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12 September, 2021

What are the different ways that banks can follow to distribute their products directly

 Direct marketing consists of direct communications with carefully targeted individual consumers to obtain an immediate response. Interactivity is essential to this process.

Major forms of direct marketing are summarized below:

i. Face-to-Face Selling

ii. Telemarketing

iii. Direct-Mail Marketing

iv. Catalog Marketing

v. Online Marketing and Electronic Commerce

i. Face-to-Face Selling

The original and oldest form of direct marketing is the sales. Today, many companies’ still use salespersons or representatives to reach their prospects, develop them into customers, build lasting relationships, and grow the business.

ii. Telemarketing

In telemarketing telephone is used to sell directly to consumers. Two general types of telemarketing include:1). Outbound telephone marketing to sell directly to consumers.2). Inbound toll-free 800 numbers to receive orders from television and radio ads, direct mail, or catalogs. 900 numbers are used to sell consumers’ information, entertainment, or the opportunity to voice an opinion on a pay-per-call basis. Many customers appreciate the offers they receive by telephone, however, because of the recent explosion in unsolicited telephone marketing, lawmakers are responding with efforts to control unsolicited telemarketing during certain hours of the day. Most telemarketers support some form of legislation.

iii. Direct-Mail Marketing

Direct mail marketing involves sending an offer, announcement, reminder, or other item to person at a particular address. Direct mail is well suited to direct, one-to-one communication.

Advantages include:

1). High target-market selection

2). Personalized.

3). Flexible.

4). Allows easy measurement of results.

Even though the cost per thousand can be high, the people who reached through direct marketing are better prospects than those who reached with other media.

New forms of direct mail include:

1). Fax mail.

2). E-mail.

3). Voice mail.

iv. Catalog Marketing

Catalog marketing involves selling through catalogs mailed to a selected list of customers or made available in stores. A catalog is a printed, bound piece of at least eight pages, selling multiple products, and offering a direct ordering mechanism. Some stores offer a complete line of goods through their catalogs. Most direct retailers have put their catalogs on the World Wide Web. Web catalogs are passive and must be marketed themselves.

v. Online Marketing and Electronic Commerce

Online marketing is conducted through interactive online computer systems, which link consumers with sellers electronically. There are two types of online channels:

1). Commercial online services offer information and marketing services to subscribers who pay a monthly fee. The best known is America Online.

2). The commercial online services are now being overtaken by the Internet as the primary online marketing channel. The Internet is a vast and burgeoning global web of computer networks. The World Wide Web is a popular meeting place for consumer and business commerce.