANISATION.
CONT ….

24. Chapter No. 16 Page No.277
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Advertising and Sales Promotion Management
D M COSTS
D M ITSELF– PRODUCTION OF ALL MAILING.
INSERTIONS OF THESE MAILING AND POSTAGE
CHARGES, BUSINESS RESPONSE ENVELOPE.
PILFERAGE, SPOILAGE, LOSSES.
SALES RETURNS.
INSURANCE PREMIA.
FIXED OVERHEADS AS PERCENTAGE OF SALES.

25. Chapter No. 16 Page No.270
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CONSUMER GUIDED MARKETING (CGM)
IT IS A NEW APPROACH TO D M, AND IS FAR MORE
PERSONAL AND POWERFUL.
HERE PERSONAL INFORMATION, THEIR LIKES AND
DISLIKES ARE DIRECTLY SOUGHT FROM CONSUMER
ITSELF.
TARGETING BECOMES PRECISE, IT IS A DATA BASE
LOADING RESEARCH.
COPYWRITING BECOMES CONSUMER SPECIFIC AND
RESPONSE RATE GOES UP.
INDIA STILL LACKS THE TOOL TO MEASURE THE
EFFECTIVENESS OF D M.

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