Page 271 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes Ongoing database updating helps companies identify trends and buying patterns. This
information, can be used by the companies to strengthen relationship with its customers by
satisfying their needs and wants more effectively.
The database should provide the answers to the following questions:
1. Where do they live?
2. How did they make contact first time?
3. What have they purchased?

4. How often have they purchased?
5. What is the monetary value of their purchases?
6. How do they order or purchase, through the Internet, mail, phone, or in person?
7. What is known about them and their families, occupation, education, children, interests,
attitudes, and payment histories etc.?
8. In case of B2B, who are the influencers, users, deciders, and purchasers?
9. Location of corporate office and branch offices.
Well-managed companies usually develop and maintain their own database. Many independent
research suppliers sell this kind of information. Database helps in developing a mailing list that
minimises waste coverage as much as possible. A good database is crucial to the effectiveness of
direct marketing. If a direct marketing company buys database from outside sources, it is
worthwhile to pay a little more for a good database that has been well researched and segregated
than to pay for a list of names and addresses.

11.5.3 Advantages of Direct Marketing

1. Direct marketing offers the advantage of reaching large number of well-defined target
customers and almost eliminates waste coverage.

2. Good quality databases are available from independent suppliers and the marketer can
segment customer groups with considerable precision.
3. Direct marketer can personalise the message.
4. Direct marketing can deliver almost perfect offers to customers.

5. Marketer can build desired frequency level based on media.
6. Direct marketing offers creative flexibility in different media.
7. Direct marketer can quickly develop a list of specific profiles for direct mail.
8. Direct marketing is more effective in building customer relationship.
9. It is very cost effective considering the sale generated per contact.
10. The results can be measured most accurately.

11.5.4 Direct Marketing Offer and Media

According to Edward L. Nash, there are five important decision areas: product, offer, medium,
distribution method, and creative strategy. The marketer has to decide on each of these issues
and develop the appropriate message to be conveyed. Direct marketers use all the available
major media such as direct mail, telemarketing, direct-response broadcasting, print, the Internet,
E-mail, and others.

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