Direct Marketing
Direct marketing has two main definitional
characteristics which distinguish it from other types of marketing or
advertising.
The first is that it attempts to send its messages directly to consumers,
without the use of intervening media. This involves unsolicited commercial
communication with consumers or businesses.
The second characteristic of Direct marketing is that it is focused
on driving purchases that can be attributed to a specific "call-to-action."
This aspect of direct marketing involves an emphasis on track able,
measurable results regardless of medium.
The most common form of
direct marketing is direct mail, where the marketers use a reduced "bulk
mail" postal rate to send paper mail to all postal customers in an area
or all customers whose addresses have been taken from a list. The second
most common form of direct marketing is telemarketing, where marketers
call selected telephone numbers.
Email Direct marketing,
including spam may have passed telemarketing in frequency at this point,
and it is a third type of direct marketing. A fourth type of direct
marketing, broadcast faxing, is now less common than the other forms.
This is partly due to laws in the United States and elsewhere which
make it illegal. A related form of Direct marketing is infomercials.
They are typically called "direct response" marketing rather than direct
marketing because they try to achieve a direct response via television
presentations.
Direct marketers also use
media such as door hangers, package inserts, magazines, newspapers,
radio, television, email, internet banner ads, pay-per-click ads, billboards,
transit ads, etc. And according to Ad Age, "In 2005, U.S. agencies generated
more revenue from marketing services than from traditional advertising
and media."
If the ad in the medium
asks the prospect to take a specific action--call a free phone number,
visit a website, return a response card, place an order, visit a PURL,
complete a survey, etc.--then the effort is considered to be direct
marketing. Direct response or direct-response advertising are both synonymous
terms for direct marketing.
The term "direct marketing"
is believed to have been first used in 1961 in a speech by Lester Wunderman,
who pioneered direct marketing techniques with brands such as American
Express and Columbia Records. Although Wunderman may have been the first
to use the term "direct marketing", the practice of "mail order selling"
(direct marketing via mail) essentially began in the U.S. upon invention
of the typewriter in 1867.
The first mail-order catalog
was produced by Aaron Montgomery Ward in 1872. The Direct Mail Advertising
Association, predecessor of the present-day Direct Marketing Association,
was first established in 1917. Third class bulk mail postage rates were
established in 1928.
Direct marketing's history
in Europe can be traced to the 15th century. Upon Gutenberg's invention
of moveable type, the first trade catalogs from printer-publishers appeared
sometime around 1450.
Recently, political campaigns have begun to appropriate the methods
of direct marketers (or to employ direct marketing firms) to raise money
and foster activism.
Direct marketing is attractive
to many marketers, because in many cases its effectiveness can be measured
directly. For example, if a marketer sends out one million solicitations
by mail, and ten thousand customers can be tracked as having responded
to the promotion, the marketer can say with some confidence that the
campaign led directly to the responses.
By contrast, measurement
of other media must often be indirect, since there is no direct response
from a consumer. Measurement of results, a fundamental element in successful
direct marketing, is explored in greater detail elsewhere in this article.
Yet since the start of the Internet-age the challenges of Chief Marketing
Executives (CMOs) are tracking direct marketing responses and measuring
results.
While many marketers like
this form of marketing, some direct marketing efforts using particular
media have sometimes been criticized for generating unwanted solicitations.
For example, direct mail that is irrelevant to the recipient is considered
"junk mail", and unwanted email messages are considered "spam". Consumers
are demanding more personalized direct marketing, which some advertising
agencies are able to provide by using variable data printing and targeted
mailing lists.
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