Direct-response advertisers generally set objectives and measure success in terms of:

What Is Direct Marketing?

Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media. Mail, email, social media, and texting campaigns are among the delivery systems used. It is called direct marketing because it generally eliminates the middleman, such as advertising media.

Key Takeaways

• Direct marketing consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as 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 media advertising.

How Direct Marketing Works

Unlike traditional public relations campaigns pushed out through a third party such as media publications or mass media, direct marketing campaigns operate independently to directly communicate with target audiences. In direct marketing, companies deliver their messaging and sales pitches by social media, email, mail, or phone/SMS campaigns. Although the number of communications sent can be massive, direct marketing often attempts to personalize the message by inserting the recipient's name or city in a prominent place to increase engagement.

The call to action is an essential part of direct marketing. The recipient of the message is urged to immediately respond by calling a toll-free phone number, sending in a reply card, or clicking on a link in a social media or email promotion. Any response is a positive indicator of a prospective purchaser. This variety of direct marketing is often called direct response marketing.

Targeting in Direct Marketing

A direct marketing pitch that is delivered to the widest possible audience is probably the least effective. That is, the company may gain a few customers while merely annoying all of the other recipients. Junk mail, spam email, and texting all are forms of direct marketing that many people can't get rid of fast enough.

The most effective direct marketing campaigns use lists of targeted prospects in order to send their messages only to the likeliest prospects. For example, the lists might target families who have recently had a baby, new homeowners, or recent retirees with products or services that they are most likely to need.

Catalogs are the oldest form of direct marketing, with a history that dates back to the latter half of the 19th century. In modern times, catalogs are usually sent only to consumers who have indicated an interest in a previous purchase of a similar product while social media has emerged as the most modern form of direct marketing. Targeting strategies can also be used on social media when putting out ads; platforms like Facebook allow brands to choose the age, gender, demographics, and even interests of potential new audiences that an ad could reach.

Many companies engage in opt-in or permission marketing, which limits their mailing or emailing to people who have indicated a willingness to receive it. Lists of opt-in subscribers are particularly valuable as they indicate a real interest in the products or services being advertised.

What is Direct Marketing?

The Advantages and Disadvantages of Direct Marketing

Direct marketing is one of the most popular and effective marketing tools in order to establish a direct connection with a target audience. Direct marketing has its appeal, particularly to companies on a shoestring budget who can't afford to pay for television or internet advertising campaigns. Especially as the world becomes increasingly connected through digital platforms, social media becomes an effective way to market to customers.

The main drawback with direct marketing, however, is the profile-raising and image building that comes with a third party accrediting your brand. For example, although a company may pay for a sponsored article in The New York Times, this can greatly enhance a brand's image and can help "seal the deal" with customers who are willing to trust a supposedly unbiased source or external opinion.

By its nature, the effectiveness of a direct marketing campaign is easier to measure than other types of advertising, since brands can analyze their own analytics, track unique source codes, and tweak strategies effectively without going through a middleman. The company can measure its success by how many consumers make the call, return the card, use the coupon, or click on the link.

Chapter 7: Establishing Objectives and Budgeting for the

Promotional Program

1. In terms of what is spent on advertising,:

a. it is simple to measure the direct impact of advertising

b. only one specific type of evaluation method should be used for each type of

advertising

c. advertising experts and marketing consultants both agree on the ability of advertising

to demonstrate a positive ROI

d. advertising experts and marketing consultants both agree on the fundamental ability

of advertising to create a quality image

e. none of the above is true

2. The purpose of setting specific advertising goals and objectives is to:

a. provide a standard against which performance can be measured

b. put constraints on the creative department

c. have a method of determining when to delete products from the product line

d. forecast the market share level that can be attained by good advertising

e. protect all investors and debt holders

3. To many marketing managers, the only goal of their company's advertising

and promotional program is to:

a. position the company and its brands

b. create a positive corporate image

c. generate sales

d. create memorable advertising

e. create awareness of the company

4. Which of the following is NOT given as a realistic reason for setting specific

objectives for an integrated marketing communications program?

a. Specific objectives serve as communication devices and facilitate coordination of

various groups working on the campaign.

b. Specific objectives serve as a guide for planning and decision making.

c. Specific objectives provide a benchmark against which success or failure of a

campaign can be measured.

d. Specific objectives help specify a method and criteria for assessing how well the

promotional program is working.

e. Specific objectives provide specific ideas on how to develop more creative

and effective advertising.

1

Which of the following is an advertising communications objective?

Which of the following is true of marketing objectives that are defined in terms of sales profit or market share increases?

Which method of allocating advertising funds defines the objectives that are sought and how advertising is to be used to accomplish those objectives?

Which of following is a likely problem for a manager who uses sales as a measure of advertising effectiveness?