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 a even a vote.
The total of activities by which the seller 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

TV Selling
Radio

Direct Mail
Telemarketing

Direct Selling Magazine and Newspaper

Drivers of growth of DM
Direct Marketing Consumer Credit
syndicate Cards

Miscellaneous Changing Structure

factors of Society

Changing Structure Technological

of Markets Advances
Types/ Methods of DM
• Internet marketing
• Face-to-face selling
• Direct mail
• Catalogs
• Telemarketing
• Direct-response advertising
• Kiosk marketing
The Role of Direct Marketing in the IMC
Program
• Combining Direct Marketing with Adverting:- direct marketing itself a
form of advertising. It usually contains a toll-free number or a form
that request mailing information.
• Combining Direct Marketing with Public Relations:-companies use
telemarketing activities to solicit funds for charities. Organizations
engaging in PR activities may include toll-free number or website in
their ads promotional markets
• Combining Direct Marketing with Personal Selling:- telemarketing and
direct selling are two methods of personal selling used to generate
sales. Customer visits auto showrooms to test-drives new cars, the
sales person then assumes responsibility for selling effort.
• Combining Direct Marketing with Sales Promotions:- how many times
have you received a direct mail piece notifying you of a sales
promotion or event inviting you to participate in contest. Ex:
Nordstrom company call their existing customers to notify them
special sales promotions.
• Combining Direct Marketing with Support Media:- adding a
promotional product to a direct mailers has proven to increase
response rates
Advantages of Direct Marketing
• Selective Reach:- DM lets the advertiser reach a large number of people and reduces or eliminate waste
coverage.
• Segmentation capabilities:- lists may allow segmentation on the basis of geographic area, occupation,
demographics, and job title to mention few.
• Frequency:- depending up on the medium used. It may be possible to build frequency levels. Consumers
may be annoyed to receive the same mail repeatedly.
• Testing:- DM allows for a strong ability to test the effectiveness of the overall program as well as specific
elements.
• Timing:- many media requires long range planning and have long closing dates, direct response advertising
can be much more timely.
• Personalization:- no other medium can personalize the message as well as direct media. Parents with
children at different age levels can be approached, with their child name included in the appeal.
• Costs:- while the CPM for direct mail may be very high on an absolute and a relative basis, its ability to
specifically target the audience and eliminate waste coverage reduces the actual CPM.
• Measures of effectiveness:- no other medium can measure the effectiveness of its efforts as well as direct
response. Feed back is often immediate and allows accurate.
Disadvantages of Direct Marketing
• 1) Image factors:- mail segmentation of this industry is often referred to as junk
mail. Many people believe unsolicited mail promotes junk products and other
dislikes.
• 2) Accuracy:- people move, change occupations, and so on and if the lists are not
kept current selectivity will decrease.
• 3) Content support:- In direct response advertising, mood creation is limited to
the surrounding program and/or editorial content. Direct mail and online services
are unlikely to create a desirable mood.
• 4) Rising costs:- as postal rates increases direct mail profits are immediately and
directly impacted. The same is true for print costs, which drives up the costs of
mailers and catalogs.
• 5) Do not contact lists:- do not call lists now exist for both land and cell phones. A
do not contact list in which consumers can choose not to receive junk mail is
under consideration by FTC.