Direct Marketing with other IMC Tools

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0.1 Introduction ............................................................................................................................................ 5 02. Direct marketing ............................................................................................................................... 6

02.1 What is Direct marketing .................................................................................................................. 6 02.2 Why use direct marketing ................................................................................................................. 6 02.2.1 Buyers benefits through using direct marketing ....................................................................... 7 02.2.2 Sellers benefits through using direct marketing ....................................................................... 7 02.3 Growth of direct marketing ............................................................................................................... 7 02.4 Advantages and disadvantages of direct marketing ...................................................................... 7 Advantages ............................................................................................................................ 8 Disadvantages ....................................................................................................................... 8

02.4.1 02.4.2

02.5 Issues in direct marketing ................................................................................................................. 8 03. 04. Direct marketing and IMC ................................................................................................................ 8 Forms of direct marketing ................................................................................................................. 9

04.1 Direct mail ........................................................................................................................................ 9 04.2 Catalogues ....................................................................................................................................... 10 04.3 Telemarketing ................................................................................................................................. 10 04.4 Infomercials .................................................................................................................................... 10 04.5 Online marketing ............................................................................................................................ 10 04.6 Face to face selling.......................................................................................................................... 11 04.7 E-mails ............................................................................................................................................ 11 04.8 Coupons .......................................................................................................................................... 11 05. Case studies..................................................................................................................................... 11

05.1 Dell computers ................................................................................................................................ 11 05.1.1 Dell overview ........................................................................................................................... 12 05.1.2 Main products offered .............................................................................................................. 12 05.1.3 Marketing communication strategies used ............................................................................... 13 5.2 Tiffany & Co ..................................................................................................................................... 16 05.2.1 Tiffany & Co Overview ........................................................................................................... 16 05.2.3 05 06 Products and services offered ............................................................................................. 16

How Tiffany use Direct Marketing to contact their target market .................................................. 17 Other IMC tools that use by Tiffany & Co ..................................................................................... 19 Tiffany & Co Holiday Ad Campaign 2009 ......................................................................................... 19 Page | 3

Tiffany & Co Ad Campaign Spring 2011 ........................................................................................... 19 Tiffany & Co Ad Campaign Fall/Winter 2011/2012 .......................................................................... 19 07 08 Conclusion ...................................................................................................................................... 21 Reference ........................................................................................................................................ 22

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0.1 Introduction
Since when did any business not want to connect with its customers? Many large
international companies are using direct marketing to enjoy the enormous number of benefits deriving from it. It is when an organization deals directly with their customers with no middle person

involved. And this is effective when it comes to reaching potential customers, and maintaining the relationship with the existing customers. There are several reasons to consider direct marketing. For instance, the customers may develop loyalties as they get to know the organization, and they can give feedback on the available products most importantly its cost effective. The effectiveness can be easily measured with quick results. Its also a cost effective method to reach a large number of customers. It is always convenient for both the consumers and the producers. Making the right choice between the best direct marketing strategies for an organization could be huge as they all have their advantages as well as disadvantages. Basically, direct marketing is a part of IMC which uses a collection of forms and methods that enable an organization to market directly to their customers (B2B/B2C). IMC involves several strategies. Namely, Advertising, Sales promotions, Public relations, Direct marketing, and Personal selling. Direct marketing is basically a part of several strategies in IMC. And it is when the producer connects with the end user, who could be a consumer or even a business. This process involves Direct mail, catalogue, telemarketing, and several other techniques.
This report will present a critical analysis on the whole concept of Direct marketing, and how

it is used together with other IMC tools. It also analyses two products that uses direct marketing together with other IMC tools.

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02. Direct marketing

02.1 What is Direct marketing
Direct marketing is defined as an interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase, or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customer, prospects, or donors Basically, direct marketing is a part of IMC which uses a collection of forms and methods that enable an organization to market directly to their customers (B2B/B2C), and this way of direct communication will help to generate a direct response or a transaction. Direct marketing involves several forms such as, Direct mail, Catalogues, Telemarketing, Direct response ads, Internet sales and Face to face selling. Through this means of communication the organization is enabled to find out what exactly the customers need and want.

02.2 Why use direct marketing

Direct marketing is when an organization deals directly with their customers with no middle person involved. And this is effective when it comes to reaching potential customers, and maintaining the relationship with the existing customers. There are several reasons to consider direct marketing. For instance, the customers may develop loyalties as they get to know the organization, and they can give feedback on the available products most importantly its cost effective. The effectiveness can be easily measured with quick results. Its also a cost effective method to reach a large number of customers. Direct marketing will help generate a measurable response, could be a request for further details, or even a transaction.

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02.2.1 Buyers benefits through using direct marketing Direct marketing is always convenient for the customers, its easy and private. It allows the customers with product access, selection, more options, better choice and more importantly saves the customers time. Could shop 24 hours and order for self and may be others, without having to go to an actual store, saves money as no middle person is involved and buying directly from the company. Other than that it could also be fun and entertaining. 02.2.2 Sellers benefits through using direct marketing Organizations that use direct marketing to reach their customers will build a good and ongoing relationship with their potential and existing customers with better customer understanding. The responses are easy to measure and will bring out higher success rates. It also reduces costs while increasing efficiency and providing flexibility and also geographically unbounded.

02.3 Growth of direct marketing

Direct marketing is a popular and a fast growing form of reaching customers and achieving organizational success. This growth is a result of several factors such as, technological advances, consumer credit cards, and factors including industrys improved image. Other than that the ability to personally interact with the organization that produced the product has become a reason for this extraordinary growth.

02.4 Advantages and disadvantages of direct marketing

Making the right choice between the best direct marketing strategies for an organization could be huge as they all have their advantages as well as disadvantages.

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02.4.1 Advantages Advantages of the direct marketing model involves, Eliminating waste coverage, measuring the effectiveness as feedback is often received and is accurate, no other form of advertising could reach customers than a direct media, its always flexible.

02.4.2 Disadvantages Increasing costs (printing costs and postal costs), cost of generating a lead, the e-mails are often referred to as junk mails are some disadvantages for direct marketing model.

02.5 Issues in direct marketing

Deception or fraud Irritation to customers Databases only allow directing market to specific customers. The growth of direct marketing may depend on technology Payments can be an issue (not all consumers have credit cards) Telephone calls could be disturbing

03. Direct marketing and IMC

Integrated marketing communication is, A concept of marketing Communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency, and maximum communications impact (Belch & Belch, 2004, p. GL8). Whereas direct

marketing is defined as an interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase, or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customer, prospects, or donors

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IMC involves several strategies. Namely, Advertising, Sales promotions, Public relations, direct marketing, and Personal selling. Direct marketing is basically a part of several strategies in IMC and it could be mixed with other IMC tools.

Direct marketing is when the producer connects with the end user, who could be a consumer or even a business. This process involves Direct mail, catalogue, telemarketing, and several other techniques. Direct marketing involves a two way communication process with target customers whereas most other marketing strategies are using a one way communication process. Steps in marketing communication process involves, identifying target audience, determining the objectives of communication, designing the message, establishing the budget.

04. Forms of direct marketing

There are various options available when it comes to direct marketing. These forms involve direct mails (could be brochures or catalogs), Telemarketing, E-mailing, or even print media (magazines). Each of these forms of marketing carries its own benefits and disadvantages. Some of these methods came into existence with the growth of marketing over the internet. Building a proper database, generating leads, effective campaigns, are important steps to be taken in order to reach success through these forms.

04.1 Direct mail

Direct mail is the most common form of direct marketing. Mails sent through postal system to the targeted audience will help attract new customers. This will also help inform the customer about the available products and services. Direct mail is an effective way to communicate. Types of direct mails include catalogs, flyers, postcards, sales letters, vouchers, discounts, inclusions. The success of the direct mail depends on the mailing lists and the ability to segment markets. It could also be a disadvantage on one hand, proving to be expensive with mailing costs, and printing costs.

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Choosing an offer that can improve responses matters a lot as the success of the direct marketing effort lies in the offer. Attractiveness of offer, special pricing, free or overnight delivery, Discounts, vouchers, free gift cards, coupons, free catalogues must be included to make it a success.

04.2 Catalogues
Catalogs are a great way to reach customers as it provides the customers with all the information on available products and which also makes it easy for the customers to make their selections on which products to buy. Catalogues could be very effective in attracting customers with the colorful representation. And also has a chance of stimulating further interest and encourage the customer for purchasing the product. Catalogues are a reflection of the business, and using quality materials and using professional support in creating them will be important. At the same time it could be a disadvantage being expensive both in production and distribution.

04.3 Telemarketing
Telemarketing is one of the most frequently used as it provides the organization to address customer needs. It brings the organization an immediate response.

04.4 Infomercials
Infomercials are the direct response TV advertisements. Infomercials could be used for brand awareness and are successful in generating large revenues within a short period of time. Infomercials makes it convenient for purchase as all what they have to do is to call the toll-free number and order the product.

04.5 Online marketing

Online marketing basically means the direct advertising done on the internet (I.e. Advertisements, pop-ups). And use of internet to advertise and sell products and services. this involves pay per click advertising, email marketing and blog marketing.

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04.6 Face to face selling

Face to face selling is known to be the most traditional method of direct marketing, where a sales person travels door to door selling products.

04.7 E-mails
Similar to the direct mail except its electronic. This is popular for its low cost and wide reach. It carries valuable information right into the hand of potential customers with less cost. A range of enclosures such as brochures, coupons, vouchers, free gift cards are included as in direct mails. The other fact is to maintain a database which includes information about both potential consumers and businesses.

04.8 Coupons
Coupons are one easy way to build customer relationships and also long term loyalty. Coupons could be directly mailed through postal and internet.

05. Case studies

Many large international companies are using direct marketing to enjoy the enormous number of benefits deriving from it. A good example for such a huge and successful company would be Dell Computers. They have enabled the customers to reach them directly with no middle person involved.

05.1 Dell computers

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05.1.1 Dell overview

Dell was found in 1984 by Michael Dell. Dell computers is one of the leading companies which offers a wide range of products including, laptops, desktops, notebooks, workstations, storage, and servers to both consumers and businesses. It wouldnt be wrong to call dell to be one of the most successful companies due to its direct marketing strategy. Unlike many other companies they provide their customers directly with products and services.
05.1.2 Main products offered

A large variety of products and services are offered to different target markets such as Employees & Students, Home & Home Office, Small & Medium Business (1 -500 employees), Large Business (500+ employees), Public Sector, and Partners. For home Laptops, Desktops, Electronics, accessories and printers, Alienware, PC services setup and security, technical support and drivers, Employees and students.

For small and medium Businesses laptops and notebooks, desktops and workstations, servers, storage, networking and management, printers and ink, electronics and accessories, software, and services.

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 For public sector- central government and defense, higher and further education, healthcare, support and drivers. For large enterprise- services, solutions, laptops and tablets, desktops and workstations, servers, storage, networking and management, blade servers, software and peripherals, support and drivers.

05.1.3 Marketing communication strategies used

It wouldnt be wrong to call Dell to be one of the most successful companies due to its direct marketing strategy. Unlike many other companies they provide their customers directly with products and services. Dell, Apple, HP and COMPAQ are intense direct competitors as they offer the same range of products. They differentiate themselves through other facts like price, communication and types of distribution.

Dell uses the direct marketing model, which helps them to reach their customers and act fast. Dell also uses a several number of other marketing strategies to reach its potential consumers and businesses

Consumers can easily purchase the products online, via telephone, or even through dedicated sales representatives. Even after the purchase the customer has access to volume of support and other technical information. . The company also manufactures the products according to the customer orders and requirements building a flexible good relationship between the company and the customers.

There are environmental programs where they bring environmental consideration into the Dell product life cycle. And also an e-newsletter is used to update their potential consumers with new products and
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offers, Other than that Dell have advertised in several types of Medias such as television, internet, and also printed media such as newspapers, catalogues, and magazines. They offer free bonus products encouraging their consumers. Efficient communications channels like Facebook and twitter are also used to promote loyalty.
Dell advertises in the national newspapers, on the television, internet and also magazines. (I.e. Dell power solutions magazine)

The power to do more themed Umbrella campaign by Dell featuring Doctors, business people and teachers who all wanted to do more for their respective customers. The advertisements featured B2B solutions and were also aimed at individual customers. Free shipping with a free flat screen monitor, free shipping with a free printer, half priced laptop sales, coupons.
05.1.4 DELL CAMPAIGNS

Employee Purchase Program (EPP) Dell selected the EEP program in 2004 targeting a various and large number of target groups. Their aim was to sell their products to consumers with the idea that they are already familiar with the products. And also the members of EEP enjoy discounts and special promotions.

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The power to do more campaign Another campaign with Ads in newspapers, magazines, online, on billboards, in airports and on TV, was featuring Doctors, Business people and teachers who all want to do more for their respective customers.

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5.2 Tiffany & Co

05.2.1 Tiffany & Co Overview

Tiffany & Co. is a retailer that specializes in fine jewelry. Tiffany & Co has become one of the most well known companies in the world. Continuing to grow, the company has been able to stay successful over a long period. Tiffany & Co designs and manufactures goods such as timepieces, silver, china, crystal, and stationery. Tiffany & Co. has been able to expand its consumer market by expanding its product line to include lower priced merchandise. This includes item such as key chains and porcelain mugs. The goods produced by Tiffany & Co. are available in some 150 stores and boutiques worldwide, through its catalogues and website. Tiffany & Co plans to expand by opening new locations in such venues as upscale shopping centers.

05.2.3 Products and services offered

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The Company sells timepieces, sterling silver goods (other than jewelry), Bracelets, Brooches, Earrings, Necklaces & Pendants, Rings, Silver Jewelry , Statement Jewelry, Tiffany Alphabet, Tiffany Lockets, Wedding Bands, crystal, stationery, fragrances, Engagement Rings, Solitaire Jewelry, Tiffany Yellow Diamonds, Women's, Men's and Cocktail Watches, gifts for men and women, Cuff Links, Leather Goods, tiffany Designers jewelry personal accessories and leather goods, wholesale sales of diamonds and earnings received from third-party licensing agreements.

Accessories
Sunglasses / Fragrance / Handbags / Tiffany Leather Goods / Small Leather Goods / Key Rings / Scarves / Sterling Accessories / Writing Instruments

Gifts
Mother's Day Gifts / Anniversary Gifts / Baby Gifts / Business Gifts / Engraved Gifts / Fragrance / Gift Cards / Gifts for the Home / Wedding Gifts

Table
Barware / Bowls / Candlesticks / China / Clocks / Flatware / Frames / Pitchers / Platters & Trays / Serving Accessories / Stemware / Table Accessories / Vases

05.2.4 How Tiffany use Direct Marketing to contact their target market

Besides distributing products from the stores, the company engages in direct marketing activities. The company sells products through e-commerce, catalogue and business gift sales. Tiffanys catalogue mailings were seen as a powerful sales and image tools for the stores as well as a source of profit in themselves. The company's direct-marketing effort also included business-to-business sales, which included a corporate gift catalogue each year. Corporate customers purchased Tiffany products for business gift giving, employee service and achievement recognition awards, customer incentives, and other purposes. Tiffany and its subsidiaries distribute a selection of their products in the United States and Canada through the Websites at www.tiffany.com and www.tiffany.ca. Tiffany also distributes catalogues Page | 17

of selected merchandise to its list of customers in the United States and Canada and to mailing lists rented from third parties. SELECTIONS catalogues are published four times per year, supplemented by other targeted catalogues. Business sales executives call on business clients, selling products drawn from the retail product line and items developed for the business market, including trophies and items designed for the particular customer. Selected TIFFANY & CO. merchandise is sold to independent distributors for resale in markets in the Central/South American, Caribbean and Canadian regions.

After the initial "Blue Book" Tiffany catalogue was published in 1845, Tiffany continued to use their catalogue as an advertisement strategy. Tiffany still has a catalogue for subscribers, but their advertisement strategy is no longer focused on its catalogue. The catalogue was one of the first catalogues to be printed in full color and was free until 1972. Tiffany's mail-order catalogues reached 15 million people in 1994. Tiffany also has a corporate gift catalogue each year. Corporate customers purchase these Tiffany products for business gift-giving, employee service and achievement recognition awards, and even as customer incentives. In addition to the mail-order catalogue, Tiffany places its advertisements in many locations, including bus stops, in magazines, newspapers, and online. Tiffany routinely places ads in Vanity Fair, The New York Times Magazine, Architectural Digest, Money, Conde Nast Traveler, Black Enterprise, and Texas Monthly. Tiffany even places banner advertisements in The New York Times app for the iPhone. Tiffany's is the maker of the Vince Lombardi Trophy, made annually to be awarded to the NFL team that wins the Super Bowl that year. Tiffany & Co. also made the 2010 World Series Rings for the San Francisco Giants. The MLS championship trophy, won by the Los Angeles Galaxy in 2011 was also made by Tiffany & Co.

Tiffany in New York commissioned to create a range of press ads for their Valentines campaign. Adorned press ads on the pages of the New York Times and other publications, as well as being used online and in Tiffanys Valentine Catalogue.

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05.2.5 Other IMC tools that use by Tiffany & Co

Tiffany & Co Holiday Ad Campaign 2009

Tiffany & Co Ad Campaign Spring 2011

Tiffany & Co Ad Campaign Fall/Winter 2011/2012

Last year, China was the worlds second-largest market for both diamonds and gold. Tiffany expects China to surpass the United States to become the biggest jewelry market in the world over the next five to 10 years, the report said. Source: AFP
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Consumers are introduced to Tiffanys holiday video and in-store incentives through product images when they click on banner advertisements on Pandora. Tiffany has introduced quite a few collections and campaigns through the radio service provider. Pandora users are served banner ads that, when clicked, bring consumers to a page where they watch Tiffanys holiday campaign video.

Tiffany & Co is launching a micro-website called, What Makes Love True? http://www.whatmakeslovetrue.com/ This website is promoting the Tiffany brand, claiming to be a Tiffany guide to matters of the heart. The website opens to a picture of a sophisticated couple walking together.

The companys strategy for enhancing potential customers awareness is to advertise and expand its public relations programs. This would include activities like educating customers about the brand and its fine products. For example, Tiffanys has advertised its products via posters on telephone kiosks as well

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as full-page advertisements in special publications around the world. The company aims to maintain a strong voice to customers so that they can experience the joy of shopping at Tiffany.

Tiffany & Co. has a competitive advantage. In order to stimulate consumers' purchasing, company uses sales promotions such as coupon codes, promotion codes and discount deals. One of the other promotional methods that company uses are special membership discounts for their loyal customers. There are three types of membership: silver, gold and diamond. Silver membership gives 15%. Holders of gold membership receive 18% off all orders. Diamond membership gives 20% to their holders. Tiffany & Co. distributes advertising through television, internet, catalogs, newspapers, magazines, and campaigns. However, the company spends only 6% of revenues on advertising. Tiffany advertising is focused on brand, and specifically on sending a consistent brand image. Tiffany is synonymous with famous wrappings. All of its gifts come wrapped in exclusive blue boxes. Tiffany is trying hard to remind people of connection between color and brand. The company's strategy for enhancing potential customers' awareness is to advertise and expand its public relations programs. This would include activities like educating customers about the brand and its fine products. For example, Tiffany has advertised its products via posters on telephone kiosks as well as full-page advertisements in special publications around the world. The company aims to maintain a strong voice to customers that they can experience the joy of shopping at Tiffany.

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Conclusion

Direct marketing has become one of the most efficient and successful strategies in reaching organizations consumers with no middle man involved. It makes both the organizations and the consumers life an easy one. However applying direct marketing together with other available IMC tools is more effective than using direct marketing alone itself. Page | 21

Making the right choice between the best direct marketing strategies for an organization could be huge as they all have their advantages and disadvantages. Understanding the potential customers, what products are to be offered, and also budget consideration must be done before going any further with direct marketing or any other marketing communication strategy.

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Reference

FINDINGUNIVERSE http://www.fundinguniverse.com/company-histories/Tiffany-amp;-Co-company-History.html

London letterbox marketing. ( 2011). Luxury brands find value in direct marketing -Reach Londons Affluent Households with London Letterbox Marketing. Retrieved June 16, 2011, from

http://www.londonletterbox.co.uk/Industry_News_Item9.htm

http://www.dell.com

http://www.tiffany.com.

http://www.stjohns.edu/media/3/226503e69ea24914898322dca1fb1200.pdf

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http://www.reuters.com/finance/stocks/companyProfile?symbol=TIF.N

http://www.whatmakeslovetrue.com/

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