Direct

Marketing

Prepared by :
Kameisha Taylor
1200408

Question 26
Explain the rapid growth of Direct
Marketing over the past few decades.
What are the advantages and
drawbacks of using this marketing
communications tool? With reference
to any one (1) local or global
company, evaluate its use of any
three (3) direct marketing tools.

LEARNING OBJECTIVES
To

provide a clear understanding of Direct

Marketing.
To explain the rapid growth of this
marketing communication tool over the
past few decades.
To examine the advantages and
drawbacks of Direct Marketing.
To evaluate Proactivs use of three (3)
Direct Marketing tools.

ACTIVITY

WHAT IS DIRECT MARKETING?

Direct
Direct marketing
marketing isis aa system
system of
of marketing
marketing by
by which
which organizations
organizations
communicate
communicate directly
directly with
with target
target customers
customers toto generate
generate aa response
response or
or
transaction.
transaction. This
This response
response may
may take
take the
the form
form of
of an
an inquiry,
inquiry, aa purchase,
purchase, or
or
even
evenaavote.(Belch
vote.(Belch&&Belch
Belch2009)
2009)

Direct
Direct marketing
marketing isis the
the total
total of
of activities
activities by
by which
which the
the seller,
seller,in
in effecting
effecting the
the
exchange
exchange of
of goods
goods and
and services
services with
with the
the buyer,
buyer, directs
directs efforts
efforts to
to aa target
target
audience
audienceusing
usingone
oneor
ormore
moremedia
mediafor
forthe
thepurpose
purposeof
ofsoliciting
solicitingaaresponse
responseby
by
phone,
phone,mail,
mail,or
orpersonal
personalvisit
visitfrom
fromaaprospect
prospector
orcustomer.
customer.(Peter
(PeterBennett
Bennett))

FORMS OF DIRECT MARKETING

 Direct

marketing uses databases of

customers or potential customers to
generate personalized communications in
order to promote a product or service for
marketing purposes.

There

are two main types of marketing

databases,
1) Consumer databases (B2C)
2) Business databases
(B2B)

Consumer Database

Name

Gender

Address/
Zip Code

Marital
Status

Telephone
Number

Family
Data

Occupation

Education

Age

Income

A Business-to-Business Database
Contact Info

Industrial
Classification

Contact
Title

Size of
Business

Telephone
Number

Revenues

Purchase
History

Number of
Employees

Credit
History

Time in
Business

Direct Marketing Strategies

One-Step
One-Step

Themediumisuseddirectly
toobtainanorder.

Viewersareurgedtophone
toll-freenumbertoplacean
order.
Thegoalistogeneratean
immediatesalewhentheadis
shown.

Two-Step
Two-Step

Mayinvolvetheuseof
morethanonemedium.

Thefirsteffortisdesigned
toscreen,orqualify,
potentialbuyers.

Thesecondeffortgenerates
theresponse.

GROWTH OF DIRECT
MARKETING
Direct marketing is one of the fastest growing forms of
promotion in terms of dollar expenditures. A number of
factors have led to this extraordinary growth. They
include:

Consumer credit card

Over one billion credit cards are in circulation.

Technological Advances

Better communications via electronic media & computers

Rapid package delivery

Contd

Changing Structure of Society and the market

The number of women working outside the home jumped from 42
% to 58 % between 1980 and 1990( Kobs, 1992).
Given less time to go shopping, many of these women found it
convenient to select and examine merchandise in their own
homes.

Other socioeconomic factors

Population growing older,

Rising discretionary income

Contd
External

factors

Rising cost of gasoline

The availability of toll-free telephone
numbers
The widespread availability of mailing lists.

Measures
Measures of
of efectiveness
efectiveness
Costs
Costs
Personalization
Personalization
Flexibility
Flexibility
Frequency
Frequency potential
potential
Segmentation
Segmentation capabilities
capabilities
Selective
Selective reach
reach

Direct Marketing Advantages

Irritation
Irritation
Image
Image Factors
Factors
Invasion
Invasion of
of Privacy
Privacy
Accuracy
Accuracy of
of database
database
Deception
Deception and
and fraud
fraud
Rising
Rising Cost
Cost

Direct Marketing Disadvantages

ABOUT PROACTIV

Proactivis a brand of acne treatment and skin care

productsdistributedbydirectmarketingcompanyGuthy-Renker.

Proactivwascreatedbytwodermatologists,KatieRodanandKathy
Fieldsin1995.

Proactiv is a three-part acne treatment kit that is sold on a

subscriptionbasis.Itincludesacleanser,tonerandtreatment.

The product clears your acne and helps prevent future breakouts.
Proactiv+alsodeliverstheexceptionalskincarebenefitsofavisibly
hydrated,eventoned,radiantcomplexion.

DIRECT RESPONSE
TELEVISION MARKETING
Directmarketingviatelevisionhastwobasicforms:
Longform(usuallyhalf-hourorhour-longsegmentsthat
explainaproductindetailandarecommonlyreferredto
asinfomercials).

Short form, which refers to typical 30-second or 60second commercials that ask viewers for an immediate
response (typically to call a phone number on screen or
gotoawebsite).

DIRECT MAIL MARKETING

Itinvolvessendinganoffer,announcement,reminder

orotheritemtoapersonthroughmail.
Itisapopularmediumasitpermitstargetmarket

selectivity,canbepersonalized,isflexible.
Costinvolvedisveryhighthanthemassmediabut

thepeoplereachedarebetterprospects.

KIOSK MARKETING
Kiosk-Asmall,temporary,stand-aloneboothusedin

high-foot-trafficareasformarketingpurposes.
Kiosksaremachineskeptinshoppingmallsandother

suchplacesbyorganizationstospreadtheinformation
andgenerateordersfromcustomerswhovisitsuch
Freestanding,semi-permanentdisplayorretailoutlet,
withinalargeretailestablishmentorashoppingmall.

CONCLUSION

Directmarketingistheuseofconsumerdirectchannelstoreachanddelivergoodsandservices

toconsumerswithoutusingmarketingmiddlemen.

Ithelpsthecompaniestoopeningdialoguedirectlybetweenthemselves&theendconsumersof

theirproductsratherthanthroughintermediaries.

Theultimatepurposeofdirectmarketingistoestablishandmanagedirectlongtermrelationships

withcustomersbycapturingpersonalinformationinadatabase.

Thedatabaseofacompanyisattheheartofanygooddirectmarketingstrategy.Itmustbeupto

dateandaccurate.

REFERENCE
Belch,G.E.,&Belch,M.A.(2009).Advertising

and promotion: An integrated marketing

communications perspective.
Kobs,Jim.(1992).Profitable

Direct Marketing, 2nded.NTCBusinessBooks.

Kotler,P.,&Armstrong,G.(2006).Principles

of Marketing,11thEdition.PrenticeHall.

Reutterer,T.,Mild,A.,Natter,M.andTaudes,A.(2006),Adynamicsegmentation

approachfortargetingandcustomizingdirectmarketingcampaigns,JournalofInteractive
Marketing,Vol.20Nos3/4,pp.43-52.
http://www.dmn.ca/Articles/Articles/2004/readerforum1.htm.RetrievedFebruary28,2015.