DIRECT MARKETING: FACTORS FOR GROWTH Niche marketing Availability of specialized media Proliferation of computerized databases Worldwide telecommunications capability Globalization of markets

DIRECT MARKETING: OBJECTIVES –Building Customer Relationships Relationship Marketing –Direct Response or Transaction TOOLS –Direct Mail –Catalogs –Telemarketing –Vending Machines –Print Media (inviting direct response) –Broadcast Media (inviting direct response) –Television and Cable (Home shopping networks) –The Internet –Fax, Video, and other media

PROBLEMS AND PROSPECTS PROBLEMS –Cannot see and examine –Operating costs –Low response rates –Intense competition –Image problems –Lack of comfort with interactive technology –Privacy and ethical issues PROSPECTS –Segmentation and targeting –Geographical range –Shopping convenience –Technological advances –Lower prices to customer is possible –Lower operating costs are possible

INTEGRATED DIRECT MARKETING Integration across Direct Marketing Tools Integration with Other Communications Mix and Marketing-Mix Elements

THE DIRECT MARKETING PROCESS Developing, maintaining, and managing customer databases Developing an interactive marketing system Measuring results

DIRECT MARKETING: WHY AND WHEN? For Market Selectivity and Targeting When the product is not readily available in the marketplace When there are problems of availability, cost, and services of middlemen When a high degree of control over marketing is desired