Marketers examine categories of customers or prospects they think will be interested in their product or service, and develop or procure lists for making contacts. Lists can be obtained through public or commercial sources, and may represent all the people in a particular neighborhood, all the people who entered a contest drawing, all the people who opted in to a newsletter, a customer list from another business, etc. Such lists should not be used indiscriminately; instead, the data should be analyzed to create messages and offers that are likely to be relevant to these customers or prospects. A direct marketing campaign may use multiple communications channels including mail, e-mail, phones, and face-to-face contact See also Direct Mail Marketing.
Companies with smaller advertising budgets typically use this type of marketing since they cannot afford to pay for advertisements on television and often do not have the brand recognition of larger firms.
How Direct Marketing Works Direct-marketing messages generally include a call to action, encouraging the recipient to respond via a toll-free phone number or a reply card or by clicking on a link in an email promotion. Companies are able to measure the effectiveness of their direct-marketing campaigns by tracking responses.
Direct marketing is more effective when companies use targeted lists of prospects developed using available marketing data that can segment them into identifiable groups that are likely to have an interest in a product or service. Many companies engage in opt-in or permission marketingwhich limits their mailing or emailing to only those willing to receive it.
Companies select communication channels they consider most effective for a particular market. For instance, a new gym may find more success distributing flyers, while a new grocery store prefers to mail promotional coupons to the residents of nearby neighborhoods.
Pros and Cons of Direct Marketing Companies that use direct marketing benefit from being able to focus limited resources on a targeted promotion, which also allows them to personalize the marketing message.
Because it is easy to measure responses, companies can test different marketing messages for improving the response rate.
Direct marketing can be cost-effective if the customer database is well-managed. The downside of direct marketing is that response rates can vary widely making the flow of prospects unpredictable. Ineffective campaigns can be costly, especially if they occur frequently.
Companies that send blanket direct mail or email promotions have to overcome the negative image of junk mail and email spam. The key to effective direct marketing is an accurate database, which can be expensive to maintain.Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman.
Buell Duncan VP Marketing, IBM Hybrid Cloud And to have a place where we can all combine and meet and deal and tackle with the challenges we have today and in the future – that’s the job of the DMA, and that’s why we are all here.
Direct marketing definition is - marketing by means of direct communication with consumers (as through catalogs and telemarketing).
marketing by means of direct communication with consumers (as through catalogs and telemarketing). DMN is the leading provider of marketing intelligence to senior marketers.
DMN reports on all channels of marketing including digital, social media, direct mail, search, email, multichannel retail, media, list and Internet marketing. The distinction between direct marketing and other marketing is dated, and these businesses are proving it.
Direct marketing is a type of advertising campaign that seeks to elicit an action (such as an order, a visit to a store or website or a request for further information) from a selected group of consumers in response to communication from a marketer.