What Is Direct Marketing ?
Direct marketing is a type of promotional campaign where companies directly communicate to a specific group of potential customers. Telemarketing, SMS marketing, email marketing, newspapers etc. are some examples of direct marketing. In this marketing strategy, companies try to attract customers by providing detail information about the product and services. It eliminates middlemen because producers directly make interaction with the customers.
Benefits Or Advantages Of Direct Marketing
The main advantages of direct marketing can be pointed out as follows:
1. Targeted Audience
Direct marketing does not focus on large groups of audience. It tries to establish communication with potential customers and specific groups according to their interest and buying behavior. Direct contact with targeted audience increases that chance to succeed in the campaign.
2. It Avoids Middlemen
Direct marketing is business to customer (B2C) strategy that eliminates the role of middlemen and intermediaries such as distributors, dealers, wholesalers, retailers etc. in selling process.It sells products or services directly to the final consumers. It helps to save middlemen commission and shortens the selling process.
3. It Saves Costs
A company can establish direct communication with customers by using emails, telemarketing, internet etc. So, it saves marketing costs by lowering advertisements and promotional expenses.
4. It Improves Profitability
Elimination of middlemen commission and less publicity and advertisement expenses can save significant amount of money. So, cost saving leads to increase in the profit of the firm.
5. Suitable For
Direct marketing is suitable for small and newly established companies with limited number of products. It is also suitable for those people who do not have time to visit retail stores for shopping purpose.
6. Effective Personal Interaction
It promotes personal interaction between the seller and buyer. It helps to gather information and feedback which helps to know the strength and weakness of the campaign. It helps the company to take appropriate steps to improve its operations.
7. Effective Measurement Of Performance
Direct marketing provides accurate feedback immediately to the seller. So, the effectiveness of marketing campaign can be measured by analyzing the result and feedback.
8. Helps To Increase Customer Loyalty
Because of personal touch and direct interaction, it helps to establish better relationship with customers. Personal connection between customer and company helps to improve customer loyalty.
Drawbacks Or Disadvantages Of Direct Marketing
The main disadvantages of direct marketing can be pointed out as follows:
1. Not Suitable For All Business
Direct marketing is not suitable to target large groups of customers. It is also not suitable for big business companies with strong brand value.
2. It Is Annoying And Intrustive Campaign
Most people feel annoying, irritating and intrustive because of unwanted telephone calls and emails received regularly from marketers. So, customers may dislike this marketing strategy.
Also Read:
Advantages And Disadvantages Of Digital Marketing
Advantages And Disadvantages Of Content Marketing
Advantages And Disadvantages Of Traditional Marketing
3. It Has Low Response Rate
Different marketing researches have proved that direct marketing has less conversion rate that other forms of marketing campaigns. It is difficult to identify potential customers and to collect data and information of an individual. If collected data lacks accuracy, then customer response rate becomes low and campaign cannot be conducted properly.
Pros:
- It only targets specific group of potential customers which helps to increase sales
- There will be a direct communication and personal touch with customers which eliminates middlemen
- It is a cost effective method of product promotion because it minimizes the advertising costs
- Earnings will be increased because of less marketing costs and elimination of middlemen
- It helps to maintain customer relation and increase customer loyalty
- Performance (success or failure) of the campaign can be easily measured
Cons:
- Some people may feel this marketing strategy irritating and annoying
- Although it lowers marketing expenses, it requires higher initial costs
- Its response rate is lower than other forms of marketing
