What is Direct Marketing?
One-on-one communication in which offers are tailored to the
needs of narrowly defined segments.
According to Chris Fill, a best selling author on marketing
communications, describes direct marketing as: “Direct marketing is a strategy
used to create a personal and intermediary free dialogue with customers. This
should be a measurable activity and it is very often media based, with a view
to creating and sustaining a mutually rewarding relationship.”
Company may have a strategy of dealing with its customers
'directly,' for example banks computer manufacturers (such as Dell)
Direct Marketing is Not New
Direct marketing is not new; many companies have sold their
products direct to the public for many years.
Direct mail through the post or even mail order catalogues have
been around for a long time and are all a form of direct marketing.
Direct marketing became an important force in the UK in the
1950.
Today the scope of direct marketing has expanded dramatically
largely due to the use of the telephone and in particular the use of the
internet.
Not all Direct Marketing is
IT Driven
However not everything in the modern direct marketing world is
IT driven.
Some of the more traditional direct marketing methods are still
employed and are still effective; door to door selling for example is still
widely used by many companies.
Modern direct marketing is by no means all ‘hi tech’, but as
with many other areas of marketing and business in general it is tending to
move in that direction.
The development of direct marketing overtime:
The Objectives of Direct
Marketing
•
Direct ordering.
•
Providing information.
•
Visit generation.
•
Trial generation.
The use of Direct Marketing
using different Media
Telephone Marketing
Telephone marketing has been used as a direct marketing tool for
many years, although mainly in business-to-business marketing.
Many routine reordering situations can be handled over the
telephone without the need for an expensive personal visit.
Many services, such as banking, are now offered over the telephone
and customers can give instructions to pay bills and get a balance on their
account by using special access codes.
Many companies use the telephone as part of a direct
marketing programme.
Telephone marketing can be divided into incoming and out-going
call marketing.
the prospect makes the call to the marketing firm, usually in
response to a direct-mail advertisement or direct response television
advertisement giving a ‘free-phone’ or ‘toll free’ telephone number.
The call is logged and often recorded. The caller is then
followed up by an outgoing telephone call sometime later or sent information
through the post. They may even arrange to have a personal visit, from a
kitchen surveyor for example.
The advantages of telephone marketing are as follows:
Cost savings: Telephone selling provides a
customized means of communications.
Supplement to a personal visit: Professional sales
people use a system of ‘differential call frequency’ to plan their visits to
customers.
Gaining market intelligence: Marketing firms can
speak to their customers on a regular basis, not only to maintain relationships
but also to ask questions about their needs and wants and purchasing
intentions.
Supplement to direct mail and other advertising:
Many direct mail and other forms of direct-response advertising, on the
television, press or radio for example, will carry a ‘free phone’ or ‘toll
free’ message. This enables the prospect to make telephone contact at no cost
to them. The prospect can make an immediate commitment to purchase whilst the
advertising message is still fresh in their minds.
Direct Mail
What is direct mail?
Direct mail is considered by some to be an advertising medium,
but by others to be a quite separate element of the marketing communications
mix. Direct mailing is the use of the postal service to distribute a piece of
informative literature or other promotional material to selected prospects.
Direct mail is a method of communicating a message directly to a
particular person, household or firm.
Uses of direct mail
To help define it more fully, it is appropriate to deal with
direct mail to consumers and businesses separately.
Consumer direct mail
Selling direct: If a company has a convincing
sales message, any product or service can be sold by direct mail. It is a good
medium for selling a product directly to the customer without the need for
middlemen.
Sales promotion: Direct mail can send promotional
messages – ‘money off’ vouchers, special offers, etc. to selected targets. This
can be a useful way of encouraging people to visit a shop or exhibition.
Follow-up mailings: The company’s name can be
promoted to the customer by following any kind of sales activity with a
mailing, e.g. checking that the customer is satisfied with their purchase or
reminding them that their car is coming up for its annual service. Customers
can be kept informed of new developments, latest products and improved
services.
Business Direct Mail
Business markets are made up of closely defined, discrete groups
of individuals. These groups may not be best reached by mass advertising media.
Direct mail can be used to accurately identify different market sectors and
provide messages appropriate to each sector. Some of the more common uses in
this context are:
Product launch: Often the launch of a new
industrial product or business service entails getting the message across to a
small, but significant, number of people who will influence buying decisions
Dealer support: Direct mail makes it easy to keep
dealers, retail outlets, franchise holders, etc, more fully informed of
tactical marketing promotions and plans.
Conferences and exhibitions: Business and trade
conferences and exhibitions are well-established means of communicating with
potential customers and business colleagues.
Marketing research/product testing: Direct mail
can be used for marketing research, especially amongst existing customers.
Direct Mail as part of the
promotional mix
In both consumer and business markets, direct mail must fit in
with a company’s other promotion efforts. For example, a television or press
campaign can reach a broader audience, and raise the level of general awareness
of the company and its products. If such a campaign is added to a direct-mail
campaign aimed specifically at groups of people or companies most likely to
buy, or to people particularly wanted as customers, the effectiveness of the
overall campaign can be significantly raised.
References
Marketing made simple by Paul & Geoff