Direct Marketing Essay Example

data telecoms, and Reader's Digest. Furthermore, airlines, hotels, and various other organizations employ direct marketing channels to establish and nurture direct relationships with their prospects and customers individually. Overall, direct marketing has evolved to encompass multiple channels and techniques aimed at strengthening connections with customers and driving sustained business success.

Face-To-Face Selling: The traditional method of direct marketing involves field sales calls conducted by companies like Eureka Forbes and Real Value - Ceasefire. Nowadays, industrial companies heavily rely on professional sales forces to identify potential customers, convert them into buyers, and expand their business.In addition to hiring manufacturers' representatives and agents, consumer companies often utilize their own direct-selling force, such as insurance agents, stockbrokers, and distributors. Exhibitions and trade shows serve as a hybrid medium resembling broadcast media advertising with the primary objective of showcasing products to a large number of customers and generating excitement. Some exhibitions may include a direct marketing element by providing promotional materials to local dealers or sending mail-shots to customers for further follow-up. In business-to-business settings, exhibitions are incorporated into the contact strategy by targeting potential or existing customers through databases or rented lists and inviting them to the exhibition where they may even book appointments with staff at the exhibition stand. After the exhibition, successful ones may have follow-up contact through sales force, telephone calls, or mail. Exhibitions are useful when sales calls are expensive and aim to attract many customers to visit instead of going out to visit them. They also effectively attract new customers due to proven quality attendance and function similarly to rented lists in this regard.Exhibitions prove valuable in showcasing complex concepts without the need for

individual demonstrations nationwide. Similar to exhibitions, company-sponsored special events like sales seminars, physical product demos, awareness and training events, and entertainment events also have a direct marketing perspective. The difference lies in the sponsorship by the company itself, with invitations sent to ensure desired attendees. Direct marketing serves as the primary medium for promoting such events; examples include British Airways and Time-share Club selling through direct mail marketing. This method involves sending offers or reminders to individuals using selective mailing lists that may consist of letters, flyers, or foldouts. Direct mail is effective in both acquisition and retention strategies and often includes personalization by addressing recipients by name and including their address. It provides flexibility in customizing messages based on audience and circumstances while not being limited geographically like other media platforms such as television, radio, magazines or newspapers.Direct mail is a highly effective medium in direct marketing, surpassing other forms in terms of response rates. Its success can be attributed to its ability to deliver a personalized and customized message directly to an individual or household. This personalization, selectivity, and flexibility sets it apart from other advertising mediums, as it allows the message to stand out without competition from other ads.

Despite some direct mail pieces being considered junk and discarded, the ones that are read still generate a larger response compared to other mediums. The advantages of direct mail include selectivity, personalization, flexibility, isolation, and high response rates.

On the other hand, direct-response television commercials play a significant role in the current evolution of direct marketing. The appearance and creative approach of these commercials greatly influence audience reactions. However, similar to any form of advertising,

the primary goal of direct-response commercials is to effectively communicate with target markets or specific audience members. These commercials are specifically designed to provoke a specific action from prospects, such as placing an order by calling a number or requesting more information via writing.Most direct-response advertisements are typically 60 seconds long, although some may be shorter at 30 seconds. The key to successful commercials lies in offering bargains, guaranteeing satisfaction, and making the product easy to order. These methods help reduce the consumer's perceived risk when placing an order, providing them with easy, convenient, safe, and cost-effective shopping experiences.

Direct-response television is responsible for generating 60 to 80 percent of orders through toll-free phone calls. The remaining orders are received via mail. Toll-free numbers connect callers to phone centers that operate seven days a week and can handle the expected call volume.

Magazines and newspapers have the ability to communicate messages to either mass or highly segmented audiences depending on the selected publication. Direct marketers benefit from print advertising in several ways including longer shelf life compared to direct mail, potential pass-along readership, and regional and demographic targeting. Print also allows direct marketers to reach non-mall order buyers and expand their customer base.

To be effective, direct-response magazine and newspaper ads must prompt readers to take action. In order to make a sale or generate further interest through mail or personal sales calls, advertisements must provide enough information to stimulate a purchase decision or generate an inquiryExamples of companies utilizing these methods include Asian Paints, Berger Paints, McDonald's, Domino, Outlook, and The Week. Catalogs are visual and verbal listings of products for sale designed to entice readers to

make a purchase. They are derived from the Greek word 'Catalogs', meaning 'to list'. The use of sophisticated design elements, photographs, art, ink, and glossy paper has transformed catalogs from basic lists to fully customized and engaging materials. Meanwhile, the Internet provides marketers with greater opportunities for interaction and complementing traditional direct marketing methods. It allows for regular and cost-effective updates, making it more efficient than updating physical catalogs. The internet's progressive nature lends itself well to creative and interactive approaches that help achieve and maintain visibility in a highly competitive environment.

In addition to the internet, telemarketing is also utilized by companies to increase revenue, reduce selling costs, and improve customer satisfaction. Telemarketing plays a vital role in an integrated marketing communication program. Its aim is to have personalized interactions with customers that meet their needs in a cost-effective manner. The possibilities of telemarketing are limitless for direct marketers; however having good telephones alone is not enough to achieve good results. A successful telemarketing firm requires well-trained telephone operators who understand the telephone as a marketing tool.Training in proper voice inflections, listening skills, persistence, and patience is included in call center operations. Call centers are used for both inbound telemarketing (receiving customer calls) and outbound telemarketing (initiating calls to prospects and customers). Companies like ICC, Citibank, and HASH provide opportunities to place flyers and inserts for direct marketers in various publications. While some readers may find these inserts annoying, they often have a significant impact as they are the first thing seen in the journal. Inserts generally outperform sales advertisements but can be more expensive depending on production quality. This isolation from the rest of

the journal gives direct marketers a better chance of effectively standing out. Prepaid reply cards and free phone response numbers simplify responses from interested individuals, such as those interested in computer institutes.

Videotape and interactive TV involve linking consumers' TV sets with sellers' catalogs through cable or telephone lines. Special keyboard devices enable consumers to place orders through this system. Ongoing research aims to integrate TV, telephones, and computers to create interactive TV experiences. Additionally, Short Messaging Service (SMS) enables written text communication sent from mobile to mobile or from PC/digital TV set-top box to mobile devices.This service, also referred to as "message to mobile," provides the advantages of increased cut-through and impact on its audience. It ensures personal and local marketing that is interactive and immediate. However, it is essential to target the correct individual, at the appropriate time, with a suitable offer in order to prevent messages from getting lost or causing harm. Research indicates that more interaction and added value result in better responses.

Integrated marketing communication, known as Mimic, is a management concept that aims to align advertising, sales promotion, public relations, and direct marketing together instead of allowing each to operate independently. Integrated Marketing Communications (IMC) is a simple concept that emphasizes the connection and cohesion of various communication methods and messages. IMC or MIMIC involves integrating promotional tools harmoniously for optimal results.

Promotion plays a crucial role in the marketing mix by utilizing a combination of communication tools. These tools are most effective when used together rather than separately. When all the tools are aligned and consistently convey a unified message, their collective impact surpasses their individual contributions.

In addition to basic communication

tools, there are further levels of integration that enhance integrated communications' effectiveness: Horizontal, Vertical, Internal , External ,and Data integration.

Direct marketing offers numerous benefits.Direct engagement with customers allows businesses to bypass intermediaries, such as wholesalers or retailers. This results in cost benefits for consumers. Furthermore, direct marketing enables marketing executives to accurately assess the response to their products and maintain precise control over profit and loss. The impact of direct marketing exceeds that of other methods and aids in targeting specific audiences. Additionally, it offers prompt responses, convenience through home shopping, and time-saving advantages.

Direct marketing has a wide reach and introduces customers to a diverse range of products. Customers can conveniently compare products through mail catalogs and online shopping. By eliminating intermediaries, direct marketing reduces markups and increases profits. Customers are more likely to place orders or trust information given via phone calls or mailed cards. Sellers can personalize messages, benefiting from the effectiveness of direct marketing.

However, some customers may perceive direct mailing as intrusive and detrimental to their privacy. Despite this concern, many marketing managers support direct marketing. Direct business can take various forms like direct mailing and email marketing.

Direct mailing involves sending paper mails to selected groups for immediate response. On the other hand, email marketing includes sending emails periodically; however, its efficacy is uncertain due to most emails being discarded as spam.
Telemarketing, a method of making direct calls to consumers to advertise products, is conducted by call center employees who sell on behalf of clients. However, telemarketing is widely disliked and many people object to unsolicited calls. Initially illegal, new laws were later enforced to only allow calls to those who are

willing to receive them. To address consumer opposition, vocalism marketing was introduced as a solution, where the entire advertisement is digitally recorded and presented. To entice consumers further, coupons offering cost benefits are attached to direct mails. Advertisements on television also include toll-free call back numbers or certain websites for consumer contact. Broadcast faxing is the least popular form of direct marketing, involving ads that are directly faxed to consumers.

In order for successful direct marketing, establishing a positive connection with the consumer is essential. This can be measured through methods like BIB or BBC (Bayberries Motormen Worker GAG BMW). Bayberries Motormen Worker GAG BMW is a company established in 1916 and publicly traded since 1969. They specialize in producing and marketing high-end sporty cars and motorcycles. Although they have manufactured the first passenger car running on hydrogen, production remains limited due to insufficient filling stations. Additionally, BMW operates an aircraft engine division called Rolls Royce alongside their cars and motorcycles business.BMW is a global company with subsidiaries and manufacturing plants around the world. They also provide vehicle financing through their own financing company. In 2000, automobiles accounted for 78% of their revenues, while vehicle finance leasing made up 18%, motorcycles contributed 3%, and other products accounted for 1%.

In the early sass, BMW underwent a business restructuring to become the leading player in the premium automobile market. Their strategy involved consistently launching new products every three months and significantly increasing their investment in research and development by 53%. As part of this approach, they introduced several new cars such as the Mini One, Mini Cooper, new BMW 3 Series Compact, new BMW 7 Series, and Z

Roadster.

By 2002, BMW had surpassed Mercedes to secure second place in the premium segment of the US automobile market; only Lexus remained ahead of them. Prior to 2001, BMW's success was primarily attributed to its consistent marketing policy and targeted approach towards specific market niches. The company's core values revolved around Technology, Quality, Performance, and Exclusivity. They utilized advertisements as a key marketing tool that could be adapted based on economic conditions, environmental factors, and competitive landscape.

A significant milestone occurred in 2001 when BMW launched "The Hire," a series of five short films featuring high-profile celebrities – marking an influential collaboration between advertising and entertainment on the internet. This initiative led to a substantial increase in website traffic by generating a boost of unique visitors from previous weeks' numbers – rising from138k to214k visitors (a growth rate of55%).The average customer for BMW is a married 46-year-old male with no children and a median income of $150,000. It was found that approximately 85% of BMW customers used the Internet before purchasing a car. To direct consumers to their website, BMW launched a promotional campaign featuring TV spots, print ads, and online ads. This campaign was successful, resulting in over 10 million films viewed on the website and nearly 2 million registrations. Of those registered, 60% opted to receive more information via email and an impressive 94% recommended the films to others. Furthermore, over 40,000 people voluntarily responded to a survey conducted by BMW.

BMW also employed guerilla public relations tactics such as seeding news at key internet entertainment rumor sites and hosting a radio program in 20 metro markets. These efforts led to a significant increase in

sales compared to the previous year – surpassing the historic milestone of selling over 200,000 cars for the first time.

Continuing their extensive use of the internet for brand promotion, BMW adopted innovative approaches such as having their ads for the BMW Compact drive out of banner ads and around the browser window to showcase its agility on corners.

In the UK market specifically, BMW's online strategy prioritizes branding rather than click-through rates being seen as an additional benefit.BMW has utilized different types of banners, such as those with pull-down menus, Superstitious ads, transitional ads, pensioners, and dynamic HTML ads, to promote the advantages of owning a BMW in terms of the driving experience. Research conducted by the car company reveals that more than 80% of individuals who came across their online advertisements later visited BMW.Co.K, even if they didn't immediately click through. This suggests that the brand message was retained even after leaving the banner. The success of BMW can be attributed to their consistent marketing policy known as the "market niche" strategy. Since its establishment, BMW has built its brand on four core values: technology, quality, performance, and exclusivity - values which have remained consistent throughout. BMW has maintained a long-standing partnership with their advertising agency WOWS since 1979 and has adopted a constant advertising strategy that explicitly conveys one or more of these core values in all BMW advertisements. Additionally, BMW highlights its commitment to the environment by adjusting its advertising strategies based on economic changes and environmental factors while also considering competition. This approach is evident in various TV and print ads showcased across all BMW vehicles. To reinforce their brand image further,

over 300 color press advertisements and 64 distinct campaigns are focused on capturing the essence of their cars.BMW encourages individual dealers to use marketing materials like local press, radio, and bus ads provided by the company. Additionally, the corporate office offers brochures, price lists, and dealership point-of-sale materials. By centralizing advertising resources, BMW ensures consistent communication that aligns with the brand's values. The global advertising campaign of BMW maintains uniformity across various markets in Europe, the USA, Asia, South Africa, and the Middle East. In over 15 countries, there will be diverse forms of advertising including TV spots, print advertisements, mega-posters, radio spots, and events for James Bond films collaborated on by BMW with MGM and EON Productions Ltd as part of a cross promotion project. This global promotion includes TV commercials, print ads, and displays in BMW dealer showrooms.

Auto manufacturers have devised innovative strategies to attract Internet users to their websites; however these strategies have become commonplace. Slide shows,
flash animation,and surround video are now commonly found on most manufacturer's websites.Contests are also widespread but offering only a chance to win a free car may not hold viewer interest for long.Xx banners can be displayed on every search results page alongside other advertisers' banners in rotation through run-of-site (ROSS) basis.The advertising rates for 468x60 ad banners are determined by the cost-per-thousand (CPM) impressions and currently range from US $10 to $15 CPM. Flashing banners and other techniques may have slightly higher costs depending on the website and technology used. Each advertiser for online ads is given password-protected access to real-time advertising statistics, which provide details on impressions served, click-throughs achieved, and the resulting click-through rate.

Popular

websites like CNN, ZED Net, or Yahoo typically have a click-through rate (CTR) of 0.25% to 2%. However, the actual CTR of your ad will depend on its appearance, marketing message, and call to action. Similar to television commercials or full-page magazine ads in "Time," these online advertisements may not directly result in immediate product orders.

Nevertheless, companies can establish themselves as significant players in the industry by using a web-based process that systematically guides consumers. This allows their names to be remembered when consumers are ready to make a purchase. According to the 1999 American Association of Advertising Agencies Commercial Production Costs Survey, a 30-second national automobile commercial had an average cost of $389,000. Additionally, Bum's target income bracket includes 20% of viewers on MASC. and Bravo channels.