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Direct MarketingPersonal Selling

Direct marketing is defined as using advertising media to stimulate immediate behavior change that can be tracked, recorded, analyzed, and stored in a database. It uses interactive, two-way communication and advertising media to directly reach customers. All direct marketing activities can be measured to track spending, responses, and return on investment. Databases store customer histories, responses, and other information for future use. The goal of direct marketing is to increase customer lifetime value and build customer loyalty through repeat purchases. It aims to personalize the customer experience through one-to-one marketing and mass customization. When combined with other marketing strategies like advertising and public relations, direct marketing can be part of an effective integrated marketing communications approach.

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0% found this document useful (0 votes)

106 views54 pages

Direct MarketingPersonal Selling

Uploaded by

Hatniah Hatniah

We take content rights seriously. If you suspect this is your content, claim it here.

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Download as PDF, TXT or read online on Scribd

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Satrio Sudarso, SE, MM

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.
• DIRECT MARKETING

Interactive Track Stored in

Use of
advertising Record database for
media & future retrieval
Analyze & 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 Basics Of Direct Marketing
▪ The basic purpose of any direct marketing
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:
a) Sales representatives
b) Get people to enquire for information
c) Build traffic in retail stores and
d) Impel people to give to causes can also be
measured
Media List
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
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
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
Measuring Customer Value
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.
Building Customer Loyalty
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
One–to-One Marketing
•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 one-
to-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
Customer Relationship Marketing (CRM)
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
Customer Relationship Marketing (CRM)

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.
Mass Customization:
Key to One-to-one 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
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
1. Direct mail
2. E-mail
3. Banner ads and
4. Print ads
Integrated Communications
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
Definition – Integrated Communications
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
Offer
Database
Respon

Fullfilment
Offer
Kriteria pesan:
1. Apa yang harus dikatakan > Isi Pesan
2. Bagaimana mengatakan secara logis >
Struktur Pesan
3. Bagaimana mengatakan secara simbolis
> Format pesan
4. Siapa seharusnya mengatakanya >
Sumber pesan
Database
❑ Database: Nama, alamat, no. telpon dan catatan
kontribusi
❑ Informasi spesifik > Memfasilitasi komunikasi yang lebih
bermakna > Customized pesan sesuai kekhasan pemilih
❑ Fungsi Database:
1. Identifikasi prospek
2. Memadukan konsumen dan penawaran
3. Memperdalam loyalitas konsumen dll
Respon
❑ Sesuatu yang dikatakan dan dilakukan sebagai jawaban
dari pesan pesan komunikasi pemasaran
❑ Misal aplikasi dalam customer service online
Fullfillment
❑ Bentuk pendistribusian direct marketing > Produk
ataupun informasi yang dipesan pelanggan harus segera
dipenuhi
PERSONAL
SELLING
Qualities in a Salesperson

Liked Disliked

Reliability/credibility Is difficult to communicate

Professionalism/ integrity with
Product knowledge Lacks knowledge of the
Innovation in problem customer’s company
solving Is overly aggressive
Presentation/ preparation Makes promises that his or
her company cannot
deliver
Personal Selling

Overview

A form of person-to-person communication in

which a salesperson works with prospective
buyers and attempts to influence their purchase
needs in the direction of his or her company’s
products or service
Personal Selling

Personal Selling’s Primary Purposes

Enhancing brand equity

Educating customers
Providing product usage and marketing
assistance
Providing after-sale service and support
to buyers
Personal Selling

Personal Selling’s Unique Role

1. High level of 4. Communicate

customer attention more technical and
complex information

2. Customize the 5. Demonstrate a

message product’s functioning
and characteristics

3. Yields immediate 6. Develop long-term

feedback relationship
Personal Selling

Attractive Features

Job freedom

Variety and challenge

Opportunities for
advancement

Attractive
compensation
and non-financial
rewards
Personal Selling

Modern Selling Philosophy

Based on trust and mutual agreement

Customer-driven atmosphere
Act as if on customer’s payroll
After-sales service is key
No one solution is appropriate for all
customers
Professionalism and integrity are essential
Personal Selling

Selling Activities
Personal Selling

Types of Sales Jobs

Trade Selling
Typically employees of
manufacturers
Missionary Selling Sell through their direct
customers
Requires limited
Technical Selling prospecting and places
greater emphasis on
servicing accounts
New-business Selling

Retail Selling