Direct marketing: role, advantages, forms. Direct marketing - what is it in examples Marketing directly depends on development

Introduction

The growth and benefits of direct marketing as a means of increasing sales

Forms of direct marketing

Conclusion

List of used literature

Introduction

The last 50 years have significantly changed the ideas of mankind about many things, which also influenced modern marketing. During this time, there has been a rapid development of computer technology, new opportunities for communication with the consumer have appeared, non-cash payments have begun to play an important role in tourism and other areas as a way to quickly pay for purchases. A person today constantly suffers from a catastrophic lack of free time, lives in a continuous information flow, strives to simplify all processes. All this led to the ineffectiveness of mass advertising. That is why this type of appeal to the target audience, as direct marketing (direct marketing), is now one of the most popular.

Direct marketing every year occupies an increasing share in the business communications of companies around the world. Increasingly important is the direct exchange of information with carefully selected target customers, carried out in order to obtain an immediate response. Unlike the activities of sales representatives who communicate with the consumer in the process of personal contact - the most "direct" sales system! - new methods of direct communication with the consumer, commonly referred to as direct marketing, involve the use of mail, telephone, fax, e-mail and other non-personal channels that allow you to contact a specific category of consumers or get an immediate response. New technologies have pushed many companies to move from mass distribution of information to more targeted and even one-on-one communication with each individual consumer. All of the above confirms the relevance of this topic.

The purpose of this work is to study direct marketing as a marketing communication technology.

1. The essence of modern direct marketing (direct marketing)

The usual understanding of the term "direct marketing" as trading without intermediaries in last years has undergone significant changes.

Distinguish directly direct marketing, ie. a variety of direct sales methods; and direct relationship marketing.

Krylova G.D. and Sokolova M.I. note that the Direct Marketing Association combines both of these concepts with the term "interactive marketing", defining direct marketing as interactive system marketing that uses one or more means of communication to generate a specific response and/or complete a transaction in any region.

According to F. Kohler, direct marketing (direct-marketing) is marketing that uses various means of communication for direct communication with customers, designed for certain reactions.

Direct marketing (DM) is to establish a long-term, mutually beneficial and developing partnership between the manufacturer and personally known consumers. The concept of PM provides for the vigorous activity of the organization in order to involve real and potential consumers in communication, receiving from them information about needs, preferences through feedback channels, while focusing on long-term relationships. The advantages of PM are selectivity, confidentiality, a variety of forms of communication, the ability to control the reaction of buyers.

Direct marketing (direct-marketing) consists of direct (interactive) communications with a selected specific buyer, often in the form of an individualized dialogue, in order to get an immediate response.

Consider the main forms of direct marketing:

personal (personal) sales - direct interaction with one or more potential buyers in order to organize presentations, answer questions and receive orders;

direct mail marketing - includes mailing letters, promotional materials, booklets, etc. to potential buyers at addresses from mailing lists;

sales by catalogs - the use of catalogs of goods sent to customers by mail or sold in stores;

telephone marketing (telemarketing) - the use of the telephone as a tool for the direct sale of goods to customers;

television direct response marketing - marketing of goods and services through advertising television (or radio) programs using feedback elements (usually a telephone number);

interactive (online) marketing - direct marketing carried out through interactive computer communication services in real time.

The key to success in direct marketing is detailed information about the individual consumer. Modern enterprises create special databases about buyers, which are an array of detailed information about individual (potential) buyers, including geographical, demographic, psychographic, as well as data on the characteristics of purchasing behavior. Such databases are used to find potential buyers, modify or develop products according to their specific needs and to maintain relationships with them.

Despite the fact that there are many forms of direct marketing - direct mail, telemarketing, email marketing, counter, etc. - they all have the following properties in common.

Direct marketing is a channel of personal communication, as an advertising message is usually addressed to a specific person.

Direct marketing is time-sensitive and made-to-order, so messages are prepared immediately and tailored to the target consumer.

Direct marketing provides a dialogue between the communicator and the consumer, and the message is adjusted depending on the reaction of the buyers.

According to F. Kotler, direct marketing is very suitable for the purposeful application of efforts and the creation of personal relationships.

Once upon a time, marketing was characterized only by a direct approach: sellers were personally acquainted with all buyers. Gradually, this technique was replaced by mass marketing, when marketers distributed standard messages to millions of buyers using the media, newspapers, magazines, radio, and later television. In other words, companies tended to use the same address to all consumers when promoting their products, hoping that millions across the country would listen and buy the brand. The companies didn't need the names of their customers, or any other information—nothing but one thing: the customer has a need for something that the product can satisfy. Marketing communications used one-way communication with the buyer, rather than two-way communication with him.

With the rise of television channels and the emergence of new competitors such as the Internet, target audiences have dwindled and firms have had to be more prepared to communicate with potential buyers. Direct marketing involves direct communication with a carefully selected specific buyer, often in the form of a personalized dialogue, in order to get an immediate response. Companies are careful to ensure that their marketing proposals meet the needs of the narrowest segment of consumers or even an individual buyer. In addition to creating trademark and image, they are constantly striving to get a direct, fast and measurable response from the buyer. For example, Dell Computer interacts directly with customers by phone or Web page to create systems that meet their individual needs. Customers place orders directly with Dell Computer, then the ordered equipment is quickly and efficiently delivered to their homes or offices.

Early direct marketers (catalog companies using mail and telephone) collected customer names and sold products to them primarily by mail or telephone. Now, with the introduction of database technology and new multimedia computers, modems, fax machines, e-mail, the Internet, and interactive services, increasingly sophisticated direct marketing techniques are possible. The availability and reasonable cost of these methods have greatly increased the number of supporters of direct marketing.

Today, most experts in this field believe that direct marketing plays even important role than just selling goods and services.

They see direct marketing as an effective way to communicate with customers to build long-term relationships with them. Direct marketing is turning into direct relationship marketing.

2. The growth and benefits of direct marketing as a means of increasing sales

Direct marketing is the fastest growing form of marketing today. In this section, we will discuss the benefits of direct marketing for buyers and sellers and the reasons for its rapid development.

Direct marketing is attractive to many buyers. Shopping at home is convenient and does not require running around. They save time and provide the buyer with a choice of more trading companies. The customer can compare products by browsing mailing lists and using the online sales service, and then order the products he needs. Buyers of goods industrial purpose can find out about available products and services without wasting time waiting and meeting with sales agents.

Direct marketing also benefits marketers themselves. They can purchase an address list containing the addresses of virtually any consumer group (from millionaires and new parents to left-handers and university graduates). Thanks to this, they can personalize their offers and design them according to the requirements of their customers. Using modern technology, a direct marketer can select a small group or even an individual buyer, prepare a marketing proposal tailored to their needs and desires, and send this proposal through individual means of communication.

A direct marketer can maintain a long-term relationship with each customer. Direct marketing also provides an opportunity to explore alternative means of advertising and the content of advertising messages. Finally, direct marketing ensures the confidentiality of the offer, keeping the direct marketing strategy out of the competition.

Recently, there has been a rapid increase in sales through traditional marketing channels (catalogs, direct mail orders, telephone sales). Recent studies of worldwide marketing spending items show that while direct marketing has remained a huge growth area of capital investment over the past five years, the annual growth rate of spending on conventional direct marketing channels (e.g., direct mail orders) over the next five years will be to further outperform mass marketing channels.

The Internet attracts more and more representatives of the beautiful half of humanity and users aged 25-35. Although the Internet is still a little short of becoming the dominant advertising medium for businesses and organizations, the frequency of Internet use is steadily increasing.

What are the factors driving the growth of direct marketing? The incredible growth rate of direct marketing in the consumer market is a reaction to the emergence of new marketing circumstances (we have already talked about them). The "shredding" of markets leads to the constant formation of market niches with completely different sets of preferences. Direct marketing allows merchants to effectively focus on these micro-markets through offerings that better meet the specific needs of buyers.

Another motive is the further stratification of the television audience and the increase in the cost of mass coverage of buyers. The cost of "holes" for commercial advertising in TV shows is growing catastrophically inversely with the number of programs that gather a large audience, so many advertisers, trying to "recapture" the money invested in advertising, are forced to turn to direct marketing methods.

There are other reasons driving the rapid development of direct marketing in the consumer market: rising car operating costs, increasing traffic, parking headaches, lack of time and advice at retail, endless lines at the checkout - all this contributes to shopping at home.

Direct marketing is also growing rapidly in the industrial goods market due to the increasing cost of entering entrepreneurial markets through sales personnel. If each phone call made for the purpose of selling a product individually costs several hundred pounds, then such calls should be made only as needed, and then only to the most solvent (and most likely) buyers. Less expensive marketing tools—telemarketing, direct mail, and more advanced e-commerce options—are often more cost-effective and effective ways to sell products to more existing and potential customers.

A good customer database is essential to the success of direct marketing. A customer database is an organized array of detailed information about individual (potential) customers, including geographic, demographic, psychographic, and purchasing behavior data. Such a database can be used to find potential buyers, tailor products and services to the specific needs of target buyers, and maintain long-term relationships with the latter. Customer database marketing is the process of creating, maintaining and using customer databases and other databases (products, suppliers, resellers) for the purpose of contacting customers and closing deals.

Consider the forms of direct marketing in more detail.

3. Forms of direct marketing

The main forms of direct marketing include personal selling, direct mail, catalog sales, telephone marketing, direct response telemarketing, and online shopping. These forms of marketing can be used as a means of conveying product messages to target customers (as well as off-stock retail distribution channels) to encourage purchases.

The telephone sales offer is the most typical (and oldest) form of direct. To discover potential buyers, turn them into customers, create long-term customer relationships, and grow the business, most company-level marketers rely heavily on professional workers sales departments. They may also employ representatives or sales agents for direct sales. Many FMCG companies also use individual salespeople to connect with end consumers. Door-to-door selling, started centuries ago by traveling peddler salesmen, has now grown into a huge industry.

Databases are the backbone of modern direct marketing. A powerful impetus to the development of direct marketing has given the constant improvement of computer technology: thanks to them, companies can create large and complex databases containing significant amounts of information about customers. Gathering data is one thing, but using it effectively is another. That is why more and more retailers and manufacturers these days are learning how to extract gold from information ore. And they do it in several ways.

Those marketers who work with databases observe individual buyers and, based on the information received, develop marketing incentives for the future. The purpose of this is to "strike a relationship" with the target buyer.

The second use of databases is to detect trends in the behavior of large groups of customers. New computer technologies are used to process huge amounts of information about the most attractive buyers.

Identification of buyers who should be sent a special offer. In this case, companies define the image of the ideal buyer, "worthy" to receive a special offer; they then use their own databases to determine which of the registered clients best fit that category. By tracking individual customer responses, a company improves the accuracy of its marketing focus over time.

Reactivation of purchases made. The database helps the company to make attractive offers to replace or improve existing ones, or to acquire additional goods, and precisely at the moment when buyers are likely to be ready for action.

The marketing database of buyers poses a certain threat to the privacy of buyers. Proponents of database marketing counter that the whole point of collecting this kind of customer information is to know when it's best not to call a person and what to avoid sticking in their mailbox! Whatever the case, most people don't mind revealing something about themselves, as long as they get something in return, whether it's a product they want, a discount coupon - or even a little cash compensation. So future customer database marketers will obviously need to learn how to compensate customers for the privilege of selling products to them.

This type of marketing, like others, requires special investments. In particular, companies have to fork out for the purchase of computers corresponding to software and programs for analytical data processing, creation of communication channels and selection of qualified personnel.

Selling with door-to-door delivery provides customers with benefits such as convenience and attention. However, the high costs of hiring, training, paying and stimulating their work often lead to an overall increase in prices. According to G.D. Krylova and M.I. Sokolova, direct mail, along with personal selling, belongs to the traditional form of direct marketing, which is also called "direct order marketing." Mailing lists are created from customer lists or commissioned from special mailing list companies that pick for you the names of any people you want: the super rich, mobile home owners, veterinarians, pet owners, catalog buyers, and etc.

The direct mail method is great for direct, one-on-one communication between a seller and a buyer. It allows achieving high selectivity in determining target market, can be personal, flexible and able to quickly evaluate performance (a firm using the direct mail method may well rely on the reliability of the results obtained and their value for further development of activities).

Until recently, direct mail materials were mainly printed products distributed by postal and telegraph offices, as well as other organizations involved in the delivery of postal items. However, in recent years, three main forms of mail delivery have become most widespread.

New types allow direct mail to be sent at unprecedented speed (compared to the "turtle step" of ordinary mail); but be that as it may, even lightning-fast marketing messages delivered to recipients who are not interested in them will be sent back with indignation as "waste". This is why marketers should always identify their target audience first to avoid wasting their own money and time.

Sales by catalogs. The shops retail Increasingly, they are resorting to the use of catalogs, considering them as additional means of stimulating sales.

Retailers are increasingly turning to catalogs as an additional means of promoting sales.

In addition, many buyers like to receive catalogs: sometimes recipients are even willing to pay for them, so some catalog sales firms sell their catalogs at bookstores and newsstands.

Catalog trade has also gained some popularity in Russia, but it is held back by very expensive postal services.

According to M.N. Grigoriev, telemarketing is the use of telephone and telecommunication technologies in conjunction with database management systems to implement such marketing functions as advertising, selling goods and services, conducting marketing surveys, collecting and processing the necessary information.

This method has evolved into one of the main tools of modern direct marketing. Marketers use outbound telephone marketing as an active tool to help create and refine sales offers, as well as to directly sell products directly to individual customers and corporate customers. Phone calls are also used for research, test interviews, database building, scheduling customer meetings, evaluating previous contact with a customer, as part of a customer engagement process (or a long-term relationship program).

Immediate response television marketing is of two types: the first is the placement of advertisements that enable an immediate response. Immediate-response promotional video clips convincingly describe product features within 30-60 seconds and provide customers with a toll-free number to call to order the product. In fact, immediate response television marketing is a variant of mass marketing of a product or service, but with a feedback element - the same toll-free phone number, which gives the buyer a certain independence and the right to independently decide whether to buy this product or not.

Interactive direct marketing - maxi - marketing is carried out with the help of interactive computer services that provide online information services.

For operational marketing, systems are used that provide two-way electronic communication between the seller and the buyer. The customer's computer (or TV-based Web machine) is connected to various services via a modem and telephone lines. There are two types of interactive marketing channels: commercial intelligence services and the Internet.

Commercial intelligence services provide their subscribers with information and marketing services in real time, for a certain monthly fee. These commercial operational information services provide their subscribers with the necessary information (news, libraries, education, travel, sports, information), provide them with entertainment (games, etc.), trade services, organize a dialogue between subscribers (electronic bulletin boards, forums, rooms for conversations) and provide e-mail services. With a few clicks of the mouse button on their home computer, subscribers to these services can order a wide variety of products and services from their respective catalogues.

The possibilities of the Internet are rising marketing research to a new quality level. Availability electronic versions magazines and newspapers allows you to get the same amount of information as for other types of advertising, but concentrated in one place. In addition, using the search program, you can analyze competitors not only by advertisements, but also by price lists and catalogs. It is very important for this search that the company announces itself on the Internet, providing information about keywords and expressions. This position is now of paramount importance.

The more companies are ready to recognize the wide possibilities of new electronic technologies, the more often we have to deal with the concept of "electronic commerce" in practice.

In general, Internet users are, in a sense, an elite group. These are quite young, educated and wealthy people, the majority of whom are men. However, the more people are involved in the use of the Internet, the more their demographic composition approaches that which is typical for the population of our planet as a whole (at least for developed countries). As the Internet matures, it will provide product manufacturers with access to an ever wider range of demographic segments.

Internet users represent almost all age groups of the population.

New world e-commerce requires new approaches in marketing.

Benefits of Interactive Marketing. Why is the operational-information services gained such great popularity? The widespread adoption of Internet marketing that we have seen in recent times can be attributed to a number of benefits derived from the use of this medium by both consumers and manufacturers of goods.

Online shopping provides consumers with the same basic benefits as other forms of direct marketing. Most importantly, it is extremely convenient: customers do not need to travel anywhere (especially if the product they need can be purchased in another city or even in another country), look for a free place next to the store to park a car, walk through endless trading floors to find the right product , to look closely and ask the price of him. They can compare different models of the same product, compare their prices and order the selected product all 24 hours a day, without leaving home. Shopping on the Internet is extremely easy and without unnecessary witnesses, nothing bothers or annoys the buyer, no one distracts him from the buying process (including sellers).

Shopping on the Internet provides consumers with additional benefits. Commercial intelligence services and the Internet provide consumers with access to a variety of comparative information about companies, products, and competitors. In addition, "electronic purchases" are carried out in an active mode and take a minimum of time. Customers often have the opportunity to browse the merchant's Web site and find exactly the information, goods or services they need, and then order them (or even download them to their computer) from the comfort of their desk.

Benefits for marketers. Interactive marketing also provides many benefits to manufacturers and sellers of goods. Due to the interactive nature of such marketing, which allows direct contact between the seller and the buyer, it is an excellent means of creating a very trusting relationship between the seller and the buyer. It brings companies and their customers closer together. Companies can take a deeper look at their customers while interacting with their customers. specific needs and wishes, create appropriate databases. In turn, "electronic buyers" can ask questions and receive immediate answers to them. Based on this continuous interaction, companies are able to respond more sensitively to the needs of their customers (ideally - to the individual needs of each individual client!), Increasing the quality and improving the specific consumer properties of products and services provided.

Interactive marketing also allows you to reduce prices and increase the profitability of trade. "Electronic merchants" do not bear the costs associated with the maintenance of stores and the associated costs for rent, insurance and utilities. Because buyers communicate directly with sellers, interactive marketing often results in lower prices and more efficient distribution of goods, such as order processing, inventory, shipping to the customer, and sales promotion. Finally, electronic interaction between the seller and the buyer is often cheaper than communication by mail.

The Internet is a truly global environment that allows buyers and sellers from around the world to find each other literally in a matter of seconds.

Channels of interactive marketing. Merchants can engage in interactive marketing in four different ways: by creating an e-shop; placing advertisements on the Internet; participating in Internet forums, newsgroups or newsgroups; or using e-mail and Web-broadcasting (active formation of own clientele). Let's take a closer look at each of these channels.

A company creating an e-shop has two options: it can buy a "seat" in some commercial online information service or open its own Web site. The purchase of a place in a commercial operational information service is associated either with the lease of a certain disk memory in the computer of this service, or with the creation of a communication line between the company's own computer and the "shopping malls" of the operational information service.

In addition to buying a seat in a commercial information service (or alternatively), thousands of companies have already set up their own Web sites. These nodes vary greatly in their purpose and internal content. One of the main types of such sites is a corporate Web site. Such nodes provide an interactive communication between the company and consumers, initiated by the consumers themselves. With the help of these nodes, companies seek to create a positive image of the company, its products and services among consumers, as well as provide alternative distribution channels; however, it does not aim to directly sell goods and services to the consumer. Corporate Web sites typically provide a wide range of information and other tools designed to answer consumer questions and create a positive and attractive image of the company in the eyes of consumers.

Other companies prefer to create marketing Web sites. Such a node is intended to involve consumers in a closer interaction with the company, which, in theory, should stimulate the purchase of goods and services of this company. When creating a marketing Web site, communication and interaction with consumers is initiated by the company itself. Such a node includes a catalog, customer advice, and sales promotions such as coupons, discount sales, and shopper contests. Companies advertise their marketing Web sites extensively in print, radio, and television, as well as in index advertisements that appear on other Web sites.

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Direct marketing is a system of activities aimed at collecting, recording, analyzing information about consumer demand through direct communications and communication with the client.

The dialogue is built using special templates and advertising texts using various communication channels:

phone calls;
mail, fax;
television, radio broadcasting;
Internet services;
personalized communication using directories.

Direct action marketing is designed to directly contact the consumer to study the feedback on the proposed product (direct response to the offer).

Characteristics of direct marketing:

implemented without intermediaries and retailers under the "business-to-consumer" (B2C) scheme;
relies on pre-programmed advertising, suggesting a buyer's response (tactical conversational mode);
demonstrates the targeting of actions in relation to the target audience;
is a more hidden and lengthy method of promoting goods and services;
requires the creation of a data bank at the preparatory stage (information about customers, products);
needs constant accounting and control of demand for the product;
organized individually without reference to points of sale (anytime and anywhere);
the main goal is contact with the consumer (sales are secondary).

Examples of direct marketing are email newsletters. commercial offers(mail), placement of a banner with a promotion on the product (Internet).

What is Integrated Direct Marketing

Integrated direct marketing (maxi) is a communication system that uses multiple appeals to the consumer and a multi-level advertising campaign. Such marketing involves all sorts of techniques for the implementation of the product, which are worked out synchronously according to a well-thought-out strategy (advertising, special offers, agency promotion, public relations, mailing list, etc.).

Maxi marketing is characterized by the presence of "tempting" offers and promotions. Advertising is carried out with the help of coding, which is able to bring the audience to a purchase decision. Employees of the branch network are stimulated with percentages of sales and bonuses (gifts) for fulfilling the plan. Interactive mailing is widely used. New customers are massively attracted by organizing exhibitions and fairs.

The essence of direct marketing

The essence of direct marketing is to increase sales with the help of targeted messages to a certain circle of buyers in an interactive or dialogue mode.

Direct marketing is built on the basis of product databases (electronic information systems), as well as systematized information about each buyer. The advantages are an individual approach to the client and his interests. At the same time, advertising of goods is carried out secretly from competitors.

The stumbling block in the development of direct marketing is access to consumer personal information (phone numbers, mailbox addresses, passport details). Its effectiveness is largely determined by the reliability of the data received and the opponent's desire to read intrusive "electronic waste paper".

Features of direct marketing

used in trade in specialized goods;
used with a flexible pricing policy or in conditions of price instability;
requires significant expenses and is inefficient at low sales volumes;
has an indicative territory for product promotion;
the trading network must have warehouse space;
involves an increase in sales due to potential demand (analysis of the number of consumers in the territory);
focuses on the buyer as part of its own media strategy.

Direct marketing establishes a long-term mutually beneficial relationship between the buyer and the manufacturer by engaging in a communication environment based on consumer preferences, indicative purchases and questionnaire data.

Main forms (types) of direct marketing

direct advertising (booklets, flyers, promotions);
Fax;
direct mail marketing and SMS-mailings (advertising letters and offers);
catalog marketing (personal selling);
television (video clip with contacts);
telemarketing (calling customers);
online marketing (banners, electronic signs);
advertising campaign in the media feedback(ad);
radio marketing (audio message);
network (a network of organized agents);
kiosk marketing;
integrated (cumulative sequential promotion plan).

What is not a form of direct marketing

verbal advertising or recommendation;
publication of a fact-finding nature in the media;
distribution of information leaflets;
single presentations for the purpose of advertising the assortment;
distribution of trial samples;
distribution, franchising, dealership, merchandising.

Direct Marketing Goals

finding potential customers from among the target audience (coupons, advertising on the Internet and the media, television and radio marketing);
attraction to purchase (advertising message);
search for new consumers (discounts, promotions);
retention of market share and development of trade relations with buyers;
receiving new orders;
stimulating repeat purchases and creating conditions for this;
attracting the attention of the client (congratulatory and informational messages);
providing full information about the product and its quality.

Methods and tools of direct marketing

All marketing methods are based on real market data, consumer psychology and indicators of the company's current activities (sales, profitability, payback).

direct sales (mail, telephone, radio, TV, catalogues);
Internet marketing (conferences, online e-commerce platforms, forums, interest clubs);
relationship marketing (consumer policy based on sales forecasts).

Direct Marketing Channels

Direct marketing does not involve an intermediary network, because it works according to a simple scheme, where the initial link is the manufacturer, and the final link is the buyer. This sales organization has a zero-level marketing channel.

Examples include general peddling, mail-order products, or online advertising of your products. Industrial products, for the most part, do not require marketing channels at all because of their necessity. The entire advertising campaign is devoted to creating the image of the company.

Often there is a situation when sales volumes increase. Selling goods becomes profitable not only for the company's staff (sellers at points of sale), but also for third-party intermediaries. Both of them form a network of promotion through their personal distribution channels. There is a multi-level channel system with distributors, dealers and sales agents:

Level 1: one intermediary (factory - shopping center - buyer)
Level 2: two intermediaries (manufacturer - wholesale network - agent - buyer)
Level 3: three intermediaries, etc. (depending on production volumes and product type)

Not all manufacturers interact directly with the buyer. Buying goods "from the tray" is sometimes impossible. Marketing company designed only for large wholesalers.

Direct Marketing Tools

Means of direct marketing are ways to convey information to the consumer. Due to the variety of forms of marketing, companies resort to the services of designers, web developers, programmers, call centers, etc. In this case, the means of communication are radio, TV, the Internet, cellular communications and postal services.

Direct marketing properties

orientation and targeting;
immediacy of contact;
individuality of the offer;
time-consuming and high costs;
the need for constant monitoring;
longevity.

Direct Marketing Principles

Database organization.
Positioning of activities (directions, properties).
Price regulation.
Flexible approach to clients.
Conducting tests and questioning (identification of interests).
Use of advanced technologies.
Direct dialogue.
Comprehensiveness of direct marketing methods.

Elements of direct marketing

target audience, suppliers, competitors;
need and demand;
price;
materials and information channels;
intermediaries;
Database.

Direct marketing activities

Analytics (collection of information on each order, response, interested offer).
Data sampling (filtering by demand segments).
Analysis of consumer preferences.
Market research and competitive advantages/disadvantages.
Building an optimal promotion program that is user-friendly.
Selection of products for clients.
Forecasting sales from direct marketing and calculating its effectiveness.
Maintaining a client base, taking into account periodic surveys.
Collection of statistical data on sales, analysis of the most priority areas of marketing.

Organization, technology and direct marketing process

To organize marketing, they choose a technology due to which the process of promoting a product will be most effective. The procedure is very time-consuming, in production it is handled by sales and marketing departments. The main work of marketers is to algorithmize actions, develop clichés and draw up loyalty programs.

Foreign experience illustrates various approaches and models of direct sales:

model 3M by Dan Kennedy and 5M by Howard Jacobson;
model 4P Theodora Levitt;
model 4C by Robert F. Lauterbourne.

There is no single answer to direct marketing questions. HubSpot's 2016 sales strategy study identified the top 7 technologies that apply to any business.

The following theories were taken as a basis:

Consultative sales (Mac Hanan).
Spin selling (Neil Rackham).
Concept Selling (Robert Miller and Stephen Heyman).
Snap Selling (Jill Konrath).
Sales Challenge (Matthew Dixon and Brent Adamson).
Sandler-sales (David Sandler).
Customer oriented.

The same for all sales is considered the technology of the process of direct contact or "finishing off" the client, which consists of 5 stages:

establishing contact;
identification of needs;
presentation;
handling objections;
transaction directly.

Effectiveness, advantages and disadvantages of direct marketing

The effectiveness of the mission is manifested with a cumulative effect. Direct effectiveness is expressed in the number of sales from direct marketing. Hidden efficiency implies a profit from reminder letters. Hypothetically, the client can use the service in the future.

The advantages of direct marketing are expressed in the establishment of two-way relationships, where the buyer is sent the information of interest, and the manufacturer sells the goods, adjusting to the client.

The disadvantage of direct marketing is small market sales and significant investment of time and money in the project. Only a large company that is looking for new markets can afford this way of promotion.

What types of trade are direct marketing

Among all existing types sales, direct marketing includes personal selling (at home, in the workplace) and personal selling by agents, salespeople, and showroom personnel.

Personal selling can be organized through all forms of direct marketing. The main thing here is the demonstration of goods in real conditions and bringing the consumer to a response.

What are new indirect distribution channels in marketing

These include all levels of distribution that are not associated with the direct intermediary of the manufacturer. For example, in Avon, the indirect sales participants are ordinary cosmetics distributors (Avon - wholesaler - regional reseller - representative). The main task of the main indirect channels is to quickly capture the market in all cities of the territory.

What is direct distribution channel in marketing

This is a system for promoting goods directly from the manufacturer to the seller without intermediary. It is organized by the enterprise itself, which gives it full control over sales. At the same time, the firm is also engaged in studying the market and consumers on its own.

Direct Marketing	Indirect marketing
Connects directly with the consumer or prospect through more targeted means of delivering information	Reaches a mass audience through the media
Can individualize communications: by name / position due to different messages	Communications are non-personal
Promotion programs (especially their preliminary tests) are hardly noticeable to competitors	Promotion programs are highly visible to competitors due to the use of mass media
The size of the budget can be determined by the success of the product promotion	Promotion efforts are controlled by the size of the budget
A specific action is always required: a purchase request	Desired action is either implicit or delayed
Detailed databases guide marketing programs	Incomplete/Selective Data for Decision Making: Trade Order Reports Market Research
The analysis is carried out personally at the individual / company level	Analysis is carried out at the segment level
Measurable, therefore well controlled	Surrogate parameters are used to evaluate performance: advertising awareness purchase intent

Goals	Tasks	Peculiarities
Financial and economic (increasing sales and profits) Communication (organizing contact with a certain number of customers and creating motivation for them to have relations with the enterprise) Marketing-mix goals (goals of individual elements of the direct marketing complex: product, price, choice of funds and personnel) Formation and developing long-term relationships with clients	Establishing direct communication with the target audience, retaining the target audience and attracting new customers Informing consumers and forming potential consumers Creating a database Developing long-term customer relationship programs	Targeted and personalized form of communication Elements of direct marketing are controllable and measurable Two-way communication that involves feedback and closing the deal Continuous process of attracting new customers, satisfying the needs of existing customers

FORMS OF DIRECT MARKETING

Direct marketing (direct marketing - direct-marketing) consists of direct (interactive) communications with a selected specific buyer, often in the form of an individualized dialogue, in order to get an immediate response.

Main forms of direct marketing:

personal (personal) sales- direct interaction with one or more potential buyers in order to organize presentations, answer questions and receive orders;

direct mail marketing- includes mailing letters, promotional materials, booklets, etc. to potential buyers at addresses from mailing lists;

catalog sales- use of catalogs of goods sent to customers by mail or sold in stores;

telephone marketing (telemarketing) - use of the telephone as a tool for the direct sale of goods to customers;

direct response television marketing- marketing of goods and services through advertising television (or radio) programs using feedback elements (usually a telephone number);

interactive (online) marketing- direct marketing through interactive computer communication services in real time.

Personal (personal) selling- verbal presentation of goods during a conversation with one or more potential buyers in order to make a sale. Personal sales involve, first of all, the work of salesmen and sales agents personally with each individual consumer, the direct distribution of promotional materials, the demonstration of goods in real conditions of use, the possibility of a direct dialogue between the seller and the buyer.

The advantage of this form of product promotion is the direct contacts of sellers with end consumers, individual work with the client by sales agents. This stimulates the sale of products, taking into account individual features consumers. Marketers believe that there is no more effective form of sales promotion and promotion than the work of skilled salespeople and salesmen. In the process of personal selling, there may be elements of sales promotion: coupons, contests, bonuses, various invitations, benefits, etc.

The qualification of the seller is determined by:

His awareness of the product - from production technology to packaging;

Knowledge of the psychological, socio-economic characteristics of the target segments of the company;

Knowledge of the characteristics of the sales stages.

Personal selling can be subdivided into outreach, peer review, and public selling.

An outreach sale involves representatives of the firm's sales staff who come into contact with buyers in the target market.

Expert appraisal sale is carried out by independent persons with necessary knowledge and making statements to target buyers.

The protagonists of the community sales channel are neighbors, friends, family members or colleagues talking to the target customers. This last channel, also known as the "word of mouth channel", is the most effective in many commodity areas.

Direct mail marketing. Direct mail delivers a message or goods through the postal service or private delivery companies. Direct mail is used to receive orders, pre-sales prior to a salesperson visit, identify product prospects, follow up a transaction, announce special sales in local areas, and fundraise for non-profit organizations.

Direct mail delivery media have a number of advantages over traditional media. Firstly, this intermediary offers a variety of formats and provides enough space to fully describe the proposed transaction. Second, it has become possible to individualize direct mail advertising by a set of characteristics such as name, product use, and revenue. Finally, direct mail allows merchants to reach audiences that are not available to other media.

The main disadvantage of using direct mail advertising is the widespread belief that it is a kind of waste paper. The second disadvantage is the high cost per prospect. However, a direct mail campaign may still be less costly than trying to reach a specific target group through other media. The last disadvantage is the threat from new technologies that can do the same thing as direct mail. Fax machines are one such innovation.

Email and voicemail also act as substitutes for direct mail advertising. Email is a new and growing direct marketing medium - a message or file that is transferred from one computer to another. Market participants today send trade announcements, offers and other communications to email addresses, sometimes to small groups and sometimes to quite large ones.

Voice mail is a system for receiving and storing voice messages at a telephone address. Some vendors have programs that dial a large number of phone numbers and leave trade offers on voicemail. The effectiveness of direct mail depends on the quality of the mailing list, packaging, and copy.

When using direct mail, marketers need accurate, up-to-date lists to successfully capture orders from customers. Ideally, these lists should include only those who are potentially ready to make a purchase. For example, internal lists may contain information such as how customers pay for a purchase, where they live, what the purchase is made of, and when and where the last purchase was made. External lists can be divided into several types. Collectible lists identify those people who have common interests, such as skiing, home improvement, or the art of cooking. Inquiry lists or client lists from other organizations are provided by both competing and non-competing enterprises. Each of these categories can be drilled down further until the seller identifies just one characteristic, such as income.

The design of direct mail should be harmonious. Packaging should be different from the rest of the mail, encourage the recipient to open it and reflect the overall design concept. The classic design of a direct mail package consists of a postal envelope, letter, flyer, response and return tools.

1. The direct mail selling process starts with a postal envelope. Enticing text (for example, "Important, do not delay!") is often used to pique the consumer's interest and get him to open the envelope.

2. The letter itself must be personal, arouse personal interest and the interest of the consumer.

3. The brochure gives detailed information about the product: specification, color, prices, photographs, warranties and signatures. It represents the primary sales message and may take the form of a booklet, large-format sheets of text (large appendix or large folder), brochure, flyer, or single sheet.

4. The response facility is an order form, often containing a toll-free phone number. This should summarize the main points of the offer for sale in an easy to read and fill out form.

5. The return facility allows the buyer to send back the required information. It can be an information request form, an order form, or a payment.

To compose the text of direct mail advertising, reliable information about the manufacturer, buyer and competitors is required. Good writing translates sales offers into terms of value, emphasizes customer satisfaction, and uses clear, understandable language. The proposal must be made immediately and in an attractive way. Moreover, it must convince the consumer that the promise will certainly be fulfilled. Good writing makes it easier to take the desired action. The requested action must be simple, specific, and immediate. The purpose of direct mail advertising is to sell, not to impress. Each word and picture should contribute to this task.

The most common mistakes made in direct marketing are:

They forget to include a letter in the offer;

The identification sequence is not observed - different inscriptions on the envelope and in the postal item;

There are no distinguishing features on the outside of the mail item;

No guarantees are given;

There is no personal letter from the owner in the newsletter or catalogue;

Too many messages;

Wrong colors or graphics;

The main sentence is not conspicuous;

Too many headers.

Advertising in the media with a feedback mechanism. Print ads carry direct marketing messages by simply providing product information, an order form, or a toll-free phone number to order directly from the manufacturer. The text is usually direct and concise with a slight touch of emotionality and few statements. It should be a call to action. If the reader is not asked to immediately order the product, then the text should call for other actions - for example, filling out a coupon or calling the given phone number. The text should be benefit-oriented, and its design should help the reader read the ad in a logical order. Sufficient space should be provided on the order form for address information and signature. The terms of the offer, including the price, must also be clearly expressed. The order form is keyed or coded so that merchants can determine the source of incoming orders or inquiries made by consumers. The key or code is the most important part of the order card as it shows the source of the sale.

In addition to the standard full-page or part-page formats, other print ad formats are available. The magazine insert can be a multi-page book or answer card attached to a full-page advertisement. The lottery card is placed at the end of the magazine and allows consumers to easily request information about goods or services. The publisher prints a specific number for specific printed materials, and the consumer circles the number of the desired information. Newspaper inserts include one-page direct marketing samples, multi-page booklets, perforated coupons, or self-adhesive answer envelopes.

For example, television, radio, magazines, and newspapers offer another form of direct marketing that is designed to get back a response. The fact that the media is already categorized by demographic and geographic characteristics means that direct marketing messages can be targeted to specific geographic regions, market segments, or parts of the market that historically show higher response rates. Direct marketers must weigh the benefits of special targeting against the disadvantages of mass media. Unlike direct mail and catalogs, the media have space and time constraints for the advertiser. Appeals appearing in such media must compete with editorial and programmatic installations and other advertisements. In addition to this, there are high costs.

As an example, we can cite the advertising campaign of the well-known Rollton company "BigBon - where real feelings are." The bottom line is that the TV commercial is interrupted by the question of how the plot of the advertisement will develop further: “Will the girl fit or not young man? Answers are accepted via SMS-voting. The commercial was shown on all central TV channels. About 100 thousand people took part in the action. Regarding the effectiveness of such an advertising move, the opinions of marketers are divided. Some believe that such advertising should be effective by definition. The audience does not just consume advertising information - people are included in the process. At the same time, a separate potential buyer manipulates the product and brand even before buying it. And he gets a bonus - in this case, a certain portion of entertainment. When creating such an advertising and marketing move, it is important to determine how much this entertainment meets the tastes of the target audience and how positive the emotions received are. The main thing is that the bonus does not deceive the consumer's expectations. Then the person who received the sms will be distrustful of the brand, not the product. Such advertising is much more effective than a regular informational message, it is more personal: a message can be saved on a mobile phone, thus it will seem to the viewer that the advertisement is addressed specifically to him. Penetration cellular communication Petersburg is about 60%, which significantly expands the audience of such advertising. Personalized contact for advertising is very effective.

Others treat her with distrust. Economic feasibility can only be if the content company posts the video for free and shares the income with the TV channel. If this is still an advertisement for a product, then interactive advertising can be effective if you clearly think over the question to the audience and anticipate the answer in advance. Need a long research work before starting such a project. Meanwhile, according to experts of the marketing department of Rollton itself, advertising is effective. They proceed from the fact that "100 thousand people a week speak for themselves and there is nothing more to add to this."

Sales by catalogs. The modern, time-constrained consumer sees the catalog as an acceptable and trustworthy alternative for purchasing everything from rugs to computers to traveling around the world.

Catalog builders use sophisticated marketing tools. With accurate mailing lists, directories have become more specialized both in terms of content and target audience.

There are four main types of directories. Retail catalogs contain products equivalent to those found in the funder's stores. Their mission is to ensure both store attendance and mail-order sales. Full-scale shopping catalogs contain information about all the products available in a full-fledged department store, plus other products such as various appliances and electrical appliances, home renovation products, and installation materials. Business-to-business product catalogs include products that industries sell to each other to reduce the cost of personal selling. Finally, specialized consumer catalogs contain a number of relevant products that are sent only to those buyers who are considered as potential customers.

Everything in the catalog should contribute appropriately to the overall impression. The cover - to immediately attract the attention of potential buyers, photos - to arouse interest. Text is easy to read, has a good description, and is short but meaningful. The products selected for sale should create an optimal combination in terms of quality and coverage. The order form should be easy to understand and complete. Finally, shipping fees should be comparable to the value of the item. Undoubtedly, the most important challenge facing the catalog trade industry is the danger of developing real-time services through the use of the Internet and the World information network, as well as other interactive media, including services using CD-ROM and faxes. Although the introduction of such technologies in catalog sales is still in its infancy, this practice is rapidly developing.

telephone marketing. Another means of distribution is telephone marketing, which is a direct marketing technique that combines telecommunications technologies, marketing strategies and information systems. It may be used alone or in conjunction with advertising, direct mail, sales promotion, personal selling and other marketing communications opportunities. There are two types of telephone marketing: inbound and outbound. The incoming message comes from the buyer. Signals coming out of the organization itself are called outgoing.

Inbound messages are buyer responses to seller incentives, whether in the form of direct mail, direct marketing, a directory, or a published toll-free number. Because it is nearly impossible to schedule consumer messages, every effort must be made to prevent blocking the lines that carry them. However, having a significant number of telephone lines is quite expensive.

Outbound telephone marketing is used by direct marketers wherever they take the lead in making a phone call - to open new accounts, to establish some facts, to sell, to build lists, to service or to profile clients. Outbound telephone marketing is generally most effective when a call is made to a prospect who is pre-screened in some way, since the cost of a phone call is quite high.

Telephone marketing is a viable marketing communications tool, but it must be carefully planned and executed by experts. Although the purported benefit of telephone marketing is cost savings due to its ability to segment the market, it comes at a cost. Cost savings will be obtained only if the list of potential customers is targeted.

We will give advice on conducting telephone conversations.

1. Choose the right time to call. If the planned conversation may require a long time or some effort on the part of your partner, then best time will be the middle of the working day before lunch or after. Avoid serious conversations at the beginning of the working day, when the partner is busy solving current problems, and at the end of work. Ask in advance about the time of your lunch break and try not to disturb your partner during this time. For long-distance calls, check in advance for the difference in time zones. If you need to call your partner at home, try to do this no earlier than one or two hours after his arrival from work. Don't call late at night or early in the morning if you don't know your partner's regimen beforehand. When calling on weekends, the time in the afternoon is more suitable, while asking if he is busy with something.

2. After the subscriber's answer, ask if you were connected correctly (you can give the phone number, company or name, surname of the partner), if you, of course, did not recognize him by voice. If you're calling from an ad that has a specific name, invite that person.

3. Introduce yourself, name your company, position, first name, last name, or simply state the purpose of your call, and if the partner shows interest, introduce yourself completely. In the future, with a closer acquaintance, you can simply give your name and (or) surname.

4. If your partner is absent at the moment, ask about the most favorable time for the next call. Try not to state the topic of your conversation to strangers, and even more so not to discuss the possibility of your cooperation with them. If circumstances warrant, briefly state the purpose of your call.

5. During negotiations, always keep a pen and notepad handy to write down important information.

6. Give your partner the right to end the conversation. However, if the topic of the conversation is completely exhausted and the pause drags on, you can end the conversation first.

TV marketing. Television is great for showcasing direct marketing products and is generally used for three main purposes: selling a product or service; identification of potential consumers of a product or service, as well as support for advertising that provides a reverse direct response posted in other media. Vendors provide viewers with free phone numbers to get immediate feedback. In direct marketing TV ads, at least one-quarter of the airtime is devoted to ordering information.

Cable TV is becoming the main media outlet for many companies that use direct marketing. It is cheaper, more targeted, and allows for longer messages than conventional television. There are two specific types of direct marketing message delivery systems over the cable. The first of these are various types of shopping channels from home, in which the viewer can watch programs that offer products for sale, indicate prices and explain how to order this or that item (such as "Shop on the couch"). Info spots are the second type of direct marketing information distribution system using cable television. They are made in the "documentary" style commercials for 30 or 60 minutes.

Videotext links a separate television receiver to a remote host computer via a telephone line or coaxial cable, i.e. heavy duty cable. Video text has unlimited possibilities for storing and transmitting information. It is also fully interactive through the same phone line or cable that receives data. Using a keyboard or character track, the user sends a request, the response to which then appears on the television screen. The user can get information about the product, make an order and pay for the purchase directly through the TV.

interactive marketing. Despite some uncertainty surrounding the profitability of the interactive online intermediary, organizations are spending millions of dollars to become players in this cyberspace and use online marketing. The Internet is a global network of computer networks that allows users to send email, exchange pictures, search and buy goods. It also gives direct marketing users a chance to reach consumers around the world.

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The essence and features of direct marketing

In the field of trade, there has always been an oral relationship between the selling and buying parties. In modern terms, such an establishment of contacts with consumers is called direct marketing.

This term came to Russian from English (from direct marketing or DM), which means the interaction between the consumer and the distributor or manufacturer of products. Such contact is possible when selling a product or service. At the same time, the parties to the transaction are actively involved in this trading process.

The main goal of direct marketing is the sale and, accordingly, the purchase of the proposed product. Thus, direct methods are an advertising tool that includes both interaction with the consumer and the absolute embodiment of all the requirements for a successful service and product sales. In the light of the above definition, we can speak of this activity as the sale of goods.

The use of direct technology today is widespread in various areas of product promotion and even in all marketing in general. Experts predict a great future for those businessmen who use DM methods in their business. Direct marketing will probably even take the place of advertising as the main mover from producer to buyer. Such statements are not unfounded: direct sales technology has taken a strong place in the business market in a short time.

According to the European Direct Marketing Association, the cost of launching these methods in Western countries by the end of the last century was 35% of the total costs required to start a sales business. In the US, spending reached about $180 billion, which is 60% of the budget. For the Russian Federation, the amount of costs is in the range from 5 to 10% of the total costs.

It is the advantages of direct marketing that explain such a lightning-fast development of this tool in today's market. Now let's talk about this in more detail.

The variety of goals and expected results from the use of direct technology also increase the growth in their demand. The main objectives of this business idea are as follows:

get the buyer's attention
interest him and leave him within the zone of his control;
to establish communicative cooperation within the framework of "producer-consumer" for a long time;
encourage the transaction and create all the necessary conditions for subsequent acquisitions;
in exceptional cases, analyze consumer feedback on the purchase of various goods.

If we consider direct marketing in more detail, we can distinguish the following tasks and goals:

arouse the interest of the buyer;
force him to stay in his zone of influence;
establish long-term contact with the consumer;
induce to make a purchase;
form the prerequisites for further wholesale transactions;
analyze the consumer's opinion about the purchase;
increase sales turnover;
expand the range of products offered;
increase the number of purchases;
achieve increased customer loyalty.

All types of direct marketing differ from each other in a number of features. Of course, some details are peculiar to each of its forms. Here are the common features common to all branches of direct marketing:

direct cooperation between the seller and the buyer;
concentration on the consumer and targeting in relation to the audience;
maintaining a dialogue with the client;
easy controllability of the trading process through the analysis of clear numbers;
flexibility, adaptation to the needs of the consumer;
convenience for both parties;
small volume of the target audience and the ability to ensure its full coverage, using a minimum of operations and time;
the value of each new interaction.

When is direct marketing needed?

Closing a specific deal is one of the reasons why many business communities are turning to direct marketing, but it's far from the only reason. More preferable of all the advantages of this method for companies is the possibility of establishing a direct and long-term contact aimed at each buyer, the so-called market interaction. The transition from mass and individualization of trade relations is associated with many aspects of our daily life: the technological complexity of goods, the emergence of new opportunities for acquiring items and paying for purchases, close competition, the creation of adjacent channels and the use of the latest computer technologies.

In sectoral terms, direct marketing is most widely used by banks, in the insurance system, in electrical engineering, instrument making, mechanical engineering; somewhat to a lesser extent - energy, chemistry, construction, food industry, transport and services.

A company's direct marketing is successful if the following criteria are met:

narrow specialization of a product or service, requiring constant contact between the seller and the buyer;
frequent price changes;
a large sales turnover, which more than doubles all direct marketing costs;
all buyers are distributed in small areas close to shopping centers;
all shopping centers have equipped places for storing goods;
small target audience;
the quantity of each delivered product is a multiple of the used container.

Advantages and disadvantages of direct marketing

Why is direct selling so popular? Here are the main benefits of direct marketing.

Targeting the audience and its selection. For the best implementation of this task, direct mail and the so-called telemarketing are used, which surpasses even television advertising in the quality of its result. Radio, too, is not very effective at targeting, unless it's about winning over fans of a particular musical genre. Billboards also poorly cope with this task, and therefore are not a direct marketing tool. Of all the mass media, the most useful in terms of direct technology is printed matter, namely magazines.
Geographical selectivity. What does it mean? When using telemarketing, direct mail and magazine advertising, it is important to understand where and in what territory your target audience lives in order not to throw large sums of money on print ads distributed throughout Russia. After all, your clients are not the whole country, but a certain region, on which it is worth concentrating your financial forces.
Selectivity based on the demographic principle (age, gender, marital status, nationality, etc.). From the point of view of these characteristics of the population, telemarketing is the most useful in terms of direct promotion of goods, although radio and television channels can have a positive effect on the process of demographic selection in their own way.
Selectivity on a psychological basis. Thanks to telemarketing, the target audience is selected, which is characterized by certain psychological habits: the same lifestyle, hobbies, style, etc. Magazines also do an excellent job of this function, since they are created to meet the interests of a certain group of the population (sports publications, needlework, fashion, etc.).
Exclusion of meaningless dissemination of information. Obviously, people very rarely pay attention to ads in newspapers, on radio or television, no matter how flashy their headlines are. Telemarketing, in contrast, delivers information to consumers in a more targeted way, without giving them the choice to opt out.
Fast buyer response. If you want to check how customers react to your offer and you need to do it quickly, then use telemarketing. If you have more time, then radio and television are suitable for this purpose. Advertising on television bears fruit, but it requires too much time and material costs.
Measured response. If you can quickly assess the customer experience of your product, then you can immediately start distributing these products to other markets. The fastest customer response is provided by telemarketing, which presents you with data on consumer activity in the first hours after the start of an advertising campaign.
Various response options. When ordering a product, it is very important to provide people with a sufficient number of ways to order it. If customers want to place an order by phone, fax or mail, then telemarketing is the best way to do this, since, for example, television does not provide consumers with such opportunities. In the case of TV advertising, the buyer is limited in the choice of options for placing an order. In addition, if the viewer did not have time to remember the number by which you can make a purchase, he is unable to rewind, and a pencil or pen is not always at hand at the right time. In such situations, the reaction of buyers to your advertising is reduced to zero. The same story is typical for radio advertising: being on the road and hearing a number on the radio where you can order a product, you cannot remember the numbers by ear, and if you reach for the handle, you risk getting into an unpleasant situation on the road.
Full control of demand and a huge variety of opportunities. Telemarketing allows you to make some changes to the advertising script and immediately monitor consumer demand for certain innovations. Magazines do not provide this opportunity due to their print characteristics, and television and radio advertisements are usually short and too expensive to check. various options offers and control demand for them.
Large volume of messages. Other media, with the exception of marketing, offer only short advertising time. Telemarketing involves advertising at a speed of 150 words per minute, which is more than half of the standard A4 format.
Ability to change the advertising script. The high cost of television advertising makes it almost impossible to make adjustments to it. In the case of telemarketing, edits are made in minutes. Periodicals involve a long process of input and output from printing, which also makes it difficult to make changes. Even the local radio is more suited to this role due to its fast input times.
High percentage of consumer participation. Through telemarketing, the listener is drawn into the conversation, which also happens when watching long television shows, especially when all kinds of polls and other interactive methods of working with viewers are used.
Intrusive adware. If the viewer has no other choice but to watch your ad, then it is very annoying. For a long time, TV advertising was considered as such, but today the opinion has changed: after all, you can simply switch to another channel. And will you be able to not answer the calls that keep breaking your phone? Not! This means that telemarketing advertising is very intrusive. Advertisements in a magazine are often simply skipped, and on the radio the listener may ignore the offer.
Reaching audiences wherever they are. If the object of interest to you, namely the consumer, is at home, then you can reach him using standard television advertising. If a customer is driving a car or subway while reading a newspaper, then radio and print media can also be helpful. Telemarketing is an even more reliable means of reaching the target audience, no matter where the person is at the time of the call.
Quick entry and collapse of an informational message. The practicality of the time structure influences how often your offer is reviewed and how quickly an ad campaign is terminated in a given situation. A flexible time system is a characteristic feature of telemarketing, as well as newspapers and radio. The magazine cannot be produced in a short time, which means that the speed of entering information leaves much to be desired.

Downsides of direct marketing

minor flaws can be fatal to the prestige and reputation of your company, so if you are not sure that you can handle it, do not be stingy to hire a competent marketing specialist;
the direct method of promotion will bear fruit only in the long term;
when introducing direct marketing in some economic areas, significant investments are required;
sometimes there are situations when the consumer is not inclined to conduct a dialogue with the manufacturer, which can cause a conflict (this is especially typical for the post-Soviet space);
in the absence of a clear distribution of responsibilities in the company, embarrassment can occur: an advertising campaign sells one declared product, while the agent, when communicating with the buyer, tries to sell him another product.

Needless to say, the buyer thinks he has fallen into a fraudulent trap, and then you can forget about the prospect of making a deal.

Direct marketing is possible only when there is a clear division of responsibilities in the company, and each employee of the company acts according to one common goal. Success is guaranteed to the team in which each member stands up for the common cause and clearly understands his tasks.

Direct Marketing: The Complete Algorithm preparation and conduct

Traditional direct marketing channels

Individual approach to selling. The sales professional aims to make a one-on-one sale that identifies potential customers, connects with them, and turns that interaction into a long-term partnership.

Marketing through direct mail. Thanks to direct mail, every customer is aware of all the innovations of your products, because he regularly receives brochures, product samples and information about promotions.

There are three main forms of mail communication with clients.

Fax - modern technology makes it possible to transfer paper versions of proposals by fax to other telephones, and this happens in a matter of minutes.
Electronic message - by means of e-mail, mail is sent from one PC to another.
Voice message - such mailing is relevant when sending information to other phones.
Marketing using a catalog.

This element of direct marketing allows you to keep consumers up to date with all the innovations and additions to your product range. You can mail catalogs, sell them or distribute them for free, and experiment with design and presentation using videos, online catalogs, disk drives, and more.

Phone marketing. With this method, the main tool of communication between the seller and the buyer is the telephone. There are two types of product promotion by phone.

Outbound telephone marketing means that the operator himself contacts customers and informs them about existing offers, establishes contacts, and also conducts various opinion polls, evaluates the results of his work with consumers, and creates customer databases.

Inbound telephone marketing - involves the creation of customer hotlines where people send their orders. As a rule, this is the reaction of buyers to advertising messages on radio, television or in newspapers. In addition to this, there is hotline, by contacting the operators, users can leave their suggestions or express dissatisfaction.

How to make direct mail an effective online marketing channel

Modern forms of direct marketing

Direct response telemarketing

This type of promotion involves the use of television commercials with programs for feedback - this is a contact phone number for a free call, which allows customers to find out the details of the product or place an order. There are two types of such telemarketing:

direct response promotional messages - the video itself informs the buyer about the characteristics of the product and invites you to contact the company for further details. A contact phone number is provided in the video;
television channels of a narrow focus, engaged only in advertising products.

Interactive Marketing

Direct marketing also includes the purchase of goods online, which is carried out using a computer online. There are two forms of this type of direct technology:

commercial online shopping services that inform about possible products, promotions, bonus offers and other marketing services only to those customers who have signed up for a monthly subscription by paying a certain amount. Such commercial organizations have their own local networks, which is a guarantee of their reliability;
interactive platform - the Internet allows customers to exchange opinions about the product and communicate with each other.

Direct marketing on the Internet is no less powerful tool for promoting goods than television or telemarketing. But it should be noted that there are problems with its use.

Interactive marketing does not cover the entire market segment, thereby creating difficulties for limited access to consumers and, as a result, insufficient volume of purchases made by them.
Incomplete demographic and psychographic information about customers.
Clutter and too much information.
Incomplete guarantee of safe shopping. The customer runs the risk of transferring his data to fraudsters who intervened in the process of an interactive transaction. Credit card numbers are not secure, and therefore cash on them.
Consumers become vulnerable, unable to prevent businesses from using their personal data. There is discrimination against customers and a lack of ethical considerations among the representatives of the seller.

Recently, integrated direct marketing has become another popular type of promotion, which provides for a variety of delivery options for selling notifications and multi-stage advertising campaigns.

Internet Marketing Tools: 9 Most Effective Promotion Methods

Stage-by-stage organization of direct marketing in the company

Individual promotion of goods and services is possible in almost any business idea. But the success of this tool depends on the skill and experience of a marketing specialist.

Clear control and detailed preparation for the implementation of this type of activity is required. At the moment, this niche is not occupied in Russia, so there are great opportunities for companies and advertisers to develop this area. Residents of Europe receive a daily mailing list with similar messages and offers, the Russians, on the contrary, are not yet so integrated into this process. When using direct marketing, the invested funds tend to quickly return in an increased amount, which makes this advertising tool a leader in comparison with promotion in the media and its other types.

The individual focus of direct methods allows you to expand your customer base, as well as increase the number of leads coming from the same consumer. Also, this advertising tool makes the brand recognizable and creates the conditions for successful research of your niche in the market.

Stage 1. Preparatory stage of direct marketing.

This preliminary stage involves the definition of goals and objectives, the choice of advertising tools, the development of a portrait of the future consumer and a description of the target audience.

At this stage, you need to achieve the following:

ensure an increase in the personal client base;
to carry out a personal sale and an individual approach to each consumer;
establish a continuous flow of customers and build a lead generation system;
return lost customers.

At this stage, it is important to decide what percentage of consumer response and conversion you expect to receive from your campaign. If you planned for 30% of the reviews, then, naturally, the result in the form of half of this amount is a failure. But a conversion of 1% under such conditions is a success.

In order to correctly build your goals and define tasks, you must conduct a detailed study of the market: analyze the industry, competitors, average check and the percentage of leads that become buyers, as well as dozens of other criteria. Next, you need to test the campaign and, if necessary, adjust it.

There is an opinion that due to the underdevelopment of individual marketing in the Russian Federation, if a company manages to overcome the threshold of 2-4% conversion, which is the average level in the West, then the advertising event can be considered successful.

The essence of direct marketing is direct contact with the customer. It is most important to determine target audience. For example, to find persons in whose interests it would be to purchase programs for planning routes for the delivery of goods. It can be a manufacturer, a wholesaler, and a retailer. It is also important to figure out who exactly to send your proposal to: to CEO, his deputy, commercial representative or chief logistics officer of the company?

The main task is to describe a portrait of a future client - a consumer of a product or service. If you doubt that you can handle this case, a consulting company will come to your aid.

The direct marketing tools used depend on the goals and objectives of the advertising campaign, as well as on the characteristics of the target audience that you have previously chosen as your customers. For example, if you are engaged in the distribution of goods for needlework, then advertising will work more effectively on Odnoklassniki than on Instagram, since, you see, more customers use the first social network.

Stage 3. Conducting a direct marketing campaign.

Goal: increase the customer base. Having a large target audience, you should select only those who would be interested in your specific proposal. This can be achieved with coupons or printed media supplements. All stakeholders are your target audience. Feedback advertising on radio and television can also be helpful.

Turning just interested people into potential customers. At this stage, you must conduct in-depth work with the audience that responded to your promotional offer. Contact can be made via SMS or email.

Purpose: to encourage customers to buy. In this case, the direct marketing process involves informing people about all the possible nuances of your offer. You can simply remind the consumer of your organization, or you can offer a discount, gift, lottery ticket, or other marketing service.

Purpose: to maintain contact with established customers. It is much cheaper for a manufacturer to try to retain a regular customer than to find a new one. You may face the problem of reducing the turnover if you lose even a few of your customers. That is why in no case should we forget about established client relationships. For your part, you must constantly maintain contact with customers, inform them about discounts, promotions, sales and new arrivals of goods.

Purpose: return of departed customers. If some customers no longer use your services, this does not mean that all is lost. You must find out the reason for the refusal of customers from your service or products. Thanks to this, you can identify your weaknesses, study the advantages of competitors. Gently contacting lost customers can be helpful in improving your company.

Stage 4. Analysis of the implemented direct marketing campaign.

At the end of the campaign, a thorough evaluation is required. If the activity was unsuccessful, its analysis is still necessary, because thanks to this you can understand the shortcomings of the promotional event and prevent them next time. Major mistakes include:

incorrectly formed target audience;
an erroneously written message and addressed to the wrong people;
wrong timing for the DM campaign.

If everything went well, you should also analyze and find out what exactly served as a prerequisite for a successful conclusion, and what could jeopardize the success of the event.

It is necessary to take into account all consumer feedback, whether it be general information requests, interest in the company's activities or the purchase of goods and services. Customers who left your offer unattended should also be in the field of view - this will help further planning advertising campaigns.

According to most Western experts, direct marketing (direct marketing) or DM will acquire a dominant role in the advertising market and will replace all other types of promotion. On the world stage, the progress of this technology is constantly on the rise, its development does not stop, and the profit it brings is twice the income from advertising in the media.

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How to evaluate how effective direct marketing tools are

There are certain criteria by which you can judge the effectiveness of direct marketing.

The percentage increase in the audience of customers who contact the organization after the implementation of a particular advertising campaign (this data can be obtained from a company registered after the event).
The percentage of sales increases that occurred after specific direct marketing activities (this information can be obtained by analyzing sales volumes after an advertising campaign). Evaluation capabilities make it possible to judge the effectiveness of direct marketing by monitoring these communication systems, types of frequency and duration of direct marketing (mailing list, print publications, online advertising).

The success of the direct method, according to popular opinion, depends on the quality of the product offered, its distinctive characteristics, brand, and specific market conditions by about 40%. The other 40% is determined by the impact of products on the client audience and the level of this impact. The last 20% of success provides direct contact with the consumer. Experts believe that several elements make direct marketing effective. Personal selling is one of these main criteria, when using which the consumer feels truly important link trading process.

A meaningful contact budget is another important metric in determining direct marketing success. To determine the cost of interaction with a client, it is necessary to take into account several parameters, without which it will be impossible to make correct calculations. The first criterion includes limit values from the total cost of contact with the consumer. The second element reveals the proportion of successful interactions that, at the end of the direct marketing campaign, translate into a purchase. The third criterion testifies to the planned approximate results at each specific stage.

The measure of success for any direct marketing campaign is the number of people who respond to the promotional event, as well as the results obtained.

These parameters can be assessed by testing. At the same time, it should be complete, covering all aspects of direct marketing - this is the main rule for analyzing results.

Solid data can also be obtained by conducting interviews with a certain number of consumers pre-selected from the general list of the target audience.

Due to the fact that there are different groups of buyers, it is necessary to analyze each of them separately.

For example, if you want to choose packaging for your product, then it is best to ask the opinion of buyers and conduct testing. Of course, such measures cost money, but the losses in case of choosing a package that is unattractive to the consumer will exceed your costs for organizing trial promotions.

The test results will help you anticipate the sales volume of your entire group of potential customers, as well as assess your customers' needs and test your financial competence in the development and production process.

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What mistakes make direct marketing activities ineffective

Every year, experts make unforgivable mistakes when conducting direct marketing campaigns. Here are the main ones.

Mistake 1. Inexperience in sales. Many organizations initially present their product to the wrong group of customers. The blame here lies with the specialist who incorrectly drew up a portrait of the future consumer and carelessly approached the development of the text of the advertising message. To avoid such misses, it is necessary to create individual advertising messages for each target audience. Moreover, maximum attention should be focused not on the merits of your company, but on the benefits and advantages of working with you.

Error 2. Unwillingness to spend money on building a quality customer base. The database must be valid, real, not misleading.

Mistake 3. Savings on specialists. To achieve success, you need a highly qualified employee. You should not reduce your expenses by saving on this. The profit that such a professional can bring to the company will cover all costs.

Mistake 4. Using the experience of other, more advanced agencies.

Mistake 5. Good copywriting plays a huge role. The text of your messages should be unique, bright and catchy.

Mistake 6. Don't try to save money everywhere. The desire to minimize costs is not always the key to a profitable business.

Mistake 7. Test the niche of your business before investing big money in it. Thanks to this, you will find out if your product is in demand and what to do next.

Direct Marketing: Examples of Successful Campaigns

A direct marketing campaign should be unusual in its idea and clearly aimed at the target audience. Here are some examples of Western direct marketing activities.

The well-known company "Haggis" organizes an action. All new moms leaving the maternity hospital will be presented with free diapers. Women, in turn, send the barcode of their packaging and fill out a questionnaire, after which they proceed to communicate with the company that sells the goods, while receiving discounts, promotional codes, prizes and gifts. This campaign involves a big spend of $10–20 million, but it hits the target audience perfectly. Naturally, the gifts were paid off with the proceeds from further sales, since the purchase of diapers costs several hundred US dollars annually. Such promotions can be carried out only with a preliminary analysis, comparing costs and profits. In the Russian Federation, experts consider an acceptable spending threshold of 2-3% of the total cash flow.

In this example, we see a 100% hit on the target, but such cases are not frequent. The success of direct marketing in the Russian Federation is small when compared with foreign countries.

Another element of direct technology are events aimed at encouraging fans of a particular brand (Brand Loyalty). Similar methods are used by the owners of automotive industries. For them, it is extremely important that the next purchase, the consumer returned to the same brand. In Europe, car owners change cars about once every 3-4 years. We also see this trend: clubs are created for car enthusiasts of a certain brand, for example, RENAULT, BMW, 4x4, etc. Fans of these cars arrange their parties, meetings, and racing competitions.

The Audi Car Concert hosted a customer loyalty event in Spain that included free maintenance, replacement of an old car with a new one, and a travel club. Obviously, every Audi driver was aware of the company's plans in advance.

The goal of direct marketing is an individual sale through interaction with the consumer, which is greatly helped by customer loyalty programs. Organizations establish close contacts with buyers, which means they invest money in ongoing cooperation.

The condition for the effectiveness of direct marketing programs is frequent interaction with the consumer, at least 2-10 times a year. For example, the network company "KS", which sells shoes, informs its customers about monthly sales, promotions, lotteries, new software?

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