direct mktg
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi17-1
Direct Marketing
Marketing Management Text and Cases
Excel Books17-1
Direct Marketing17Chapter
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi17-2
Direct Marketing
³Direct marketing is an interactive system of marketing which uses one or more
advertising media to affect a measurable response and/or transaction at any
location.´
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Direct Marketing
A number of factors are promoting the attractiveness of direct marketing. The
main factors are:
Availability of consumer credit cards.
Availability of professional agencies.
Competitive Pressures, Rising Media Costs, and Market Fragmentation.
Increasing family incomes, including dual-income families.
Technological advances.
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Direct Marketing
Direct Marketing DecisionsFor successful implementation of direct-marketing, marketers must establish
objectives, specify target market, choice of strategies, and set evaluation
criteria.
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Direct Marketing
Direct-Marketing ObjectivesObjectives of direct marketing usually focus on seeking direct response in
terms of behaviour.
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Direct Marketing
Market SegmentationMarket segmentation and targeting the right customers are critical to the
success of promotional programme. Customers can be grouped on the basis
of age, sex, income, education, lifestyle, and stage in family life cycle etc.
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Direct Marketing
Direct marketers use a database.
The database should provide the answers to the following questions:
Where do they live?
How did they make contact first time?
What have they purchased?
How often have they purchased?
What is the monetary value of their purchases?
How do they order or purchase, through the Internet, mail, phone, or in
person?
What is known about them and their families, occupation, education,children, interests, attitudes, and payment histories etc.?
In case of B2B, who are the influencers, users, deciders, and
purchasers?
Location of corporate office and branch offices.
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Direct Marketing
Direct
Marketing
Flow Chart
D i r e c t M a r k e t in g
M a r k e t i n g R e s e a r c h
M a r k e tS e g m e n t a t i o n
D i re c t R e s p o n s e A d v e r t i s i n g
A d v e r t i s i n gC r e a t i o n
M e d i a
D i re c t M a i l T el ep h o n e B r o a d c as t I nt e rn e t N e w s p a p e r M a g a z i n e O t h e r s
D i re c t M a i l T el ep h o n e B r o a d c as t I nt e rn e t N e w s p a p e r M a g a z i n e O t h e r s
D i re c t R e s p o n s e E x p e n d i t u re s
D i s t ri b u t io n C h a n n e l s
M e a s u r a b le R e s p o n s e
V e n d i n gM a c h i n e s
M a i l O r d e r ,M a i l / P h o n e
P e r s o n a l V i s itt o S e l l e r
P e r s o n a l V i s it o r C a l l to B u y e r
C u s t o m e r / P r o s p e c tD a t a b a s e
R e s p o n s e / T r a n s a c t io n
C o m p l e ti o n
(Sourc e: G. Belch andM. Belch, Adver tising
and P romoti on. Basedon figure by MartinBair, Henry R. Hoke,Jr., and Robert Stone).
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Direct Marketing
Direct Marketing Offer and MediaThere are five important decision areas: product, offer, medium, distribution
method, and creative strategy.
One-Step Approach
Two-Step Approach
Direct Mail
Catalogues
Broadcast Media
Print Media
Telemarketing
Electronic Shopping
Direct Selling
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Direct Marketing
Advantages of Direct Marketing Direct marketing offers the advantage of reaching large number of well-
defined target customers and almost eliminates waste coverage.
Good quality databases are available from independent suppliers and
the marketer can segment customer groups with considerable precision.
Direct marketer can personalise the message.
Direct marketing can deliver almost perfect offers to customers.
Marketer can build desired frequency level based on media.
Direct marketing offers creative flexibility in different media.
D
irect marketer can quickly develop a list of specific profiles for directmail.
Direct marketing is more effective in building customer relationship.
It is very cost effective considering the sale generated per contact.
The results can be measured most accurately.