Chapteer 16

1. Define direct marketing and discuss its benefits to customers and companies.

Direct Marketing:

Direct marketing consist of connecting directly with carefully targeted consumers or individual consumers, often on a one-to-one, interactive basis.

Direct marketing become the fastest-growing form of marketing. According to Direct Marketing Association (DMA), US companies spent $163 billion on direct and digital marketing last year. As a result, direct marketing driven sales now amount to nearly $2 trillion, accounting for 8.7% of US economy. Direct marketing become more internet based, and internet marketing is claiming a fast growing share of marketing spending and sales.

Benefits to Buyers:

For Buyers direct marketing gives following benefits:

I. Direct Marketing is convenient, easy, and private.

II. Direct marketers never close their doors, and customers don’t have to trek on and through stores to find products.

III. Customers can shop online at any time of the day or night.

IV. Direct marketing gives buyers ready access to a wealth of products.

V. Direct marketers can offer an almost unlimited selection to customers almost anywhere in the world.

VI. Direct marketing channels also gives buyers assess to a wealth of comparative information about companies, products, and competitors.

VII. Direct marketing is immediate and interactive. Buyers can interact with sellers by phone or on the seller‘s web site to create exactly the configuration of information, product or services they desire.

Benefits to Sellers:

For sellers direct marketing provide following benefits:

I. Direct marketing is powerful tool for building customer relationships.

II. Direct marketing is also offers sellers a low-cost, efficient, speedy alternative for reaching their markets.

III. Online direct marketing results in lower costs, improved efficiencies, and speedier handling of channel and logistics functions.

IV. Direct marketers such as Amazon.com avoid the expense of...