Final Dm Ppt

7/24/2019 Final Dm Ppt

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Direct Marketing

Introduction


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Marketing is an organizational function and a set of processesfor creating, communicating and deliveringvalue to thecustomers, for managing customer relationships in ways thatbenefit the organization and its stakeholders

CRMis practice of analyzing and utilizing marketingdatabases and leveraging communication technologies todetermine corporate practices and methods that will maximizethe lifetime value of each individual customer to the firm

Marketing: The Beginning

Relationship Customer

Tool 1Tool 2

Tool 3

DM

Tool 5

.

.

.

CRM


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CRM: The Root Cause


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Marketing: The Beginning

Old

actor!

"roducts

#elling $

"romotion

"ro%its thru

#ales &olume

Classical

Target market

Customer 'eeds

(ntegrated Marketing

"ro%its thru

Customer #atis%action

Contemporar!

(ndi&idual Customer

Customer

)*perience

+"ersonalisation , DM-

CRM

"ro%its thru

Customer. o!alt!

#tarting "oint

ocus

Means

)nd


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alue consciousness ! Intolerance

Information "vailability

#ecrease in $reference %uotient

#ecrease in &utput through Media and communication

Increasing 'cale, Complexity and "venues for business(

Our Beha&ior


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Direct marketingis a sub)discipline and type of marketing(

Characteristics against marketing or advertising*

+ It attempts to send its messages directl! to consumer-.-, -.C/, without the use of intervening media( (How do

we get to reach customer directly?)

+ It is focused on driving purchases that can be attributed toa specific 0call)to)action(0 #M involves an emphasis on

traceable, measurable results known as 0response0 in theindustry/ regardless of medium(

Direct Marketing


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C"'1 '23#4 5

6ood Inc(


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" Method of distribution of consumer goods and servicesthrough personal sell to buyer/ contract away from fixedbusiness locations, primarily in a home(

" form of selling without retail outlets, distributors, wholesalers

or any type of middlemen

2he marketing of consumer goods and services directly toconsumers in their homes by way of explanation and7ordemonstration through a salesperson( 2he location can also be

a friends home, the workplace of the customer during breaksor other places away from

Direct #elling


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Direct #elling /usiness composition


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"von 8 billion/"mway 9 billion est(/

Mary :ay ; billion est(/

u 'kin 5 billion/

Direct #elling Business eaders


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72% of direct salespeople are married90% are women. 8%are under age 25. 63% between 25 and 44

and 24%between 45 and 64.

To be a successful direct selling agent an indi!idual must be a

good communicator and be "ig"l# moti!ated.

$ales performance and ob satisfaction were independent but"ig"er le!els of effort led to "ig"er le!els of performance

and satisfaction.

&ersistence and initiati!e are maor c"aracteristics of success

in direct selling.

Direct #eller0s "ro%ile


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#irect Marketing emphasizes on personalized interactionswith the target audience(

2he personalization of interactions is thought to foster greatercustomer loyalty and better return on marketing investment(

?rocery, -aniya /

#M seeks to reinvest marketing with the personal touchabsent from many modern business interactions(

Direct Marketing


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istor!

@ester Aunderman + 589B "mex, Columbia Records

Junk mail (1954):It refers to unsolicited commercial adsdelivered via post office or directly deposited in consumers mailboxes(

'$"M588;/* 0unsolicited commercial emailD(

"lthough Aunderman may have been the first to use the termdirect marketing, the practice of mail order selling directmarketing via mail/ essentially began in the 3('( upon invention

of the typewriter in 5=9B(


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2he first modern mail)order catalog was produced by "aronMontgomery Aard in 5=B.(

2he #irect Mail "dvertising "ssociation, predecessor of thepresent)day #M", established in 585B(

-ulk Mail postage rates were established in 58.=(

#M in 1urope can be traced to the 5Eth century( 3pon?utenbergs invention of movable type( 2he first trade

catalogs from printer)publishers appeared sometime around5FEG(

istor!


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"rimiti&e Marketing

+Barter-

Direct $

Data/ase Marketing

#T" Marketing

+#eg Tar "os-

Mass Marketing

+uge roups-1 to 1 Marketing

)&olution o% DM


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Mass Competitive "ttention

-readth

Remember

Impression $ay for 1veryone

2argeted 'elective "ttention

#epth

Response

#ecision $ay for 2argets

R&I Calculation

Mass Mkting 4s Direct Mkting


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#evelopment+ Aander man

+ #irect mail boom + 58EG + 58BG

?rowth

+ 2echnology+ #eclining effectiveness of traditional media

+ Changes in marketing Information

+ >eed for better targeting

DM: De&elopment and roth


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"cHuisition of data of individual customers may be difficult +

Reluctance 2he customers could be exposed to information overload + #irect

marketers are perceived to be contributing to this overload(

ReHuires highly skilled staff to analyze each customer profile(Information from database is used to produce specific appeal based

on consumers personal characters !7or past purchase behaviour(

It is important to determine*+ Ahat the programs obJective will be

+ Ahich markets to target through the use of a list or a marketing database

+ Ahat direct marketing strategies will be employed

+


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Repeat $urchase Introduction of >ew product

Cross 'elling

"nother Channel

Minority markets 1stablishing @oyalty

Identification of $rime prospects

O/6ecti&es o% DM


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.G*=G Ratio Reverse $yramid Mapping

Market

'ales

"areto0s a


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2argeting

Interaction

Control

Continuity

eatures o% DM


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"uto manufacturers spent K= billion on direct marketingadvertising in .GGB, realizing KBB(= billion in sales( 2hattranslated into a K8(9= R&I per dollar spent(

-y .G5., auto manufacturers are expected to invest K8(=billion on direct marketing, yielding K5G=(5 billion in sales, with

an R&I of K55(

7CT#


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"utomotive retailers, whose direct marketing efforts drive thehighest R&I of the E. 3' industries tracked by #M", investedKB(; billion in direct marketing advertising in .GGB( "s a result,this sector of the industry saw K.F=(5 billion in sales and anR&I of K;;(=5(

ehicle retailers will see a slight decrease in R&I, to K;;(9Bby .G5.( 2hat will result from spending K=(= billion on directmarketing advertising and earning K.8B(= in sales(

7CT#


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#irect)order campaigns produced at least FGL of directmarketing sales in .GGB(

In %; .GGB, 2oyota was the >o( 5 vehicle brand mailer ofservice promotions(

&f the domestic brands, 6ord, Chrysler, and #odge sent out

the most direct mail sales campaigns during %; .GGB(

7CT#


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&f the foreign auto brands, 2oyota, Mercedes)-enz, and


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C"'1 '23#4 .

#M 2ools7Means

1ach group 5 each

Meaning, methods, adv, dis( adv( @im ofthtools7means


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#irect Mail 2elemarketing

Catalogue Marketing

#atabase Marketing

1mail Response "ds

Means o% DM


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'+ 'ight

+ $re 'election

+ @ow "ttention Competition

+ $ersonalization

+


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$eople read direct mail, looking for a reason to stop 2he margin of error on direct mail is greater than in any other medium(

'pecial interest offerings tend to do best in direct mail, but the morespecialized the interest, the more limited the growth potential reHuires

product proliferation + old7new7same/(

2here is an inverse relationship between degree of pre)existinginterest and cost per response(

2here is a direct relationship between readership and response(

$eople are not dying to hear from you(

ery little body copy is ever actually re)read(

acts a/out Direct Mail


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'+ 'ound+ Chemistry+ Interaction+ &ne to &ne+ $re)'election+ @ow "ttention competition

A+ Interruptive

+ ReHuires 2ime+"nnoying

Telephone


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?enerate leads( 'creen leads before follow up(

"rrange opportunities for representatives(

#irect sales( 1ncourage cross 7 up selling(

#ealer support(

"ccount servicing( Market research(

2est marketing(

7pplications o% DM


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Do0s o% Telemarketing


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Don0t0s o% Telemarketing


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DM Campaign


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Direct Marketing C!cle


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>ames "ddresses

$urchase details

2ransaction #etails

#emographic #etails

Media #etails

Complaints

"rranged by geography Credit history

Data/ase Marketing


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$rimary information aboutsuspects7prospects7existing consumers

Improve selection of market segments

'timulate repeat purchases Cross)sell

CRM

"urpose


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C"'1 '23#4 .

@ist of #M terms

5; terms for each group

Meaning and example


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DM $ Technolog!


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#ata Centre* Cleaning, @ead Management, "nalysis

@oyalty $rogram Management

Creative ! 'tudio, $rint $roduction

Interactive Media + Aeb, 1mail, 'M'

Customer 'ervice*


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C"'1 '23#4 F

3nderstanding a #M "gency6ind 5 company +Indian7?lobal

-usiness should strictly be D#M

6ind out+ "bout the company

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Final Dm Ppt