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Direct marketing: A solution in downturn

Today, when traditional form of advertising & marketing proved to be ineffective and costly, direct marketing (Direct Marketing) is a smart choice for businesses.

Since the 1960s, direct marketing has grown rapidly and become a key marketing tool in many industrialized countries. In 1997, American companies spend $ 135 billion for direct marketing, sales from marketing reach over $ 1,100 billion. In 2006, those amounts spent on direct marketing hit $ 1,157 billion and sales increase by $ 8,576 billion.

In Australia, with an economic growth rate of about 4% annually, the expense for direct marketing to grow 16% per year over the previous five years. Remote service over the phone or internet is also increases up to 30% per year.

The concept of direct marketing is known in the 90s of last century. Entrepreneurs commonly used it in business to establish, maintain and develop relationships with customers through a variety of strategies amenities such as a letter enclosed leaflet or brochure, telephone, fax; referral and direct selling through the media (TV, radio and Internet).

With these characteristics to identify and direct access to target customers, the advantages of direct marketing outweigh to traditional marketing methods.

The biggest advantage of direct marketing is targeting the right customers who have the needs of buying and be able to afford their desired products or services.

Direct marketing is also effective tool to personalize the trading relationship. Personalization is the process of individualizing the marketing process, so your prospect is seeing content and offers that best match their interests.

Besides, direct marketing can be considered as "stealth strategy". With traditional marketing tools, competitors can track your advertising activities and come up with new competing campaigns. However, the competitors may become unaware of the direct marketing campaigns or fail to catch up in response strategy.

Another significant advantage of direct marketing is its capacity for measuring the result. Therefore, marketers learn to focus on the successful campaigns and adjust the ineffective ones to suit each customer group, product category and geographical zone in the market.

Direct Marketing come in  many different forms: Direct mail, e-mail marketing, door to door leaflet marketing, direct response television marketing), telesales, coupon, direct selling, or integrated campaign

Direct Mail: Delivering postal mail directly to customers in the region based on geographical areas.

E-mail marketing: Sending a group email marketing to potential customers. At the moment, these marketing channel obstacles many difficulties as service providers increasingly focused on anti-spams and the government has also issued strict decrees on this matter.

Door to Door Leaflet Marketing: Used mostly in fast food industry

Direct response television marketing: Includes any television advertising that asks consumers to respond directly to the company, usually either by calling or by visiting a web site.  There are two types of direct response television, short form and long form. Short form is any TV commercial that is two minutes or less in length. Long form direct response is any television commercial longer than two minutes. The most common time period available for purchase as "long form" infomercial media is 28 minutes, 30 seconds in length. Long form is used for products that need to educate the consumer and create awareness, and typically have a higher price.

Telesales: Call and direct sales over the phone in a fast and convenient way and reach customers regardless of space and time.

Coupon: A ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. It is an effective way to collect customers’ information.

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.

To ensure the best of the outcome, businesses prefer integrated marketing communication. This is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations, direct marketing, personal selling, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.


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