For a marketing campaign to be effective, a connection must be established between the company and the consumer they’re attempting to reach. A great deal of time and money is spent determining who the targeted consumer is and the best way to hook them into the campaign. The basis of these marketing efforts is that, if the consumer identifies with the product, service or company, he or she is more likely to convert to being a buyer and user of it. But with indirect marketing, the company relies on an intermediary entity, such as a newspaper, billboard or radio station to help establish that connection.
Direct marketing cuts to the chase by eliminating the intermediary. Instead, companies using direct marketing connect with the consumer directly, giving the connection the potential to be a much more personal one. Those considering direct marketing for their large or small business can benefit from the basic information provided here.
- How Does Direct Marketing Affect Consumer Buying Habits? Direct marketing is much more personal than its indirect counterpart. Demographic studies conducted prior to the marketing campaign tell the company who their target consumer base is so marketing efforts can be geared toward them. When a consumer receives direct marketing mailers, email or phone calls, he or she has the opportunity to learn about something that’s particularly useful and relevant to him or her. The business that uses direct marketing isn’t taking a chance on connecting with potential customers; they already know who their potential customer base is and this personalization helps to convert the consumer to a customer.
- How Does Direct Marketing Help Businesses? Many consumers respond favorably to the efforts of direct advertising. The personalization involved in marketing directly can create a stronger, more relevant connection between the business and the potential customer. Since there’s no need for an intermediary to deliver the advertisement, direct marketing can be a budget savvy way for small businesses to connect with customers and experience growth while adhering to the constraints of a smaller budget. As a company uses the direct marketing approach with more frequency, it can tailor its efforts to become even more effective as they learn what works best with their particular customer base and which direct marketing efforts turn out to be duds.
- Direct Advertising Options. Several direct advertising options are available for businesses to use. Direct mail is a common advertising choice that’s proven to be effective for many years. With this method, the consumer receives a packet of coupons in the mail, providing them with special offers and discounts from participating businesses. In addition to direct mail, businesses also use email marketing, telemarketing and infomercials as other ways to market directly to the targeted consumer base. Regardless of which method is used, the consumer is provided with direct contact information so they can contact the business to purchase a service or product, or gain further information. This contact gives the business the valuable opportunity to convert the sale.
- Is it Best to Focus on Certain Demographic Groups with Direct Marketing? There’s a lot to consider when formulating a direct marketing plan, and the company that doesn’t make use of demographics is likely to produce an ineffective campaign. Demographics are developed by collecting and studying statistics about a specific area, the predominant age group of the people there, their education, employment, interests and buying habits. A focus on demographics gives a business the leg up it needs to devise a direct marketing plan based on known facts, rather than guesses or assumptions. Of all the factors to consider when planning a direct marketing campaign, demographics are one of the most important.
One of the most important factors to consider with direct marketing is avoiding overuse. Inundating consumers with direct mail advertisements, telemarking phone calls and email ads can cross the line from effectiveness to becoming a turn-off. But, when it’s done right, direct advertising can result in business growth and profit. While cutting out the expense of the middleman, you also spare the consumer the need to sift through the intermediary process. In the end, direct marketing is more efficient for both the business and the consumer, and that’s one reason why it’s so effective.