The principles of direct marketing

Résumé du document

Direct marketing (D.M) is a method of marketing. Transactions are between buyer and seller. "D.M is tailor made-marketing" because the technique is to avoid a unique strategy for all the customers or all the prospective customers. It is focused on the individual customer. The key of D.M is to obtain individual customer details at the first sale. Marketers want to begin a relationship with the customer and to generate repeat business.

D.M has increased in all types of organizations in a few years. It is due to:

The increase of individualism of the population, who has got different needs and wants.

The growth of the competition.

These elements permit to show the importance of having a good relationship with its consumers, to cover brand loyalties. D.M uses a lot of techniques to attract people like: e-mailing, phone etc it is important for them to have a database to know their consumers very well.

The young person's railcard (YPRC) is a rail travel discount card. It is available to anybody between the ages of 16 and 25 as well as a full-time mature student. The association of train operating companies (ATOC) is responsible for its sales.

Extraits

[...] For new consumers, direct marketers used the profiling technique. This technique is to suppose that the new consumers can present the same profile to the one of the existing consumers. For that thing, they use the existing database of their consumers. D.M permits to define the good way to contact potential buyers of the product. The goal is to begin or to maintain relationship with them. D.M permits to reduce costs and open new distribution channel. The others advantages are: immediate and flexible, opportunity to test (promotion, prices international (send a mail is cheaper than personal visit), opportunity to build a database, developing long term customers ( ) It is important to analyse the organisation's internal strengths and weaknesses and external threats and opportunities. [...]

[...] The key of D.M is to obtain individual customer details at the first sale. Marketers want to begin a relationship with the customer and to generate repeat business. D.M has increased in all types of organisation since a few years. It is due to The increase of individualism of the population, who has got different needs and wants. The growth of the competition. These elements permit to show the importance to have good relationship with its consumers, to cover brand loyalties. [...]

[...] marketers who know their customers best will be the winners.” (Direct and database marketing). To do it in the best way, they have to record personal data of the consumers. Thanks to it, direct marketers can analyze the data and target precisely the customers susceptible to appreciate a new service because it responds to their need. The customization of the product is possible thanks to the personal data of these individuals recorded on a database. They can use different methods to have data but the best way to do it is to develop the Internet because it is more profitable and more performant that the marketing off-line. [...]

[...] To develop loyalty e-mailing is a very good tool. When people do not renovate their card ATOC could send them an email with a special offer. Sell is not hard but develop loyalty is very hard. ATOC will work a lot on this to have new customers in the future and no loose the others. Critics of D.M There is a problem with its image. Some people think that it is an attack of their privacy; it is look like an intrusion. [...]

[...] The web site allows personalizing the offer according to the characteristics of the customer. They key points of Amazon are: - The command in a click - A complete and a very well exploited customer file - An excellent customer service It can be sum up by: to me who you are and what you want and I shall propose it to Amazon measures satisfaction. According to the obtained results, the web site proposes an adaptation of the offers. It is a good method because there are of others purchase on the web site after the first purchase. [...]