BUILDING DIRECT CUSTOMER RELATIONSHIP

BY :AMAAN KHAN

MBA INTEGRAL UNIVERSITY

INTEGRATED MARKETING

COMMUNICATION

The New Direct-Marketing Growth and Benefits of Direct MarketingCustomer Databases and Direct MarketingForms of Direct MarketingThe Promise and Challenges of Online Marketing

Topic Outline

DIRECT MARKETING

Connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis.

Growth and Benefits of Direct Marketing

Convenience Ready access to many products Access to comparative information

about companies, products, and competitors

Interactive and immediate.

Benefits to Buyers

Growth and Benefits of Direct Marketing

Tool to build customer relationships Low-cost, efficient, fast alternative

to reach markets Flexible Access to buyers not reachable

through other channels

Benefits to sellers

Customer Databases and Direct Marketing

Customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

Customer Database

Best Buy mines its huge database to glean actionable insights on customer interests, lifestyles, passions, and likely next purchases. It uses this information to develop personalized, customer-triggered promotional messages and offers.

Forms of Direct MarketingPersonal selling direct marketing

Direct-mail direct marketing

Catalog direct marketing

Telephone marketing

Direct-response television marketing

Kiosk marketing

Digital direct marketing

Online marketing

Forms of Direct MarketingDirect-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address

Personalized Easy-to-measure results Costs more than mass media Provides better results than mass

mediaInsurance companies like Farmers Insurance rely heavily on TV advertising to establish broad customer awareness. However, they also use lots of good old direct mail to communicate with consumers in a more direct and personalized way.

Forms of Direct Marketing

Marketing via television, including direct-response television advertising (or infomercials) and interactive television (iTV) advertising

Large, well-known companies—such as Kodak—are now using direct-response TV to get the message out directly to customers

Direct-Response Television (DRTV) Marketing

Forms of Direct Marketing

Kiosk Marketing• Product or service

information and ordering machines are placed by companies in stores, airports, hotels, college campuses, and other locations Red box operates more

than 27,000 DVD rental kiosks in supermarkets and fast-food outlets nationwide

Forms of Direct Marketing

Benefits of Web-based

catalogs•Lower cost than printed catalogs•Unlimited amount of merchandise•Real-time merchandising•Interactive content•Promotional features

Challenges of Web-based

catalogs•Require marketing•Difficulties in attracting new customers

Catalog direct marketing involves printed and Web-based catalogs

The Promise and Challenges of Online

Marketing• Online marketing will remain an

important approach in the marketing mix to:• Build customer relationships• Improve sales• Communicate company and product

information• Deliver products and services more

effectively and efficiently