A form of advertising in which physical marketing materials are provided to consumers in order to communicate information about a product or service. Direct marketing does not involve advertisements placed on the internet, on television or over the radio. Types of direct marketing materials include catalogs, mailers and fliers.
Direct marketing removes the
"middle man" from the promotion process, as a company's message is
provided directly to a potential customer. This type of marketing is typically
used by companies with smaller advertising budgets, since they cannot afford to
pay for advertisements on television and often do not have the brand
recognition of larger firms.
Philip
Kotler & Gray Armstrong: Direct
marketing consist of direct communications with carefully targeted individual
consumers to both obtain an immediate responses, and cultivate lasting customer
relationships.
American Direct Marketing Association: Direct marketing is an interactive form of marketing using one or more advertising media to affect a measurable response and or transaction at any location.
Benefits of direct marketing:
Direct marketing
gives you the opportunity to promote your products and services directly to the
customers who most need them. A good direct marketing campaign will:
- help you build
relationships with new customers
- test the appeal of
your product or service
- tell you which
marketing approaches reach your target market
- increase sales.
Direct marketing
campaigns require careful planning and a clear understanding of responsible
direct marketing practice. Being aware of the benefits and challenges of direct
marketing will help you use direct marketing effectively as follows:
Making the most
of direct marketing
A well-planned
direct marketing campaign can take you straight to your ideal customers.
Identifying the benefits of direct marketing will help you stay focused on
getting the most out of your direct marketing campaign.
Target your
ideal customers
Using direct
marketing allows you to target specific groups of customers with tailored
messages. A well-targeted direct marketing campaign will also provide you with
an accurate understanding of how your customers are responding to your product
and service offers.
Market on a
budget
Direct marketing
that is targeted to a specific audience can help you set realistic sales goals
and improve sales results on a tight marketing budget. Businesses can run
effective and purposeful direct marketing campaigns at a fraction of the cost
of broadcast advertising.
Increase sales
to current and lapsed customers
Most customers
welcome contact from familiar business people who make an effort to understand
their needs and build a personal relationship. You can increase sales to your
existing customers by maintaining reliable customer records and choosing
simple, well-planned promotional tactics.
Improve customer
loyalty
Direct marketing
helps you build direct relationships with your customers. You can personalize
promotions, letters and offers to create an immediate link with your customer
and increase their personal connection to your business.
Create new
business
When using
direct marketing you can communicate directly with your chosen target market
and this should give you a better sales success rate than communicating to the
mass market, many of whom may not be interested in your products and services.
For example, you
could use a direct marketing campaign to:
·
boost sales of a
particular product
·
run out
discontinued stock
·
renew stale sales
figures
·
increase customer
contacts
·
directly
follow-up on a promotion.
Test and measure
your products and sales performance
Direct marketing
also allows you to test new markets, review sales results, measure the
effectiveness of your sales and advertising
tactics, and easily make adjustments to your campaign. Each time you run a
direct marketing campaign you should monitor and review the results, using this
information to improve the success of your next campaign.