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 2 Benefits of Direct Marketing to Buyers • • • • • Convenient Easy to use Private Ready access to products and information Immediate and interactive 3 Benefits of Direct Marketing to Sellers • • • • 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 4 Customer Databases Organized collection of comprehensive data about individual customers or prospects, including • Geographic data • Demographic data • Psychographic data • Behavioral data 5 Direct Marketing Forms • • • • • Telephone marketing Direct-mail marketing Catalog marketing Direct-response TV marketing Kiosk marketing 6 Telemarketing • Used in both consumer and B2B markets • Can be outbound or inbound calls • Do-Not-Call legislation has affected telemarketing industry 7 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 8 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) 9 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 10 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 11 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 12 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 13 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 14