Database and Direct Response

Marketing
Wells, Moriarty & Burnett; Clow & Baack; Internet
sources

Direct Marketing

Direct marketing occurs when a seller and

customers deal with each other directly rather
than through an intermediary, such as a
wholesaler or retailer

Direct marketing tools

he !our strategic tools o! Direct Marketing are"

Direct mail

argets both consumers and B#B

Mailing list may include internal database and commercial list

Containes letter, brochure, !lyers, reply card, return en$elope

Catalogs

Multi%page direct%mail publication

&ow mostly replace by online

elemarketing

Internet

Direct sales

Direct Response 'd$tg

(lightly longer ads !or customer to remember

)opular home shopping * channels

Direct Marketing

'd$antages

(electi$e reach

+elps in building use!ul

database

Con$enient, reliable
purchase

&ot bound,restricted by
locations

-reater control o! marketer

until deli$ery

.le/ibility o! !orm and timing

Disad$antages

0nseen product leads

to customer reluctance

'nnoying direct
marketers

1unk and spam mails

oo many catalogs

Intrusi$e calls

0nable to reach large

masses

Direct Mail

'd$antages

ells a story

2ngages attention

)ersonali3es
message

Builds in !eedback

Reaches the
unreachable

Disad$antages

&egati$e perceptions

Cost

Mailing list 4uality is

critical

Response rate could be

as low as #%56

*ulnerability to natural
disasters and accidents

Catalog marketing

'd$antages

Can target speci!ic

market segments

2ngages attention
with colour!ul pictures

Complete in!ormation

Con$enience% o!!er a
$ariety o! options

Disad$antages

&egati$e perceptions

Costs

7ow Response rate

85%96:

Database must be
constantly updated

elemarketing

More direct marketing dollars spent

Call centres

Cold calling

)redicti$e dialing

ypes

Inbound and outbound

Criticisms

Random calling

.raudulent beha$iour

+ighly intrusi$e

Internet tools

2%mails

;nline ads

'ds on search engines, social media

2%Commerce !irms such as 2 bay, 'ma3on,

.lipkart etc<

Mobile apps

Direct%Response 'd$ertising

<<<is a type o! marketing communication that combines the

characteristics o! ad$ertising but also includes an element o!
directness that allows the reader,$iewer,listener to make a direct
response to the ad$ertiser

Induces immediate action; (hort%term e/plicit results; high R;I

Contact elements

oll !ree number

;rder coupons

Website

2%mail address

Direct%Response Marketing" =ey
)layers

'd$ertisers

'gencies

Media companies

Customers

he 'd$ertisers

Marketing !irms such as

Insurance companies

)ackaged !oods

-ardening !irms

Book publishers

;!!%beat e/ample"

Dell Computers sells directly to consumers

he 'gencies

'd$ertising 'gencies

+a$e a separate dept !or this

Independent 'gencies

.ully speciali3e in direct marketing

(er$ice !irms

(peciali3e in printing, mailing and list brokering

.ul!illment houses

2nsure that customers recie$e the orders

he Media Companies

Mail

)ostal and courier ser$ice

)hone

Call or sms

'll telephone and mobile phone ser$ice pro$iders

Websites

2%mail

he customers

Intrusi$e yet liked

'ppreciate con$enience

.acilitated by credit card usage

5%D $isuals creating a better shopping

e/perience

More mouse%clickers

Database Marketing

<<<is a practice that uses databases to predict

trends and monitor consumers to more
e!!ecti$ely implement direct%marketing
strategies

Database ;b>ecti$es

'ccording to Direct Marketing 'ssociation, a

marketing database has !our primary ob>ecti$es

o record names o! customers, e/pires and prospects

o pro$ide a $ehicle !or storing and then measuring

results o! ad$tg 8direct response ad$tg:

o pro$ide a $ehicle !or storing and then measuring

purchase per!ormance

o pro$ide a $ehicle !or continuing direct

communication by mail or phone

Database Marketing" )rocess
?< Data Re!inement
#< Data 2ntry
@< Collection point
5< Data 'ssessment
9< Data Clustering
A< Data 'pplication
B< Data sharing