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Aijaz Shahid aijazshahid@gmail.

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Introduction to Direct Marketing

What is Marketing ???

According to AMA: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Source: Wikipedia

Now Lets See !!!


Source: Youtube

So Marketing Is ???

Marketing Is a ???

What we do everyday to leave an impression on minds of the customers !

IMC and Basic Elements

Integrated marketing communications (IMC) is a process for managing customer relationships that drive brand value primarily through communication efforts

Basic Elements of IMC

1. 2. 3. 4. Advertising Direct Marketing Sales Promotion Public Relations

What Would Be Direct Marketing ???

Mr. Lester Wunderman says: Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising

Source: Wikipedia

Gurus Viewpoint !!!


Source: Youtube

Scope of Direct Response Marketing ???

According to DMA:
US Banks and credit institutions spent $13.4 billions in 2011on direct marketing advertising and generated $178.8 billion in sales. In 2012, these sales are forecast to hit $286.2 billion.
Financial services companies advertising expenditures for commercial email is expected to have the largest growth among all media types between 2007 and 2012 with a compound annual growth of 22.5 percent.

Internet direct marketing advertising spending in this sector is projected to grow at the second highest rate, at 17.8 percent each year from 2007 to 2012 Telephone marketing advertising expenditures for the overall financial services sector are expected to reach $7.4 billion in 2008 and $8.4 billion in 2012. Broadcast advertising sales are expected to climb 4.8 percent each year from 2007 to 2012.
Insert media sales in the financial services arena will exceed $1.1 billion in 2008, with banks and credit institutions comprising half of sales.

US online advertising spending to surpass print in 2012 Nearly 50% of Internet user in Europe visits newspapers sites. Mobile Banking Service Adoptions to reach over half a million users by 2013 US Internet Audiences watched 43.5 billion videos in December Facebook was top search term for the third straight year

This year pharmaceutical companies are forecast to hit $15.2 billion in sales

Source: DMA

Direct Marketings Special Competencies ???

Direct Marketing is Interactive; It initiates a two way process Customer Vs Marketing Team It removes the "middle man" from the promotion process Direct Marketing activities are significantly more measurable

Direct Marketing is Combination of Advertising and Selling It helps SMEs Personalization

Precession Targeting
Direct marketing seeks to drive a specific "call to action."
Example, a free phone call or click on a link to a website.

Possible Reasons of Such a Tremendous Growth in Direct Response Marketing ???

Its Cost Effective

Changing Lifestyles and Demographics

An evolving economy and international Completion

Technological Advances and Innovations Increase Clutter in Media

Decision Variables of Direct Marketing

It includes the product or service, the positioning of the product or service in terms of needs or benefits, the price of the offering, any risk-reduction mechanisms such as money-back guarantee, or price refund or discounts available to the buyer.

Timing & Sequencing of direct marketing communications determine whether the product or service is offered once or as a part of a campaign, that is, as one-shot message or as multiple messages. Also at issue is whether a campaign should be on intermittently (pulsing) or continuously, as well as how often should the communication be repeated.

The creative component includes the copy platform, graphic design elements, involvement techniques, and production considerations such as personalization.

Customer Services
It leads to strong customer franchise and loyalty. Satisfaction with service is a prime consideration in customers repurchase decisions. In fact, many direct marketers consider expenditures on customer service and loyalty as an investment. Media The media used by direct marketers include all those used by general marketers as well as direct mail, telephone, and online services.

Direct Marketing Mediums

Direct Mail
Insert Media


Telemarketing Catalogue Direct Response Print Media Couponing Online Tools

Data Base Marketing

Videotext Direct Marketing Voicemail Marketing Direct Response Broadcast Direct Response TV

Direct Marketing Program Objectives

Product or Service Sales Lead Generation Lead Qualification Customers Relationship Building and Maintenance

Thank You