Q:
Growth of Direct Marketing?
Ans:
1) Rapid advance in technology, 2) At home shopping,
3) increasing the use of internet, 4) The growth of affordable computer power and customer database, 5)
Increasing the use of credit card, 6) Fast, Easy and inexpensive reaching to
customers, 7) Reducing investment risk, 8) The desire for convenience shopping
Q. Discuss the Growth and Benefits of Direct
Marketing
Direct marketing consists of direct connections with
carefully targeted individual consumers to both obtain an immediate response
and cultivate lasting customer relationships
• No intermediaries
• An element of the promotion mix
• Fastest-growing form of marketing
Benefits to
Buyers
• Convenience
• Ready access to many products
• Access to comparative information about companies,
products, and competitors
• Interactive and immediate
Benefits to Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach
markets
• Flexible
• Access to buyers not reachable through other
channels
Customer
Database
Customer database is an organized collection of
comprehensive data about individual customers or prospects, including
geographic, demographic, psychographic, and behavioral data
Uses:
• Locate good and potential customers
• Generate sales leads
• Learn about customers
• Develop strong long-term relationships
Q: Discuss the Forms of Direct Marketing
• Personal selling direct marketing
• Direct-mail direct marketing
• Catalog direct marketing
• Telephone marketing
• Direct-response television marketing
• Kiosk marketing
• Digital direct marketing
• Online marketing
Direct-mail
marketing involves an offer, announcement, reminder, or other item to a person
at a particular address
• Personalized
• Easy-to-measure results
• Costs more than mass media
• Provides better results than mass media
Catalog direct marketing involves printed and
Web-based catalogs
Benefits of
Web-based catalogs
• Lower cost than printed catalogs
• Unlimited amount of merchandise
• Real-time merchandising
• Interactive content
• Promotional features
Challenges of
Web-based catalogs
• Require marketing
• Difficulties in attracting new customers
Telephone direct
marketing involves using the telephone to sell directly to consumers and
business customers
• Outbound telephone marketing sells directly to
consumers and businesses
• Inbound telephone marketing uses toll-free numbers
to receive orders from television and print ads, direct mail, and catalogs
Benefits of
telephone direct marketing
• Purchasing convenience
• Increased product service and information
Challenges of
Web-based catalogs
• Unsolicited outbound telephone marketing
• Do-Not-Call Registry
Direct-response
television (DRTV) marketing involves 60- to 120-second advertisements that
describe products or give customers a toll-free number or Web site to purchase
and 30-minute infomercials such as home shopping channels
• Less expensive than other forms of promotion
• Easier to track results
Kiosk marketing
involves placing information and ordering machines in stores, airports, trade
shows, and other locations
Digital direct
marketing technologies
• Mobile phone marketing
• Podcasts
• Vodcasts
• Interactive TV
Mobile phone
marketing includes:
• Ring-tone giveaways
• Mobile games
• Ad-supported content
• Contests and sweepstakes
Podcasts and Vodcasts involve the downloading of
audio and video files via the Internet to a handheld device such as a PDA or
iPod and listening to them at the consumer’s convenience
Interactive TV (ITV) lets viewers interact with
television programming and advertising using their remote controls and provides
marketers with an interactive and involving means to reach targeted audiences