Sunday, January 17, 2010

Benefits and drawbacks of Direct marketing

Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successful direct marketing, is explored in greater detail elsewhere in this article. Yet since the start of the Internet-age the challenges of Chief Marketing Officers(CMOs) are tracking direct marketing responses and measuring results.

While many marketers like this form of marketing, some direct marketing efforts using particular media have been criticized for generating unwanted solicitations. For example, direct mail that is irrelevant to the recipient is considered junk mail, and unwanted email messages are considered spam. Some consumers are demanding an end to direct marketing for privacy and environmental reasons, which direct marketers are able to provide by using "opt out" lists, variable printing and more targeted mailing lists.

Many of the world's largest marketing and advertising agencies started off as direct marketing specialist agencies, namely Carlson Marketing, GyroHSR, Proximity and Iris Nation. Due to declining client budgets and the proliferation of audiences, many of these agencies have diversified and expanded to offer "integrated marketing" rather than simply selling DM services. The term “Integrated Marketing” is used by agencies to describe how they sell the complete marketing communications package, covering DM, digital, SP, PR, events and advertising.


NMOA said...

Direct Marketing, with all its available tools to use, is certainly the best way for smaller companies to promote themselves. The trick is becoming familiar with the tools and how to use them. You can get a lot of free information on using Direct Marketing from the National Mail Order Association, (NMOA)