2. Definition
• 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, and outdoor advertising
3. Characteristics
• Direct Marketing messages are addressed directly to customers
– Direct marketing relies on being able to address the members of a target market.
Addressability comes in a variety of forms including email addresses, mobile phone
numbers, Web browser cookies, fax numbers and United States and international postal
addresses.
• Direct marketing seeks to drive a specific "call to action.“
– For example, an advertisement may ask the prospect to call a free phonenumber or
click on a link to a website.
• Direct marketing emphasizes trackable, measurable responses from
customers — regardless of medium.
4. History
• In 1967, Lester Wunderman identified, named, and defined the term
"direct marketing". Wunderman — considered to be the father of
contemporary direct marketing — is behind the creation of the toll-free 1-
800 number and numerous loyalty marketing programs including the
Columbia Record Club, the magazine subscription card, and the American
Express Customer Rewards program.
5. Benefits
• Direct marketing is attractive to many marketers because its positive
results can be measured directly
– For example, if a marketer sends out 1,000 solicitations by mail and 100 respond to the
promotion, the marketer can say with confidence that campaign led directly to 10%
direct responses
• This metric is known as the 'response rate,' and it is one of many clearly
quantifiable success metrics employed by direct marketers
• In contrast, general advertising uses indirect measurements, such as
awareness or engagement, since there is no direct response from a
consumer.
6. Direct Marketing Channels
• Email Marketing- Sending marketing messages through email is one of the most widely used
direct-marketing methods
– According to one study, email is used by 94% of marketers, while 86% use direct mail
• Mobile - Through mobile marketing, marketers engage with prospective customers and
donors in an interactive manner through a mobile device or network, such as a cellphone,
smartphone, or tablet
• Telemarketing - Another common form of direct marketing is telemarketing, in which
marketers contact customers by phone.
– The primary benefit to businesses is increased lead generation, which helps businesses
increase sales volume and customer base.
• Direct Response TV - Direct marketing via television (commonly referred to as DRTV) has two
basic forms: long form (usually half-hour or hour-long segments that explain a product in
detail and are commonly referred to as infomercials) and short form, which refers to typical
30-second or 60-second commercials that ask viewers for an immediate response (typically
to call a phone number on screen or go to a website)
7. • iMarketing is broadly divided in to the following
threetypes,
– PPC/I (Pay per click/impression): Advertisements for brands and
products is done on pre-decided websites and helps in generating
leads for companies
– SEO Search engine optimization is the process of improving the
visibility of a website or a web page in search engines via the "natural"
or un-paid ("organic" or "algorithmic") search results
– Social media marketing (SMM)
8. Business models
• Internet marketing is associated with several business models:
• E-commerce: a model whereby goods are sold directly to
consumers (B2C), businesses (B2B), or from consumer to
consumer (C2C)
• Lead-based websites: a strategy whereby an organization
generates value by acquiring sales leads from its
website.[citation needed] Similar to walk-in customers in
retail world. These prospects are often referred to as organic
leads
9. • Affiliate Marketing: a process wherein a product or service developed by
one entity is sold by other active sellers for a share of profits
• The entity that owns the product may provide some marketing material
(e.g., sales letters, affiliate links, tracking facilities, etc.); however, the vast
majority of affiliate marketing relationships come from e-commerce
businesses that offer affiliate programs
• Local Internet marketing: a strategy through which a small company
utilizes the Internet to find and to nurture relationships that can be used
for real-world advantages
• Local Internet marketing uses tools such as social media marketing, local
directory listing, and targeted online sales promotions
10. Advantages and limitations of
Internet marketing
Advantages Limitations
• Internet marketing is inexpensive • However, from the buyer's
when examining the ratio of cost to perspective, the inability of shoppers
the reach of the target audience to touch, to smell, to taste, and "to
• Companies can reach a wide try on" tangible goods before making
audience for a small fraction of an online purchase can be limiting
traditional advertising budgets • However, there is an industry
• The nature of the medium allows standard for e-commerce vendors to
consumers to research and to reassure customers by having liberal
purchase products and services return policies as well as providing in-
conveniently store pick-up services
– Therefore, businesses have the advantage
of appealing to consumers in a medium
that can bring results quickly
11. Retailing
• Retail consists of the sale of physical goods or merchandise from a fixed
location, such as a department store, boutique or kiosk, or by mail, in
small or individual lots for direct consumption by the purchaser
• Retailing may include subordinated services, such as delivery
• Purchasers may be individuals or businesses. In commerce, a "retailer"
buys goods or products in large quantities from manufacturers
or importers, either directly or through a wholesaler, and then sells
smaller quantities to the end-user
• Retail establishments are often called shops or stores. Retailers are at the
end of the supply chain
12. Types of Retailing
• Department stores - very large stores offering a huge assortment of "soft" and
"hard goods; often bear a resemblance to a collection of specialty stores
– A retailer of such store carries variety of categories and has broad assortment at average price. They
offer considerable customer service.
• Discount stores - tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable
and cut-rate prices
– Normally retailers sell less fashion-oriented brands.
• Supermarkets - sell mostly food products
• Warehouse stores - warehouses that offer low-cost, often high-quantity goods
piled on pallets or steel shelves; warehouse clubs charge a membership fee
• Variety stores - these offer extremely low-cost goods, with limited selection
• Demographic - retailers that aim at one particular segment (e.g., high-end retailers
focusing on wealthy individuals).
13. Types of Retailing
• Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The
range of products are very selective and few in numbers. These stores are seen in
local community often are family-run businesses. The square feet area of the store
depends on the store holder
• Specialty stores: A typical speciality store gives attention to a particular category
and provides high level of service to the customers. A pet store that specializes in
selling dog food would be regarded as a specialty store. However, branded stores
also come under this format. For example if a customer visits a Reebok or Gap
store then they find just Reebok and Gap products in the respective stores.
• General store - a rural store that supplies the main needs for the local community;
• Convenience stores: is essentially found in residential areas. They provide limited
amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases.
• Hypermarkets: provides variety and huge volumes of exclusive merchandise at low
margins. The operating cost is comparatively less than other retail formats.
14. • Malls: has a range of retail shops at a single outlet.
– They endow with products, food and entertainment under a roof
• Category killers or Category Specialist: By supplying wide assortment in a
single category for lower prices a retailer can "kill" that category for other
retailers
– For few categories, such as electronics, the products are displayed at the centre of the
store and sales person will be available to address customer queries and give
suggestions when required.
– Other retail format stores are forced to reduce the prices if a category specialist retail
store is present in the vicinity
• Supermarkets: is a self service store consisting mainly of grocery and
limited products on non food items
