Direct and Online / Interactive Marketing

Session Coverage
DM and its Importance Growth of Direct Marketing Customer D t b C t Database and Di t M k ti d Direct Marketing Channels of Direct Marketing Online Marketing-Internet and ECommerce

The Rise of Direct Marketing

Use of consumerdirect h di t channels t l to reach and deliver g goods and services to customers without using market middlemen. middlemen

Importance & Benefits of Direct Marketing For Marketing-For Buyers:

Convenient Easy to use Private Access to a wealth of information Immediate Interactive (Two Way Communication)

Importance & Benefits of Direct Marketing For Marketing-For Sellers

Powerful tool for building relationships Allows for targeting of small groups or individuals with customized offers in a personalized fashion Offers access to buyers that couldnt be y reached via other channels Low-cost, effective alternative for reaching specific markets

Direct Marketing Channels

Direct mail Catalogs Telemarketing Other direct response

1. Mail Order Marketing

Entire Marketing takes place by mail Sending an offer, announcement, remainders or other items to ind. customer Interested customers respond by placing mail order Order response rate of 2 % considered good Cost / thousand people reached higher than mass media but people are much p p better prospects

Mail Order Marketing Elements C El Considered id d

Outside Envelope should be colourful or catchy reason to open it. Sales letter should be brief on a good quality paper. Sh ld b personally addressed Should be ll dd d Should have a toll Free No and Weblink Postage free envelop drastically increases response rate. p

Mail Order Marketing Best Prospects DATABASE B P

Customers who have bought products in past OR DM can buy Database from list Brokers (Problem: Oblelete Duplication Oblelete, Duplication, Outdated, incomplete data) Writing to people will get only 1 2 percent 1-2 response B tt Approach-Create your own li t Better A hC t list.

ICICI Bank Creating Database Bank-Creating

Objective: Develop mailer list for Children Growth Bond. B d Painting Competition for School Children What is your Dream Career? y 40,000 Children in Three Cities participate Parents of participating children receive letter about their Children Choice of Career It also shared their Childs Painting Than Provided details of GROWTH BOND RESULT: RESPONSE WAS MORE THAN 20 % GENERATING HEALTHY BUSINESS AT VERY LOW MARKETING EXPENSE. Writing to people would have got 1-2% response

2. 2 Catalogue Marketing
Avon Sells Cosmetics, IKEA Sells Furniture, , , Saks Sells Clothing. Putting entire catalogue online provide better access to global customers, saving on printing l b l i i i and mailing costs Success depends on managing customer lists
Avoid Duplication Offer quality p q y products Operate special hotline to answer questions Send gifts to best customers

E Catalogues E-Catalogues
www futurebazaar com (Pantaloon Retail) www.futurebazaar.com Thousands of products, price, features, payment gateway, promises delivery within 7 gateway days. www phoolwala com Displays flowers on Ewww.phoolwala.com Catalogue, Promises next day delivery to most cities of India India. www.indiamart.com Link to different sites, business marketplace wholesale catalogues marketplace,

Types of Telemarketing
Telesales Telecoverage Teleprospecting Customer service and technical support

3. Telemarketing
Use of Telephone & Call Centers to attract prospects & Selling to existing customers

Inbound Telemarketing-Receiving Calls g g Outbound Telemarketing- Making Calls ( p y) LOreal India (Cosmetic Company)- Offers advice about How to look Good JK Tyres Vans with trained Machanics in NCR, who d li h deliver and fit new t d tyres at customers t t homes. Although it is major DM tool GOI has put tool, restrictions on Banks/F.Institutions regarding its use.

4. Other Media and Direct Response Marketing

Use all major media-Radio, Magazines, N.Papers, TV via toll free Nos

Infomercials: 30-60 minutes video to promote products that are complicated and technology advanced or require great deal of information. information At Home Shopping Channels: Showing various products b showing f t i d t by h i features, use, advantages and price (Toll Free No with 48 H D li Hrs Delivery). )

4. Other Media and Direct Response Marketing Cont. M k ti C t

Asian Sky Shop (Essel Group 1995): Group-1995): Distribution 75 cities, caters to Dubai, B Desh, BDesh, Pakistan, Nepal etc. Reach out to customers across 10 different channels of Essel Group. (Backed by 24 hour, 7 days a week hotline Benefits to TV Channels: New Source of Revenue, In some cases profit sharing on p per unit basis.

Public Issues in Direct Marketing

Irritation I it ti Unfairness Deception/fraud Invasion of privacy y

Direct Marketing VS Direct Selling

Some Marketers consider them same as both do not involve Store do-not Retailing
Direct Marketing Two Different Terms Direct Selling
(Part of Non Store Retailing, A Part of Marketing)

Direct Selling or Home Selling g g are same Larger than Non Store Retailing Tackles all tasks of Marketing (Customer Identification, Demand Generation, Packaging, Modification, distribution, price negotiation, promotion, sales p promotion in integrated compressed g p manner. Home Selling: Done by Employees/Sales Person. One to One, Takes products to buyers home Direct Selling: Done by Independent Salesperson/Distributors, If done in a group, referred to party selling, Home or Workplace

Direct Selling Facts

World-wide $ 200 Billion Industry World wide Employs 50 Million Workforce O Over 35,000 companies 35 000 i Examples: Avon, Tupperware, Oriflame, Amway, Encyclopedia Britannica

Direct Selling Companies

Avon (Century Old) 133 Countries Turnover $ 4.5 Billion 4 Lakh DS persons Cosmetics, Jewellery, Healthcare, Baby care Products Hires Housewife's for Selling to Housewife s neighborhood Amway 85 Countries Turnover $ 7 Billion 480 Products, 380 Petents 480 Personal Care, Health Care, Cosmetics, Nutrition, Wellness etc Over 3 million i d O illi independent sales d t l cum distributors

Online Marketing Facts-India Facts India

Clocked 23000 Crores in Year 2007 30% User time used for shopping Juxt Consultants India Online Survey Research India Research 2008 Sample: 12,500 Households 40 Cities 160 12 500 Households, Cities, Villages. Findings: 1 out of every 10 urban customer connected to net

Juxt Consultants India Online Survey Research-2008 R h 2008

70% on internet users reside outside metro. 50 million users (40-U, 10-R) (40 U, 10 R) Regular Users-35 Million (30-U, 5-U) Rural Penetration 4 5 Percent Penetration-4.5 77% users between 19-35 years. F ith i online shopping i Faith in li h i increasing i gradually, 80% of regular users buying through net net.

Marutis Dil Se Program www.marutinri.com i i

Interactive marketing to tap NRIs g p People residing overseas can purchase gift for their friends/relatives to show love, affection and gratitude. i d Multiple payment Options: Credit Card, Money Transfer, Transfer Bank Installment Installment. Coverage: 200 Cities, Special Discount Price Delivery: Arranges gift wrapping free wrapping, Website: Shares experiences of emotional satisfaction.

Placing Ads and Promotion Online

Websites Micro sites: Limited area on web, managed and paid by external ad company. Can create micro site on different common websites websites. Search Ads (40% online ads): Pay only if people click on li k l li k links.

Placing Ads and Promotion Online

Display Ads: Small rectangular boxes containing text and picture that company pay to place on website website. Online Communities: Companies sponsor online communities whose members communicate through postings about special interests related to companies products and brands.