DIRECT MARKETING AND PERSONAL

SELLING

Presented by :-

Nisha V S

Lidhiya Babu

Direct marketing

Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction.

The ultimate purpose of direct marketing is to establish and manage direct relationships with customers by capturing personal information in a database.

Customer Databases & Direct MarketingIt is the listing of customers or potential customers.

This database is a is a tool for database marketing.Databases include customer profile, purchase

history, and other detailed informationDatabases can be used to identify prospects, profile

customers, and select customers to receive offers, and to build relationships

Sources of database informationCensus bureauPostal serviceMarket research bureausRetailers consumer goods manufacturesDirect marketing associationAnd company can also build a database through

completed warrenty cards, surveys, etc…

Direct marketing strategies and mediasApproches of direct marketing

1) One step approch- to directly obtain the order

Eg: TV commercials for products like workout equipments, or magazine subscriptions in which the viewer is urged to phone a toll free number to place an order immediately. Their aim is to make immediate sale when the ad is shown.

2) Two step approch- it may involve the use of more than one medium. The first step is to screen or qualify the potential buyers. The second effort is to generate the response.

Eg : many companies use telemarketing to screen on the basis of interest. Then follow up the interested parties with more information designed to achieve an order or use personnel selling to close the sale.

Medias of direct marketing

Direct-Mail Marketing Telemarketing Infomercials Catalogs Broad caste media

Direct-Mail Marketing

Junk mailinvolves mailing of letters, ads, samples, foldouts…

sent to potential customers on mailing lists. The mailing lists are developed from customer lists

or obtained from mailing-list houses. It permits high target market selectivity, can be

personalized, is flexible and allows easy measurement of results.

It costs more than TV or magazine advertising per person.

E-mail is booming as a direct marketing tool.

Amazon- direct mail

Telemarketing

Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.

Outbound telephone marketing is used directly to consumers and businesses. Inbound to toll-free 800 numbers are used to receive orders from television and radio ads, direct mail, or catalogs.

Provides purchasing convenience and increased product or service information.

It is also a major fund-raising tool for nonprofit organizations.

Too much use it can annoy customers.

• TV spots It referred in the telemarketing industry as short

term programmes, these spots includes direct response commercials commonly seen on TV for products such as drugs and toiletries, audio and video supplies, house hold products and more.

Infomercials

An infomercials is a long commercial that is designed to fit into a 30 minutes or one hour time slot.

Many infomercials are produced by the adverticers and designed to view as regular TV shows.

The companies like coco cola, Disney, Nissan, apple, Microsoft etc adopts informal type of adverting.

Catalogs

List of goods or services on sale with their description and prices published as a printed document, or as an electronic document (e-catalog) on internet or on a diskette, CD, DVD, etc.

based on one-to-one communication between the marketer and the prospect or customer.

Catalogs offer consumers a wide range of products of either a generalized or specialized nature.

The three major categories of catalogs are business-to-business catalogs, consumer catalogs, and catalog showrooms.

1) Business-to-business catalogs are those that provide merchandise to be used in the course of business. In industrial settings business-to-business catalogs are used to sell everything from heavy machinery to hand tools.

• Business-to-business catalogs are mailed to individuals at their place of business, with most purchases being made on behalf of the business rather than the individual.

2) Consumer catalogs are mailed to consumers at home.

3) manufacturer-supported catalog- These may be designed to generate mail-order sales, build store traffic, or simply create an image. Incentive catalogs offer consumers discounted name-brand merchandise with some type of proof of purchase of a particular product or use of a particular credit card.

Catalog-Dell

Broad caste mediaTwo broad cast media available for direct marketing-

tv and radio.It involves both direct response marketing and indirect

response marketingIn direct response marketing the product or service is

offered and sales response is solicited through either the one or two step approch.

Eg: it includes ads for apparel, excise equipments collectables and so on. tolls free numbers are are included so that the consumer can order immediately

Support advertising is designed to do exactly that support other forms of advertisings.

Advantages of direct marketing

Selective reachDirect marketing help the advertiser to reach a large

number of of people and reduce or eliminates waste coverage. Intensive coverage may be obtained through broadcast advertising through the mail. A good list allows for minimal waste as only those consumers with the highest potential are targeted.

Segmentation capabilitiesMarketers can rent list of recent product purchasers,

car buyers and so on. These list may allow the segmentation on the basis of geographic area, occupation, demographics etc…

PersonalizationPersonalized the message as well as direct media.Car owners are mailed letters congratulating them

on their new purchase and offering accessoriness.College students receives very personalized

information that recognizes that specific needs and offer solutions as well as college loan offers.

measure of offer effectiveness No other medium can measure the effectiveness of

its efforts as well as direct responses. Feed back is often immediate and always accurate

FrequencyDepending on the medium used it may be possible to

build frequency levels.. The programme vehicles used for direct response TV advertising are the most inexpensive available. So that the marketer can afford to purchase repeated times.

TimingWhile many media require long range planning and

have long closing dates, direct response advertising can be much more timely. Direct mail- can put together very quickly and distributed to target population.

Disadvantages of direct marketing

Image factors The mail segment of the industry if often referred to as

junk mail.Many people believe unsolicited mail and promotes junk

products and other dislike being solicited. Even some senders of direct of direct mail, including Motorola, GM, and Air products and chemicals say they throw out most junk mail they receive.

Content support direct response advertising mood creation is limited

to the surrounding programme or editorial content.Direct mail and online services are unlikely to create

a desirable mood. Raising cost

As postal rate increases direct mail profits are immediately and directly impacted.

The same is true for print cost, which dives up the cost of mailers and catalogs.

Personal Selling

Personal selling involves thetwo-way flow of communication between a

buyer and seller, often in a face-to-face encounter, designed to influence a

person’s or group’s purchase decision.

Characteristics (P.S)

1) PERSONAL SELLING IS FLEXIBLE.

2) PERSONAL SELLING BUILDS RELATIONSHIPS.

3) PERSONAL SELLING PRODUCE IMMEDIATE RESPONSE.

METHODS OF PERSONAL SELLING

a) Retail selling :

Selling to ultimate consumer.

b) Field Selling :

Business to business selling that take place in the prospective customer's place of business.

c) Telemarketing :

Using the Telephone as the primary means of communicating with prospective customers & Telemarketers often used computers for order taking.

d) Inside Selling :

Business to business selling in the Sales person’s place of business.

stages of Personal Selling

1) Prospecting

2) Pre-approach & Approach

3) Presentation

4) Close

5) Follow-Up

1) Prospecting

Identifying and Screening For Qualified Potential Customers.

2) Pre- Approach & Approach Pre-approach-Gathering information

(when to call, income level, risk tolerance) Approach-First meeting (Physical impressions highly important-appearance,

timeliness, confidence)

3) Presentation

Telling the Product “Story” to the Buyer, and

Showing the Product Benefits.Adaptive Selling- pro-active but selective

presentation of offerings,

based on pre-approach data

Consultative Selling – re-active presentation

for problem solution

Handling Objections

Objections are often indications of interest by the prospect and should not be viewed with misgiving by salespeople. The prospect is in fact requesting additional information to help him to justify a decision to buy. The prospect may not be fully convinced and the issues raised are thus very important. It also assists the salesperson to establish exactly what is on the prospect‘s

4) Close

Closing is the process where salespeople should recognize signals from the buyer, including physical actions, comments, and questions to close the sale.

Closing techniques can include:• Asking for the order• Reviewing points of agreement• Offering to help write up the order• Asking if the buyer wants this model or another one• Making note that the buyer will lose out if the order

is not placed now• Offering incentives to buy, including lower price or

additional quantity

5) The Follow-up

The sale does not complete the selling process. Follow-up activities are very important and are useful for the establishment of long-term business relationships. It is important to check if the products have been received in good condition, to establish the customer is satisfied etc.

Advantages of personal selling

Provides a detailed explanation or demonstration of product

Message can be varied to fit the needs of each prospective customer

Can be directed to specific qualified prospects

Instant feedback Personal persuasion can be used

“A good salesman can get you to buy ice in winter”