final dm ppt
TRANSCRIPT
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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