Direct Marketing

American Opportunity Tax Credit (AOTC)

What is direct marketing?

Direct marketing is an advertising strategy based on the individual distribution of a sales pitch to potential customers. Mail, e-mail and SMS are part of the delivery systems used. It is called direct marketing because it generally eliminates intermediaries such as advertising media.

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What is direct marketing?

How Direct Marketing Works

Unlike most marketing campaigns, direct marketing campaigns do not rely on mass media advertising. Instead, they deliver their sales pitches by mail, phone or email. Although the number of locations sent can be enormous, an attempt is often made to personalize the message, by inserting the recipient’s name or city in a prominent location.

The call to action is a common factor in much of direct marketing. The recipient of the message is asked to respond immediately by calling a toll-free phone number, sending a response card, or clicking a link in an email promotion. Any response is a positive indicator of a potential purchase. This variety of direct marketing is often called direct response marketing.

Targeting in direct marketing

The most effective direct marketing campaigns use targeted prospect lists to send their messages only to the most likely prospects. Lists can target families who have recently had a baby, new owners, or recent retirees with the products or services they are most likely to need.

Catalogs are a form of direct marketing whose history dates back to the second half of the 19th century. In modern times, catalogs are usually sent only to consumers who have expressed an interest in a previous purchase of a similar product.

The pros and cons of direct marketing

A direct marketing pitch that is delivered to the widest possible audience is probably the least effective. In other words, the company can gain a few customers while simply annoying all the other recipients. Spam, spam and text messages are all forms of direct marketing that many people cannot get rid of quickly enough.

Many companies engage in opt-in or authorization marketing, which limits their sending or sending by email to people who have indicated their willingness to receive it. Opt-in subscriber lists are particularly useful as they indicate a genuine interest in the products or services being advertised.

Who uses direct marketing

Despite its drawbacks, direct marketing has its appeal, especially for low-budget businesses that cannot afford to pay for television or Internet advertising campaigns.

Direct marketing is the preferred advertising strategy for local small businesses, which can distribute hundreds of flyers, coupons, or menus at a price lower than it would cost them to place an ad or advertise.

By its nature, the effectiveness of a direct marketing campaign is easier to measure than other types of advertising. Indeed, they often contain a call to action. The business measures its success by the number of consumers who call, return the card, use the coupon or click on the link.

Key points to remember

  • Direct marketing is based on distribution to individual consumers rather than advertising in the mass media.
  • The call to action is a common factor in much of direct marketing.
  • The effectiveness of direct marketing is easier to measure than advertising in the media.

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