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5.direct and Online Marketing

Direct marketing involves communicating directly with customers to promote and sell goods and services without using intermediaries. It has seen phenomenal growth with new technologies and allows for quick product launches and customized offerings. Direct marketing channels include direct mail, catalogs, telemarketing, and online channels. Effective direct marketing requires maintaining customer databases to identify target segments and measure campaign results.

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798 views26 pages

5.direct and Online Marketing

Direct marketing involves communicating directly with customers to promote and sell goods and services without using intermediaries. It has seen phenomenal growth with new technologies and allows for quick product launches and customized offerings. Direct marketing channels include direct mail, catalogs, telemarketing, and online channels. Effective direct marketing requires maintaining customer databases to identify target segments and measure campaign results.

Uploaded by

Avinash Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Direct and Online Marketing

What is Direct Marketing?


Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.

DIRECT MARKETING
The Net, Telemarketing, Mailers are all channels of Direct Marketing Direct Contact between a company & its customers Effectiveness can be measured because direct feedback available from customers; eg. how many respond to a call/mailer/net A database is maintained; main requirement for competitive advantage

DIRECT MARKETING
Growth and Benefits
Phenomenal growth with latest technologies being used; global scale, web-based marketing, e mail marketing In traditional media, a lot of wastage & cost effectiveness is suspect : DM zeroes in on target Now products are continuously being launched & these have to reach customers quickly Customers want companies to design products according to specifications, so they want to interact directly There are issues of information privacy & physical privacy

Direct Marketing Channels


Direct mail Catalogs Telemarketing

Other direct response

Constructing a Direct-Mail Campaign Establish objectives Select target prospects Develop offer elements Test elements Execute

Measure success

DATABASE MARKETING
Marketing by effective use of consumer information e.g. age of car, banks offer loans, age of children educational loans, credit cards, educational software

DATABASE MARKETING
Helps customers evaluate markets identify customer segments & prospects search for other customer segments with wants & needs e.g. Holiday Company can market Puri as honeymoon destination or for old people identifies tastes & needs whether company is getting maximum business from a customer opportunities to provide insight into various markets

RFM Formula for Selecting Prospects


Recency

Frequency Monetary value

Elements of the Offer Strategy


Product Offer Medium Distribution method Creative strategy

FORMS OF DATABASE MARKETING


Catalog Marketing : Companies send catalogs giving details of products, and expects response by phone/post Retailers use it Charagh Din, Burlingtons, Amazon Company Marketer has to consider whether a product is priced right in catalog, whether customers would buy a product through catalog, whether it can be depicted properly, whether it can be shipped properly; Costs are reduced $ 14 vs $ 34

FORMS OF DATABASE MARKETING


Telemarketing Communicates with customers through telephones; needs highly trained staff; aimed at people who are prospective customers for building long-term relationships rather than immediate sales (tele sales) Makes calls at customers convenient time; makes appointments for sales people to follow up; improve in telecommunication; results in companies being integrated with telephones; use of third party service providers (call centres)

Types of Telemarketing
Telesales Telecoverage Teleprospecting Customer service and technical support

FORMS OF DATABASE MARKETING


Kiosk Marketing Kiosks or electronic touch screens which sure customers information about products/services of company; requires small space 4 sq. ft., operate 24/7, eg. Railways, Infosys, ATMs

Convenient for shoppers in retail

FORMS OF DATABASE MARKETING


Television
Direct Response Advertising
At-home shopping channels TV programmes where various products are displayed, demonstrated & tries to obtain orders; customers can shop from convenience of their home; very popular in the US Videotext

FORMS OF DATABASE MARKETING


Other Media Newpapers, Magazines, Journals, PCs, leaflet etc. Unlike in other Media, customers cannot be addressed individually; eg. in magazines sports are targeted for wide audience, so targeting may be lost. Coupons get better response whether in magazines/paper; mobile phones are becoming popular media

Components of the Mailing


Outside envelope Sales letter Circular Reply form Reply envelope

Interactive Marketing
Tailored messages possible Easy to track responsiveness Contextual ad placement possible Search engine advertising possible Subject to click fraud Consumers develop selective attention

Public Issues in Direct Marketing


Irritation Unfairness Deception/fraud Invasion of privacy

Direct Marketing in India


Cosmetic companies use Direct Marketing 70% of sales force are women; AMWAY is a big name in Direct Marketing Major areas of growth : financial services, telecom, credit cards, insurance, automobile, home appliances, entertainers, (Happy Zone), Food products, holiday sharing

Direct Marketing in India


Fair response in urban areas; resistance in rural areas TV home shopping catching on Mail order not very popular; delivery in damaged condition, delays Popularity of telemarketing in generating sales leads

ONLINE MARKETING
Internet has revolutionized business Goods / services / products can cross international barriers at click of mouse Powerful technologies : Data mining, Satellite telecom, Mobile telecom, IVR

Online Promotional Opportunities


Websites Microsites Search ads Display ads Interstitials Internet-specific ads and videos Sponsorships Alliances and affiliate programs Online communities Email Mobile marketing

Advantages of Online Marketing a) reach large customer base globally b) can shop from home/workplace; convenient c) can compare to competitors d) direct interaction between user & seller e) no traditional stores costs f ) can count exact number of customers visiting site

Disadvantages a) people not accustomed online b) reluctance to give credit card details c) customers want to touch & feel good

e-Marketing Guidelines
Give the customer a reason to respond Personalize the content of your emails Offer something the customer could not get via direct mail Make it easy for customers to unsubscribe

Online Advertising
Forums : discussion group on commercial website that link users to libraries, chatrooms Newsgroups : Customers can praise/express discontent about a product (Yahoo) Bulettin Boards : Electronic notice board where mails sent, discussions held Web Communities : Users who want to share information online through message boards (eg. yahoo groups) E-mails : Should be targeted carefully Web Casting : Broadcasting through Internet; user sent information after his consent

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