1. Identify the functions of direct marketing and say how it links producers with customers.
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, targetted television commercials, response-generating newspaper/magazine advertisements, and outdoor advertising. Amongst its practitioners, it is also referred to as Direct Response Advertising.
Direct marketing is selling product directly to the consumer or end-user, rather than through a broker, distributor or wholesaler.
Example: Sometimes confusing the matter, direct marketing is also used to describe the sale of food directly to a restaurant, grocery store, caterer, processor, etc., who will then resell the food to customers.
2. Identify the major forms of direct marketing and the techniques they employ to target customers. Use the template provided below to explain the different techniques each major form uses to target customers.
Major forms of direct marketing differentiated in terms of techniques:
Forms of direct marketing
Techniques used to target customers:
Residential area, People who like to visit in market, malls, all age group Promotion, door-to-door service, direct approach, offering samples Direct mail
Adults & older
Post, courier, sent mail
Adults & older
Sending, attractive image of products, special offer, brief description of product
Land line phone holder
brief description of product, Calling to landline
& retired people
Flier, newspaper, posters, using famous person's face
Direct-response television advertising
House wife, retired people
Saving offer, free home delivery, short time offer, Free call on television advertisement like 0800
Through the video presentation, Website, social network like Facebook, twitter
All age people
Mobile apps, social network, text
3. Choose a business you know well or a case study of a business which uses direct marketing e.g. cafe using Facebook, Salesforce, a business which uses TradeMe, Auckland Council, Family Planning, NZ Heart Foundation, ASB Bank, Amway. Describe it briefly. We have chosen ASB Bank. ASB Bank offers bank accounts, personal and home loans, kiwisaver, investments, foreign exchange, insurance, internet banking, credit cards and online banking.
4. Identify one growth direct marketing trend that your chosen business uses e.g online marketing, telemarketing, face-to-face, social networking, direct mail. Refer to this trend and the case study you have chosen in your assignment and presentation. The growth of direct marketing trend of ASB Bank offers direct mail service to their customers, online banking or internet banking. They send mail or letter on their postal address to inform about their account and investment. Regularly (once in a month) they send the user bank account statement to their customers.
5. What are the benefits to buyers and to sellers of the direct marketing trend you have chosen? Give 3 benefits for buyers and 3 benefits for sellers. Answer - Benefits for buyers:
Availability of credit.
Benefits for seller are:
Target market selectivity.
Ability to build customer relationship.
Ability to maintain privacy of marketing programs.
6. What are the ethical issues or public policy issues for the direct marketing trend you have chosen? Give 3 examples of ethical issues or public policy issues. Answer- There is four ethical issues that ASB Bank should keep in mind while using direct mail marketing...
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