Introduction to Personal Selling and Direct Marketing: Part 2 Click icon to hear

Introduction to Personal
Selling and Direct Marketing:
Part 2
Click icon to hear
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
Benefits of Direct Marketing to
Easy to use
Ready access to products and information
Immediate and interactive
Benefits of Direct Marketing to
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
• Gives access to buyers unreachable through
other channels
• Offers low-cost, efficient way to reach markets
Customer Databases
Organized collection of comprehensive data about
individual customers or prospects, including
• Geographic data
• Demographic data
• Psychographic data
• Behavioral data
Direct Marketing Forms
Telephone marketing
Direct-mail marketing
Catalog marketing
Direct-response TV marketing
Kiosk marketing
• Used in both consumer and B2B markets
• Can be outbound or inbound calls
• Do-Not-Call legislation has affected telemarketing
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
Catalog Marketing
Expected catalog sales in 2008 = $175 billion
Although print still primary medium, more and
more catalogs going digital
Advantages of Web vs. print catalogs
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)
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
• Home shopping channels
• Entire cable channels dedicated to selling multiple
brands, items, and services
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
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
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
Recap—What was Covered?
• Role of a company’s salespeople in creating
value for customers and building customer
• 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