DIRECT MARKETING

Direct marketing definition

An interactive system of marketing which uses one or more advertising media to effect a measurable response at any location, forming a basis for creating and further developing an ongoing relationship between an organisation and its customers.

Charecteristic of Direct marketing

• Interactive

(personalization)

• Response mechanism

(tel no., e-mail, bus. Reply …)

• Transaction medium

• Data base

• Measurable response

4

What’s Driving Direct Marketing?

1. Quicker sales

2. Better targeting (data base)

3. Tailored messages

4. Relationship building

5. Enhanced profits

6. Predictable investment & return (DELL)

7. Less competition

8. Aide to market research

PPT 19-4

Characteristics of product for direct marketing• Novelty product (Tupper ware)

• Complex product (Insurance)• Products that have broad appeal but well defined

user base (readers digest)• Product of High perception value (Mahindra

holidays)• Product with a high worth of individual sale (bank

products like mutual funds)

• Product that customer may want to buy privately (sanitary napkins)

• Products that have a greater customer involvement (luxury homes)

DIRECT MARKETING

AWARENESS

INTEREST

DESIRE

ACTION

ELEMENTS OF DIRECT MARKETING

– THE LIST

1. House list

2. Response list

3. Compiled list

4. List brokers

• THE OFFER

• THE MESSAGE

• Easy message, easy response

• Payment option

• Time bound offers• Free gifts than discounts

Media application in Direct marketing

Media Applications in Direct Marketing

Direct Mail Telemarketing E-mail Catalogs

Direct mail

Advantages

---- Descriptive system, Less competition, personalize able, In-built feed back mechanism.

Disadvantages

---- High cost, Junk mail, Privacy concerns, Low response rate.

Tips for direct mail copy writersFormat of the body copy

• Problem

• Promise of a solution

• Explanation of the promise

• Proof

• Reassurance

• Call to action

• Buy one, Take one free.

• 50% Off, On purchase of Two.

• Two for the price of One.

Telemarketing Telemarketing Advantages

– The impact of programs is easy to track.– Experimentation with different scripts and delivery formats is

simple and practical.– Telemarketing involves live constructive dialogue.– Contacts can be selectively targeted

Telemarketing shares many of direct mail’s limitations:– Very expensive on a cost-per-contact basis.– Names and addresses go bad as people move, so too do phone

numbers - 15 percent of the numbers called are inaccurate.– Telemarketing does not share direct mail’s flexibility in delivery

options. When you reach people in their home or workplace, you have a limited span of time to convey information and request some response.

– Telemarketing is becoming a highly maligned practice in consumers.

– By 2007, over 70 percent of US households had registered their phone numbers with the “Do not call registry.”

E-Mail Bulk e-mail is known as “spam” Fraudulent email know as “phishing” However e-mail is an increasingly popular

tool for marketers Advantages

– Cheap– Good response rates

Netiquette suggests getting consumer permission to send product information

Avoid bulk e-mailings

CATALOGS

Catalog Marketing• Originally a way to reach rural and “off-

the-beaten-path” prospects.• Nowadays most paper catalogs have

gone digital (i.e. online)• Expected catalog sales in

2008: $200 billion.• Advantages and disadvantages

– Paper vs. Online

J. Crew’s catalog makes it convenient for customers to order the company’s products from home

Insert photo 10.8, p. 316

J. Crew catalog cover phot

Position = 2.9” horiz., 1.5” vertical

Size = 5.7” WIDE

Resolution: 300 dpi

Kiosk Marketing

• Ordering machines generally found in stores, airports, and other locations

Ethics in Direct marketing

• Confidentiality of the personal information is suspect

Direct marketing agencies

• DIREM

• Infomedia India Ltd

• Rushabh Direct Marketing …

PRODUCT PLACEMENTS IN FILMS

What is Product Placement?

• Product placement, or embedded marketing, a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs.

How does it work?

• The tendency is to move away from in-your-face ads, where the product is the star, to vignettes that feature "real-life scenarios" with the product hovering in the background.

Objectives & Methods

• New product launching

• Reinforce its brand image or restate its positioning

• To high light the utility of the product

Advantage & Impact of product placement in Films• Provides captive audience for

promoting one’s products• Appears more natural and realistic• Presented in a clutter free

environment• Great exposures (viewers see movies

many times)• Celebrity endorsement cost lot of

money• Wide audience across different

geographies, social class and cultures

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