5.

DIRECT MARKETING

Direct Marketing
Direct marketing is use of consumers direct to reach and deliver goods and services to consumers without using marketing middlemen .These Channel include direct mail, catalogs, telemarketing ,interactive TV, kiosks, websites and mobile services. Direct marketers seek a measurable response ,a customer order. Thus is sometime called direct order marketing.

Direct Marketing
Today many direct marketers use direct marketing to build a long term relationship with the customers. They send birthday card ,information material ,or small premiums to certain customers .Airline, hotels and other business build strong customers relationship through frequency award programs and club programs. Marketer are preferring this because using sales force is costly.

Benefit Of Direct Marketing

In developed market several factor such as higher cost of driving ,traffic congestion ,packing headache ,lack of time ,a share of retail self help and lines at check out counter encourages at home shopping .Home shopping can be fun , convenient and hassle free. They can customize and personalize message. Direct marketers can build a continuous relation with each customer. Direct marketers can use number of channel to reach individuals prospect and customers, direct mail, catalog marketing ,telemarketing. TV and direct response media ,kiosk marketing, and e marketing

Direct Mail
Direct mail marketing involve sending an offer announcement reminder or other item to a person. Using highly selecting mailing list, direct marketers send out millions of mail pieces each year letters ,flyers, foldouts and other . Some direct marketers mail ,audiotapes, CDS, and computer diskettes to prospect and customers. Direct mail may be paper based and handled by postal department may employ fax mail, e-mail, voice mail to sell directly.

Objective
Most direct marketers aim to receive an order from prospects. Direct mail achieve other communication objective as well such producing prospect deals , strengthen customers relationship, informing and educating customers ,reminding customers offers and reinforcing recent customers purchase decision.

Target Market And Prospect

Direct marketers need to identify the characteristics of prospects and customers who are most able ,willing and ready to buy .Most of direct marketers apply the R-F-M formula( Rate, frequency, monetary amount ) for rating and selecting customers. the mailing sent to most attractive customers. Offer Element : Direct mail marketers has to decide on 5 component

Target Market And Prospect

The outside envelope Sales letter Circular Reply form Reply envelope Direct mail should be followed by an e-mail which is less expansive and less intrusive than telemarketing call.

Target Market And Prospect

Testing Element: One of greatest advantages of direct marketing is the ability measuring campaign success ,life time value- By adding up the planned campaign calls, the direct marketers can figure out in advance the needed break even response. This rate must be the net of returned merchandise and bad debts.

Catalog Marketing
In catalog marketing ,companies may send full line merchandise catalogs, specialty consumers catalog and business catalogs, usually in print form but also sometime CDS ,videos or outline. By putting entire catalog outline ,catalog companies have better access to global consumers than ever before and saved considerable printing and mailing cost in process. In India there are several websites that facilitate e-commerce by publishing e catalog for ex. Indiainfo.com has e catalog for a range of product such as watches ,flowers ,fengshui product, ,toys ,personal care product books apparel and accessories.

Catalog Marketing
These are websites such as indiagiftsportal.com that specialize in gift shopping .These web site display the product ,their prices and delivery details for different occasions such as Mothers Day gift, Father's Day gift in their e-catalog.

Telemarketing
Telemarketing is the use of telephone and call center to attract prospect., sell to existing customers and provide service by taking orders and answering questions .Telemarketing helps companies increase revenue ,reduce selling cost and improve customers satisfaction. Companies carryout 4 different type of telemarketing. Telesale Telecoverage Teleprospecting Customer service and technical support

a) b) c) d)

Telemarketing
In India there are a large no. of call centers for inbound outbound telemarketing. Wipros Spectra Mind and Daksh a subsidiary of IBM are two such major player in this area. In addition ,companies such as ICICI, HDFC and reliance have their own call centers to attend customers queries. Telemarketing major users are Banks and credit cards in India.

Other Media For Direct Response Marketing

A) Television1) Direct response marketing-30-40 minute infomercials that attempt to combine the sell of commercials with the draw of education information and entertainment. Telebrand India has been one of the pioneers in direct response TV ads. A toll free number is flashed on TV screen when infomercials are screened. 2) At-home shopping channels:Home shopping Network (HSN) which broadcasts 24hrs a day in the U.S. offers bargain prices on such products as clothing ,jwellry,lamps ,collectible dolls, the power tools.

Other Media For Direct Response Marketing

3)Videotext and interactive TV:The consumer TV set is linked with a sellers catalog by cable telephone lines. consumers can place orders via a special key device connected to the systems. Much research is going on to combine TV, telephones and computers into interactive TV. B) Kiosk Marketing;-A kiosk is small building or structure that might house selling or information unit. the name describes newsstands ,refreshment stands and free standing carts whose vendors sell watches ,costumes ,jewelry and other items. C) E-Kiosks in India:Kiosk are increasingly being in India in e-governance projects to provide information to masses and build brands .MP Govt. undertook project called Gyandoot .Govt .installed a low cost rural intranet covering 20 villages information kiosks in five blocks of the district. To inform Land records ,agriculture product rate hence, it became popular.

Other Media For Direct Response Marketing

Warna village in Maharashtra ,where the co-operative society has deployed 54 village information kiosks which has helped in streamlining the production process of sugarcane. Farmers get payment slip ,farmer can purchase fertilizer in front of kiosks ,paying cash or credit. If they buy using credit, they get a receipt for their purchase at kiosks. Money spent on transport of the crop to sugar factory and harvest bill is also entered in the system. Farmers saved time and money for administrative transaction . Another example is LIC premium status. HDFC bank their offering.

Interactive Marketing
The newest channel for direct marketing are electronic. The internet provide marketers and consumers with opportunity for much greater interaction and Individualization. The exchange process in the age of information. Customer initiated and customer controlled. Customer define what information they need .what offering they are interested in and what prices are willing to pay.

Benefit Of Interactive Marketing

Highly accountable and its effects can be easily traced. The web offer the advantages of contextual placements Marketers can buy ads from sites that are related to their offering. The web can actually reach people when they start buying. The web is effective at reaching people during day time. The young ,high income ,high education customers total outline media consumption exceeds that of TV.

Designing An Attractive Website

Clearly all companies need to consider and evaluate e-marketing and e-purchasing opportunities .A key challenge is designing a site that is attractive at first viewing and interacting enough to encourage repeat visits. Rayport and Jawarski have proposed that effective web site feature seven design elements that they call 7 cs. a) Context b) Content c) Community d) Customization e) Communication f) Connection g) Commerce.

Placing Ads And Promotion

A company has decided which forms of internet advertising will most effectives in achieving advertising objective. Banner ads are small rectangular boxes containing text and perhaps of pictures. Companies pay to place banners ads on relevant web sites. The large the audience reached ,the more the placement will cost.

E-Marketing Guidelines
If a company does an e-mail campaign right, it can not only build customer relationship but also reap additional profits. E- mail involve only a fraction of cost of a d mail or direct mail campaign. Guidelines followed by pioneering e mail marketers Give the customer a reason to respond e.g. incentives Personalize the content of year e- mail. Offer something customer could not get via direct mail.e.g. cheap air fares, discount vacation package. Make it easy for customer to inscribe.

a) b) c)

d)