Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen (Phillip Kotler, 2004). By extension, international direct marketing involves reaching and selling to customers located in export markets using direct marketing tools or channels. Direct marketing seeks a measurable outcome such as an order, and is thus a promotional method whose effectiveness is easy to measure.
DIRECT MARKETING IN THE PROMOTIONAL MIX
Direct marketing is one of 5 components of your promotional mix. Others include advertising, public relations, sales promotion, personal selling. As an exporter, you must establish your promotional objectives and identify the most feasible method to attain them bearing in mind the target market segment and the budget or other resources available to you.
Direct marketing to export customers can be a great challenge to you, but fortunately modern technology (such as Internet and email) and new services (such as vetted mail list vendors and outsourced call centres for telemarketing and customer response in the target country) can make it possible for you to reach your customer from thousands of miles away. Your irect marketing can often be more effective when you combine more than one tool in an integrated marketing campaign. For example an email marketing campaign, conducted prior to a trade fair participation or product launch, linking to a corresponding, updated and e-commerce-ready website,
BENEFITS AND DRAWBACKS OF INTERNATIONAL DIRECT MARKETING (IDM)
Benefits of International Direct Marketing to you as the exporter include
More direct and personalized communication with prospects
Flexibility in tailoring message to recipients and in timing the campaigns
Cost effectiveness due to narrow-casting of message to only those who are target segment
Ability to track prospects purchase and re-purchase behaviour and build up a better knowledge of customers and provide a platform for a detailed customer database
Marketing efforts are shielded away from the competition
Improved measurement of effectiveness of promotional spend
Drawbacks of International Direct Marketing to you as the exporter include
Reliable customer databases are not always available for your target market segment in a particular country or they may be too costly
Customers may be unwilling to send payments to a distant and unknown vendor and you may have to incur the cost of setting up a local order taking, shipping, payment receiving and customer service facility in the target country
Due to proliferation of junk bulk mail and SPAM email, your customers may be unwilling to receive unsolicited offers and in the US, SPAMMING is illegal.
Much unsolicited mail is screened and trashed and thus wasted. Customers are now able to remove their names from mailing lists to avoid unsolicited telemarketing calls.
TYPES OF INTERNATIONAL DIRECT MARKETING
Catalogues (distributed to target market with mail-reply forms or toll-free number for order processing)
Direct Mail (mail packages containing letters, flyers, brochures, tapes, CDROMs) distributed by mail or courier to targeted recipients
Telemarketing (outbound marketing calls or in-bound calls on toll-free number with customer service agents responding to enquiries)
Electronic Media Shopping (Cable TV shoppingrarely used except by the largest exporters due to high costs of media time)
Email Marketing
E-cards and E-games as a sophisticated way of email and Internet marketing
International Consumer Fairs
Electronic market places
SETTING AN APPRORIATE DIRECT MARKETING STRATEGY
Define your target market segment
Define your direct marketing communication objectives using AIDA model eg. Do you want to achieve Awareness, Interest, Desire or Action or all four!
Identify available marketing communication methods and assess cost and effectiveness
Draw up a budget and decide on promotional mix in line with available resources
Develop a direct marketing plan identifying specific IDM method, costs, media to be used, messages, insertions and execution times
Execute IDM campaign
Monitor and evaluate and modify if necessary
Be prepared for resulting enquiries and orders!
TIPS FOR USING DIRECT MARKETING TOOLS
Be creative! Competition is fierce and customers and consumers are suffering from information overloads. You have to stand out!
Think integrated. Direct Marketing is most effective when used in tandem with other promotional tools.
Timing is crucial. Especially when applying an integrated approach
Do not overestimate the effectiveness of email marketing. It is a relatively cheap tool, but spamming policies, abundance of junk mail and virus fears reduce the effectiveness. Response rates are low. High volume email marketing or point cast customized email marketing may be required.
Telemarketing is widely practiced and effective but requires professional skills, endurance and a conversation and sales script. Telemarketing is usually subcontracted to professionals. We advise you to do the same.
When you send out introductory letters and catalogues, make sure these are professionally prepared, and attract the Attention and trigger Action! Use your Unique Selling Proposition prominently and include a business reply form and a contact address/email/website/telephone number for the customer to contact for more information or to order the product.
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Margaret Waithaka is a CBI trained export consultant and Manager New Investments, Export Processing Zones Authority, Kenya.
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