Info about Direct Marketing
Direct Marketing Is Cost-effective and Efficient If Used Properly
Marketing is a strategy used by companies to provide information and convince consumers to buy their products or access their services. Two types of marketing: direct and indirect, can be used concomitantly by companies. The indirect method is used when goods or services are marketed through means that encourage customers to go and buy their product. On the other hand, direct marketing is used when advertisers directly contact prospective customers.
The first factor that determines the success of direct marketing is the presence of a comprehensive database containing personal information regarding potential clients. A company may not initially have the database per se but may buy the data from direct marketing companies. These companies usually have the contact information of groups of people who are classified according to age, interests and levels of income.
The advantage of this strategy is that it allows the focused use of the company’s resources on highly likely customers. For instance, the market for hair growing products is very distinct. It would not be very cost-effective to market such products through the traditional advertising media like radio, newspapers or television. This is because when the ad is shown, it is not certain whether the ad is actually being seen by people who have lost their hair and want it to grow back. If the indirect strategy is used, the advertisement may or may not reach the potential customer.
Direct marketing is best utilized for markets who are not repulsed by the use of their personal information and for people who prefer to receive information customized to their preferences. In these cases, different forms of marketing can be used. These include street advertisements, fliers, catalogs and direct mail. Other forms include telemarketing, email marketing, voicemail marketing, couponing, TV-response marketing and direct selling.
Direct marketing is very effective for small to medium-sized enterprises which are not yet well known or whose brands are not yet recognized. Even with a small budget, a well-planned and well-executed direct marketing strategy can greatly enhance the number of customers and the quality of relationship with these customers. Moreover, because the message is direct, confusion is minimized.
However, it is not entirely without disadvantages. Concerns on privacy and security have been raised. This is particularly important in this internet age where financial transactions can already be made online. Additionally, if the database is not accurate, direct methods may reach the wrong consumers. If this occurs, the advertisement is considered worthless (e.g. junk mail or spam messages). The consumers may become overloaded and irritated with direct marketing methods and may subsequently reject the company’s marketing overtures.
Fortunately, advertisers now allow consumers to determine whether they want to continue receiving this type of marketing through “opt-out” lists. There are now self-regulating associations with direct marketing companies as members. These associations aim to prevent counterfeit use of databases
Direct marketing is affordable and easy to implement. However, it should be used with caution because it may backfire if not used on appropriate consumers. It is effective as long as the advertisers are creative and scrupulous and the chosen consumers are receptive.