Introduction to Direct Marketing

Let's start by defining Direct Marketing.

Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

There are 3 key aspects in this definition. 


The first one is that direct marketing is "interactive" in which both the marketer as well as the prospective consumer engage in two way communication. Usually the general form of advertising is one way communication where the information is sent out, but the prospect cannot react over the telephone or by through other medium.

The second aspect is that the direct marketing activities are "measurable" in nature. Direct marketing allows the marketer to identify/measure the outcome/response of any particular communication.

The third aspect is that direct marketing communications "can take place at any location". The prospective consumer can be contacted over a telephone/mail/fax.

The Advantages of direct marketing:
Direct marketing, like the other forms of communication aims at persuading the target audience. However there are some things which direct marketing does better than the traditional forms of marketing.

Expense and Profits through direct marketing:
Direct marketers make use of the paid messages just like the general advertisers, however the expenses for direct marketing campaigns are more since the aim is to generate a response. Direct marketing is basically selling your product/service without a sales person or without an intermediary. Since the intermediaries are eliminated the profit earned is more. However the expenditure on media is more as compared to general marketing. The expenditure generally accounts to 10 to 30 percent of the sales, depending on the media involved.

Customer Service:
Customer service plays an important role when it comes to direct marketing.Majority of the firms make money from repeat business rather than just from one sale. Hence a due importance has to be given to the customer service as well. Its an important mechanism to have regular interactions between the marketer and the consumer.

Precision in targeting:
The direct marketing campaigns are based on the use of the database that are segmented with respect to certain criteria like college goers, frequent flyers etc. The direct marketing communications are aimed at the precisely targeted prospects to reduce the waste which is present in other forms of communications.

Personalization:
Direct marketing communications are personalised and hence it creates a direct appeal to the prospective consumer. The ability to personalise extends just beyond the names where you can also communicate based on the past purchases, customer characteristics and likewise.

Call for immediate action:
Direct marketing communication always contains a call for action in their copy. The prospect is either encouraged to gain more information or place the order by calling the number in the direct response print ad.

Measurement:
The effect of the direct marketing activity can always be measured. You can track the performance, the campaigns can be monitored on a real time basis. You can precisely check what has worked and the areas which can be explored or the ones which have to be improvised.
Tracking the performance also helps in analyzing the behavior of the target group and also establish long term relationship with the target audience.