INTRODUCTION ABOUT DIRECT MARKETING

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If a person is a Citibank, Visa or Master card holder, living in a metro or class one town, by now he would probably be accustomed to receive some unexpected mail inviting him to a launch function of a new product, a live demonstration of a gadget, an exhibition of designer jewellery or a music concert sponsored by some business firm.

He may also get some promotional literature about an investment scheme or some share application forms for public issues of companies, or be offered a hefty discount on subscription of a magazine or an early bird incentive on booking a residential flat.

Even in the class two and smaller towns, people are getting surprise gifts and greeting cards on occasions like anniversaries, birthdays and the new year.

This is an indication that direct market is catching up in the post-liberalization ere in India.

Several firms, otherwise marketing their products through conventional channels, are now also using the direct approach to communicate with and retain their customers.

Different firms use different methods to zero in on the prospects included in their ‘hit lists’.

Direct marketing as a concept has evolved to its present-day form through various stages of transformation.

Originally a form of marketing in which goods moved from producer to consumers without involving middleman, firms selling directly to the end users through their own retail outlets and / or salespersons were said to be involved in direct marketing.

With the development of other form of personal communication, such as the telephone, direct marketing was redefined.

According to the Direct Marketing Association of the USA (as quoted in Kotler 1991), ‘Direct Marketing is an international system of marketing which uses one or more advertising media to effect a measurable response and/ or transaction at any location’.

Direct Marketing thus includes any activity whereby firms reach the customer directly as an individual, who responds to them directly.

It differs from conventional marketing in the sense that it talks directly to the prospect on a one- to-one basis without involving any intermediary. Direct Marketing programs are usually designed to achieve a measurable result in a relatively short duration of time.

These differ from other promotional activities, though they may use the same media or sometimes the same techniques, such as coupons and samples.

In the absence of conceptual clarity, direct marketing is often defined very narrowly as a synonym of some simple specific function such as direct selling, mail-order selling or direct distribution. In fact, it is much more than all these.

A complete system of integrated functions aimed at satisfying customer needs more effectively, it is by no means a short-term quick buck affair.

In conventional marketing, firms wait for the customer to walk into their stores, whereas in direct mode firms prefer to go out ad get the customer before he steps out of his home.

It is a very focused activity that follows a firm to concentrate on a chosen segment of customers and interacts with them more effectively through different media. Being a more precise and goal-oriented activity it is more suitable for firms operating in specific niche markets.

According to the number one direct-selling firm in the world, Amway corporation of the USA (estimated sales for 1995US$6.3billion), ‘Direct selling moves products from the manufacturer/supplier to the seller and consumer without intermediaries.

It differs from direct marketing in the sense that direct marketing companies depend more on mailing, catalogue sales, direct response and coupon sales, telephone and telemarketing and the like; and now they are also selling via computer networks such as the Internet

. In contrast, direct selling is always performed through the salesperson.’(As quoted at the CII-Amway Seminar1996).

In direct marketing goods move from
Manufacturer Consumer

In direct selling goods move from
Manufacturer Distributor Consumer

Some newer forms of direct selling such as multiplayer marketing (MLM) may involve different layers of distributors and salespersons selling to the customers directly.

Amway’s definition notwithstanding, direct selling as a concept is nothing more than a mode of direct distribution.

The early practitioners of direct marketing in India include Readers’ Digest magazine, Bullworker exerciser, and some regional language publications that used mail coupons to increase circulation.

Of late, catalogue-shopping firms such as Burlingtons have also made forays into the Indian market, but achieved only limited success.

However, in the late1980s, it was the success of Eureka Forbes’ vacuum cleaners and Real Value Appliances’ Cease Fire brand of fire extinguishers (will you call it direct marketing or direct selling?) that signaled the dawn of direct marketing in India.

At the professional level, the credit of pioneering direct marketing in India goes to the media person Ram Nathan Sridhar who founded O&M Direct in 1987, exclusively to handle and promote direct-marketing activities in a professional manner.

Since then, he has been selling the idea of direct marketing to savvy marketers with missionary zeal and spirit.

Today, all major advertising agencies in the country such as Hindustan Thompson Associates (HTA), Lintas, Mudra, Trikaya Grey, Response, Contract and many others have set up separate divisions to cope with the growing demand for direct marketing.

Presently, direct marketing accounts for only about 14 percent of the Rs 45,000 million Indian ad spend, but going by the current trend of 35 percent annual increment in expenditure on direct marketing, it is going to be a big business in the next couple of years.

The Direct Marketing Association (DMA) defines direct marketing as follows:

Direct marketing is an interactive marketing system that uses one or more advertising media to affect a measurable response and /or transaction at any location.

This definition emphasizes a measurable response; typically a customer order. Thus direct marketing is sometimes called direct-order marketing.

Today, many direct marketers see direct marketing as playing a broader role, that of building a long-term relationship with the customer (direct relationship marketing).

Direct marketers occasionally send birthday cards, information materials, or small premiums to select members in their customer base. Airlines, hotels, and other businesses build strong customer relationships through frequency award programs and club programs.
 
If a person is a Citibank, Visa or Master card holder, living in a metro or class one town, by now he would probably be accustomed to receive some unexpected mail inviting him to a launch function of a new product, a live demonstration of a gadget, an exhibition of designer jewellery or a music concert sponsored by some business firm.

He may also get some promotional literature about an investment scheme or some share application forms for public issues of companies, or be offered a hefty discount on subscription of a magazine or an early bird incentive on booking a residential flat.

Even in the class two and smaller towns, people are getting surprise gifts and greeting cards on occasions like anniversaries, birthdays and the new year.

This is an indication that direct market is catching up in the post-liberalization ere in India.

Several firms, otherwise marketing their products through conventional channels, are now also using the direct approach to communicate with and retain their customers.

Different firms use different methods to zero in on the prospects included in their ‘hit lists’.

Direct marketing as a concept has evolved to its present-day form through various stages of transformation.

Originally a form of marketing in which goods moved from producer to consumers without involving middleman, firms selling directly to the end users through their own retail outlets and / or salespersons were said to be involved in direct marketing.

With the development of other form of personal communication, such as the telephone, direct marketing was redefined.

According to the Direct Marketing Association of the USA (as quoted in Kotler 1991), ‘Direct Marketing is an international system of marketing which uses one or more advertising media to effect a measurable response and/ or transaction at any location’.

Direct Marketing thus includes any activity whereby firms reach the customer directly as an individual, who responds to them directly.

It differs from conventional marketing in the sense that it talks directly to the prospect on a one- to-one basis without involving any intermediary. Direct Marketing programs are usually designed to achieve a measurable result in a relatively short duration of time.

These differ from other promotional activities, though they may use the same media or sometimes the same techniques, such as coupons and samples.

In the absence of conceptual clarity, direct marketing is often defined very narrowly as a synonym of some simple specific function such as direct selling, mail-order selling or direct distribution. In fact, it is much more than all these.

A complete system of integrated functions aimed at satisfying customer needs more effectively, it is by no means a short-term quick buck affair.

In conventional marketing, firms wait for the customer to walk into their stores, whereas in direct mode firms prefer to go out ad get the customer before he steps out of his home.

It is a very focused activity that follows a firm to concentrate on a chosen segment of customers and interacts with them more effectively through different media. Being a more precise and goal-oriented activity it is more suitable for firms operating in specific niche markets.

According to the number one direct-selling firm in the world, Amway corporation of the USA (estimated sales for 1995US$6.3billion), ‘Direct selling moves products from the manufacturer/supplier to the seller and consumer without intermediaries.

It differs from direct marketing in the sense that direct marketing companies depend more on mailing, catalogue sales, direct response and coupon sales, telephone and telemarketing and the like; and now they are also selling via computer networks such as the Internet

. In contrast, direct selling is always performed through the salesperson.’(As quoted at the CII-Amway Seminar1996).

In direct marketing goods move from
Manufacturer Consumer

In direct selling goods move from
Manufacturer Distributor Consumer

Some newer forms of direct selling such as multiplayer marketing (MLM) may involve different layers of distributors and salespersons selling to the customers directly.

Amway’s definition notwithstanding, direct selling as a concept is nothing more than a mode of direct distribution.

The early practitioners of direct marketing in India include Readers’ Digest magazine, Bullworker exerciser, and some regional language publications that used mail coupons to increase circulation.

Of late, catalogue-shopping firms such as Burlingtons have also made forays into the Indian market, but achieved only limited success.

However, in the late1980s, it was the success of Eureka Forbes’ vacuum cleaners and Real Value Appliances’ Cease Fire brand of fire extinguishers (will you call it direct marketing or direct selling?) that signaled the dawn of direct marketing in India.

At the professional level, the credit of pioneering direct marketing in India goes to the media person Ram Nathan Sridhar who founded O&M Direct in 1987, exclusively to handle and promote direct-marketing activities in a professional manner.

Since then, he has been selling the idea of direct marketing to savvy marketers with missionary zeal and spirit.

Today, all major advertising agencies in the country such as Hindustan Thompson Associates (HTA), Lintas, Mudra, Trikaya Grey, Response, Contract and many others have set up separate divisions to cope with the growing demand for direct marketing.

Presently, direct marketing accounts for only about 14 percent of the Rs 45,000 million Indian ad spend, but going by the current trend of 35 percent annual increment in expenditure on direct marketing, it is going to be a big business in the next couple of years.

The Direct Marketing Association (DMA) defines direct marketing as follows:

Direct marketing is an interactive marketing system that uses one or more advertising media to affect a measurable response and /or transaction at any location.

This definition emphasizes a measurable response; typically a customer order. Thus direct marketing is sometimes called direct-order marketing.

Today, many direct marketers see direct marketing as playing a broader role, that of building a long-term relationship with the customer (direct relationship marketing).

Direct marketers occasionally send birthday cards, information materials, or small premiums to select members in their customer base. Airlines, hotels, and other businesses build strong customer relationships through frequency award programs and club programs.

Well, many many thanks for your help and providing the information on DIRECT MARKETING. BTW, i am also going to upload a document where you can find some useful information and can also included in your report..
 

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