Direct Marketing
• Direct marketing is a form of promotion where organizations communicate directly to
customers through a variety of media including cell phone, text messaging, email, websites,
online, catalog distribution, promotional letters etc.
Tools of Direct Marketing
– Direct Mail
– Catalogs
– Telemarketing
– Tele-shopping/Home shopping
– E-mail marketing
– Voice mail marketing
– SMS (Text) marketing
– Vending Machines (Kiosks)
– Online marketing/Social media marketing
Direct Marketing – Characteristics
• Paid form
• Action-oriented (results measurable)
• Two-way interactive communication
• Removes intermediary or middlemen
• Customized – not using mass media
• Lasting relationship
Functions/Benefits of Direct Marketing
• Communicating Quality – It helps marketers in communicating the benefits and attributes
of the product in detail to the customer, thus improving the quality image.
• Achieving Credibility – Direct marketer is in a better position to understand and resolve
customer objections and provide guarantee for satisfaction.
• Frequency of Post-sales contact – gives access to buyers that could not be reached through
other channels.
• Provides a low-cost, speedy way to reach markets.
• Offers greater flexibility.
High cost per exposure
Potential delivery delays
Lack of support from other media
“Junk mail” in easy to ignore
Seen as wasteful, harmful to the
environment
Personal Selling
According to Philip Kotler, “Personal selling involves oral presentation in a conversation with one
or more prospective purchasers for the purpose of making sales.”
– It is also known as salesmanship.
– It is the act of influencing customers in favour of the company’s products through
face-to-face communication.
– It has dual objective to promote and/or distribute products.
Personal Selling – Characteristics
– Two-way, face-to-face communication
– Expensive promotion tool
– Requires specialized skills
– Dynamic and flexible
– Immediate feedback
– Winning customer confidence
– Triple rewards – benefits the customer, salesman & company
– Improves company image
What is the difference between Personal Selling and Direct Marketing?
• Personal selling is more for products and services that are complex in nature and cannot sell off
the shelves on their own such as financial products.
• Direct marketing is a selling technique that involves making direct contact with the intended
customer through phone calls, emails, offers through newspapers and magazines etc.
• Direct marketing is more aggressive than personal selling that appears like an attempt to arm the
client with important information at first.
• There is an emphasis on building up a relationship with the customer in personal selling whereas
direct marketing seeks to impress upon the benefits of the offer.
• Personal selling is the oldest form of selling while direct marketing is being used increasingly by
small and big companies to increase their sales.
Personal Selling Vs Sales Promotion
Comparison Chart
Basis for Customer Personal Selling Sales Promotion
Personal Selling is a marketing tool in Sales Promotion is a range of non-
which the sales person presents the personal marketing activities that are
Meaning
goods to the customers and instigates carried on to initiate sales of product
them to purchase it. and service.
Consequence Long term increase in sales Short term increase in sales
Cost involved High Comparatively less
Communication Face to face Indirect
Customers Few Many
Incentive schemes
Not always present Always present
and offers
Nature of product Customized and technically complex Standardized and easy to understand
Method used for
which kind of High value Low value
product
Difference between Advertising and Personal selling