34 Chap - Module 5 - Direct Marketing

8/13/2019 34 Chap - Module 5 - Direct Marketing

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MODULE 5 MARKETING APPLICATIONS

34.1 DIRECT MARKETING

Direct marketing has several forms. The major ones are:

Mail Order Marketin!Catal"#e Marketin

Dire$t Mail Marketin

Dire$t Re%&"n%e Marketin

Data'a%e Marketin

Tele(arketin

Tele%)"&&in *+"(e S)"&&in,

Online Marketin!Marketin "n t)e -e'

DM has so many forms essentially because it incorporates a variety of

media/tools. Corresponding to the specific media/tools used, specific

forms of DM have emerged.

or e!, in direct mail marketing, "hich is one major method of

marketing in DM, customi#ed mailing through carefully developeddatabases $ %(ail(ere& facility of "ord processing is the

medium/tool used. 't provides one "ay of reaching a mass of customers

individually.

'n telemarketing, "hich is another form of DM, the phone is the

medium/tool used. Catalogue marketers use the catalogue as the tool.

(ll these direct marketing methods basically do the same thing) they

gather customer names $ sell their products direct to them.

*hile in the earlier days, direct marketing tools "ere confined to the

mail $ the phone, today DM uses ne"er tools such as computers $ the

'nternet for reaching prospects/customers individually.

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The ne"er tools actually permit more effective $ more sophisticated

direct marketing. Their availability at a reasonable cost has

substantially enlarged direct marketing opportunities.


34./ MAIL ORDER MARKETING!CATALOGUE MARKETING

Mail Order (arketin *MOM,!Catal"#e Marketin, also kno"n as Mail

+rder usiness -M+, is one of the "ellestablished methods of DM.

since many mail order marketers use catalogues for communication

"ith the consumer) this form of marketing is often referred to ascatalogue marketing.

Ott" 0#rlint"n: urlington is an established M+. urlington markets

a "ide range of products through this method. 't is no" e!panding its

business $ is also planning a video catalogue.

ir%t Mail Order C"(&an2: irst Mail +rder Company has beenfocusing on customers in the smaller cities, people "ho have the money

but do not have the access to products.

Anali Tetile%: Mail order marketing is resorted to even to products

like te!tiles. (njali Mills, angalore, for e!, has been marketing a

substantial part of its saris through mail order. 't advertises through the

print media $ substantial catalogues to those "ho evince interest in

mail order purchases.

Ot)er Ea(&le%: M"t)er$are India, another M+, has set its target on

mothers "ho buy items meant for kids. ( je"eler, S#rat Dia("nd, is

also doing some M+. 't concentrates on credit card holders. C)ara)

Din, the "ellkno"n shirt maker in Mumbai, is also sending out mailers

to prospective customers $ does some business over the mail. 0iving

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Media has been selling a large volume of its %M#%i$ T"da2& cassettes

through mail order.


34.3 DIRECT MAIL PROMOTION!DIRECT MAIL MARKETING

1nderstanding the difference bet"een direct mail promotion $ direct

mail marketing is necessary.

*hen a direct mail campaign stops "ith the objective of generating

a"areness $ interest about the product in the minds of the targetcustomers, it is dire$t (ail &r"("ti"n. 'n other "ords, direct mail here

takes care of communication alone.

*hen the direct mail campaign encompasses the "hole range of

marketing tasks including order booking, product delivery etc., it

becomes dire$t (ail (arketin. 'n other "ords, the e!tent to "hich the

mailing campaign decidees accomplish the marketing task "hether it is

direct mail marketing.

2elect 0ist of Direct Marketing +utfits in 'ndia:

Dire$t Re%&"n%e, the DM subsidiary of 3esponse 'ndia/Dick

2haver

+$M Direct +gilivy +ne *orld"ide, the DM division of

+$M

M#dra Dier%i6ied, the DM division of Mudra

Communications

+TA Dire$t, The DM division of 4T(

C0Ulka-Direct $ interactive the DM division of 1lka

Gre27% Dire$t, the DM division of 5rey *orld"ide

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Redi66#%%i"n D89R7% -#nder(an Cat" :")n%"n -*C6

net"ork

(7 0intas8s 5lobal Market 0inks

M$Cann Eri$k%"n7%integrated communications net"ork Saat$)i 9 Saat$)i Dire$t, the DM division of 2aatchi $

2aatchi

Data(ati$% Dire$t, an independent DM net"ork


34.4 DIRECT RESPONSE MARKETING

Direct 3esponse marketing -D3 is another e!pression that is

seen in DM. 't is similar to, but not e!actly the same as direct

mail marketing. *hat distinguishes direct mail marketing $

direct response marketing from each other is the

media/instruments used.

*hile direct mail marketing relies on mail, i.e. letters/mailers

for obtaining the response, direct response marketing uses

more instruments/media -including letters/mailers, like

telephone, radio, T9 $ computer.

2ome direct response marketing campaigns, for e!ample, rely

totally on T9 %in6"(er$ial%& -commercials "hich give

information about products, benefits $ usage aspects.

Depending on the media used press, radio, T9 $ computer

response is elicited by giving a contact address/phone

number/fa! number. 'n the case of press, usually a coupon is

also attached to enable response.

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T"ll6ree tele&)"ne n#('er%

Tollfree telephones too serve as a usual tool of direct response

marketing. Tollfree telephones help better ordering by the

customer, better dialogue bet"een the customers $ the

company $ better service to the customer.


34.5 DATA0ASE!TELEMARKETING

Data'a%e Marketin

Database marketing is also seen in DM. although all forms of

DM are databasedriven, some e!perts treat database

marketing as a distinct form of DM.

Adantae% "6 Tele(arketin

Telemarketing facilitates personali#ed contact, though notfacetoface contact "ith prospects. Compared to mass

marketing programs, it gives the marketer a better chance to

influence the prospects.

2econd, it enhances marketing productivity by providing a

screening $ selection facility through preparatory

conversations "ith the prospects. Those "ho are not at all

inclined are disposed off at the first telecalls. +ne can thus

concentrate on select prospects.

Third, telemarketing is less e!pensive compared to most other

forms of selling. Moreover, it can be used in respect of

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different types of products. *hile it suits industrial products $

services better, it suits MC5 too, especially, durables.

+"; d"e% Tele(arketin ;"rk

34 Chap - Module 5 - Direct Marketing

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