Direct-marketing is any action or a complex of the actions directed on reception of the response from the consumer. The important point in working out and realization of direct-marketing strategy is the aspiration to involve the consumer to dialogue with the sender of the message. The direct response to the message and an establishment of close contact of the consumer with the advertiser also distinguishes direct-marketing from the simple advertizing directed on informing of the consumer.
Already for a long time (more 100 years ago) the commercial enterprises have added to the arsenal a method of advancement of the goods by address mailing of letters. It is possible to carry to direct-marketing methods also and work of the trading agents driving about in those days on all country and selling the goods directly on a place. Approximately at the same time by manufacturers of the goods publications of advertizing character with coupons or the order form began to be used.
As a rule, the basic tools of direct-marketing can be divided into two directions:
1. Creation and work with a client database. This direction includes such tools as personal sellings, post mailing, souvenirs, congratulations and invitations and so forth.
2. Use of mass media in unusual way: the publication of announcements with discounts, games, draws etc. with summarizing in the certain, strictly outlined time interval. Such restriction serves in time as excellent motivation to fulfillment of immediate purchase and participation in action.
Main objectives and problems.
Main objective of direct-marketing strategy is reception of the direct response of the consumer for the purpose of final purchase. To a main objective it is possible to add also minor aims:
1. Creation of new business and a set of a database of potential clients.
2. Maintenance of existing business by means of frequent “unostentatious” or “persevering” references.
3. Increase in frequency of purchases or volumes of the order of the goods.
4. Realization of cross sales of additional products and services.
5. Maintenance of repeated sales.
6. Increase of level of loyalty of consumers to manufacturers of the goods and services.
It is thus important to remember: the result of successful work of direct-marketing tools considers not only realization of the direct certificate of purchase but also any response from the client.
Differences from advertizing
Direct-marketing is not the same that advertizing. The main task of direct-marketing is to carry out sale right now (direct order) or immediately to receive inquiry from the potential buyer on the information (lead generation) or to involve it during certain time in certain shop (traffic building). In direct-marketing for message transfer one contact – the letter or phone call is in most cases used only. The information thus arrives both in a direction the seller-consumer and in a direction the consumer-seller. Thus terms and conditions are established by the seller.
One more basic distinction consists that efficiency of traditional advertizing can be estimated rather approximately owing to influence of many collateral factors which don’t come under to influence from the advertiser. In direct-marketing, on the contrary, the strict reporting is the integral requirement. Realization of direct-marketing strategy assumes work with such indicators as:
Expenses for 1 order,
Expenses for 1 inquiry,
Cost of the buyer.
Thanks to a transparency in the reporting direct-marketing often name “accountable marketing” – in a literal translation “responsible marketing”.
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