To understand the importance and the value of direct marketing you need to understand what a powerful marketing tool this technique can be.  Although this is considered to be a marketing sub-discipline, it is still a viable technique that is constantly being employed in most promotional campaigns.  Despite techniques currently employed in both offline and online sectors, direct marketing is still one of the most cost-effective, efficient, and profitable forms of advertising.

What Differentiates Direct Marketing from Other Types of Advertising Venues?

There are two distinct aspects that differentiate direct marketing from all other types of promotional techniques.  Most importantly, direct marketing techniques attempt to deliver messages directly to the consumer without media intervention.  In other words, commercial communication venues such as direct mail, e-mail, or telemarketing are just a few of the venues of choice.

Secondly, purchases that are stimulated by a particular “call to action”, namely those utilized in e-mail marketing on the internet or sales letters, have proven themselves to be a viable option when it comes to direct marketing and a good return on that investment.  Additionally, these forms of direct marketing rely heavily on measurable or trackable results based on customer response.

Why is Direct Marketing so Effective during Lean Economic Times?

Based on the above aspects, direct marketing is often referred to as “direct response marketing.” In other words, if the consumer is asked to take a certain course of action, such as calling a toll-free number or visiting a specific website, this promotional effort is referred to as “direct response marketing.”  It is the type of marketing that evokes a response by the consumer.

Characteristically, there are 10 different channels of direct response marketing inclusive of the following:

• broadcast (or bulk) faxing
• coupons
• direct mail and business card exchange
• direct selling
• direct response TV marketing
• door-to-door leaflet distribution
• e-mail marketing
• integrated marketing campaigns
• telemarketing
• voicemail messaging

From an economic standpoint, direct response marketing involves interaction between an advertiser and consumers, therefore eliminating the middle man such as a distributor or a retailer.  This is an ideal advertising venue when local, state, or national economies are in a downswing and every business is literally counting their pennies.  There are 4 primary elements that are characteristic of direct response marketing:

• an introductory offer
• explicit consumer information regarding the product or service
• a specific “call to action”
• means of responding to the offer – e.g. an e-mail address, a toll free telephone number, or a website URL

The Pros and Cons of Direct Marketing

Since the positive effects of direct marketing can be measured or tracked, this is an attractive form of advertising.  Typically, a 1% response factor is acceptable and equally profitable.  In other words, if you send out a million solicitations and 10,000 consumers respond to this, you’re considered successful with this endeavor.  Conversely, certain direct marketing techniques are criticized as being intrusive solicitations.  For example, direct mail that overloads your mailbox is considered “junk mail” and unwanted e-mail messages are considered to be SPAM.

Marketing is often seen as a discretionary spend, especially in these straightened times. However, when customers and markets are harder to find, it is more important than ever for businesses to invest in marketing, and in the most effective and value-for-money way possible.

Direct marketing can be a valuable way of reaching new customers and spreading awareness of your business and brand. Cleverly designed flyers will stick in the minds of potential customers so that, even if they are not currently in a position to use your services, they will know who to call when they need you. Printed material has a huge advantage over electronic forms of marketing- who ever stuck an email on the fridge?

Direct marketing campaigns can prove highly successful, but the best endeavors are carefully thought out and cover three basic rules:

Targeted

Timely

Tantalizing

Even the best products and services will be a hard sell to someone who doesn’t need or want it, which is why identifying your target market, and then looking for ways to reach that market is time well spent. If you are selling garden products, you don’t want to send your information to residents in high-rise blocks; if you are offering debt advice services, leafleting Beverly Hills is probably not going to give you a great result.

That isn’t to say that you need to spend $$ on purchasing mailing lists or using data providers. If you have identified your potential customer, potential outlets for your direct marketing become obvious. Place inserts in the local papers your customer might read, obtain electoral roll details for your preferred zipcode or position promotional materials in local shopping or community centers as fit your ideal client profile.

The secret of great comedy, and great marketing, is timing. If you are offering gifts or seasonal goods or services, time your campaigns to when your customers will be most receptive- most people don’t buy Thanksgiving turkeys in June. Similarly, if something happens in your business that allows you to make a promotional offer, say exchange rates have made your raw material imports cheaper or a change in taxes means you can offer 20% off, use it! Gaining new customers at a discount that doesn’t cost you is a no-brainer.

Finally, the promotional material itself has to tease and tantalize its recipient. Now, even Michelle Obama may struggle to make bathroom cleaner look glamorous, but a well-designed flyer or postcard with eye-catching colors and an attention-grabbing headline or question will make your potential customer take that second look. And that look is all you need, because once they discover the delights your business has to offer, your direct marketing has done its job.

Worth its weight in gold? Could be a license to print money…