Direct Marketing
Direct Response Marketing

Addressing commercial messages to individual consumers. Explanation of Direct Marketing (1498).

What is Direct Marketing? Description

Direct Marketing involves a "direct response" from a consumer. It is a technique that is used to address commercial messages towards individual consumers. A synonym which is sometimes used is "One-to-one Marketing". It differs from regular advertising in that it does not place its messages on mass media such as newspapers or TV. Instead, the marketing message of the service or commodity is addressed directly to the consumer. This sales and promotion technique uses promotional materials such as leaflets, brochures, letters, catalogs, or print ads that are delivered individually to potential customers via so called "addressable media":

• The mail (Direct Mail).
• Telephone (Telemarketing).
• Humans (Door-to-Door Selling, Party Plan Selling).
• E-mail (E-mail Marketing).
• Internet (Behavioral Targeting)
• Mobile phones.

Direct marketing is dependent upon the use of customer data and lists, normally in databases. Hence also the terminology: Database Marketing. These databases are searched and "crunched" to select those consumers that have the optimal chances for sales success.

A related form of marketing is Direct Response Marketing. Contrary to Direct Marketing, in Direct Response Marketing the customer responds to the marketer directly. Its most common form today is Infomercials via television presentations, to which viewers respond directly via telephone or internet. Coupons in magazines and newspapers are another type of Direct Response Marketing.
 

Origin of the Direct Marketing model. History

Researches have found the roots of direct marketing in Europe when it emerged from the Middle Ages (and feudalism) and entered the Renaissance. The first trade catalogs were issued by printer-publishers of the 15th century soon after Gutenberg’s invention of a moveable type (c. 1450). Credit for the oldest extant catalog (1498), which gives prices for inexpensive books by Greek and Latin authors offered, goes to Aldus Manutius of Venice.

Steps in the Direct Marketing method. Process

1. Strategic decisions. Researching. Targeting. Set the objectives. Media choice.
2. Communication of the offer.
3. Customer response and ordering of the products. Donation. Subscription. Membership. Attending a demonstration. Asking for more information.
4. Fulfillment. Filling the order. Distribution. Customer service.
5. Database Maintenance and Customer Relationship Management.

Strengths of Direct Marketing model. Benefits

• Cost-effective.
• Effectiveness can be measured directly by comparing purchasing behavior of targeted vs. non-targeted consumers.
• Direct contact with the customers.
• Consumers receive commercial messages which have been adjusted to their profile. Convenience.

Limitations of the Direct Marketing approach. Disadvantages

• Sometimes criticized for generating unwanted solicitations (Junk Mail and Spam).
• Privacy concerns. Legitimate Direct Marketing firms should offer methods by which individuals can 'opt out' of these lists upon request. Direct Marketing agencies must respect the do-not-call list maintained by government agencies such as the Federal Trade Commission (FTC).

Book: Edward L. Nash - Direct Marketing: Strategy, Planning, Execution -

Book: Bob Stone, Ron Jacobs - Successful Direct Marketing Methods -

Direct Marketing Special Interest Group

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Direct Marketing Forum

- Canada

Direct Marketing Frequence

"We are currently trying to get the right frequence of communication to our customers. Is it 4-5 times a year or less. We are in a testing stage right now but I would like to have your comments on this situation. Thanks"

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Luu Lien - Vietnam

Direct Marketing: Access Customers Directly

"As I understand, direct marketing helps to access customers directly, but not to sell goods without tax."

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Eiman - Iran

Marketing Mix and Direct Marketing

"What is the relation between the Marketing Mix and Directing Marketing?"

2

- India

Innovativeness and complexity of product - reason

"When products are innovative or with complex concepts, indirect marketing may not work well. Direct marketing may be the only channel to sell and know customer requirements. The feedback from customers could also help in reinventing product faster to suit customer's changing requirements. So in a highly volatile and dynamic market condition this may be the best way."

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- Indonesia

Speed and Response are Key

"I think direct marketing is a combination of diferentiation and how we get the customer but speed and response are key in this method. How we know what the customer needs before they want it."

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Izhar Ul Haq - Pakistan

Benefits of Direct Marketing

"It is true that direct marketing has a positive effact on business development and helps to gain market share?"

1

- India

DESI style Direct Marketing

"No doubt there are some disadvantages of direct marketing, but when I talk about India there are so many people who are doing there business only with direct marketing because of a good advantage and that is TAX. Yes, so many people are directly selling their product to the customers, and enjoying tax free business. Such people are known as FERIYA it's a hindi word. This way they get the whole profit of their business. They don't need to pay anything to government. These FERIYAs don't have enough money to establish their own business centre so they roam here and there, make a money and enjoy whole profit... This is a good way to do business.. little investment and huge profits. It's called Indian DESI style..."

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