Transcript DIRECT MARKETING

Definition Of Direct Marketing
Direct Marketing is the interactive use of
advertising media to stimulate an (immediate)
behavior modification in such a way that this
behavior can be tracked , recorded , analyzed and
stored on a database for future retrieval and use.
Lets Elaborate On The Chosen Definition
 DIRECT MARKETING
Interactive
Use of
advertising
media
Track
Record
&
Analyze
Stored in
database for
future retrieval
& use
 Interactive: Two way interaction is a fundamental
building block of direct marketing (two way interaction)
 Use of advertising media: Using a combination of media
is often more productive than using a single medium. Eg:
Direct Mail/Magazines/Newspapers/TV/
Radio/Telephone/Internet/E-mail/broadcasting
 Track, Record & Analyze: Every form of direct marketing
activity, with rare exceptions is measurable. (Spending,
response, and return on investment)
 Stored in database for Future Retrieval & Use: Database
are used to store:
a) History of purchase
b) Sources of Response
c) Credit rating etc
The use of a database is another fundamental building
block of direct marketing
This detention is media based
 The basic purpose of any direct marketing


a)
b)
c)
d)
program is to get a measurable response that
will produce an immediate or ultimate profit.
To create a measurable response ,there must be
an offer – a call to action.
An offer to sell a product or service direct to a
customer or a business is but one way to create
a measurable response.
Offers that create leads for:
Sales representatives
Get people to enquire for information
Build traffic in retail stores and
Impel people to give to causes can also be
measured
Components of Response
 Lists Media
 Creative Response
 Offer
These decisions variables can be divided into four parts
which we call it the Elements of response: and ranked
by importance:
1. Media lists 40%
2. Offer 30%
3. Copy 15%
4. Layout 15%
Choosing the best media lists is the key to reaching
the right target group.
Many media forms can be selected
a) Geographically
b) Demographically or
c) Psychographically[by life style]
Media Forms
a) Direct mail – To reach the best target groups
b) Newspaper – By day of week
c) Television – By Program type
d) Internet
The Offer , also known as the
proposition , is another key to
success. It is the terms under which
a specific product , service or brand
is promoted i.e. the promise of the
transaction includes mix factors
that motivate customers e.g. price,
payment,gurantee,services
Creative executions or the two elements of copy and
layout or design, is not ranked as high as media or the
offer. But creative thinking must always be about how
How the customers lives will be better
How the product or service solves their
problems or
 Will make them more successful at some
endeavor (attempt).
A creative should
1. Involve the Customer
2. Stimulating emotions that can evoke response
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
Most direct response copy falls into four
categories
 Benefits
 Descriptions
 Support copy and
 Sweeteners and Facilitators
Benefits are the most important kind of
copy, showing how the product or
service will improve the potential
responder’s life.
Descriptive copy replaces personal
examination(i.e the ability to touch , feel
or try out a product or service) before
purchase.
Support copy validates the claimed
benefits (e.g., data, statistics, research
case studies, testimonials etc.,)
Sweeteners and facilitators give the
reader more reasons to take the offer by
using incentives, offering choices
reducing anxiety and making it easier to
respond or pay
The ultimate objective of a successful direct marketing
program is to build the long term or life time value of a
customer.
Direct marketers often avail themselves of four terms to
summarize the financial dimensions of direct marketing.
•Lifetime value (also called long-term value)
The total of financial transactions with a customer over
the life of a relationship.
•Regency The amount of time since a person or firm last
purchased.
•Frequency The number of times a customer buys within
a season or a year.
•Monetary The amount of money a customer spends
within a season or a year.
Another of direct marketing uses is in
growing and maintaining customer loyalty.
Maintaining customer loyalty is important
for all companies. It can cost five to ten
times more to create a customer than it
does to keep one
•Using information in customer database about
customer behavior or demographics , companies can
target the wants and needs of individual customers
• building
stronger
customer
loyalty
and
individualizing the total customer experience.
•This kind of marketing has become known as oneto-one marketing.
•One-to-one marketing often involves direct
interaction with an individual customer and then
some form of mass customized treatment of that
customer.
•Peppers points that One-to-one marketer create or
find products for customer rather than finding
customer for product
CRM practitioners use many of the same data
technologies used in direct and database marketing. But
they use this technology to seamlessly integrate every area
of business that affects customers, including marketing ,
sales and customer service.
CRM strives to make information a driving force within
the organization not just within the marketing
department. Recovering ,managing and using information
from legacy or from new systems becomes a goal of CRM.
Successful CRM concepts echoed by many of the ideas
explored, CRM uses contact strategies based on
identifying customers needs ,values of relationship
,investing in customers according to their worth
,integrating all contacts channels in one campaign,
supported with sophisticated information's system
,capable staff, and measuring results
Successful CRM programs are a convergence of traditional
direct marketing techniques, database marketing decision
support tools and digital marketing capabilities. This
convergence is creating new genres of direct marketing
that approaches the individual communications promised
by customer relationship marketing.
One –to- one marketers are increasingly
using mass customization to provide
customers with products and services that
meet their needs.
In mass customization ,mass-market
goods and services are individualized to
satisfy a customer need at a reasonable
price.
E.g.: Motorola- Pagers different cases,
colors and storage technologies
Dell-for computers
1.
2.
3.
4.
Mass customized communications combine
information technology and creativity of
advertising with the skill and focus of
manufacturing and industrial engineering.
Combining these tools and techniques enables
low-cost totally customized messaging to
deliver the “right message to the right person
at the right time". This can be done with
Direct mail
E-mail
Banner ads and
Print ads
When direct marketing is combined as part of
an overall campaign strategy with advertising
,Internet marketing ,sales promotion, public
relations and/or personal selling ,it can be
highly successful. The term most used to
describe
this
is
Integrated
Marketing
Communication
The American Association of Advertising
Agencies define Integrated Communications as
A Concept of marketing communication
planning that recognizes the added value in a
program that integrates a variety of strategic
disciplines e.g., advertising, direct response,
sales promotion and public relations and
combines these disciplines to provide clarity,
consistency and maximum communications
impact.
Much progress has been made in the last
decade
in
Integrated
Marketing
Communications.
However integrated marketing is still hard
to co-ordinate, whether there are many
unaffiliated specialty firms or one large
communications network involved.
Issues of who takes the lead in planning ,
how budgets are divided and how profits
are distributed continues to be an internal
problem for the success of Integrated
marketing