Chapter - 10 Direct Marketing
While most companies continue to rely primarily on the other promotional mix elements to move their products and services through intermediaries, an increasing number are going directly to the consumer. These companies believe that while the traditional promotional mix tools such as advertising, sales promotion, and personal selling are effective in creating brand image, conveying information, and/or creating awareness, going direct with these same tools can generate an immediate behavioral response. Direct marketing is a valuable tool in the integrated communications program, though it seeks somewhat different objectives.
Defining Direct Marketing
The total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer. ¡ Direct Marketing Objectives The direct marketer usually seeks a direct response. The objectives of the program are normally behaviors²for example, test drives votes, contributions, and/or sales. Atypical objective is defined through a set response, perhaps a 2 to 3 percent response rate.
Developing a Database
Direct-marketing programs employ these principles even more than others, since the success of a direct-marketing program is in large part tied to the ability to do one-to-one marketing. To segment and target their markets, direct marketers use a database, a listing of customers and/or potential customers. This database is a tool for database marketing²the use of specific information about individual customers and/or prospects to implement more effective and efficient marketing communications.
Databases are used to perform the following functions:
Improving the selection...