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DM not effective in some sectors: DMAI

18-December-2002
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DM not effective in some sectors: DMAI

Does Direct Marketing (DM) really work across business verticals and product categories? Not necessarily. This is the initial finding of the study conducted by Direct Marketing Association of India (DMAI).

The business categories where DM may be ineffective could include automobile and retail finance, the financial services sector and the consumer durables industry. According to the survey, these are the business categories where the outdoors can prove to be a better and cost-efficient medium in comparison to DM techniques.

The reason why DM does not work in these sectors is that the consumer is looking at tangible benefits and financial sops that he would be deriving. This is specially true in the case of personal borrowing for car loans. And a DM with all its related accessories may not instantly communicate benefits that the consumer is looking for, the report says.

On the contrary, an outdoor message due to the obvious limitations of space is often quick and precise in communicating the benefits to the consumer. Live product demonstrations in consumer durables align better with customers, says the survey.

The survey attributes the lack of brevity and an extreme emphasis on packaging as the prime reasons for the failure of DM specially in certain business verticals.

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