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Direct marketing

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  1. Introduction
  2. What is direct marketing
    1. Key differences between general marketing and direct marketing
    2. Role of direct marketing
    3. Advantages of direct marketing
    4. Disadvantages of direct marketing
  3. What is database marketing?
    1. development of database marketing
  4. Things to remember before direct marketing campaign
  5. Feasibility of direct marketing
  6. Future of direct marketing in developing countries
  7. Forms of direct marketing
    1. Face-to-face selling
    2. Tele marketing
    3. Direct mail
    4. Direct response marketing
    5. Kiosk marketing
    6. Internet marketing
  8. Public and ethical issues in direct marketing
  9. Case studies
    1. Amway: Global leader in direct selling
  10. Conclusion
  11. Recommendations
  12. Bibliography

An interest rousing advertisement in the press entices you to dial a toll free number for more information on a great looking proposition. You find it hard to hold your curiosity and go ahead with making a call. At the other end, you hear a friendly voice who, with cultured interactive skills convincingly enumerates the virtues of the offer, impressing on you that it was customized by their firm to fulfill critical user needs. And the telemarketing executive would further point out reasons for you to consider the offer, laced with some never-before value appeals. At the end of briefing, you are reasonably impressed and convinced on the worth of an exploration on the offer and you respond to the stimuli for an interface with the firm's executive at your convenience. This is a typical case of direct marketing process in action.

In simple words, direct marketing is any contact your business makes with existing or potential customers in order to generate sales or to raise awareness. Those who are in business, at some stage of promoting the trade, engage into the act of direct marketing, whether business to business or business to consumer, the usefulness of direct marketing has proved unquestionably. In today's competitive scenario, even the traditional multi channel marketers of FMCG products have laid adequate emphasis on direct, one to one contacts with the prospects, either for retaining high value customers or to use the process for widely energizing trials from non users of the brand. The secret of success lies in understanding the nuances of this delicate exercise and the imagination and grit to make the process work for the enterprise.

The following example of Domino's will give you an idea about how to successfully use direct marketing:
Domino's entered the developing country market only post 1996. But they have been extremely successful by using direct marketing effectively. Domino's, have used the direct marketing strategy to reach out to customers. Their advertisements initially showed the telephone numbers of their different outlets and promised to deliver hot fresh pizzas at customer's doorstep in 30 minutes. Today there are several food chains, consumer product companies and service organizations that are using the direct marketing strategy for effectively reaching out to their customers. Direct marketing is gaining importance, especially in urban markets and has emerged as an alternative form of marketing. Brands like the orange cellular phone services have been built through an effective use of direct marketing tools.

[...] Emergence of specialized database firms: Another key factor in the success of direct marketing is the evolution of specialized database firms. It is an expensive proposition in terms of both money and time to create a customer database. This makes direct marketing feasible only for large firms. A very large component of the economy consists of the small and medium sized firms who cannot afford to create this database. Hence, emergence and evolution of firms specialized in database management will contribution to the success of direct marketing Intermediaries getting stronger: Several firms such as those in the publishing business are now increasingly opting for direct marketing to reduce their costs of distribution. [...]

[...] A customer's ultimate value is not revealed by a purchase response to a particular mailing but by the expected profit made on all future purchases, net of acquisition and maintenance costs DIRECT RESPONSE MARKETING Direct marketers use all the major media to make direct offers to potential buyers. Newspapers and magazines carry abundant print ads offering books, articles of clothing, appliances, vacations, and other goods and services that individuals can order by dialing a toll-free number. Radio ads present offers to listeners 24 hours a day. [...]

[...] This cipher cannot be easily intercepted unless the program or company that completed the encryption authorizes an individual. In general, the stronger the cipher, the better protected the data is. However, the stronger the cipher, the more expensive encryption Public and Ethical Issues in Direct Marketing Although direct marketers and their customers usually enjoy mutually rewarding relationships, a darker side occasionally emerges. Key public and ethical issues include: Irritation: Many people find the increasing number of hard sell, direct-marketing solicitations by phone, television, and e-mail to be a nuisance. [...]

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