Direct Marketing - Essay Example

?Direct Marketing Table of Contents Answer to Question no 3 Answer to Question no: 2 5 Answer to Question no: 3 8 Reference 10 Answer to Question no: 1 Comparison between traditional direct marketing and traditional mass marketing Direct marketing is considered to be the communication occurring directly between the buyer and the seller without the use of any intermediary. It is generally visual in nature but sometimes it may also be auditory. Different authors have provided different definitions of direct marketing. Drayton Bird (2000), have described it as an advertising activity which creates as well as exploits the direct relationship existing between the buyers and sellers (Mullin, p.1). It is a system of interactive marketing which is aimed at maintaining and building long term relationships with customers through the products and services offerings (Koekemoer & Bird, 2004, p.332). On the other hand, mass marketing aims to target the total market without emphasising on specific market segments. In such a case, the marketer believes that the entire market would be satisfied through the single product offering. The product is offered in the market with minimum or completely no variation in the marketing. It includes a single price, one single promotional campaign targeting the entire market and also a single method of distribution (Strydom, 2001, p.61). This is a relatively less costly affair which includes only a single standard package using one promotional message. Some of the common differences between the two are discussed as follows. The traditional advantages associated with mass marketing are that the production costs remains low because of a single production run for a product which is homogeneous in nature. The advertising cost also remains low because of the launch of a single campaign. It also does not require extensive market research which is why the cost associated with market research also remains low (Strydom, 2001, p.62). But the advantages associated with direct marketing are different. It offers a wide range of advantages for the sellers. The marketing approach allows segmentation opportunities and selective reach. Moreover, it allows greater flexibility in having access to the potential buyers through the method. Most importantly, the time associated with it can be managed and personalized (Cravens, 2009, 377). It is said that the strategies for direct marketing must be in alignment and should be guided by the marketing strategy of the organisation on the whole. It shows the way in which the customers can be reached on a one to one basis. This includes determining the product strategies, setting the price and arranging for the distribution. The L. L. Bean Inc. targets the outdoor apparel niche by the use of catalogue marketing. Many companies have used direct marketing to communicate with the target market. For example, Dell Inc. employs sales contact directly with the business customers, internet sales and telephone sales (Cravens, 2009, 377). Dell Inc. is also said to be using the internet for providing customers with the necessary information prior to taking an order over the telephone. The following paragraph discusses some of the common features of both forms of marketing. In term of the costs involved, direct marketing is said to be less costly as compared to mass marketing because it targets less number of people and is carefully aimed at a selected few. It would be more applicable for businesses which have a small or medium target market and which has string prospects. For example, the TV home shopping channels, like Home Shopping network is one the modes of direct marketing (Kennedy, 2006, p.3). In other words, direct marketing involves an one to one customer relationship on the basis of personalized communications (Stone & Jacobs, 2007, p.10). Another basic difference between the two is that direct marketing has a greater conversion rate than mass marketing. It is likely to be surer of converting the first person it targets before moving to its next target. Also, direct marketing is a more subtle process and occurs is smaller bursts, while mass marketing involves a larger scenario. For example, DuPoint resorts to emails and e-marketing initiatives to focus on the customers who regularly avail the internet services (Lisa, 2010, p.15). In both cases, the marketing methods are first tested using smaller campaigns before making large investments. Both have to carefully consider the products or services before they are offered. Apart from this, both require extensive media attention. This is irrespective of whether the product is targeted to a small audience or a larger audience at large. For example, Japan’s Fuji photo films as well as Ford’s offer to the consumers of the model-T in a single car are primarily done using print and electronic media, considering the fact that the former is direct marketing while the latter uses mass marketing to cover a larger audience (Clemente, 2002, p.251). Answer to Question no: 2 Role of target market on direct marketing The target market chosen plays a crucial role in influencing the mode of direct marketing. It has influence over the medium that would be chosen for the purpose. In other words, the medium which would be most suited and would yield the optimum result would be chosen on the basis of the target audience. The campaign is planned as well as the products and services are offered keeping the target market in focus (Bloomsbury Publishing, 2003, p.688). Designing the campaign should be such that yields short term results which can be accurately measured. The campaign design is crucial in this regard because it reflects the outcome associated with it. However, there are numerous numbers of other factors which determines the outcomes, like the price of the product or the campaign material quality. Depending on the target market, and the nature and quality of this market, the campaign is to be designed. It must also be ensured that the target market can easily comprehend the facts presented so that they can respond easily (Bloomsbury Publishing, 2003, p.688). It is important that the product is selected carefully considering the audience targeted. It is hardly seen that companies develop a foreign market through its entire product program or range of service. The management is faced with a number of considerations while selecting the right kind of product. This is especially applicable for companies targeting the foreign markets. Firstly, the product program must appear attractive to the target group in the foreign market. Moreover, this must also come with a large range of services and products in the offer made at first (Krafft & Hesse, 2007, p.21). But this also involves risks. Thus, while marketing abroad, companies tend to choose those products from their product portfolio which requires minimum explanation and also requires low service needs. Moreover, because of the costs associated, products which have lower return ratios are found to be more desirable because the low price of the products allows them to be left to the customers in case there is a complaint (Krafft & Hesse, 2007, p.25). The demographic categories of the target market differ between different markets. This determines their needs, wants and purchasing behavior. For example, the Home Shopping Network has to pay particular attention to the market they target. In the case of a household good, like a cooking utensil, it would have to consider the homemakers and their requirements. It could also consider the working women for the purpose because they would be more likely to make a prompt purchase. Amway is one such example of a company which undertakes direct marketing policies specifically aiming the housewives and working women. Electrolux Vacuum Cleaners and Tupperware are some other examples which undertake direct marketing activities for reaching out its customers (Lao, 2001, p.363). The medium used in direct marketing is also influenced by the market the company aims to target. For example, for a company like Excel, which produces health food products, the preferred medium would be the print media or the electronic media. This is because health products would be primarily targeted at the older generation aged above 40 years of age. It is also seen that the older generation is likely to spend more time watching the television or reading newspapers and magazines. For a company like Avon, the target market would be the tough women audience. In such a case, the internet could be used as an important medium. This is because the younger generation is found to be using the internet services more frequently. Moreover, the creativity used in the advertisement would also be influenced by target market. For example, in a restaurant, discount coupons would be effective in targeting the young boys and girls as they would be more likely to try out different dishes. But this would not hold true for the older generation as they would be resistant trying out new dishes in restaurants and would prefer the conventional dishes only. Answer to Question no: 3 Development of a Direct Mail Package Following is the direct mail package developed for a cosmetic product. The objective should be developing or building a healthy relationship between the advertisers and the customer. The effectiveness of such a strategy relies strongly on the overall appearance and the message that it conveys (Arens, 2008, p.572). Firstly, it would be important to make a thorough assessment of the customers the product would target. In this, since it is cosmetic product, the target audience would be women aged above 25 years. It would also include making an analysis of the current trends in customer requirements for cosmetic products. The analysis would give insight whether the trend included usage of sunscreens, anti-wrinkle creams, moisturizer etc. This would help to choose the product which would be sold using direct mail packages. It would require making an analysis of the population which would be likely to use the product. The next step would be developing the message for the direct mail. This would include emphasising the strengths, the incentives that would be provided, the guarantees that would come along with it or even the options which would be used by the customers for making a response. In the case of a cosmetic product, it would be important to mention the advantages that would come with the product. The mail package should convey the message that the product does not produce any harmful effects on the skin. Also, the message must mention any other advantages that the product produces like, skin whitening, brightening, smoothening etc. In other words, the exact function or the effect that would be brought about by the use of the product would have to be mentioned in the message. It could also include some tool for measuring the effects brought by the product after having used it over a period of time. It would also require highlighting on the persons who would benefit from the use of the product. In this case, since it is a cosmetic product, the message should include instructions for prohibiting young children from using the product. A well designed direct mail package would include a colorful logo in the sales’ letter. This would not only help to attract the attention of the customer but also retain the interest. This also grows the interest of the customer about the contents. This is more importantly applicable for a cosmetic product. The package must look glamorous and attractive. The next step would include building credibility by the provision of data which would help to make the purchase decision. It is recommended that this step includes details of the features of the product. For the cosmetic products, the effect of using the product should be mentioned and the way in which the product should be used should also be mentioned. Most importantly, the value of the offer should be mentioned. Finally, the deadline for which the offer would be available should come at this step (Arens, 2008, p.572). The mail package should also include images which would make it more attractive in nature. Finally, the last step would include providing the business reply card which would be postage free. Also, the letter should provide contact numbers like fax number, telephone numbers or even the URL of the company website. In other words, it should try and make the purchase of the product as easy as possible for the customer (Arens, 2008, p.572). Reference Arens, W. F. (2008). Contemporary Advertising 10E (Sie). Tata McGraw-Hill. Bloomsbury Publishing. (2003). Business. CITIC Publishing House. Clemente, M. N. (2002). The Marketing Glossary: Key Terms, Concepts and Applications. Clementebooks. Cravens, D. W. (2009). Strategic Marketing 8E. Tata McGraw-Hill Education. Lao, F. (2001). Marketing Management. Rex Bookstore, Inc.. Lisa, S. (2010). Contemporary Direct & Interactive Marketing, 2/E. Pearson Education India. Kennedy, D. S. (2006). No B.S. direct marketing: the ultimate, no holds barred, kick butt, take no prisoners direct marketing for non-direct marketing businesses. Entrepreneur Press. Koekemoer, L. & Bird, S. (2004). Marketing Communications. Juta and Company Ltd. Mullin, R. (2002). Direct marketing: a step-by-step guide to effective planning and targeting. Kogan Page Publishers. Stone, B. & Jacobs, R. (2007). Successful Direct Marketing Methods. McGraw-Hill Professional. Strydom, J. W. (2001). Introduction to travel and tourism marketing. Juta and Company Ltd. Read More