D irect Marketing (DM). “Direct Marketing is an interactive system of marketing, which uses one or...
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Transcript of D irect Marketing (DM). “Direct Marketing is an interactive system of marketing, which uses one or...
Direct Marketing (DM)
“Direct Marketing is an interactive system of marketing, which uses one or more advertising media to effect a measurable response and /or transaction at any location.”
- Direct Marketing Association (DMA)
Unique Features of DM
Action Orientation
“Create share-of-market, rather than, share-of-mind” -Lester Wunderman
Prospect Selectivity (Targetability) Customization ability Measurability Relationship building
DM Initiatives of some FMCG Majors HUL – Project Sangam Direct, HLL Network Marico –Harghar Procter & Gamble LG Electronics
IDSA – Indian Direct Selling Association WFDSA – World Federation of Direct Selling
Association
Forms of DM
Catalogue Marketing
Tele Marketing: 1)Inbound 2) Outbound
TV Direct–Response Marketing (Tele-Shopping)
Mail order
Kiosk Shopping (Touch Screen)
Multi-level Marketing
Ethical issues in Direct Mktg. Irritation Deception and Fraud Invasion of privacy
Permission Mktg. Clutter in Advertising and spurt in DM
Invades privacy of customers “Permission Marketing”----Seth Godin
e.g. Mitsubishi Lancer (Hindustan Motors)
e.g. Bose audio systems Difference between Permission Mktg.and DM
Network Marketing(NM) / Multi-Level Marketing(MLM) Network Marketing is a form of DM, which uses a
network of people (consultants) to demonstrate and sell products to people they know.
Nuts & Bolts of Network Marketing Products suitable for the system Use of IT-Data mgmt., Inventory mgmt. ,e-business. Strengths of MLM Drawbacks of MLM Future of MLM in India
Some DM Co.s and their Products Amway – Household,Personal Care,Cosmetics, Nutritional Avon - Cosmetics, Jewellery,Home furnishing,Baby Care Tupperware – Food Storage Containers,Kitchenware,Toys Discovery Tops- Toys, Books, Games Brite Music Enterprises – Children Songbooks,Cassettes Encyclopedia Britannica- Educational Publications Mary Kay Cosmetics – Cosmetics, Skin care Products Oriflame - Cosmetics, Skin care Products Modi Care – Home care,Kitchen care,Car care,Personal
care
Strengths of MLM Continuous growth of network . Quicker & easier entry into new markets. Low overheads. Easy to add new products. Better demonstration of innovative products Loyal & captive base of consumers. Word of mouth magic.
Weaknesses of MLM Sales forecasting is difficult – high inventories . Distributors often become the largest consumers Brand building is difficult. The chain could break down. Prices are normally high. Pyramid structure of income distribution. High turnover of distributors.