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Direct Marketing and Interactive Communications Direct Marketing Direct Marketing is a strategy designed to create and sustain a personal and intermediary-free dialogue with customers. This should be a measurable activity, and it is often media-based. Direct Marketing STRENGTHS WEAKNESSES • More targeted that other forms of marketing communication • Ineffective unless used as a long-term strategy • Ability to personalize approach • Poorly executed direct marketing creates distrust and a poor image • Failure to coordinate with operations, distribution or • All elements of a directcorporate strategy can lead marketing piece are testable to decreased goodwill • Elements are extremely • Messages may conflict with flexible other marketing • Results are measurable communication messages Types of Direct Marketing Complementary Used to complement other promotional activities Mainly used to generate leads Some extent to create awareness, information and reinforcement Primary differentiator Primary form of communication Provide distinct point of differentiation Used to cut costs, avoid use of intermediaries and reach finely targeted audiences Sales channel Used for developing greater efficiency and augmenting current services Multiple sales channels can be used to meet different needs of customers Brand vehicle Used to exploit market space opportunities Pedigree or hybrid brands (ex. Virgin Direct and Eagle Star Direct) Strategic Entire organization and culture oriented to developing customer relationships Direct Response Media Direct Mail Telemarketing Catalogs Inserts Mass media direct marketing Door-to-Door Infomercials Interactive Internet and WorldWide Web Interactive Television The Process of Direct Marketing Determine Objectives Identify Target Audience Develop Strategy Creative Strategy Media Strategy Implementation Response: Transaction Fulfillment Assess Results Customer: Prospect Database Direct Mail Mistakes Forgetting to include letter Lack of identity continuity No benefit shown on outside of mailer No guarantees No testimonials No personal letter from owner in newsletter or catalog Too many messages Illegible colors and graphics Doesn’t put the offer up front No headlines Evaluating Direct Marketing Profitability Analysis Customer Characteristics and Response Respondent/Nonrespondent surveys Tracking studies Geodemography Personal Selling Personal Selling • Presents a product or idea face-to-face • Done by a representative of the organization • Has a direct influence on sales • Gives immediate feedback • Can adjust the message immediately to fit receiver’s needs Personal Selling STRENGTHS WEAKNESSES • Flexibility • High cost • Minimizes wasted effort • Finding and retaining • Facilitates buyer action salespeople • Multiple capabilities • Message inconsistency • Motivation Determining the Role of Personal Selling 1.) Nature of the information to be exchanged 2.) Marketing communication objectives 3.) Communication mix alternatives available 4.) Relative cost Types of Personal Selling 1.) Responsive Selling 2.) Trade Selling 3.) Missionary Selling 4.) Technical Selling 5.) Creative Selling 6.) Consultative Selling The Process of Personal Selling Attaining Knowledge Prospecting Preapproach Approach Sales Presentation Follow-up Sales Management Activities 1.) Planning 2.) Staffing 3.) Implementing 4.) Controlling 5.) Adapting to Change Motivation Financial Straight salary Straight commission Combination plan Others Better Better Better Better salaries fringe benefits atmosphere opportunities for advancement