Direct Marketing

Examples of Direct Marketing in the following topics:

• Direct Marketing

  • Direct marketing goes direct to customers via telephone, mail, fax, TV, radio, online, magazines, newspapers or face-to-face.
  • Direct marketing campaigns focus on the consumer, statistical data generated via outreach and the accountability of the marketer.
  • In 2010, direct marketing accounted for 8.3% of the total U.S. gross domestic product.
  • Direct marketing targets individual members of defined consumer groups.
  • Direct marketing has cleared the way for a number of competitors to enter markets on a global level and has increased product offerings to fill niche markets.

• Types of Marketing Channels

  • There are basically 4 types of marketing channels: direct selling; selling through intermediaries; dual distribution; and reverse channels.
  • Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.
  • Direct selling is different from direct marketing in that it is about individual sales agents reaching and dealing directly with clients while direct marketing is about business organizations seeking a relationship with their customers without going through an agent/consultant or retail outlet.
  • Direct selling often, but not always, uses multi-level marketing (a salesperson is paid for selling and for sales made by people they recruit or sponsor) rather than single-level marketing (salesperson is paid only for the sales they make themselves).
  • Using two or more channels to attract the same target market can sometimes lead to channel conflict.

• B2B vs. Consumer Marketing: Similarities and Differences

  • A business marketing, or business-to-business (B2B) marketing, sale is made to a business or firm.
  • However, business marketing generally entails shorter and more direct channels of distribution to target audiences.
  • Most business marketers commit only a small part of their promotional budgets to general advertising, usually through direct marketing efforts and trade publications.
  • Marketing to a business and marketing to an individual are similar in terms of the fundamental principles of marketing.
  • Both B2C and B2B marketing objectives reflect the fundamental principles of the marketing mix, and in both situations, the marketer must always:

• Holistic Marketing

  • The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing.
  • The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing.
  • The four components that characterize holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing.
  • Relationship marketing was first developed from direct response marketing campaigns.
  • Its goal is to make all aspects of marketing communication (advertising, sales promotion, public relations direct marketing, online communications, and social media) work together as a unified force rather than permitting each to work in isolation, which maximizes their cost effectiveness.

• Marketing Performance Metrics

  • Marketing metrics are numeric data that allow marketers to evaluate their performance against organizational goals.
  • Marketing metrics provide frameworks that public relations specialists, brand managers and marketing directors can use to evaluate marketing performance, as well as back their marketing plans and strategies.
  • The numeric data allow marketers to not only justify their efforts, but also highlight the direct relationship between marketing and larger organizational goals.
  • ROMI, a relatively new metric, is marketing contribution attributable to marketing (net of marketing spending), divided by the marketing "invested" or risked.
  • [Incremental Revenue Attributable to Marketing * Contribution Margin (%) - Marketing Spending] / Marketing Spending ($)

• Calculating Market Share

  • Unit market share (%) = 100 * Unit sales(#) / Total Market Unit Sales(#)
  • Unit sales (#) = Unit market share (%) * Total Market Unit Sales (#) / 100
  • Total Market Unit Sales (#) = 100 * Unit sales (#) / Unit market share (%)
  • The most direct is market share, discussed above.
  • However, market share is not a perfect proxy of market dominance.

• Methods for Evaluating Marketing Performance

  • KPIs, ROMI, and Accountable Marketing are all metrics that are used to track marketing performance.
  • Marketing Performance Measurement, Marketing Performance Management, Marketing Return on Investment (ROI), Return on Marketing Investment (ROMI), and Accountable Marketing are all metrics that companies use to connect marketing performance to the financial performance of the organization.
  • Since marketing campaigns are typically integrated across all channels (e.g., print, email, and social media), these channels are measured together to understand the overall effect on target markets.
  • Using different measurements to evaluate different communications activities, competitors, and markets does not allow direct comparison and results in lost synergies.
  • Companies using formalized methodologies continually gather and monitor marketing data to understand where the marketing plan is strong and where it needs improvement.

• Business Marketing

  • Also known as industrial marketing, business marketing is also called business-to-business marketing, or B2B marketing, for short.
  • Business-to-business (B2B) markets differ from business-to-consumer (B2C) markets in many ways.
  • For one, the number of products sold in business markets dwarfs the number sold in consumer markets.
  • Business marketing generally entails shorter and more direct channels of distribution.
  • Namely, the marketer must always:

• The Importance of Market Segmentation

  • Segmenting example: Kellogg's Frosties are marketed to children, while Kellogg's Crunchy Nut Cornflakes are marketed to adults.
  • While there may be theoretically 'ideal' market segments, in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
  • To increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics
  • The problem is not competition; the problem is the acknowledgment that people within markets are different and that successful marketers must respond to these differences.
  • Rather, one or more target markets (segments) must be selected.

• Careers in Marketing

  • Marketing positions that support these functions include:
  • Field marketing managers conduct promotions in the field.
  • PR specialists help clients and companies gain exposure to target audiences using topics of public interest and news items that do not require direct payment.
  • Other marketing roles commonly found in organizations include marketing communications managers, marketing analysts, marketing and sales assistants, marketing writers, and internal communications specialists.
  • Some companies customize marketing positions according to organizational or market needs.