Introduction to Personal
Selling and Direct Marketing:
Part 2
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Direct Marketing
• Direct marketing consists of direct connections
with carefully targeted individual consumers to
both obtain an immediate response and cultivate
lasting customer relationships
• One-on-one communication in which offers are
tailored to needs of narrowly defined segments
• Usually seeks a direct, immediate, and measurable
consumer response
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Benefits of Direct Marketing to
Buyers
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Convenient
Easy to use
Private
Ready access to products and information
Immediate and interactive
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Benefits of Direct Marketing to
Sellers
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Powerful tool for building customer relationships
Can target small groups or individuals
Can tailor offers to individual needs
Can be timed to reach prospects at just right
moment
• Gives access to buyers unreachable through
other channels
• Offers low-cost, efficient way to reach markets
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Customer Databases
Organized collection of comprehensive data about
individual customers or prospects, including
• Geographic data
• Demographic data
• Psychographic data
• Behavioral data
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Direct Marketing Forms
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Telephone marketing
Direct-mail marketing
Catalog marketing
Direct-response TV marketing
Kiosk marketing
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Telemarketing
• Used in both consumer and B2B markets
• Can be outbound or inbound calls
• Do-Not-Call legislation has affected telemarketing
industry
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Direct-Mail Marketing
• Involves sending an offer, reminder, announcement,
or other item to person at particular address
• Permits high target-market selectivity
• Can be personalized and is flexible
• Higher CPM yields better prospects than mass media
• Easy to measure results
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Catalog Marketing
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Expected catalog sales in 2008 = $175 billion
Although print still primary medium, more and
more catalogs going digital
Advantages of Web vs. print catalogs
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Save on production and mailing costs
Can offer unlimited merchandise (no size constraint)
Allow real-time merchandising—products and prices
changeable instantly
Can spice up with interactive entertainment (games)
and promotions (e.g., daily specials)
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Direct Response TV Marketing
• Direct-response advertising
• TV spots that are 60 or 120 seconds long
• Always contain 1-800 # or Web address
• Infomercials
• A 30 minute or longer advertising program for single
product
• Home shopping channels
• Entire cable channels dedicated to selling multiple
brands, items, and services
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Kiosk Marketing
Information and ordering machines generally found
in stores, airports, and other locations
• Example: In-store Kodak kiosks allow customers to
transfer pictures from digital storage devices, edit
them, and produce high-quality color prints
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Integrated Direct Marketing
• Involves carefully coordinated multiple-media,
multiple-stage campaigns
• Improve response rates and profits by adding media
and stages that contribute more to additional sales
than to additional costs
• Example: Integrating paid ad with response channel
(Web or phone), direct mail, outbound telemarketing,
face-to-face sales call, and continuing
communication
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Public Policy and Ethical Issues
in Direct Marketing
• Irritates consumers
• Takes unfair advantage of impulsive or less
sophisticated buyers
• Targets TV-addicted shoppers
• Deceives, defrauds
• Invades privacy
• Perhaps toughest issue
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Recap—What was Covered?
• Role of a company’s salespeople in creating
value for customers and building customer
relationships
• Six major sales force management steps
• Personal selling process, distinguishing between
transaction-oriented and relationship marketing
• Direct marketing and its benefits to customers
and companies
• Major forms of direct marketing
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