DIRECT MARKETING STRATEGIES

Direct marketing is one of the best ways to approach customers or clients and improve your business
making new contacts or selling your products. Also this strategy is very common when looking for
maximize brand awareness. The purpose of direct marketing is to make direct contact with end-user
customers through alternative media. Many direct marketing methods are available, each offering
certain advantages and limitations. The rapid growth of direct marketing during the last decade
indicates the importance placed by many companies on these direct avenues to customers.

Reasons for Using Direct Marketing

The expanding popularity of direct marketing methods is driven by a combination of factors such as
socioeconomic trends, low costs, databases, and buyers’ demands for value.
 Socioeconomic Trends: Several trends make the availability of direct marketing purchases
attractive to many buyers. Having two working spouses imposes major time constraints on
households, so purchase via direct channels is a useful way of saving time as well as making
contact at the convenience of the customer. Many single person households also favor
direct marketing purchases. Buyers can shop at home, save time, and avoid shopping
congestion.
 Low Access Costs: While the cost per contact varies according to the method of direct
contact, costs are much lower than face-to-face sales contact. The availability of databases
that can target specific customer groups enables companies to selectively target buyers.
Companies like American Express can market products to their credit card users.
 Database Management: The availability of computerized databases is an important
determinant of successful direct marketing. The information in the systems includes internal
data on customers and purchased data on customers and prospects. The customer and
prospect information contained in databases can be used to generate mailing lists and
prospect lists and to identify market segments. These segments offer a direct
communications channel with customers and prospects.
 Value: The shopping information provided via direct marketing, convenience, reduced
shopping time, rapid response, and competitive prices gives buyers an attractive bundle of
value in many buying situations. Effective database management enables direct marketing to
identify buyers who purchase on a continuing basis.

Direct Marketing Methods

1. Direct mail: Direct mail is posted mail that advertises your business and its products and
services. There are several different types of direct mail (e.g. catalogues, postcards,
envelope mailers). Direct mail campaigns are usually sent to all postal customers in an area
or to all customers on a marketing list.
2. Telemarketing: Telemarketing involves contacting potential customers over the phone to
sell products or services. It is capable of generating new customer prospects in large
volumes and is also a useful tool for following up on direct marketing campaigns. However, a
successful telemarketing involves planning and using accurate and well-researched customer
data to match customer profiles to product profiles.
3. Email marketing: Email marketing is a simple, cost-effective and measurable way of reaching
your customers. It can include e-newsletters, promotional emails to generate new leads or
offers for existing customers, or ads that can appear in other businesses' emails.
4. Text (SMS) marketing: Text messaging allows businesses to reach individual customers and
send messages to large groups of people at a low cost. You could use short message service
(SMS) messaging to send customers sales alerts, links to website updates, appointment or
delivery reminders, or personalised messaging.
 5. Direct selling: Direct selling is an effective way to grow a flexible, low-cost business. Direct
selling involves an independent salesperson selling products or services directly to
customers, often at a customer's home or workplace. Traditional direct selling methods
include door-to-door sales, party plans and network marketing.
6. Leaflet marketing using letterbox drops and hand-outs: Distributing well-designed leaflets
or flyers through letterbox drops and hand-outs can work well for a local business whose
products or services appeal to a broad audience. It is a simple, inexpensive and effective way
of reaching customers, although it is a less targeted form of direct marketing.
7. Kiosk Shopping: Similar in concept to vending machines, kiosks offer buyers the opportunity
to purchase from a facility (stand) located in a retail complex or other public area (e.g.,
airport). Kiosks may have Internet linkages. Airline tickets and flight insurance are examples
of products sold using kiosks. Kiosks are best suited for selling products that buyers can
easily evaluate due to prior experience.

Advantages of Direct Marketing

Good direct marketing campaigns focus on promoting a specific product or service, and call on your
customers to act — to receive further information, register their interest, visit your website, make a
booking or a purchase.
Direct marketing gives you the opportunity to promote your products and services directly to the
customers who most need them. A good direct marketing campaign will:
 help you build relationships with new customers
 test the appeal of your product or service
 tell you which marketing approaches reach your target market
 provide customers with compelling content they can share with potential customers
 Increase sales.
However, direct marketing campaigns require careful planning and a clear understanding of
responsible direct marketing practice. Being aware of the benefits and challenges of direct marketing
will help you use direct marketing effectively.