Components of direct marketing

Last Updated on Sat, 09 Dec 2023 | Sales Promotion

Direct marketing consists of three components: the development of an effective customer database; direct response advertising which leads to the sale; and the direct building of customer relationships to increase sales and profits. Direct marketing is an approach to marketing which is driven by a database which implies that the company knows who its customers are, and communicates with them in appropriate ways through enhanced and refined means of communications; the driver is the database. It is a highly targeted approach to marketing which also implies that the company knows who are not among its customers. Customer information management is critical and two-way communication with customers may lead to high loyalty.

In addition to an effective database, it is also essential to have an efficient medium and an efficient delivery system (Figure 11.2). The delivery medium requires access to sophisticated printing services which can personalize mailings and target customers at competitive prices.

While direct marketing makes extensive use of e-mail and other Internet services, telemarketing and direct mail are the two most popular forms of direct marketing. Telemarketing is most often used in conjunction with other direct marketing techniques where customers call a company in response to a publication in a magazine insert or advertising. A very high proportion, as high as 75 per cent of direct marketing organizations in the UK, use

Component Direct Marketing
Figure [11.2] Requirements for effective direct marketing

e-mail marketing. New techniques such as the ability to send video-clips have enhanced the attraction of e-mail marketing and wider adaption of broadband is likely to extend its use. Promotion by mobile phone text messages (SMS), especially among teenagers, is popular among food and drinks brands companies.

It is likely that these technologies will bring about the convergence of direct marketing and advertising. Developments in Internet and cable technologies are likely to make it easier to target different advertisements to different customer groups - advertising will in effect become direct marketing.

Continue reading here: Evolution of consultative selling

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Readers' Questions

  • Wanda
    What are the components of direct marketing?
    1 year ago
    • The components of direct marketing typically include:
    1. Target audience: Direct marketing focuses on reaching a specific target audience or customer segment based on their demographics, behaviors, or characteristics.
    2. Database: A comprehensive and accurate database is crucial for direct marketing, containing customer contact information, purchase history, and other relevant data.
    3. Direct mail: This includes sending promotional materials such as catalogs, brochures, letters, postcards, or samples directly to a customer's mailbox.
    4. Email marketing: Sending targeted promotional emails to individuals who have opted in to receive them, with personalized content and offers.
    5. Telemarketing: Making direct sales or generating leads through phone calls to potential customers.
    6. SMS marketing: Sending promotional messages, offers, or alerts directly to customers' mobile phones via text messages.
    7. Direct response advertising: Placing advertisements in various media channels such as TV, radio, print, or online, with a call-to-action that encourages customers to respond immediately.
    8. Direct selling: Selling products or services directly to customers through face-to-face interactions, home parties, or sales representatives.
    9. Online marketing: Utilizing digital channels such as websites, social media, search engine marketing, or online advertising to directly reach and engage with customers.
    10. Personalization and segmentation: Tailoring marketing messages and offers to individual customers or specific segments of the target audience to increase relevancy and response rates.
    11. Testing and tracking: Continuously testing different marketing strategies, messages, or offers, and tracking the outcomes to refine and optimize future direct marketing campaigns.
    12. Measurement and analysis: Evaluating the effectiveness and ROI of direct marketing efforts through various metrics such as response rates, conversion rates, customer acquisition costs, or lifetime value of customers.