Dr. I.B.

Singh

Definition : is an interactive marketing system that uses one or more advertising media to effect a measurable response and / or transaction at any location. Basic characteristics/ properties of Direct marketing : 1. A definite offer to customer. 2. All necessary information provided to make a decision.

Basic characteristics/ properties of Direct marketing ( Cont ) : 3. A mechanism to respond to the offer . Within this frame work fall all direct marketing options : Sales letters, catalogues, telemarketing , direct response , TV advertisements and internet. Businesses that rely heavily on Direct marketing : Magazines and news letter publishers Mail order merchandisers. Fund raisers Book publishers House hold durables

Reasons to find Direct marketing attractive :

1.

Investment required is low. 2. It does not require any specialized skill. 3. All that is required is a data base with consumer profiles. 4. Returns are quick and its effectiveness can be measured. 5. Consumer reaction can be known immediately. Examples : Free delivery of items as in Amway, Dominos delivery system Dell Computers Amazon.com

Sl.No. 1.
2. 3. 4. 5. 6. 7. 8. 9.

Mass Marketing Average customer

Customer anonymity Standard Product Mass Production Mass Distribution Mass Promotion Share of Market All Customers Customer Attraction

Direct Marketing Individual customer

Customer profile Customized Market Offering Customized Production Individualised distribution Individual messages Share of Customers Profitable Customers Customer Retention

1. Reaching out to non-metro/non-urban markets depends on infrastructure available and increased use of mobile phones. 2. Enhancing credibility of the offer: Experience of customer plays an important role. 3. Wider use of debit and credit card. (ecommerce) 4. Emergence of specialised data base firms.

1. Tele-marketing/selling over phone: - This works through Trained telemarketers who make calls to potential clients and customers and establish direct contact with them. - They convince the customers about value of the product or service and fix appointment with him/her. - The back-up team of field personnel them approaches the client and finalises the deal.

Example: Life Insurance, Vehicle Insurance, Banking products, real estate. - database is given to telecaller with instruction that 100 calls must be made. 2. Sales on Internet: - Sales of grocery and other items through internet, customer. Orders received through internet. Deliveries made with assurance of quality and quantity. - Payment are to be collected by cash. 3. Mail Order Sales: Orders are received by post and goods are dispatched by VPP . In this case, selling function is performed without intervention of

personal salesman. Goods of well known brand are sold by this method. There should be sufficient margins also, product of nonperishable nature and wide demand. Example: Books, watches, electronic goods, patented medicines, leather goods. 4. Direct Selling: Companies like Amway, Medicare, Eureka Forbes have been using Direct Selling. In this customer relationship is built, even before the actual sales takes place.

Value addition in Direct Selling: - Create direct selling process - Identify the customer - Make appointment with customer. - Choose suitable time for demo and pitch. - Ensure product performance at demo. - Close the deal - Follow up with prompt service.

Public and ethical issues : Irritation : Increasing number of hard sells and

direct- marketing solicitations become nuisance for many people. Unfairness : Impulsive and less sophisticated buyers become target of excessive claims and demonstrations specially on TV . Deception and fraud : Some direct marketers design mailers and write copy intended to mislead the buyers . They may exaggerate product size , performance and price leading to deception and fraud.

Invasion of privacy : Direct marketing companies maintain data bases for customers and they use the same for their company and also share data base with other companies . Data base include age , marriage status , income level , etc , which is personal in nature . These companies make the information public resulting in invasion of privacy.