The direct and database marketing can be differentiated from classic marketing as it is an individual approach of the customer. As the consumer behaviours are in constant evolution, direct and database marketing help companies integrate rapidly consumer needs and attempts. This is an interactive system of marketing which uses one or more advertising media to manage a measurable response and/or transaction at any location. Database marketing is a supporting discipline for the direct marketing. It gives direct marketers the opportunity to build strong objectives and strategies as this tool is a very measurable help for marketers' researches and give a large volume of information.
DM has huge advantages for organisations. They can have relevant information about the customer contributing to the development of a database. Marketers here can control the product, they have no intermediaries also. DM is a good support to in marketing communication efforts. It has been shown that its components help in a more effective promotion. It really contributes to advertising.
DM strategy is developed around five basic steps. Setting objectives and making strategies/Communication of an offer/Response or customers ordering/Handling exchanges and return/Database maintenance.The DM strategy will also turn around two main points. Keeping existing customers by developing a strong customers' loyalty, and in the same time acquiring new customers.
[...] That is where the direct marketing will start and will offer a possibility of response of the customer. It will give marketers more opportunities by different channels to engage the customer. The interaction will aim at receiving direct response, which will bring companies first information about the customer. Marketers will have the opportunity to analyse those data and develop their direct marketing plan to set up their objectives. Then, the company will be able to target its customers. The DM is well characterised to have the ability to target customers with relevant communications. [...]
[...] The customer retention and a quality service are the two clear areas between relationship marketing and direct marketing, in which direct marketers must focus. C. Attract new customers Even if DM is not the best way to attract new customers, it has been shown that it can be a good help in the marketing effort to integrate new markets. Like with existing customers, the marketer will have to set up new objectives (segmentation, budget, communication, response analyses Objectives are generally running around some main topics like the target audience, the numbers of new customers desired, desired return on investment desired LTV, the allowable cost of sales Then, marketers need to set up market segmentation. [...]
[...] There are many supports for direct marketing (e.g. mails, catalogues, phone, internet These records are the basis for marketing analysis, planning, implementation of programmes, and control of all this activity. [1]Nevertheless, we can make a distinction between direct and database marketing. As database marketing is the way of using customers' information in order to create strategies, the direct marketing is the way of using that information to communicate directly to customers and so to attract a direct response. We are now more talking about customer dialogue and relationship. [...]
[...] The most profiling are the existing customers the most precise target of new customers the company will have. If new customers are similar to existing customers, it seems logical they will also bring revenue. E.g. acquiring new railcard buyers by proposing to actual customers to sponsor on internet friends or family can be a good strategy. It can be mutually beneficial if the company proposes for example discounts on each new data, the sponsor brings. B. Keeping existing customers The purpose of any direct marketing is in getting measurable responses. [...]
[...] That is why the creation of direct and database marketing is such a jewel. They have now the opportunity to manipulate a large volume of customers and in the same time, make them feel individual. The future of marketing depends on recognising the individually of customers. Direct marketing analysis began by organising customers into behavioural categories because it was found that past behaviour was a reasonable basis for predicting future behaviour.[2] It will bring an individual basis and so an individual analysis of the customers. [...]
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