This are direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships the new direct marketing models include: advances in direct marketing include emergence of catalog companies, direct mailers and telemarketers.
BENEFITS TO BUYERS;
- Easier to know the current models in the market as per ones needs
- Wealth of comparative information is allowed.
- Interaction and immediate feedback is possible
- Privacy is enhanced.
- Enhances greater product access and selection.
- It is a tool for customer relationship buildings ,better targeting and customerization
- It can be timed to reach prospects at just right moment.
- Higher readership and response is enhanced.
- There are numerous internet and online benefits which one enjoys ranging from,
- Reduce costs and increased speed and efficiency.
- Avoids expenses of rent,insurance utilities(owning a store).
- Improve efficiency of channel and logistic functions.
- Costs less than communicating on paper through the mail
- Greater flexibility is enhanced in terms of production quotas and the needs of customers.
- It is usually a global medium-ie across all nations.
CUSTOMER DATABASE AND DIRECT MARKETING
Customer database-this is an organized collection of comprehensive data about individual customers or prospects including geographic,demographic,psychographic and behavioural data.
Database marketing-this is the process of building and maintaining customers data for the purpose of contacting and transacting with the customers.it is commonly used in B2B and service retailing(hotels,banks and airlines). It makes use of a customers mailing list – a set of names,addresses,telephone numbers etc and customer database-contains much more information e.g. past purchases,personal information,family information etc.
The database kept by the firm assists in,
- Identifying the prospects.
- Deciding which customer should receive a particular offer.
- Deepening customer loyalty(ie information, gifts etc).
- Reactivating customer purchases(knowledge of past purchase is kept, certificates and promotion.
- Face to face selling.
- Tele marketing-using phones to sell directly to customers.
- Direct mail-letters, ads, samples, fold outs are used the media used here include; voice mail, email, fax mail and physical mail.
- Catalog marketing-this is mainly through print, video or electronic catalogs.
- Direct response television marketing-this is direct marketing via television, including direct response television advertising or commercial home shopping channels.
- Kiosk marketing- refers to information and ordering machines placed in stores and airports.it is different from vending machines because a kiosk does not dispense the actual product.
- Internet/online marketing-this is marketing conducted through interactive online computer systems which link consumers with sellers electronically ie internet and commercial online services.
Service refers to any act/performance that one party offers to another that is essentially intangible and does not result in the ownership of anything.
SPECIAL CHARACTERISTICS OF SERVICES.
- Intangibility-services can not be seen, tasted, felt, heard or smelt.
- Inseparability-services are produced and consumed simultaneously.
- Heterogeneity(heterogeneous)-services are variable since they depend on the provider.
- Perishability-services can not be stored e.g. medical care.
- Ownership-services do not result in ownership of anything.
- Should have support services ie it should augment the actual product.
- Should be well labelled.
- Should be well packaged.
- Should have a brand that identifies it with the maker.
This is based on the idea that actual service offering can be broken down into a number of levels relating to customer need satisfaction, benefits and features. Three levels can be identified.
- Core benefit service-This relates specifically to the customers needs. The core benefit satisfies the need or solves the problem.
- Expected service-this relates to customers’ expectations of what kinds of services are available to satisfy their need. The expected service reflects standards required or expected by customers to satisfy their needs.eg in a bank one expects that polite language is used, professional knowledge is applied by the staff etc.
- Augmented service-this means making the service better in some way and it is the means by which service providers differentiate their offering in an attempt to influence customer choice. Extra features over and above the expected service can be added to make the service more attractive to prospective customers. Innovation is the key to make a service stand out from the competition.eg in the banking sector, we have the corporate section where we have corporate customers who are usually served differently according to class.
- Service-this involves superior quality, a well known and trusted brand image, unique features and extended guarantees.
- Price-involves added value, special discounts and preferential credit terms(free for a new customer brought).
- Promotion-this involves innovative advertising campgains, loyalty promotions(points) added, special offer,public relations e.g. sponsorship e.g K.CB in terms of safari rally, safaricom, equity etc.
- Place-This involves extensive availability(in many parts g. equity bank),innovative methods e.g. telephone banking, agents and careful selection of quality channels(mpesa).
- People-This involves highly trained staff, better customer care, greater efficiency, personal attention and specialized skills.
- Process-This involves advanced technology e.g. for counting money, efficiency systems e.g. introduction of ATMs to avoid queing in banks and fast response
- Physical evidence-This involves comfortable surrounding,superior décor(decoration) e.g. for wedding organisers they gather in hotels,schools,banks.Qualifications and evidence of professional standing(e.g. certificates being placed on walls) and a strong recognizable corporate image(similar uniform) and supporting documentation.
- Line extension(existing brand, existing service category)-this is using a successful brand name to introduce additional items in a given service category under the same brand name such as new flavours, forms, colours, added ingredients as well as different packaging sizes in respect to a product.
- Brand extension(existing brand, new service category)-using a successful brand name to launch a new service in a new category.
- Multibrands-(new brand, existing product category) ie offering new band in same category.
- New brands-(new brand, new service category) may be appropriate if none of the existing brands is appropriate for a new service entering new market.
- Mega brand strategies-this focuses on marketing dollars only in brand that can achieve number one or number two market share in their categories.