Direct Marketing

Direct marketing is a form of personal

selling that creates and establishes an
intimate relationship between a seller
and an individual consumer.
Direct marketing
Traditional
Supply Chain
?
Dell Supply
Chain
Direct Marketing
Direct Marketing
Benefits: Buyers
Convenient
Easy to use
Private
Access to a wealth
of information
Immediate
Interactive
Direct Marketing
Direct Marketing Benefits: Sellers
building relationships
targeting of small groups or individuals with
customized offers in a personalized fashion
access to buyers that couldn’t be reached via
other channels
Low-cost, effective alternative for reaching
specific markets

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Potential Mail Recipients

Once your name is on a list for a newspaper

subscription, your name and address can
be “sold” to another company who will mail
you information to try and convince you to
buy their product.
Buying and selling lists (databases) of such
names is big business.
Comparison of Direct Marketing and General Advertising
Direct Marketing
Selling to individuals. Customers are
often identifiable by name, address, and
purchase behavior.
Products have added value or service.
Distribution is important product benefit.
The medium is the marketplace.
Marketer controls product until delivery.
Advertising used to motivate an
immediate order or inquiry.
Consumers feel high perceived risk –
product brought unseen. Recourse is
distant.
General Advertising
Mass selling. Buyers identified as broad
groups sharing common demographic and
psychographic characteristics.
Product benefits do not always include
convenient distribution channels.
Retail outlet is the marketplace.
Marketer may lose control as product
enters distribution channel.
Advertising used for cumulative effect
over time to build image, awareness,
loyalty, benefit recall.
Consumers feel less risk – have direct
contact with the product and direct
recourse.
Database Marketing
Determine Objectives
Collect Data
Build Data Warehouse
Data Mining
Develop Marketing Programs
Evaluate Programs/Evaluate Data Warehouse
Direct Marketing
Customer Databases & Direct Marketing
Databases include customer profile,
purchase history, and other detailed
information
Databases can be used to identify prospects,
profile customers, and select customers to
receive offers, and to build relationships

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 Figure 17-4:
Forms of Direct Marketing
Direct Marketing
Telephone Marketing
Inbound toll-free 800
numbers are used to
receive orders from print
or TV ads
New legislation and
technological advances
threaten the future of
telemarketing
Direct Marketing
Direct-Mail
Marketing
 New trends include
fax, mail, e-mail,
and voice mail
Catalog Marketing
 Many cataloguers
have migrated to
the web

1
Direct Marketing
Direct-Response
Television
Marketing
 Direct-response
advertising
 Infomercials
 Home shopping
channels
Kiosk Marketing
Direct Marketing
Online marketing
Flipcart, cardekho,
quicker, amazon,
snap deal etc.