Direct marketing
Ing. Veronika Kopřivová, Ph.D.
Marketing Communication
1 Direct Marketing (DM)
2 DM target groups, media and tools
3 Geomarketing, CRM
Content
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• In the beginning, DM was a part of distribution – considered as direct
purchase channel.
• Later it became an instrument of marketing communication.
• Use of direct channels to reach customers and delivery of goods and
services without using marketing middlemen (intermediaries).
• Many marketers use direct marketing to build long-term relationships
with customers.
1 Direct Marketing (DM)
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• Direct marketing transmits the promotion message directly to the existing
or future consumers.
• It also includes the creation of the respondent database.
• The word "direct" means the use of media allowing direct contact (mail,
catalogues, phone contacts or brochures).
• To obtain an immediate response, we can use coupons, phone calls and
personal visits.
1 Direct Marketing (DM)
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Toyota Corolla 2015 – Synced Direct Mail
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• Active DM – the marketer (company) addresses the commercial message
to customers as the first.
• Passive DM – customers ask for the product or information as the first.
Active and passive DM
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• It doesn´t use mass media. It uses addressable media.
• It communicates with consumers as individuals.
• It is interactive, meaning, that consumers respond
directly (and measurably) to direct communications.
DM advantages
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• It is effective because the communication is targeted only to those
individuals who are likely to be interested in the offering.
DM advantages
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• It helps to create a database of customers – CRM
(Database marketing).
• Ability to serve the customer who does not have time.
• Junk mails – SPAM
• Invasion of privacy
• Limited reach
• The companies must respect legal rules!
DM disadvantages
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• Carpet bombing
• Database marketing
• Interactive marketing
• Timed personalized marketing
• Marketing of a lifelong value
DM development
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• Direct sales
• Sales support and distribution
• Brand awareness
• Loyalty and customer retention
DM objectives
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• B2B (very effective!)
• B2C – typical application in:
– Financial services
– Telecommunication services,
– Tourism, cosmetic products, car producers, etc.
2 DM target groups
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DM media and tools
MEDIA
+
TOOLS
Unaddressable
Addressable
Direct
Response
Radio
Direct
Response
Television
Catalogues
Direct mail
Telemarketing
New
interactive
media (CD-ROM,
Internet, mobile
phone, …)
Teletext
Personal selling
Direct Response
Press
Unaddressable
distribution
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• Direct marketing in addition to direct communication channels also uses
the mass, respectively non-targeted media.
• The functionality and popularity of different media varies over time.
• A very popular tool is untargeted mailing (e.g. leaflets from retail chains).
• Geomarketing.
DM tools and media
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• Unadressable tool.
• Mass distribution of DM
leaflets to households, no
one in particular, to all
potential customers across
the board for one territory.
Untargeted distribution of DM materials
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• This type of advertising is published in print in order to:
– Create direct customer reaction by sending a coupon or calls to a specific
phone number.
– Establish close and clear link between the answer and what is the content
of the advertisement.
– Identify the respondent.
Direct response printed advertising
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• Modern television broadcast receivers can be used in several ways.
– Older teletext offered the opportunity to rent a website to disseminate the
message and generate a response.
– Teleshopping.
– Television advertising with direct reactions (Direct-Response Television DRTV),
which is the use of minute-long spots in prime time at which the
viewer can respond with his remote controller.
Untargeted TV offer
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• DRTV is a TV spot with direct response. Integral part is
telemarketing service.
• DRTV spots encourage customers to take action – buy.
• The basic aim of DRTV spot is to provoke measurable feedback.
DRTV – direct response television
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• One of the most effective direct marketing tools.
• Shipment is directly addressed to specific recipients.
• The primary goal is to attract the customer enough that he is interested in
the mail/package.
• The offer created so that the clients’ attention is caught and he reads it.
• Feeling of plasticity/texture.
Direct mail
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• Any measurable activity using the phone, which aims to help you find,
acquire and develop a relationship with the customer.
• The phone is the most direct of all direct media tools, and has a number
of advantages.
• It is flexible, interactive and fast.
• Telemarketing campaigns can be launched immediately, and their
effectiveness can be instantly monitored.
Telemarketing
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Telemarketing
Type of
telemarketing
Generating
sales
Sales support
In-bound telemarketing
(inside)
Acceptance of
orders
• Information about the product and the company
• Customer Service
• Service Complaints
Out-bound
telemarketing (out)
Tele-sales • Arrange meetings for the seller
• Reaching new customers
• Update business database
• Support Marketing Communications
• Support business tourism
• Tele-factoring
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• An inventory of goods, visually presented to the customer.
• A printed catalogue is today gradually being replaced by electronic form,
whether stored on removable media or distributed via the Internet.
• Advances in technology give marketers the opportunity to experiment and
make their catalogs interactive, animated, with music, etc.
Catalogues
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• Use of electronic devices - web, mobile, marketing position –
i.e. GPS or car-navigation, online TV and radio, etc.
• E-marketing is trying to:
– predict the behavior and perceptions,
– suggest the most effective methods,
– persuade to purchase or other required action.
New interactive media
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• One of the direct marketing methods.
• Mobile, Anytime, Globally, Integrated and Customized (MAGIC).
• Set of practices that enables organizations to communicate and engage with their
audience in an interactive and relevant manner through any mobile device or
network.
Mobile marketing
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• Advergaming
• Cell Broadcasting
• Location-based marketing
• Logos, pictures, and ringtones
• Two-way SMS communication
• SMS advertising
• Advertising MMS
• SMS competitions, voting, polls
• Special graphic codes
Mobile marketing tools
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• The modern trend in direct marketing.
• A field that processes the results of customer surveys in the form of
geographic maps.
• The basic principle – focusing on customers, who are most likely to hear the
advertising messages, i.e. search for regions or specific customers who will
be included in the ad campaign.
• For companies, where spatial information about residents, customers,
investments or local sales has an impact on business development.
3 Geomarketing
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Geomarketing
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• Process of gathering, processing and utilization of information about
company´s customers, that works on the basis of database technology.
• The outcome is capability to recognize, understand and foresee needs,
wishes and purchase habits of customers.
• Huge shift from narrowly specialized utilization and focus on technical
aspect to mass utilization in all areas of company management.
Customer Relationship Management
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Principles of CRM
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Thank you for your attention!☺
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