Page 182 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 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.
Many direct marketing outfits lack database of their customers or prospects. According to Sandeep
Mittal of Direm Marketing Services, some databases in India have only 30 per cent validity and
a company can obtain a database for as little as 50 paise to 5 per contact. He further says that
Bharat Petroleum Corp. Ltd., has compiled data on more than 14 lakh customers within the last
four years, and a direct marketer can identify between two to three lakh customers, who would
be interested in the company's new high-grade fuel, Speed. Shoppers Stop has also been compiling
data of its regular customers through loyalty programme, namely First Citizen.

10.1.3 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.

1. One-Step Approach: The marketer uses the medium to obtain an order. For example,
exercise equipment and household items are presented through TV commercials, or many
magazines insert subscription forms in their issues. The viewer or the reader places the
order by calling a toll-free number. Magazine subscription forms can be filled and posted
in postage-paid envelops.
2. Two-Step Approach: This may involve the use of more than one medium. This may be
done to first screen, or qualify prospects and then in the second step the marketer makes
the effort to elicit a behavioural response. For example, many banks first use telemarketing
to determine the potential based on interest, employment, and income and then follow-
up by sending an agent with more information to close the sale.
Direct Mail: Direct mail is unsolicited mail, most of us are familiar with. For some of us it is
fairly irritating and we call it "Junk mail" and throw it or ignore without reading. Companies of
all sizes and shape use direct mail. This mail is generally based on mailing lists the companies

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