Direct Marketing 101

Defined

Direct marketing is defined as the use of mail, telephone, fax, email, personal selling, or Internet to communicate directly with or solicit a direct response from specific customers or prospects.  In this article, we will cover the different forms, or mediums, of direct marketing, as well as some of the issues that face marketers in all industries.  We will also take brief look at television, radio, and print advertising and explore why they are not forms of direct marketing.  In our next article we will discuss the importance and practice of targeting specific market segments to increase the effectiveness of your marketing message, as well as how to use some of these mediums to effectively communicate your message to prospective customers.

Available Mediums

Now that we have covered the basics of what comprises direct marketing, let's take a closer look at the different mediums we can use.  Simply put, a medium is a channel or system of communication; it is the method by which a message is conveyed.  As marketers there are endless ways to communicate a message, but for now, let's just look at some of the more popular types.

1) Mail - Post cards, fliers, sales letters, coupon offers

 Advantages - audience selectivity; flexibility; no ad competition within the same medium; personalization.

Disadvantages - Most "junk mail" gets lost in clutter and discarded without conveying its message; costs can be relatively high for larger campaigns; low response rate

2) Telephone/Fax - Outbound campaigns, incoming "receptionist" campaigns, toll free numbers, customer service lines.

Advantages - Many users; opportunity to customize message, highly personal interaction with potential customer

Disadvantages - high costs; staffing demands; DNC (Do Not Call) compliance is very expensive and fines for non-compliance are $11,000; sending faxes without prior permission to due so is illegal and will result in $1000 minimum fine.

3) Email

Advantages - very low cost; ability to customize messages; extremely effective communication skill for existing clients

Disadvantages - spam laws prohibit mass mailings; Internet service providers prohibit mass mailings; extremely cluttered medium; aggressive junk mail filters often discard emails that are legitimate; also see disadvantages of Internet

4) Internet - Websites, directory listings, search engine advertising (Note: See articles on Google and Overture advertising)

 Advantages - Low cost; semi-customizable; ability to provide tremendous amounts of information effectively and efficiently; dynamic (can easily modify message and information)

Disadvantages - Large number of population either lacks access, or does not use internet for this business transaction/research

5) Personal Selling - Trade shows, sales presentations, information/question and answer sessions

Advantages - most effective and personalized way to deliver a message to a potential client and for the most part, is what all other communications aim to produce

Disadvantages - high cost; time consuming; getting the proverbial "foot in the door"

6) Publications - News publications, trade magazines, informative literature

Advantages - provides customers with relevant industry information that will help them make an informed decision; creates the impression that author is objective and looking out for consumers

Disadvantages - often difficult to find resources; requires strong written skills

TV, Radio, and Billboard Advertising

Although TV, radio, and billboard ads are extremely successful at conveying information to very large audiences, they are cost prohibitive and ineffective for most businesses.  These types of advertising require huge budgets, as well as multiple and prolonged exposure to their audiences.  The reason that these three mediums are not considered direct marketing is because they lack the ability to specify the recipient of the message; therefore, most of your budget will be lost on recipients who are not in the market for you product or service.  Another caveat of "mass marketing" is that because it reaches such large audiences, your services must be robust to accommodate the diverse types of customers you will attract.  So for niche operators and smaller companies, your budget and time would be consumed by prospects whose needs are outside the scope of your services.  If your company is a candidate for this form of marketing, then you will best be served by a professional marketing firm that specializes in advertising media and has experience with other firms in your industry.

 This article was written by the team at LeadPortal.com.