Direct Marketing

Prepared by :

Kameisha Taylor :

1200408

Question 26Explain the rapid growth of Direct Marketing over the past few decades. What are the advantages and drawbacks of using this marketing communications tool? With reference to any one (1) local or global company, evaluate its use of any three (3) direct marketing tools.

LEARNING OBJECTIVESTo provide a clear understanding of Direct

Marketing.To explain the rapid growth of this

marketing communication tool over the past few decades.

To examine the advantages and drawbacks of Direct Marketing.

To evaluate Proactiv’s use of three (3) Direct Marketing tools.

ACTIVITY

WHAT IS DIRECT MARKETING?

Direct marketing is a system of marketing by which organizations

communicate directly with target customers to generate a response or

transaction. This response may take the form of an inquiry, a purchase, or

even a vote.(Belch & Belch 2009)

Direct marketing is a system of marketing by which organizations

communicate directly with target customers to generate a response or

transaction. This response may take the form of an inquiry, a purchase, or

even a vote.(Belch & Belch 2009)

Direct marketing is the total of activities by which the seller, in effecting the

exchange of goods and services with the buyer, directs efforts to a target

audience using one or more media for the purpose of soliciting a response by

phone, mail, or personal visit from a prospect or customer. (Peter Bennett ) 

Direct marketing is the total of activities by which the seller, in effecting the

exchange of goods and services with the buyer, directs efforts to a target

audience using one or more media for the purpose of soliciting a response by

phone, mail, or personal visit from a prospect or customer. (Peter Bennett ) 

FORMS OF DIRECT MARKETING

Direct marketing uses databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes.

There are two main types of marketing databases,

1) Consumer databases (B2C) 2) Business databases (B2B)

Consumer Database

Name

Address/Zip Code

TelephoneNumber

Occupation

Age

Gender

MaritalStatus

FamilyData

Education

Income

A Business-to-Business Database

Contact Info

Contact Title

TelephoneNumber

Purchase History

CreditHistory

IndustrialClassification

Size of Business

Revenues

Number ofEmployees

Time in Business

Direct Marketing Strategies

One-StepOne-Step Two-StepTwo-Step

• The medium is used directly to obtain an order.

• Viewers are urged to phone toll-free number to place an order.

• The goal is to generate an immediate sale when the ad is shown.

• May involve the use of more than one medium.

• The first effort is designed to screen, or qualify, potential buyers.

• The second effort generatesthe response.

GROWTH OF DIRECT MARKETING

Direct marketing is one of the fastest growing forms of promotion in terms of dollar expenditures. A number of factors have led to this extraordinary growth. They include:

Consumer credit card Over one billion credit cards are in circulation.

Technological Advances Better communications via electronic media & computers Rapid package delivery

Cont’d

Changing Structure of Society and the market The number of women working outside the home jumped

from 42 % to 58 % between 1980 and 1990( Kobs, 1992). Given less time to go shopping, many of these women

found it convenient to select and examine merchandise in their own homes.

Other socioeconomic factors Population growing older, Rising discretionary income

Cont’d

External factors Rising cost of gasoline The availability of toll-free telephone

numbers The widespread availability of mailing lists.

Direct Marketing Advantages

Selective reachSelective reach

Segmentation capabilitiesSegmentation capabilities

Frequency potentialFrequency potential

FlexibilityFlexibility

PersonalizationPersonalization

CostsCosts

Measures of effectivenessMeasures of effectiveness

Direct Marketing Disadvantages

Rising CostRising Cost

Deception and fraudDeception and fraud

Accuracy of databaseAccuracy of database

Invasion of PrivacyInvasion of Privacy

Image FactorsImage Factors

IrritationIrritation

ABOUT PROACTIV

Proactiv is a brand of acne treatment and skin care products  distributed by direct marketing company Guthy-Renker. 

Proactiv was created by two dermatologists, Katie Rodan and Kathy Fields in 1995.

Proactiv is a three-part acne treatment kit that is sold on a subscription basis. It includes a cleanser, toner and treatment.

The product clears your acne and helps prevent future breakouts. Proactiv+ also delivers the exceptional skincare benefits of a visibly hydrated, even toned, radiant complexion.

DIRECT RESPONSE TELEVISION MARKETING

Direct marketing via television has two basic forms: Long form (usually half-hour or hour-long segments that

explain a product in detail and are commonly referred to as infomercials) .

Short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website).

DIRECT MAIL MARKETING It involves sending an offer, announcement , reminder

or other item to a person through mail.

It is a popular medium as it permits target market selectivity, can be personalized, is flexible.

Cost involved is very high than the mass media but the people reached are better prospects.

KIOSK MARKETING Kiosk- A small, temporary, stand-alone booth used in

high-foot-traffic areas for marketing purposes.

 Kiosks are machines kept in shopping malls and other such places by organizations to spread the information and generate orders from customers who visit such Free standing, semi-permanent display or retail outlet, within a large retail establishment or a shopping mall.

CONCLUSION Direct marketing is the use of consumer direct channels to reach and deliver goods and

services to consumers without using marketing middlemen.

It helps the companies to opening dialogue directly between themselves & the end

consumers of their products rather than through intermediaries.

The ultimate purpose of direct marketing is to establish and manage direct long term

relationships with customers by capturing personal information in a database.

The database of a company is at the heart of any good direct marketing strategy. It must

be up to date and accurate.

REFERENCE Belch, G. E., & Belch, M. A. (2009). Advertising and promotion: An integrated

marketing communications perspective.

Kobs, Jim. (1992). Profitable Direct Marketing, 2nd ed. NTC Business Books.

Kotler, P., & Armstrong, G. (2006). Principles of Marketing, 11th Edition. Prentice Hall.

Reutterer, T., Mild, A., Natter, M. and Taudes, A. (2006), “A dynamic segmentation approach for targeting and customizing direct marketing campaigns”, Journal of Interactive Marketing, Vol. 20 Nos 3/4, pp. 43-52.

http://www.dmn.ca/Articles/Articles/2004/readerforum1.htm. Retrieved February 28, 2015.