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Direct Marketing/Direct MailOVERVIEW OF BUSINESS MODEL The Internet is the mecca for direct-marketing services. A virtual database is the most flexible and useful way to store and access the contacts needed to operateFigure 2.3. Dineaid.com is a very popular dining guide for the Atlantic Canada region.Part 2 betas.pmd 11/21/2006, 12:10 PM 90101 Profiles of Top Internet Business Concepts 91this business, and the Web is a perfect place to showcase your direct-marketing materials and skills. Most of the clientele will likely be other businesses, and the revenue will come from the payment for marketing services and access to targeted mail and e-mail lists.SKILLS NEEDED You should be organized, with experience in direct-marketing methods, and be sensitive to the different socioeconomic demographics encountered in global marketing pursuits. You should have computer skills and be familiar with design. You can provide the services yourself or perhaps contract out some of the components of each campaign, depending on your expertise and resources.COST TO START THIS BUSINESS The cost to get this business up and running will include the computer hardware and software costs, and the costs related to the design, development, and hosting of the Web site, and it is suggested that the lists of contacts be stored in a virtual database. The approximate cost to begin operation is $4,000 to $10,000.NUMBER OF EMPLOYEES NEEDED TO START The direct-marketing business can be started with one person, but for many projects undertaken, part-time help may be needed to complete the job. Portions of various contracts can also be outsourced.INTERNATIONAL POTENTIAL The international potential of this business depends entirely on which clients you are involved with and what their target markets are.E-BUSINESS MODEL/PAYMENT PROCESSING METHOD The e-business model suitable for this business during the first stage of development is level 1 or 2. For more information, refer to Part 1.IMPORTANT BUSINESS ISSUES TO BE ADDRESSED Issues to be addressed here are the cautions that come with any direct-marketing initiative, which are simply the responsible use of direct contact information and a strict policy that protects the privacy of the individuals within your database. You will want to have a double opt-in policy in place for the collection of contact information. You will need to clean your database often to eliminate stale or outdated addresses. Direct marketing is called such because it is designed to be targeted and high-touch in nature.
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