Friday, October 23, 2009

Analysis


Direct Marketing

Definition:

Direct marketing refer to a marketing strategy delivering promotional messages directly to potential customers on an individual basis as opposed to through a mass medium.


Advantages:

Disadvantages:

Positive effect can be measured directly

A marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion.

Less effective

Since direct marketing is targeted. Not every audience can be receiving the message and the range of message deliver is always less than mass marketing. So it is less effective to deliver message to large amount of audience.

Relationship Building

A direct connection between the customers and the marketer. A better relationship is easily to build up.

Offended Consumers’ private lives

Cold call in telemarketing always is both parties don’t know each other. This may seems to be offended consumers’ private lives.

Flexible Targeting

Direct marketing enables message sender talks directly identify, isolate and communicate with well-defined target markets.

Higher chance to turn off customers

If the marketing campaign is poorly executed, it may turn off customers instead of bringing them in.

Cost-Effectiveness

The cost per acquisition of direct mail can be significantly less than other marketing methods.

Higher cost compare to mass promoting

Direct mail marketing is paying for paper and ink-each and every piece of it.

Ease of Management

Direct marketing provides greater control and accountability than other marketing methods. Refining can improve the success rates. Plus it also makes it easier to plan, forecast and budget for future direct marketing campaigns.

Oldest way leading to lack of interest

Since one to one direct communication is the original way of exchange idea. So lack of interest is easily result.

Cost beneficial for consumers

It is because consumer is directly contact to the sellers, there are no cost need to be pay for retailers.

Negative Image

Paper will be discarded. Not only is a waste of money, but also inadvertently contributing to the pollution of the earth, and probably upsetting the green-friendly customer base (even if it's recycled paper). Also, “junk mail” is always known as rubbish.


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