Wednesday, March 9, 2016

Excerpts from the Article - Direct Marekting

Direct marketing is an interactive marketing system using advertising to effect a measurable response.

Direct marketing messages can be used to build relationships ex. birthday cards and information booklets.

Direct marketing in US is 48% of total advertising spending, $161 billion (2005)

Consumers happy with DM, report that home shopping is convenient, allows them to compare catalogues and order.

Direct Marketing Channels

Direct Mail
Catalog Marketing
Newspaper Advertisements with offers
Radio Ads with offers
TV Ads with offers
Home shopping TV channels

In Direct Marketing, a response rate of 2% is normally considered good.

The direct mail offer strategy has five elements - the product, the offer, the medium, the distribution method, and the creative strategy.

The mail itself has five components: the outside envelope, sales letter, circular, reply form, and reply envelope.

Direct marketers can calculate life time value of customers and campaign break-even response rate can be determined.

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