Matswapati June 27, 2020 Direct Marketing
The growth of direct marketing keeps increasing from time to time. Being introduced to the public in the early 1990s, it remains one of the most favorite marketing strategies used by many businesses. It is not only effective but is also efficient to make more profits for the businesses.
As the advanced of technology keeps growing, direct marketing is also getting more widespread varieties in reaching the consumers. This fact creates a promising growth of direct marketing in terms of sales increase. From startup to big companies, this strategy is most suitable to be implemented.
The Beginning of Direct Marketing
Direct marketing did not appear in the business until the 19th century. It was Montgomery Ward who first took the first step of implementing the concept of direct marketing. In 1872, Ward used a mailing platform for his customers to place an order on his business. He distributed the catalogs via mail. Using this strategy, Ward was able to cut the expenses for the middlemen. That way, he could reduce the prices offered to the customers.
However, the terminology of ‘direct marketing’ itself was introduced by Lester Wunderman in 1967. He is known as the father of direct marketing. Wunderman is also the man who found 1-800, the toll-free number. Many customer loyalty programs were also mainly initiated by him.
Getting to Know Direct Marketing
The promising growth of direct marketing has put this strategy to its fame. Lots of people are being curious about what is exactly meant by this marketing strategy. Direct marketing is actually an interactive way of marketing products or services directly to the consumers using advertising media that can measure the customers’ responses.
This strategy has the word ‘direct’ on its term as it reaches the customers without involving any middlemen or intermediaries. The company directly advertises its products or services to the customers with one or more available advertising media. It leads to the functions of direct marketing to not only cut unnecessary spent in the marketing process but also measure which media results in more effective sales to the company.
Some people get bamboozled with the terms of direct marketing, direct response marketing, and direct advertising. Then, what is direct response marketing? What is direct advertising? Well, you have found the answer in the above explanation. These three terms are all the same.
One of the objectives of direct marketing is to get direct responses from the customers via toll-free numbers, clicking the provided link on the email, or reply to the mail to make an order. This action has led to another term of the strategy as direct response marketing. Meanwhile, as the advertisements are sent directly to the customers, the term ‘direct advertising’ also appears.
Direct Marketing Channel
What is direct marketing channel? In short, it can be said as the media that is used to reach customers and profits for the company. There are many channels for the purpose. The major and well-known channels are direct mail, catalog marketing, telemarketing, as well as TV.
• Direct Mail
This direct marketing channel example is one of the most popular ones. A variety of services, goods, and businesses rely on this channel as a media of promotion. The company can send its brochure, a letter, and a response device to the customers via direct mail. This channel also offers ease of measurement on the customers’ response rates.
• Catalog Marketing
Magazines and newspapers are examples of catalog marketing. The customers who will be sent these media will have to send a coupon, reply card, or make a toll-free call in advance. It lets the company knows the potential customers who are interested in their products or services. Creative contents are essential on this channel.
The growth of direct marketing is marked by the widely used telemarketing in businesses. It makes marketing becomes interactive and more personal. It is also considered effective as there is two-way communication directly in the process. However, it costs more than direct mailing.
Advertisements on knives or garden tools that require the customers to call for placing an order is an example of television as a direct marketing channel. Infomercial is another example of it. The more extended time of infomercial has let the company develop a relationship with the viewers. Short advertisements and infomercials are the dearest direct marketing campaign examples in daily life.
The Growth of Direct Marketing: The Contributing Factors
Based on a study conducted by the Direct Marketing Association, direct marketing had contributed to an 8.5% rate of sales to the consumers per year between 1994 to 1999. Accordingly, business-to-business sales marked 11% in the same years.
Those rapid growths shown by direct marketing in the 1990s did not appear by itself. There are some contributing factors that have made sales rates increasing. These factors are still relevant in today’s life. Here are some of those contributing factors that play roles in the promising growth of direct marketing.
1. Different Lifestyles
The number of women who work outside keeps increasing every year since the 1990s. Having less time to visit a store to go shopping, they find it more comfortable and convenient to do the activity at home. This factor has opened up massive chances for direct marketing to reach the customers.
2. The High Cost of Personal Sales Calls
The expensive cost of personal sales calls has contributed to the growth of direct marketing. This direct marketing strategy will eliminate the customers to merely the prospective ones. Only then, personal sales calls can be done to reduce the cost and to make more effective marketing.
3. The Advanced Era of Technology
Direct marketing has been highly influenced by this factor. Computer technologies that are able to make a precise analysis of prospective customers have made direct marketing enjoy some ease in the marketing. No wonder direct marketing has relatively the same growth as the technology itself.
4. Telephone Acceptance to Place Orders
The acceptance of the telephone as a media to place orders has helped direct marketing become a phenomenal strategy. Customers do not have to experience a long delay in enjoying the products or services they want to purchase. Although privacy remains an issue on this matter, telephone acceptance still contributes to the massive growth of direct marketing.
Scrolling down the page to the end, you are now getting more familiar with the well-known direct marketing. “What is direct marketing? Give some examples!” are not that hard to be answered. Knowing this strategy, you can make the most use of it to increase the profits of your business. The growth of direct marketing is indeed promising for many businesses.
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