Direct Marketing by Amitabh Mishra

DIRECT MARKETING
AMITABH MISHRA (Ph.D) 1

Direct MarketingDirect Marketing
AMITABH MISHRA (Ph.D)
2
 “Direct marketing is a system of marketing by which
organizations communicate directly with target
customers to generate a response or transaction.”
 In direct marketing, “organizations communicate directly
with target customers to generate a response and/or a
transaction.”

3
 “Direct marketing is a form of advertising which
allows businesses and nonprofit organizations to
communicate straight to the customer”
 Use of mail, telephone, net, and other non-personal
contact tools to communicate with customers and
prospects so as to solicit a specific response.

Different Forms/Tools
of
Direct Marketing
4

It involves a variety of tools and activities, including-
 Telemarketing/Cell phone
text messaging
 Electronic
websites/Interactive
consumer websites
 TV shopping
 Email
 Database marketing
 Catalog distribution
 Promotional letters
 Direct response ads
through-
 Direct mail
 Internet, and
 various broadcast and
print media.
5

Features/Characteristics of
Direct Marketing
6
 It has a few distinctive characteristics:
 Non-public
 Customized
 Up-to-date

7
 Non-public: The message is normally addressed to a
specific person and does not reach others.
 Customized: The message can be customized to
appeal to the addressed individual.
 Up-to-date: A message can be prepared very quickly
for delivery to an individual.

8
 The rapid growth of the Internet is fueling the
growth of direct marketing.
 The convenience of shopping through catalogs
or on a company’s website and placing orders by
mail, by phone, or online has led the tremendous
growth of direct marketing.

9
 In direct response advertising, a product is promoted
through an advertisement that encourages the consumer
to purchase directly from the manufacturer.
 Direct marketing targets individual members of defined
consumer groups.
 The availability of credit cards and toll-free phone
numbers has facilitated the purchase of products from
direct-response ads.

Advantages/Benefits of Direct
Marketing
10
 Major benefits/advantages of Direct Marketing include-
 Selective reach.
 Segmentation capabilities.
 Frequency determination is easy.
 Flexibility.
 Timing.
 Personalization.
 Costs.
 Measures of effectiveness.
 Improved customer satisfaction and retention

11
 Selective reach. Direct marketing lets the advertiser reach a large
number of people and reduces or eliminates waste coverage.
 A good list allows for minimal waste, as only those consumers with the highest
potential are targeted.
 Segmentation capabilities. Marketers can purchase lists of recent
product purchasers, car buyers, bank-card holders, and so on.
These lists may allow segmentation on the basis of geographic area,
occupation, demographics, and job title, to mention a few.

12
 Frequency. Depending on the medium used, it may be possible to
build frequency levels. The program vehicles used for direct-
response TV advertising are usually the most inexpensive available,
so the marketer can afford to purchase repeat times. Frequency
may not be so easily accomplished through the mail, since
consumers may be annoyed to receive the same mail repeatedly.
 Flexibility: Direct marketing can take on a variety of creative forms.
 Direct-mail pieces also allow for detailed copy that provides a
great deal of information. The targeted mailing of videotapes
containing product information has increased dramatically, as
companies have found this a very effective way to provide
potential buyers with product information.

13
 Timing: While many media require long-range planning and
have long closing dates, direct-response advertising can be
much more timely. Direct mail, for example, can be put
together very quickly and distributed to the target population.

14
 Personalization: No other advertising medium can
personalize the message as well as direct media.
 Costs: Because of the low cost of media, each sale
generated is very inexpensive.
 Measures of effectiveness: No other medium can
measure the effectiveness of its advertising efforts as
well as direct response. Feedback is often immediate
and always accurate.

INTERNET/
ONLINE MARKETING
AMITABH MISHRA (Ph.D) 15

Internet/Online MarketingInternet/Online Marketing
16
 In the new millennium, changes are being driven
by advances in technology and developments.
 With the advent of internet and mobile
telephone the world started getting connected
as never before which almost converted worked
into one Global village where cultural social and
economic boundaries were eliminating fast.

17
 “Online/Internet marketing refers to a set of tools
and techniques used for promoting products and
services through the Internet.”
 Online marketing is also known as Internet
marketing/Web marketing/Digital marketing and
search engine marketing (SEM).

Advantages of Internet
Marketing
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 Convenience: consumers can order product 24 hours a
day.
 Information: consumers can find huge amount of
information.
 Fewer hassles & Improved customer service.
 Both small and large firms can afford it (Reduced
expenses)
 No real limit of advertising space.

19
 Better control
 Flexibility
 Interactive media allow for a back-and-forth
flow of information whereby users can
participate in and modify the form and content
of the information they receive in real time.

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 Interactive media include-
 Internet,
 CD-ROMs,
 Kiosks,

21
 The Interactive media allow users to perform a
variety of functions such as-
 Receive and alter information and images
 Make inquiries
 Respond to questions, and, of course,
 Make purchases

Direct Marketing by Amitabh Mishra

Direct Marketing by Amitabh Mishra

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