| There is a tremendous growth and change | | | | cost and also protects the investment in the |
| occurring in the sphere of business marketing | | | | database, by not exposing recipients to volumes |
| across the world today. This is largely due to the | | | | of unwanted and irrelevant mail. |
| unprecedented pace of change in technology, | | | | The most important question to ask when |
| entrepreneurial tactics and an open attitude | | | | investing in an external list is how accurate it |
| towards new theories and concepts in marketing | | | | actually is. The source of many lists may be |
| itself. | | | | suspect as they are frequently derived from |
| Direct Marketing is a subsection of marketing that | | | | subscribers to magazines or respondents to free |
| focuses on planned recording, analysis and | | | | offers. This audience may not be the ideal |
| tracking of individual customers' responses and | | | | prospects to your campaign, but then again this |
| transactions for the purpose of developing and | | | | may be the only way in which you can reach |
| prolonging mutually profitable customer | | | | your target market. Lists may also be out of |
| relationships. Direct marketing can be aimed either | | | | date, for instance 12 per cent of the UK |
| at the individual consumer or on a | | | | population changes address every year, which |
| business-to-business (B2B) level. This form of | | | | means they may need 'cleaning' (for example, to |
| marketing attempts to send messages directly to | | | | remove duplicate entries or to update contacts |
| the intended client by means of addressable | | | | within organisations). Usually the only adequate |
| media such as mail and email. In this way direct | | | | way of finding out how useful a list really is, is to |
| marketing differs from regular advertising in that | | | | run a test mailing, even though it might represent |
| it does not place its messages in the public | | | | an investment of time and money. |
| market such as radio, billboards and magazines | | | | As mentioned above, the most productive mailing |
| etc. | | | | list is one that you have compiled yourself. |
| A distinction has to be drawn between direct | | | | Unfortunately, these lists are often the most |
| marketing and what is known as junk mail or | | | | neglected. For most direct marketing companies, |
| spam. Whilst direct marketing is very often | | | | such lists are their single most precious asset. |
| criticised for generating unwanted solicitations, | | | | Even in organisations with more general fields of |
| spam and bulk mail drops are not true forms of | | | | operation, the data obtained as a result of those |
| direct marketing as recipients are not identified as | | | | operations (enquiries, face-to-face selling, |
| prospects by any form of selective criteria. Direct | | | | exhibitions, direct mail, etc.) should all be regarded |
| marketing on the other hand is a form of | | | | as highly valuable. Data should be consolidated and |
| advertising based on a very selective process by | | | | protected so that they are usable, and useful, as |
| which potential clients are screened according to | | | | a direct input to all marketing activities - especially |
| certain levels of eligibility in accordance with the | | | | for precision marketing. |
| product being promoted. Direct marketing makes | | | | When approaching prospective direct marketing |
| use of addressable as well as non-addressable | | | | companies, it is good to know what kind of |
| media. Addressable media entails such forms as | | | | products and services to expect, and how these |
| email, telemarketing and short message service | | | | can help you in your campaign. Generally speaking, |
| (SMS) on mobile phones, although face-to-face | | | | marketing companies should be able to offer |
| contact is not considered a form of addressable | | | | access to a specified name database, made up of |
| media. Non-addressable media takes the form of | | | | prospective clients as set out by your needs. You |
| mail outs and flyers, where no immediate user | | | | have to consider that different companies have |
| input is required. The important thing is that both | | | | varying databases that cater for differing needs. |
| these forms of direct marketing seek a response, | | | | It is thus up to you to find the one most suited |
| and it is this which the marketer bases their | | | | to your requirements. Furthermore, direct |
| future actions, or contact strategy on. | | | | marketing companies should offer services such |
| Some of the advantages of direct marketing are | | | | as: |
| listed below: | | | | - Databases specified to cover various forms of |
| Specific targeting | | | | media, i.e. mailing data, telemarketing and email |
| Clearly, the most important aspect of direct mail | | | | data. |
| is that it can be targeted 'exactly' at the specific, | | | | - Segmentation of data into areas such as job |
| individual, customer. | | | | title, geographical location and industry |
| Personalization | | | | classification. |
| Direct mail can address the customer personally. | | | | - Data cleansing and verification services |
| If the full benefits of precision marketing are | | | | - Data enhancement as well as analytic and |
| exploited, it can be directly tailored to his or her | | | | strategic consulting. |
| needs (interactively based upon prior experience, | | | | Some emerging channels which hold interesting |
| as recorded on the database). | | | | possibilities in the future include: |
| Optimization | | | | Digital Cable: |
| Because of its direct response nature, the | | | | Cable television has never enabled highly targeted |
| marketing campaign can be tested and varied to | | | | direct marketing to become successful. Digital |
| obtain the optimal results. | | | | cable is seen as the solution that will make the |
| Accumulation | | | | delivery of personalised marketing content via |
| Responses can be added to the database, allowing | | | | television possible. |
| future mailings to be even better targeted. | | | | Wireless: |
| Flexibility | | | | To date, the majority of wireless marketing was |
| A direct mail campaign can be mounted quickly on | | | | constrained to text based SMS services, but with |
| a wide variety of topics within an overall | | | | the advent of 3G, the promise of delivering richer |
| promotional campaign. | | | | content has gained more interest from |
| When searching for potential services to assist | | | | marketers. |
| you in your campaign of direct marketing, there | | | | Internet: |
| are various aspects which need to be taken into | | | | Banner advertisements are often considered |
| consideration in order to gain the most out of | | | | indirect advertising, but in many cases, companies |
| your promotion. | | | | like Google and Yahoo serve advertisements on |
| At the core of any direct marketing campaign is | | | | their websites for their own purposes. |
| the customer database. Most direct marketing | | | | Political campaigns: |
| services will offer recourse to their databases. For | | | | Recently, political campaigns have begun to |
| this reason it is necessary to choose the | | | | appropriate the methods of direct marketers (or |
| marketing service that will be able most | | | | to employ direct marketing companies) to raise |
| accurately cater to your specific needs. Different | | | | money and create activism. |
| service providers specialise in different market | | | | Once you have acquired all the relevant data |
| areas, for instance consumer marketing, or B2B | | | | regarding your target audience, factors such as |
| marketing, as well as group variables, such as | | | | the channels you choose and the timing of the |
| income, age, and lifestyle. The solution to this | | | | delivery (e.g. time of year or even day of the |
| target audience will most likely come from your | | | | week) can play a major role in the effectiveness |
| own database of customers or prospects. On the | | | | of your campaign. The correct marketing service |
| other hand, being selective by choosing only those | | | | will be well equipped to assist you through all |
| who will be susceptible to the mailing saves on | | | | these areas. |