Page 181 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 10: Managing other Promotional Tools

customers directly with these tools on a one-to-one basis to assess whether this can stimulate Notes
immediate behavioural response and now direct marketing is a rapidly growing discipline in
marketing. Direct marketing may or may not involve middlemen to distribute products. Direct
marketing is primarily concerned with the promotion area.

10.1 Direct Marketing

The Dictionary of Marketing Terms defines direct marketing as:

"The total of all activities by which the seller, in effecting the exchange of goods and services
with the buyer, directs efforts to a target audience using one or more media (direct selling, direct
mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling, etc.) for the
purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer."

— Peter D. Bennett, ed., Dictionary of Marketing Terms (AMA, 1988)
According to Direct Marketing Association:
"Direct marketing is an interactive system of marketing which uses one or more advertising
media to affect a measurable response and/or transaction at any location."
— Direct Marketing, October 1990
Direct marketing uses a set of all major direct-response media including print, TV, Internet and
cellular phones as the tools to implement communications and accomplish its objectives.

Did u know? Direct Marketing Association Economic Impact, 2002 reported that purchases
of products and services through direct-response advertising exceeded $2 trillion and
projected to reach 2.8 trillion by 2006. All sorts of products and services marketers, including
major retailers, business-to-business (B2B) and industrial marketers use direct marketing
methods.

10.1.1 Direct Marketing Decisions

For successful implementation of direct-marketing, marketers must establish objectives, specify
target market, choice of strategies, and set evaluation criteria.

10.1.2 Direct Marketing Objectives

Objectives of direct marketing usually focus on seeking direct response in terms of behaviour.
Order response rate varies across product categories and prices but in most cases, usually a 2 per
cent order placement is viewed as good. Some organisations use direct marketing to inform and
educate customers about product/service in anticipation that it may precipitate future actions,
reminding about offers, image building, maintain customer satisfaction, strengthen relationship,
and reassure customers about purchases.
Direct marketers use a database. It is much more than just names and addresses and is used to
identify and profile the company's best customers and effectively target the customer segments.

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.

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