Chap 9,evaluation of direct marketing

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Integrated Marketing Communication(IMC) Prepared by

PROF. RAJESH KUMAR(MBA IMT- Ghaziabad, SIX-SIGMA BLACK BELT CERTIFIED)

(Prof. of Marketing, Digital Marketing, Strategic Management, Advertisement & Branding)

IMT-CDL(DIMS)IP UNIVERSITY

(Ex. HOD-MARKETING,BSD)Sr. Manager (Digital Marketing-SEO, SMO, Advt, E-Mail Mrkt, Mobile Mrkt)

www.jrinfotech.comE:forrajeshkumar@gmail.com

P:9810275444www.marketingandbrandingguru.com

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Direct Marketing

Direct Marketing: Here organization communicate directly with the

target customer & generate response or transaction.

One of the fastest growing sector of USIndian Direct Marketing : 30% growth rateDirect marketing involves database management,

direct selling, telemarketing ad & direct response ads.

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Bose Uses Direct Response Advertising

Direct marketing Fact

Direct Marketing Fact:• Current business of DM: $3 trillion• Overall growth: 20%• Indian business: Rs 3 billion• Growth: 30%

Direct marketing

Direct marketing:• Organization communicate directly with target

customer • Directly generate response or transaction• It is fast growing tools of marketing

Direct marketing via catalogue

Factor For Growth of Direct marketing

Factor for Growth of DM:• Consumer Credit Card• Technological Advance• The changing structure of Society

How to develop Database for DM

Developing Data:• DM is based on data for all ad• It is the only source for DM• 65% of the company based on their own

internal data

How to develop Database for DM

B2B database

• Contact Info

• Contact Title

• Telephone• Number• Source of

order, inquiry, referral

• CreditHistory

IndustrialClassification

Size of Business

Revenues

Number ofEmployees

Time in Business

HeadquartersLocation

PurchaseHistory

PromotionHistory

InquiryHistory

UniqueIdentifier

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An Example of “B-to-B” Advertising

Objective of Database

Objective of Database:• Improving the selection of mkt segment• Stimulate repeat purchase• Cross selling other product• Customer relationship management

Sources of Database

Sources of Database• Census Bureau• List services• Directory• Market research Bureau

Direct marketing Strategies

Direct marketing Strategies:There are two kind of approachOne step approach:• Company provide Toll free number• Direct order from customerTwo step Approach:• Create awareness first• Generate response after

DM Media

DM Media:• Direct mail• Catalogue• Broadcast media• Infomercial• Teleshopping• Telemarketing

Direct mail

Direct Mail:• Often known as Junk mail• One of the best penetration market• Should strong mailing list• Growth rate projected 8.5% in 2010• May be written or in catalogue form

Direct mail

Direct mail(Catalogue)

Direct Marketing

Broadcast Media:• Its success is remarkable• Generate approx $167 billion via broadcast

media.• Advertiser use telephone no & most of them

are toll free

Direct Marketing

Infomercial:• Long length advertisement• 5min-30min• Give complete information about product• Normally odd time allotmentLike: Sri yantra, Sauna slim belt

Homehopping

Homeshopping:• Its shopping via television• Development of Toll free no made it easy• Payment is done via credit or debit cardQVC channel is prominent in USIn India these are TVC, Asian Sky Shop,

Homeshop18,

Print Media

Telemarketing

Telemarketing:• The fastest growing tools of marketing• $1000 billion industry now• 1,65,000 call center in US• India is hub of outsourcing hub• $400 million spent by Indian company

Call center

Advantage of DM

Advantage:• Selective reach• Segmentation capabilities• Frequency• Timing• Personalization

Disadvantage of DM

Disadvantage:• Image Factor• Accuracy• Rising cost