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IBPS SO MAINS MARKETING
DIRECT MARKETING PART 1
MARKETING MANAGEMENT
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A CONCEPTUAL SERIES FOR COMPETITIVE EXAM FOR
COMMERCE AND MANAGMENT
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INTRODUCTION
1. BELIEVED TO HAVE BEEN FIRST USED IN 1967 BY LESTER WUNDERMAN WHO PIONEERED
DIRECT MARKETING TECHNIQUES WITH BRANDS LIKE AMERICAN EXPRESS AND COLUMBIA
RECORDS.WUDERMAN IS CONSIDERED AS FATHER OF CONTEMPORARY DIRECT MARKETING. HE
IS THE MAN BEHIND THE CREATION OF THE TOLL FREE NUMBER-800 NUMBER AS WELL AS
MANY OTHER CUSTOMER LOYALTY PROGRAMS.
2.
THE TERM JUNK MAIL REFERRING TO UNSOLICITED COMMERCIAL ADS VIA POST OFFICE
OR DIRECTLY DEPOSITED IN CONSUMER’S MAIL BOXES CAN BE TRACED BACK TO 1954
3.
IT WAS ALSO CALLED CARPET BOMBING AS MAIL WAS DUMPED THROUGH FRONT DOOR TO
THE CARPET
4.
THE TERM SPAM MEANING UNSOLICITED COMMERCIAL E MAIL CAN BE TRACED BACK TO
1933
5.
THE PRCTICE OF MAIL ORDER SELLING(USA IN 1867) HARON MONTOGOMERY WARD AND
BURLINGTON WERE USING THIS METHOD AS FIRST MOVERS
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MEANING OF DIRECT MARKETING
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DIRECT MARKETING IS PROMOTIONAL METHOD THAT INVOLVES PRESENTING INFORMATION
ABOUT ONE’S COMPANY,PRODUCT OR SERVICE TO THE TARGET CUSTOMER WITHOUT THE USE
OF AN ADVERTISING MIDDLEMEN.
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IT IS TARGETED FORM OF MARKETING THAT PRESENTS INFORMATION OF POTENTIAL
INTEREST TO A CONSUMER THAT HAS BEEN DETERMINED TO BE LIKELY BUYER
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PHILIP KOTLER:-DIRECT MARKETING IS DEFINED AS
DIRECT COMMUNICATION WITH CAREFULLY TARGETED INDIVIDUAL CONSUMERS TO OBTAIN AN
IMMEDIATE RESPONSE AND CULTIVATE LASTING CUSTOMER RELATIONSHIPS.
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EXAMPLE
A.
DOMINO’S REVOLUTIONIZED DEMAND OF THE FAST FOOD BUSINESS BY INTRODUCING THE
‘30 MINUTES DOOR DELIVERY OR FREE PROMISE
B.
WITH ITS SLOGAN KHUSHIYON KI HOME DELIVERY” DOMINO USED DIRECT MARKETING
STRATEGY TO REACH OUT THE CUSTOMERS. IT ALSO PROVIDES CUSTOMIZATION. IT ALSO
HAS CO BRANDING SALES PROMOTION TIE UP WITH COCA COLA
C.
ORIFLAME COSMETICS,THE SWEDISH DIRECT MARKETING BEAUTY PRODUCT COMPANY IS
CONSIDERED THE MARKET LEADER IN DIRECT MARKETING BEAUTY SEGMENTS
D. eBAY.INC IS AN AMERICAN INTERNET COMPANY THAT MANAGES THE eBAY.COM AN
ONLINE AUCTION AND SHOPPING WEBSITE
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BENEFITS OF DIRECT MARKETING
Ø BENEFITS TO CUSTOMERS:-
1.
HOME SHOPPING
2.
SAVING OF TIME AND ENERGY
3.
WIDE CHOICES.CAN MAKE COMPARISON
4.
DELIVERY CAN BE ARRANGED FOR SELF OR OTHERS
5.
LOTS OF PAYMENT OPTIONS—CREDIT CARD,DEBIT CARD,CASH ON DELIVERY,ONLINE
PAYMENT,PAYTM ETC
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BENEFITS OF DIRECT MARKETING TO THE ORGANIZATION
1.
HELPS IN IDENTIFICATION OF TARGET MARKET
2.
IMMEDIATE IMPACT
3.
FLEXIBLE
4.
IT IS VERY COST EFFECTIVE AS COMPARED TO MASS MARKETING
5.
POSSIBILITY OF CUSTOMIZATION AND PERSONALIZE MARKETING COMMUNICATIONS
6.
CAN COVER A LARGE GEOGRAPHICAL AREA
7.
CAN BUILD A CONTINUOUS RELATIONSHIP WITH THE CUSTOMERS
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CUSTOMER DATA BASE
1.
THE STARTING POINT OF DIRECT
MARKETING IS PREPARATION OF DATA BASES
2.
AS IT IS ONE TO ONE BASIS WITH INDIVIDUAL OR GROUPS OF INDIVIDUALS
3.
SO PROFILE OF TARGET CUSTOMER IS NEEDED TO DELIVER THE RIGHT PRODUCT WITH
THE RIGHT MESSAGE AT THE RIGHT TIME TO THE RIGHT CUSTOMER
4.
DATA BASE HAS TO BE CREATED THROUGH DIRECT SURVEY,INTERVIEWS,ONE LINE
SURVEYS OR FROM PURCHASED DATA
5.
THE INFORMATION STORED IN THE DATA BASE IS USED TO DEVELOP CUSTOMER LOYALTY
AND IDENTIFICATION OF POTENTIAL BUYER
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CHARACTERISTICS OF DATA BASE
- SEPARATE RECORD FOR EVERY CUSTOMER OR PROSPECT
- MARKETING RECORD SHOULD CONTAIN :-
- NAME. ADDRESS
- TELEPHONE NUMBERS
- FREQUENCY OF PRODUCT PURCHASED
- EXPERIENCE WITH THE PRODUCT
- INDUSTRY AND DECISION MAKING UNITS FOR THE BUSINESS CUSTOMER
- AVAILABILITY OF INFORMATION TO ALL THE DEPARTMENT AND EMPLOYEES
- THE OBJECTIVE SHOULD BE TO REPLACE ROUTINE USAGE WITH THE DATA BASE
- UTILIZATION OF INFORMATION TOOLS
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TYPES OF DIRECT MARKETING
1.
DIRECT MAIL
2.
CATALOGUE MARKETING
3.
TELEMARKETING
4.
TV AND OTHER DIRECT RESPONSE MEDIA
5.
KIOSK MARKETING
6.
E-MARKETING
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DIRECT MAIL
1.
IN WHICH MARKETING COMMUNICATIONS ARE SENT TO SELECTIVE CUSTOMERS USING THE POSTAL OR
COURIER SERVICES AND NEWSPAPER INSERTIONS
2.
SENDING AN OFFER,ANNOUNCEMENT,REMINDER ETC
3.
REFERRED AS SALES PEOPLE WITH WINGS/THE GENERAL PUBLIC CALL THEM JUNK MAIL
4.
DIRECT MAIL ALSO USES EMAILS AND VOICE MAILS ALSO
5.
GOING BEYOND PERSONALIZED MARKETING ALSO DEVELOP A LIFE TIME VALUE MARKETING
PLAN FOR EACH VALUABLE CUSTOMERS
6.
FOR THE DEVELOPMENT OF EFFECTIVE MAIL CAMPAIGN, CLARITY OF OBJECTIVE, TARGET
MARKETS AND PROSPECTS, OFFER ELEMENTS, MEANS OF TESTING THE CAMPAIGNS AND ALSO
MEASURING THE SUCCESS
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PROCESS OF DIRECT MAIL
1. SELECTION OF MOST ATTRACTIVE CUSTOMERS BASED ON RFM (RECENCY,FREQUENCY AND
MONETARY)
2. IDENTIFICATION OF PROSPECTS ON SEGMENTING VARIABLES LIKE
AGE,SEX,INCOME,EDUCATION AND PREVIOUS MAIL STUDY
3. OTHER VARIABLE FOR SEGMENTATION ARE OCCASIONS,FAMILY LIFE CYCLE STAGES AND
CONSUMER LIFE STYLES.
4. OFFER ELEMENTS INCLUDE THE PRODUCT, THE OFFER, THE MEDIUM, THE DISTRIBUTION METHOD
AND THE CREATIVE STRATEGY
5. FIVE COMPONENT OF THE MAILING ITSELF-OUTSIDE ENVELOPE, SALES
LETTER,CIRCULAR,REPLY FORM AND REPLY ENVELOPE
6. EXAMPLE OF READER’S DIGEST. THEY CONDUCT DIRECT SPECIAL MAIL CAMPAIGNS
DURING NEW YEAR AND DIWALI
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BENEFITS
1.
FLEXIBILITY
2.
COST WISE COSTLY BUT RESPONSE IS BETTER AND MUCH FASTER
3.
CAPABILITY FOR CUSTOMIZATION AND PERSONALIZATION
4.
EASY TO MEASURE THE TESTING OF CAMPAIGNS AND RESPONSE MEASUREMENTS
5.
RFM( RECENCY,FREQUENCY AND MONETARY) FOR RATING AND SELECTING CUSTOMERS
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CATALOGUE MARKETING
1.
SENDING FULL LINE MERCHANDISE CATELOGUES,SPECIALTY CONSUMER CATALOG AND
BUSINESS CATALOG(IN PRINT FORM OR CDS/DVD/VCDS OR ONLINE)
2.
BUSINESS TO BUSINESS COMPANY USUALLY SEND CATALOG ON BUSINESS PRODUCTS AND
SERVICES TO BUSINESS CLIENTS AND PROSPECTS
3.
FLIP KART IS AN INDIAN ELECTRONIC COMPANY ,THEY HAVE ONLINE BOOK STORE IN
INDIA AND CATALOGS OF ALL BOOKS ON THEIR WEBSITE
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