direct marketing
DESCRIPTION
how direct marketing works and the different types and methods.TRANSCRIPT
Question 26Explain the rapid growth of Direct Marketing over the past few decades. What are the advantages and drawbacks of using this marketing communications tool? With reference to any one (1) local or global company, evaluate its use of any three (3) direct marketing tools.
LEARNING OBJECTIVESTo provide a clear understanding of Direct
Marketing.To explain the rapid growth of this
marketing communication tool over the past few decades.
To examine the advantages and drawbacks of Direct Marketing.
To evaluate Proactiv’s use of three (3) Direct Marketing tools.
WHAT IS DIRECT MARKETING?
Direct marketing is a system of marketing by which organizations
communicate directly with target customers to generate a response or
transaction. This response may take the form of an inquiry, a purchase, or
even a vote.(Belch & Belch 2009)
Direct marketing is a system of marketing by which organizations
communicate directly with target customers to generate a response or
transaction. This response may take the form of an inquiry, a purchase, or
even a vote.(Belch & Belch 2009)
Direct marketing is the total of activities by which the seller, in effecting the
exchange of goods and services with the buyer, directs efforts to a target
audience using one or more media for the purpose of soliciting a response by
phone, mail, or personal visit from a prospect or customer. (Peter Bennett )
Direct marketing is the total of activities by which the seller, in effecting the
exchange of goods and services with the buyer, directs efforts to a target
audience using one or more media for the purpose of soliciting a response by
phone, mail, or personal visit from a prospect or customer. (Peter Bennett )
Direct marketing uses databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes.
There are two main types of marketing databases,
1) Consumer databases (B2C) 2) Business databases (B2B)
Consumer Database
Name
Address/Zip Code
TelephoneNumber
Occupation
Age
Gender
MaritalStatus
FamilyData
Education
Income
A Business-to-Business Database
Contact Info
Contact Title
TelephoneNumber
Purchase History
CreditHistory
IndustrialClassification
Size of Business
Revenues
Number ofEmployees
Time in Business
Direct Marketing Strategies
One-StepOne-Step Two-StepTwo-Step
• The medium is used directly to obtain an order.
• Viewers are urged to phone toll-free number to place an order.
• The goal is to generate an immediate sale when the ad is shown.
• May involve the use of more than one medium.
• The first effort is designed to screen, or qualify, potential buyers.
• The second effort generatesthe response.
GROWTH OF DIRECT MARKETING
Direct marketing is one of the fastest growing forms of promotion in terms of dollar expenditures. A number of factors have led to this extraordinary growth. They include:
Consumer credit card Over one billion credit cards are in circulation.
Technological Advances Better communications via electronic media & computers Rapid package delivery
Cont’d
Changing Structure of Society and the market The number of women working outside the home jumped
from 42 % to 58 % between 1980 and 1990( Kobs, 1992). Given less time to go shopping, many of these women
found it convenient to select and examine merchandise in their own homes.
Other socioeconomic factors Population growing older, Rising discretionary income
Cont’d
External factors Rising cost of gasoline The availability of toll-free telephone
numbers The widespread availability of mailing lists.
Direct Marketing Advantages
Selective reachSelective reach
Segmentation capabilitiesSegmentation capabilities
Frequency potentialFrequency potential
FlexibilityFlexibility
PersonalizationPersonalization
CostsCosts
Measures of effectivenessMeasures of effectiveness
Direct Marketing Disadvantages
Rising CostRising Cost
Deception and fraudDeception and fraud
Accuracy of databaseAccuracy of database
Invasion of PrivacyInvasion of Privacy
Image FactorsImage Factors
IrritationIrritation
ABOUT PROACTIV
Proactiv is a brand of acne treatment and skin care products distributed by direct marketing company Guthy-Renker.
Proactiv was created by two dermatologists, Katie Rodan and Kathy Fields in 1995.
Proactiv is a three-part acne treatment kit that is sold on a subscription basis. It includes a cleanser, toner and treatment.
The product clears your acne and helps prevent future breakouts. Proactiv+ also delivers the exceptional skincare benefits of a visibly hydrated, even toned, radiant complexion.
DIRECT RESPONSE TELEVISION MARKETING
Direct marketing via television has two basic forms: Long form (usually half-hour or hour-long segments that
explain a product in detail and are commonly referred to as infomercials) .
Short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website).
DIRECT MAIL MARKETING It involves sending an offer, announcement , reminder
or other item to a person through mail.
It is a popular medium as it permits target market selectivity, can be personalized, is flexible.
Cost involved is very high than the mass media but the people reached are better prospects.
KIOSK MARKETING Kiosk- A small, temporary, stand-alone booth used in
high-foot-traffic areas for marketing purposes.
Kiosks are machines kept in shopping malls and other such places by organizations to spread the information and generate orders from customers who visit such Free standing, semi-permanent display or retail outlet, within a large retail establishment or a shopping mall.
CONCLUSION Direct marketing is the use of consumer direct channels to reach and deliver goods and
services to consumers without using marketing middlemen.
It helps the companies to opening dialogue directly between themselves & the end
consumers of their products rather than through intermediaries.
The ultimate purpose of direct marketing is to establish and manage direct long term
relationships with customers by capturing personal information in a database.
The database of a company is at the heart of any good direct marketing strategy. It must
be up to date and accurate.
REFERENCE Belch, G. E., & Belch, M. A. (2009). Advertising and promotion: An integrated
marketing communications perspective.
Kobs, Jim. (1992). Profitable Direct Marketing, 2nd ed. NTC Business Books.
Kotler, P., & Armstrong, G. (2006). Principles of Marketing, 11th Edition. Prentice Hall.
Reutterer, T., Mild, A., Natter, M. and Taudes, A. (2006), “A dynamic segmentation approach for targeting and customizing direct marketing campaigns”, Journal of Interactive Marketing, Vol. 20 Nos 3/4, pp. 43-52.
http://www.dmn.ca/Articles/Articles/2004/readerforum1.htm. Retrieved February 28, 2015.