Direct Marketing.

: Definition of direct marketing; Marketing Mix – 4 Ps: a brief understanding of Product,

Price, Promotion and Place

Define direct marketing. (2 marks)

Direct marketing is a form of marketing that attempts to send its messages directly to consumers,
without the use of intervening mass media.

 It differs from regular advertising in that it does not place its messages on a third party
medium such as a billboard or a radio commercial would. It is cost-effective, measurable and
reliable ways of managing customers.

 Technology has made it so much easier for us to communicate directly with our customers

 Mass marketing techniques less effective in getting the response you want from your
customers - though of course they are still very powerful in developing and sustaining
branding.

 Direct marketing is the planned implementation, recording, analysis and tracking of

customers' direct response behavior over time to derive future marketing strategies, for
developing long-term customer loyalty and ensuring continued business growth.

 Jeep’s global positioning is ‘adventure, freedom and passion anytime, anywhere’ was
looking for solution to benefit from the remaining customer data for the launch of the new
Jeep Cherokee model.

 To invite people to test drive they prepared a kit which reflects the spirit of Jeep. Various
clues were given through the kit to maintain the DNA of Jeep. A clock for anytime and a
compass for anywhere, and elements in nature for adventure, freedom and passion.

 76% customers come to Jeep for test drives. Significant number of the customers’ claims for
the preorder.
  To encourage children to take up athletics, Nike came up with a cost-effective, yet
memorable, direct mail marketing campaign. Shoeboxes were sent out to targeted
customers, and the limited edition boxes were designed to resemble a stadium once
opened. Not only did they have the print of the stadium inside, but sound was
produced when opened, allowing the recipients to hear the roar of the crowds.

4 P’s of marketing:

Explain in detail 4 P’s of marketing. (5marks)

In the 1950s Neil Borden popularised the term marketing mix which contained more than ten
elements of marketing. The fundamental among them was the 4 Ps of marketing. The very purpose
of marketing is to make your promising customers aware of your products. A marketing mix is the
set of those factors which a company can leverage to make the consumer purchase its products.

Marketing mix usually refers to the set of 4Ps viz. Product, price, Promotion, Place. But
theoretically, the marketing mix is a much broader term.

1. Product: A product is the heart of the marketing mix. All marketing activities begin with the
product. The product is not a physical entity alone; it captures the whole tangible and intangible
aspects like services, personality, organization, and ideas.

Without a product, we have nothing to price, promote or place. Hence, of all the 4 Ps the Product is
the most important element.

Here, it is essential to understand the term product mix concerning marketing. The product mix is the
whole range of products a company offers to its customers. The decisions regarding product mix will
depend on many factors like:

Design, Features, Brand name, Product variety, Quality, Services, Packaging, and returns, etc.
2. Price is the monetary value that has to be paid by a customer to acquire or own the product of a
company. It is the critical revenue-generating component of the firm.

Pricing decisions should be taken with great care, as it is a double-edged sword. If your product is
priced too high, it may exude a feeling of high quality. At the same time, it will make your product
placing to limited and standard stores. So the marketer must know the art of wielding this dangerous
sword of pricing.

The pricing mix decisions need to consider the below marketing variables: Methods of pricing are:

Allowances to wholesalers, retailers, (promotional or end of season) Discounts, agents (Tupperware)

The pricing strategy of your organization must align with the overall goal of your organization to
blend smoothly.

3. Promotion: It aims to serve two objectives. One, it informs the potential customers about your
product and secondly, it persuades them to buy your product. The promotion mix will thus include
the various means that you can use to communicate with the target audience. An effective promotion
mix will ensure good sales and a marketer must strive to create a conducive environment.

The main elements of a promotion mix are:

Advertising, Personal selling, Public relations, Direct marketing, Publicity -social media, print, etc.,
Sales promotion
4. Place: Place or physical distribution deals with the transfer of ownership of the product from the
manufacturer to the customer.

The margin of your profit depends on how quickly you can turn over the goods. The more swiftly
the products reach the higher sale, the more likely are the chances of satisfying the customers and
increase brand loyalty. Hence the Place factor is crucial in ensuring your product’s competitiveness
in the market.

The following are the elements of a distribution mix:

Channels of distribution (wholesaler, retailers), Transport, Order processing, Coverage- rural or

urban market