DIRECT MARKETING: FACTORS FOR GROWTH

1
DIRECT MARKETINGFACTORS FOR GROWTH

• Niche marketing
• Availability of specialized media
• Proliferation of computerized databases
• Worldwide telecommunications capability
• Globalization of markets

2
DIRECT MARKETING

• OBJECTIVES
• Building Customer Relationships
• Relationship Marketing
• Direct Response or Transaction
• TOOLS
• Direct Mail
• Catalogs
• Telemarketing
• Vending Machines
• Print Media (inviting direct response)
• Broadcast Media (inviting direct response)
• Television and Cable (Home shopping networks)
• The Internet
• Fax, Video, and other media

3
PROBLEMS AND PROSPECTS

• PROBLEMS
• Cannot see and examine
• Operating costs
• Low response rates
• Intense competition
• Image problems
• Lack of comfort with interactive technology
• Privacy and ethical issues

• PROSPECTS
• Segmentation and targeting
• Geographical range
• Shopping convenience
• Technological advances
• Lower prices to customer is possible
• Lower operating costs are possible

4
INTEGRATED DIRECT MARKETING

• Integration across Direct Marketing Tools
• Integration with Other Communications Mix and
  Marketing-Mix Elements

5
THE DIRECT MARKETING PROCESS

• Developing, maintaining, and managing customer
  databases
• Developing an interactive marketing system
• Measuring results

6
DIRECT MARKETINGWHY AND WHEN?

• For Market Selectivity and Targeting
• When the product is not readily available in the
  marketplace
• When there are problems of availability, cost,
  and services of middlemen
• When a high degree of control over marketing is
  desired