DIRECT

MARKETING

 WHAT IS DIRECT MARKETING? HOW IS IT

DIFFERENT FROM CONVENTIAL
MARKETING?
DIRECT MKT IS A PROCESS BY WHICH THE CO APPROACHES
ITS CUSTOMERS ON AN INDIVIDUAL BASIS
DM DEALS WITH THE CUSTOMER DIRECTLY
--DM IS INTERACTIVE MARKETING
--DM DOES NOT INVOLVE MARKETING CHANNELS
--DM DOES NOT RELY HEAVILY ON ADVT/SALES PROMOTION

WHY DIRECT MARKETING?

--DELIVERS NEAR PERFECT SOLUTIONS TO CUSTOMERS
--HELPS IN ACHIEVING EXCELLENCE IN PRODUCTS/SERVICES
--HELPS IN IDENTIFYING SHARPER SEGMENTS AND PRECISE
TARGETING
--FACILITATES CUSTOMER RELATIONSHIP
--HELPS IN CUSTOMER RETENTION
--RESULTS MORE MEASURABLE THAN IN MASS MARKETING

 --MORE COST EFFECTIVE

--AVOIDS WASTAGES WHICH ARE INHERENT IN CONVENTIAL
MARKETING
--CAN FOCUS ON LARGE & VITAL ACCOUNTS
--VERY USEFUL IN TIMES OF DOWNTURN
--BENEFITS THE CONSUMER TOO
--WITH PROGRESS IN IT, THE EFFICIENCY OF DM IS
INCREASING AND COSTS ARE GOING DOWN

GROWTH OF DIRECT MKT IN

INDIA
TILL A SHORT WHILE AGO, DIRECT MKT WAS LARGELY
CONFINED TO INDUSTRIAL PRODUCTS AND SERVICES

THOUGH INDUSTRIAL PRODUCTS ACCOUNT FOR A

MAJOR PROPORTION OF DIRECT MKT. IT IS
SPREADING TO CONSUMER GOODS ALSO
--WIPRO

--PHILIPS INDIA

--MODI XEROX

-- MADURA COATS

--WELCOM GROUP

--TVS-SUZUKI

 DIRECT MARKETING IS OFTEN UNDERSTOOD AS MAINTAINING A

DATA BASE TO WHOM MAILERS ARE SENT/TELEPHONE CALLS
MADE REGULARLY
IN REALITY IT IS A VERY SCIENTIFIC WAY OF MARKETING OF
MARKETING WITH THE BASICS REMAINING THE SAME

REQUISITES FOR DIRECT

MARKETING
COMPREHENSIVE & RELIABLE DATA BASE

A CAREFUL AND PRECISE TARGETING OF MARKETS/PROSPECTS

SERVICE GAURANTEE AND PRODUCT WARRANTY
SUPPORT SYSTEMS/LOGISTICS
EYE FOR DETAIL
SUSTAINED EFFORTS

GROWTH OF DIRECT
MKT
--DUE TO LACK OF TIME/WORK PRESSURES
--FUEL COSTS/TRAFFIC CONGESTIONS/LONG QUEUES
--ENTRY OF MNCs IN FIELD OF DM
--RISING MEDIA COSTS/CLUTTER
--PRODUCT/BRAND CLUTTER IS MAKING
SEGMENTATION/TARGETING DIFFICULT
--PRODUCT DIFFERENTIATION GETTING BLURRED

DIRECT MARKETINGIS BECOMING AN ATTRACTIVE

ALTERNATIVE

TYPES OF DIRECT
MARKETING

MAIL ORDER MARKETING/CATALOG MARKETING

DIRECT MAIL MARKETING
DIRECT RESPONSE MARKETING
DATABASE MARKETING
TELEMARKETING
TELESHOPPING
ON-LINE MARKETING
KIOSKS MARKETING

WEB MKT
E-COMMERCE HAS THREE BROAD COMPONENTS
i) B
Ii) BTO B
Iii) B TO C

WEB MKT HAS THE FOLLOWING TWO COMPONENTS

i) B TO B
Ii) B TO C

IT IS THE LATTER WHICH IS GAINING IN PROMINENCE WITH

PASSAGE OF TIME
THE INTERNET CAN BE VIEWED AS
-- A MEDIUM
--A BUSINESS
--A MKT CHANNEL
--COMPLETE MKT PLACE

ONLINE MARKETINGADVANTAGES

PRECISE INFORMATION
PRODUCT INFO DIRECT FROM MFG
REQUIREMENTS CAN BE CUSTOMISED
QUICK ADJUSTMENTS TO MARKET PLACE
LOWER COSTS
RELATIONSHIP MARKETING
AUDIENCE SIZING

GROWTH OF WEB WORLD

THE GROWTH IN E-COMMERCE HAS MANIFESTED
ITSELF IN FOLL WAYS
--INCREASE IN VOL OF BUSINESS OVER THE NET
--INCREASE IN RANGE OF PRODUCTS OVER THE NET
--INCREASE IN THE SUSCRIBER BASE OF THE NET
EG
PUBLISHING HOUSE McMILLAN INDIA Ltd OFFERS
MANAGEMENT DEVELOPMENT PROGRAMSOVER THE
NET IN COLLABORATION WITH IIM-CALCUTTA

LIMITATIONS OF WEB MKT

IT IS NECSSSARY TO GO BEYOND THE HYPE TO SEE THE
OTHER SIDE TOO

ALL PRODUCTS CANNOT BE MARKETED ON THE WEB

COSTS ARE NOT INCONSQUENTIAL
PROFITABILITY.?

LIMITATIONS IN THE INDIAN CONTEXT

--LEGAL/REGULATORY

--INFRASTRUCTURAL

--CIMMERCIAL

-- OTHER ISSUES

LEGAL/REGULATORY
--E-DOCUMENTS NOT A LEGAL ENTITY
--ABSENCE OF TAXATION LAWS ON E-TRANSANCTION
--ABSENCE OF LEGAL FRAMEWORK TO COVER CYBERTRANSACTION

INFRASTRUCTURAL
--LOW DENSITY OF PCs/TELEPHONES
--BANDWIDTH LIMITATION
--NETWORKING LIMITATION
--DELIVERY ENDS CONSTRAINTS

PAYMENT ROBLEMS
OTHER ISSUES
--LOW CONFIDENCE IN THE SYSTEM
--DANGERS OF HACKING