Direct Marketing

What Direct Marketing means to many ?

• Direct Mail- Letters, leaflets, catalogs and coupons sent by mail/post
• Mail Order- Advertisements to which prospects can respond by making
a phone call, sending a post card
Direct Response to TV ads, Print ads

Direct Marketing as defined by DMA

Direct Marketing is an interactive system of marketing which uses one or
more advertising media to effect a measurable response and /or transaction
at any location
 Direct Marketing

Key Elements:
Interactive- Marketer and Prospective customer engage in a two way
communication unlike in general marketing where it is
one way- (Functional, Rational . Emotional etc)

Measurable- Unlike traditional advertising DM activity is measurable

The effectiveness of the campaign can be evaluated
be it response to ads on TV, Print, Radio or catalogs and
mailers

At any location
The prospects need not come to the marketers place to respond
- be it reply, order or purchase.
 Direct Marketing

Advantages:
• From a Company’s perspective Direct Marketing is an efficient way to
promote and sell products and services because it offers a record of
proven profitability. It addresses the growing concern over
accountability how marketing moneys are spent. It enables careful use
of a firm’s resource especially in a era of downsized firms.

• Direct Marketing makes a prospect order immediately, while general

advertising tries to change attitudes and build loyalties.

• Unlike general marketing, Direct marketing works well even for small
Organisations/firms
 Unique Features

As Direct Marketing communications are directed at specific

individuals and not at mass markets via mass media it is unique in
many ways :

Combination of Advertising and Selling

A DM Campaign fulfills both the tasks as there are no intermediaries.
Customer Service
Due a direct interaction with the customer with DM one can build long
term relationships leading to CRM
Precision Targeting
Due to target marketing it reduce the waste inherent in many other
types of communications
 Unique Features

Personalisation
Communication is personalised as one can know the name and other
details of the customers / prospects

Call for Immediate Action

Unlike general marketing, Direct Marketing calls for immediate response

Measurement
As DM offers immediate response, one can measure the effectiveness of
the campaign. Tracking customers responses over a period of time
enables the marketers to analyse customer Relationships
 Reasons for the Growth of DM
Three major factors have contributed for the rapid growth of DM
Changing Lifestyles and Demographics
Changing demographics like growing Youth market with high
disposable incomes, Working women, Single Parenting, Senior
Citizens with substantial savings etc.
Changing Lifestyles that demand immediate action with hardly any time
to wait.
Evolving Economy with growing competition
With the rise in income levels and growing competition marketers
are let with no choice but to improve product offering or face
extinct
Technological Advancements and Innovations
Innovations in information technology has enabled DM activities though
Data base management and media options like-
 What can be sold through DM
Not all goods can be sold through DM
• Perishable Goods
Due to their short lifespan, these goods need to be made
available in less time.

• Goods that cannot be easily transported

Fragile goods and those that need extra care and safety
measures in its transport

• Goods of low value

As margins are low it will not facilitate for DM

• Goods that need to be demonstrated

Goods that need to be seen and checked for its performance
 Decision Variables in DM
Unlike in Marketing where the variables are the 4Ps, in DM they are:

Offer
An offer that is unique or short lived.
An offer that is complete with no

Creatives
Here the creatives of the campaign- copy, visuals are different to
that of advertising. It is more inducing to try

Media
The media options are similar to that of conventional advertising-
Print, TV, Radio, Internet etc plus mail, telephone and online.
 Decision Variables in DM

Timings/Sequencing
Unlike general advertising, it is of short term durations and whether
of one time or of repeat

Customer Service
As one know the customer well, it calls for customer Service of
the highest order
 DM- Media Options

Telemarketing
Telephone marketing comprises the integrated and systematic
application of telecommunications and information processing
technologies with management systems to optimize the marketing
communication mix used by a company to reach its customers

Direct Mail Marketing

Direct mailing cludes individual mailings of brochures and other
offers as well as catalogs.

Direct Response TV
Unlike regular commercials these comprise Direct Response and
support advertising, informercials, Home Shopping channels.
It can used either as a Sales or leads generator.
 DM- Media Options

Direct Response Print Media

This is another major media option, comprising of placement of
advertisements in a newspaper, magazine or any other print media like
inserts and reader service cards with a response mechanism in it.

Direct Response Radio

Radio was not traditionally considered but with the FM Channels
In place now, it hs become an efficient media option. Often short
messages with response device are used.
 Database Marketing

Database marketing uses individually addressable marketing media

and channels such as mail, telephone and the sales force to deliver
highly targeted offers to customers and prospects. Firms can stay
close to their target markets by compiling and keeping a permanent
record of all customers and prospect communications and buyer
behavior. This helps improve all future contacts and makes possible
more realistic planning of all of a firm’s marketing activities.

It works by creating information about individual customer offers,

inquiries and orders. This information is used to analyse response
patterns , create products and services. Also it helps in identifying new
prospects as well.
 Direct Marketing Programme Objectives
Just like Marketing objectives and unlike communication objectives,
Direct Marketing objectives are specific and measurable.

They include:

• Product or Service Sales

• Lead generation

• Lead qualification

• Customer Relationship building and maintenance

 Direct Marketing Programme Objectives
Product or Service Sales
The most common objective of Direct marketing is to sell
products or services.
Some Direct Marketers are first concerned with generating well
qualified leads of prospects to enable the Sales team to meet in person
to close it.

Lead Generation
The key to led generation is understanding the three keys;
Media investment, Relationship Investment and Actions.
An integrated communications campaign is often in place so as to
facilitate a response from the prospects.
 Direct Marketing Programme Objectives
Lead Qualification
Lead Qualification is designed to screen out bad leads or non
serious prospects by tele calling or by certain conditions.

Customer Relationship Building and Maintenance

Through a continuous, sustained and planned efforts of Direct
Marketing programmes long lasting relationships can be built and
retained thereby establishing a loyal base of customers.