Direct Marketing-What is direct marketing?
Direct marketing is the product of individual needs, the dissemination of personalized products and services, the best channels. U.S. Direct Marketing Association (ADMA), marketing experts will define it as "a place to produce any measurable response can be used one or a deal or the interaction of several advertising media marketing system."
Direct marketing - the origin of
Direct marketing originated in the mail order activities. In 1498, Al publishers set in Venice, Italy, founder of Aldus Manutius published the first printed price list of directories. This generally is considered the first documented mail order activities. 1667, William Lucas in the United Kingdom published the first gardening catalog. Later, the mail order activities in the United States, Italy and Britain made some progress. To 1926, Sherman and Sackheim founded in the United States, the first modern book club - monthly book club (The Book of the Month Club). They began to use the free trial, that is first consumer Jishu, until the consumer no longer order or not payment. This is the first collection after the Jishu traditional way different. This is also the marketers trying to measure customer lifetime value (lifetime customer value) of the first attempt the world's second-largest direct response companies - Wunderman marketing consultant (WCJ) - founder Lester Wunderman said the manufacturer 90 % of the profits from repeat customers, and only 10% of sporadic individual. Reduction in losses of 5% of the old customers will increase by 25% of the profits. Therefore, from a strategic perspective, companies must be clear that he is to focus on the fight for market share, or to maintain or develop customer loyalty. According to experts, is facing fierce competition in the market, to maintain an old customer is looking for a cost of 0.5 times the cost of new customers, and to make a loss of old customers again become new customers that cost is to find a new customer cost of 10 times. How to traditional advertising to get customers to be maintained and converted into loyal customers for direct marketing is an important goal.
Mr. Wunderman in 1967 first proposed the concept of direct marketing. He believes that human society is the direct trading began, that the sale of the classical one (service) mode is the most and can satisfy the needs of the people, rather the industrial revolution brought about by mass production and mass marketing is not consistent with human nature, is immoral.
Especially the fish market at this stage, a large number of traditional advertising media are full of people called the "eyeball economy" is said to have aroused a public outcry, the conditions in today's society, people seek more personalized products and services, no one is willing to accept and others as products and services. This is a lot of marketing, marketing a large number of fatal weaknesses and decay times, the end of the root causes.
While consumer products generally do not trust some time; tired of a lot of advertising is not the time; especially health care products company marketing staff know what to do and to think hard to find when the new marketing, direct marketing operation and should be Health and vitality and adaptability to rapidly swept all Western countries, launched a marketing revolution in twenty-first century. Our nation's health care products drug companies most part accept the use of a direct marketing approach, but not yet used the system. We direct marketing as a primary means of entering the market, can greatly reduce risk.
Direct marketing - forms:Network as an interactive two-way communication channels can be and the media, it can be very convenient for the bridge between enterprises and customers, customers can order and pay directly through the network, businesses can receive the orders through the network to arrange the production, directly Products sent to the customer. Internet-based direct marketing will be more consistent with the concept of direct marketing. This is reflected in the following four areas:
First, direct marketing as an interacting system, with special emphasis on direct marketing and target customers are between the "two-way exchange of information" in order to overcome the traditional marketing in the "one-way information exchange," the way marketers and customers can not communicate between the Achilles' heel. Internet as open and free two-way communication networks, between businesses and customers can direct one to one exchange of information and direct communication, companies can target the needs of customers in production and marketing decision-making, maximize customer satisfaction in demand, improve the efficiency and effectiveness of marketing decisions.
Second, direct marketing activities for each goal, the key is to provide customers with direct response marketers channels, companies can rely on customer feedback to identify shortcomings, for the next direct marketing campaign ready. The Internet easy and fast makes it easy for customers via the Internet to make recommendations directly to the business and purchase requirements, you can also directly access the Internet service. Enterprises can also suggestions from customers, needs and requirements of the service, to identify the lack of business, according to customer demand management, reducing marketing costs.
Third, the direct marketing activities, emphasizing at any time, any place you can achieve the enterprise and customer, "two-way exchange of information." Internet's global and persistent, which makes the customer can at any time, any place direct response to business requests and issues, companies can also use the Internet to achieve low-cost break across space and time constraints of two-way communication with customers, This is because the use of the Internet can be automated all-day communication tools to provide online information, customers can access their own schedule to get any information.
Fourth, the direct marketing activities, the most important feature is the effect of direct marketing activity is measured. The Internet as the most simple and direct communication tool for business can be very convenient when dealing with customers to provide communication support and trading platform to achieve, through database technology and network control technology, companies can easily deal with each customer order and demand, and Customers do not control the size, the amount of purchase, this is because the cost of Internet communication and information processing costs are very low. Thus, through the Internet can be achieved at the lowest possible cost to meet customer needs while understanding customer needs, target market segments, improve marketing efficiency and effectiveness.
Direct marketing - main features:
Difference between direct marketing and other marketing methods, the main features are:
1 choose more accurately target customers
Direct marketing can from the customer list and database information, the selected customers may become their own people as the target customers, and target customers with a single user or a specific business direct exchange of information. So that the target customers accurately targeted communication.
(2) emphasize the relationship with customers
Direct marketing campaign, direct marketing may be based on each customer's different needs and spending habits for targeted marketing activities. This will form one to one with two-way communication between the customer, will work with customers to create and maintain a good relationship. Various studies show that the majority of consumer purchase behavior is a planned purchase. Direct marketers know that customers will not stay at home passively waiting for the arrival of advertising. Therefore, they encourage consumers to always concentrate on the unplanned purchase or impulse buy, as consumers respond immediately to provide all possible convenience.
3 encourage the customer an immediate response
Through the incentive to concentrate on advertising in a particular recipients to take immediate action and to reflect the customer immediately and provide a convenient way possible, people of the immediate implementation of direct communication.
4 covert marketing strategy
Direct marketing strategy is not the conduct of high-profile, so competitors can not easily be detected, even if competitors aware of their marketing strategy will be too late, as advertising and direct marketing sales is the same time.
5 attention to customer lifetime value and long-term communication
Direct marketing to business customers (including end customers, distributors and partners) as the most important corporate resource, by improving customer service and in-depth customer analysis to meet the customer's needs, concerns and help customers achieve lifetime value.Direct marketing - Category:Direct marketing (direct marketing) as part of marketing activities, and modern consumers are becoming increasingly close. On the one hand, the accelerating pace of life in modern society, so that consumers are becoming used to reduce shopping time. On the other hand, information, communication technology, and continuously improve the credit system, the development of direct marketing provides an opportunity.
Now, with the credit instruments and the rapid development of information technology, the form of direct marketing has been an unprecedented development, the form is no longer limited to mail-order activities. With the telephone, television and the Internet and many other media, the emergence of forms of direct marketing has become increasingly diverse, a common form of direct marketing are:
1. Direct mail marketing:Marketing staff to letters, samples or advertising sent directly to the target customer marketing activities. A list of target customers can rent, buy or no competition with other businesses to exchange. Use these lists, they should pay attention to the list of repetition, to avoid two or more products with a mailing sent to the same customers, causing resentment.
2. Catalog marketing:Marketers to target customers mailing list, or available for customers to obtain the directory at any time. The integrated operation of the complete production line mail order store more this way, such as Montgomery Ward • Company (Montgomery Ward), • Sears Roebuck (Sears Roebuck) and so on.
3. Telemarketing:Marketers to target customers by telephone for marketing activities. Phone penetration, especially in the opening 800 free phone so that consumers are more willing to accept this form. Many consumers through telephone inquiries about products or services, and make purchases.
4. Direct response television marketing:Marketing staff through on television about the products, sell products or sponsor a special program, marketing activities. In China, television is the most popular media, television channels are more, many companies have started marketing on television.5. Direct response print media:Direct response print media usually refers to magazines, newspapers and other print media, direct response advertising to do, to encourage the target members of the order by telephone or letter, to achieve the purpose of increasing sales and provide customers with knowledge of other services.6. Direct response radioBroadcast as a direct response to the dominant media can also be used as with other media, so that the customer feedback on the radio. With the broadcasting industry, an increasing number of radio stations, more and more professional the whole, some stations even for a particular segment of small groups or height for the direct marketing targeting those who seek to provide a precise the opportunity.
7. Network Marketing:Marketing staff through the Internet, fax and other electronic means of communication to carry out marketing activities. At present, such as books, computer software and hardware, travel services, etc., have generally started their online marketing business. In addition, marketers also use newspapers, magazines, radio and other media for marketing activities. The types of direct marketing can be a single use, can also be combined with use.
Direct marketing - FeaturesAlthough direct marketing as a marketing idea has long existed, but until the 1980s, people still think it is a method of distribution. It is widely accepted definition of Stan • Rip (Stan Rapp) and Tom • Collins (Tom Collins) by the definition: "Direct marketing is without a store, directly between buyers and sellers to complete transactions in a distribution form . "Although the above definition outlines the basic nature of direct marketing, but the role of direct marketing as more and more widely, it has been difficult to fully summarize the purpose of direct marketing.
Direct marketing and database concern is that each of its consumers and potential consumers. They are based on consumer buying behavior in the past to predict future behavior. This information is processed on an individual as a unit, even tens of thousands of consumers can still use it to carry out the analysis of individual behavior and decision-making. This does not mean that marketing research is outdated, but if you rely only on marketing research information obtained will be made generally applicable to the assumption that consumer behavior, this assumption when applied to individual circumstances, may be wrong. In short, direct marketing stressed that according to the analysis of information about individual decision-making, and finally to maximize customer lifetime value.
Characteristics of direct marketing can be summarized as connectivity, the target, control and continuity.1. Connectivity (interaction) refers to the marketing staff and the linkages between consumers, which includes two meanings: (1) how marketers target consumers on the market to provide responses to stimuli cause. (2) how consumers react. Interaction with consumers, marketers can gain effective control for target-oriented and consumer information and how to keep in touch with the information. Therefore, the four characteristics of direct marketing, the Internet is the centrally located.
2. Goal-oriented (targeting) is the marketing staff select a product or service information received into the process, information has been received income can be purchased product or service to consumers, or likely to become patrons of potential customers, or the majority of potential consumers. Marketing personnel can periodically check the results of the last campaign, in order to obtain more accurate goal-oriented information.
3. Control (control) refers to the management of marketing activities, including setting goals and plans, make budget and assessment. It is a cyclical process, marketers generally based on past results of the control process to develop plans for the future.
4 continuity (continuity) is to retain the existing customer base, to sell them other products and more advanced products. In business, a lot of profit from the existing customer base, so the continuity is very important. Interaction with customers to obtain important data, enabling marketers to better communicate with customers, timely access to their interests and preferences, to understand their views on marketing activities of the past. Although many companies do not realize the importance of continuity, but studies have shown that the product has been purchased re-sale to consumers the cost of attracting new customers only a small part. For example, in the new car market, the cost ratio of the two 1 / 5.
Direct marketing of the above four characteristics are interrelated, and its overall goal is to establish a database to keep old customers and attract new customers, maximize the customer lifetime value. Customer Lifetime Value is the life of an enterprise to bring the customer the total net income, which means that customers remain loyal to the company during the period, will bring the total value of expected future income.
The shortcomings of traditional marketing and direct marketing advantages:Marketing costs related to traditional marketing, advertising media costs, warehousing costs, channel costs, management and marketing costs are very high, and direct marketing to a certain extent, lower cost, and efficiency is improved.1, direct marketing to reduce overall customer costs. Direct marketing aspects of the exclusion of intermediaries increases, thus reducing commodity prices; while allowing the customer does not need to go out shopping can make their time, physical and spiritual cost to almost zero.2, direct marketing emphasis on time efficiency of customer response to the trend. Comparison shopping, modern people are more willing to invest valuable time to work, learning, communication, sports, leisure and other more meaningful things, and direct marketing telephone (or network) ordering, home delivery of benefits to customers shopping offers great convenience.
3, the promotion of network communication technology to promote the development of direct marketing. Media is the key to successful direct marketing. Today, advanced communication facilities, in particular the use of Internet technologies (According to statistics, China has 50 million mobile phones, 100 million fixed telephone; computer ownership in more than 12 million Internet users over 4 million) is to e-shopping has become a trend.
4, the direct response to customer demand for personalized marketing trend. Direct marketing by the manufacturer according to the specific needs of each customer customized products to provide customers with complete satisfaction with the goods. New century calls for direct marketing, but marketing strategy change has economic grounds. The traditional image of the advertising for many companies it is not too specific.
For example, most of the revenue from Coca-Cola 8% of Americans, but Coca-Cola is in the cook billion in television advertising to 100% of the people. This is a reasonable proportion of Coca-Cola tried to find the right ratio. Coca-Cola understand that each client must establish a closer relationship because no one has seen a customer base to buy Coke, every time a single customer.
Traditional advertising is facing a structural crisis. In order not to forget, companies must do more advertising. But only well-known and a good impression is not enough. Statistics show that consumers face every day a 1600 advertising messages. Not surprisingly, he will forget after a while a large part, the other part would be wrong to memory.
