DIRECT MARKETING

WHAT IS DIRECT MARKETING? HOW IS IT DIFFERENT FROM CONVENTIAL MARKETING?

DIRECT MKT IS A PROCESS BY WHICH THE CO APPROACHES ITS CUSTOMERS ON AN INDIVIDUAL BASIS

DM DEALS WITH THE CUSTOMER DIRECTLY

--DM IS INTERACTIVE MARKETING

--DM DOES NOT INVOLVE MARKETING CHANNELS

--DM DOES NOT RELY HEAVILY ON ADVT/SALES PROMOTION

WHY DIRECT MARKETING?--DELIVERS NEAR PERFECT SOLUTIONS TO CUSTOMERS

--HELPS IN ACHIEVING EXCELLENCE IN PRODUCTS/SERVICES

--HELPS IN IDENTIFYING SHARPER SEGMENTS AND PRECISE TARGETING

--FACILITATES CUSTOMER RELATIONSHIP

--HELPS IN CUSTOMER RETENTION

--RESULTS MORE MEASURABLE THAN IN MASS MARKETING

--MORE COST EFFECTIVE

--AVOIDS WASTAGES WHICH ARE INHERENT IN CONVENTIAL MARKETING

--CAN FOCUS ON LARGE & VITAL ACCOUNTS

--VERY USEFUL IN TIMES OF DOWNTURN

--BENEFITS THE CONSUMER TOO

--WITH PROGRESS IN IT, THE EFFICIENCY OF DM IS INCREASING AND COSTS ARE GOING DOWN

GROWTH OF DIRECT MKT IN INDIATILL A SHORT WHILE AGO, DIRECT MKT WAS LARGELY CONFINED TO INDUSTRIAL PRODUCTS AND SERVICES

THOUGH INDUSTRIAL PRODUCTS ACCOUNT FOR A MAJOR PROPORTION OF DIRECT MKT. IT IS SPREADING TO CONSUMER GOODS ALSO

--WIPRO --PHILIPS INDIA

--MODI XEROX -- MADURA COATS

--WELCOM GROUP --TVS-SUZUKI

DIRECT MARKETING IS OFTEN UNDERSTOOD AS MAINTAINING A DATA BASE TO WHOM MAILERS ARE SENT/TELEPHONE CALLS MADE REGULARLY

IN REALITY IT IS A VERY SCIENTIFIC WAY OF MARKETING OF MARKETING WITH THE BASICS REMAINING THE SAME

REQUISITES FOR DIRECT MARKETINGCOMPREHENSIVE & RELIABLE DATA BASE

A CAREFUL AND PRECISE TARGETING OF MARKETS/PROSPECTS

SERVICE GAURANTEE AND PRODUCT WARRANTY

SUPPORT SYSTEMS/LOGISTICS

EYE FOR DETAIL

SUSTAINED EFFORTS

GROWTH OF DIRECT MKT--DUE TO LACK OF TIME/WORK PRESSURES

--FUEL COSTS/TRAFFIC CONGESTIONS/LONG QUEUES

--ENTRY OF MNCs IN FIELD OF DM

--RISING MEDIA COSTS/CLUTTER

--PRODUCT/BRAND CLUTTER IS MAKING SEGMENTATION/TARGETING DIFFICULT

--PRODUCT DIFFERENTIATION GETTING BLURRED

DIRECT MARKETINGIS BECOMING AN ATTRACTIVE ALTERNATIVE

TYPES OF DIRECT MARKETINGMAIL ORDER MARKETING/CATALOG MARKETING

DIRECT MAIL MARKETING

DIRECT RESPONSE MARKETING

DATABASE MARKETING

TELEMARKETING

TELESHOPPING

ON-LINE MARKETING

KIOSKS MARKETING

WEB MKT

E-COMMERCE HAS THREE BROAD COMPONENTSi) BIi) BTO BIii) B TO C

WEB MKT HAS THE FOLLOWING TWO COMPONENTSi) B TO BIi) B TO C

IT IS THE LATTER WHICH IS GAINING IN PROMINENCE WITH PASSAGE OF TIME

THE INTERNET CAN BE VIEWED AS -- A MEDIUM --A BUSINESS--A MKT CHANNEL --COMPLETE MKT PLACE

ONLINE MARKETING-ADVANTAGESPRECISE INFORMATIONPRODUCT INFO DIRECT FROM MFGREQUIREMENTS CAN BE CUSTOMISEDQUICK ADJUSTMENTS TO MARKET PLACELOWER COSTSRELATIONSHIP MARKETINGAUDIENCE SIZING

GROWTH OF WEB WORLDTHE GROWTH IN E-COMMERCE HAS MANIFESTED ITSELF IN FOLL WAYS--INCREASE IN VOL OF BUSINESS OVER THE NET

--INCREASE IN RANGE OF PRODUCTS OVER THE NET

--INCREASE IN THE SUSCRIBER BASE OF THE NET

EGPUBLISHING HOUSE McMILLAN INDIA Ltd OFFERS MANAGEMENT DEVELOPMENT PROGRAMSOVER THE NET IN COLLABORATION WITH IIM-CALCUTTA

LIMITATIONS OF WEB MKTIT IS NECSSSARY TO GO BEYOND THE HYPE TO SEE THE OTHER SIDE TOO

ALL PRODUCTS CANNOT BE MARKETED ON THE WEB

COSTS ARE NOT INCONSQUENTIAL

PROFITABILITY.?

LIMITATIONS IN THE INDIAN CONTEXT

--LEGAL/REGULATORY --INFRASTRUCTURAL

--CIMMERCIAL -- OTHER ISSUES

LEGAL/REGULATORY --E-DOCUMENTS NOT A LEGAL ENTITY --ABSENCE OF TAXATION LAWS ON E-TRANSANCTION --ABSENCE OF LEGAL FRAMEWORK TO COVER CYBER- TRANSACTION

INFRASTRUCTURAL --LOW DENSITY OF PCs/TELEPHONES --BANDWIDTH LIMITATION --NETWORKING LIMITATION --DELIVERY ENDS CONSTRAINTS

PAYMENT ROBLEMS

OTHER ISSUES --LOW CONFIDENCE IN THE SYSTEM --DANGERS OF HACKING