There are various types of marketing in the business world whose main purpose is to attract the attention of potential customers and increase sales. One type of marketing is direct marketing or direct marketing. Direct marketing is a marketing system without using intermediaries or third parties. This is what makes the bidding process and transaction processing happen dynamically.
Actually, what is meant by direct marketing? Direct marketing is one of the many marketing strategies that can attract many customers. This one marketing method puts forward direct marketing media without any intermediaries in the bargaining process with consumers.
Direct marketing uses a lot of media to interact with targeted customers through email, in person, or even by phone. In the digital era, direct marketing can use various types of modern platforms such as email marketing, telemarketing, websites, social media, to SMS blasts that are sent directly to cellphone users.
Benefits of Direct Marketing
1. Target the Ideal Customers
Using direct marketing allows you to target specific groups of customers with messages that are tailored to the target customers. By doing research and identifying customers who may need or want your product or service, you can focus your marketing efforts where there is the greatest opportunity.
A well-targeted direct marketing campaign will also provide an understanding of how your customers respond to product and service offerings.
2. Increase Sales to Old Customers
Most of the customers are contacted by companies they know. The company tries to understand their needs and build a personal relationship with them. You can increase sales to existing customers. To successfully increase sales, you should keep customer records and choose promotion tactics that are simpler and more well-planned.
You can also use direct marketing tactics to rebuild relationships with long-term customers. This is a golden opportunity to increase sales and find out why your customers don’t use your service/product anymore.
3. Increase Customer Loyalty
Direct marketing helps you build direct relationships with your customers. You can personalize promotions, letters, and offers to create direct links with your customers and enhance personal relationships with them.
Many businesses combine direct marketing and customer loyalty strategies to maintain and build customer relationships, for example by sending birthday wishes, offering discounts, and invitations for future sales.
Pros & Cons of Direct Marketing
|No||Pros of Direct Marketing||Cons of Direct Marketing|
|1||Build strong relationships with customers||Consumers will feel annoyed if the approach is too aggressive|
|2||Creating customer loyalty||Consumers’ privacy is not given enough attention|
|3||Low marketing costs||Companies need to devote more time and attention|
|4||Customers get much detailed information||Generating a negative image in the eyes of consumers|
|5||Customers can minimize the risk of choosing the wrong goods||Can’t reach many customers|
4. Creating New Business
When using direct marketing techniques, you can communicate directly with the target market you choose. This will provide a better sales success rate than communicating with multiple people. They may not be interested in your products and services. If you use effective techniques for finding and finding new customers, you can acquire new customers and increase your sales to new customers.
Direct marketing allows you to adapt and respond to the needs of your market and business directly. You can get quick and flexible sales results with this one marketing technique. Word of mouth is the most powerful form of marketing. An effective marketing campaign will give customers assurance about your business.
They may share your business with their friends, colleagues or family. This can open up new prospects for your business in the future.
5. Testing and Measuring Products and Business Sales
The direct approach will provide immediate feedback. Direct marketing is the right way to measure customer taste for your product and try new products or services.
Direct marketing also allows you to test new markets, review sales results, measure the effectiveness of your sales and advertising tactics. You can also improve your campaign. When you run a direct marketing campaign, you should monitor and review the results and use this information to increase the success of your next campaign.
By calculating the cost of creating and shipping a catalog and the benefits you get for each customer who responds, you can judge the success of your direct marketing campaign.
Direct Marketing Strategy
There are three direct marketing strategies that are commonly used to approach potential customers, including the following:
1. One-Step Approach
This direct marketing strategy is used directly to optimize goals. The goal is a sales order or customer database. One step approach is usually used when the company really understands the characteristics of the customer’s needs.
2. Two Step Approach
Two-step approach is a direct marketing strategy that utilizes many media to attract the interest of the customer. Compared to the One Step Approach, this method may be more ancient because there are two steps that must be done, namely screening potential customers who may have an interest and then follow up to produce sales output.
3. Direct Marketing Media
The direct media marketing strategy is carried out by utilizing existing mass media, for example the media that are often used, namely print media, direct mail, telemarketing and direct selling.
What are some examples of direct marketing strategies?
-Sending catalogs, telemarketing, online marketing with Facebook Ads or AdWords, direct mail marketing.
What is the difference between direct marketing and personal selling?
-Direct marketing is a sales system from producers directly to end consumers, while personal selling is a face-to-face sales system between sellers and consumers, but products can be sold through distributors.