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Advantages
There are some advantages to direct marketing campaigns. Typically, direct marketing campaigns request responses from potential customers, making the results trackable and allowing companies to quickly determine if the campaign is successful. Direct marketing campaigns are also beneficial to test consumer responses with a small campaign before scaling up and launching a full, expensive campaign. This method of marketing also builds brand loyalty as some customers enjoy receiving information on deals and discounts, and easily become repeat customers.
Disadvantages
Direct marketing also carries disadvantages. One of the main disadvantages of direct marketing is the demand from consumers to end unsolicited contact from companies. Consumers do not appreciate privacy intrusion or the sheer mass of communication, referred to as spam or junk mail, received on a daily basis. Other disadvantages include generating poor quality leads and failing to bring a high number of repeat customers.
ADVANTAGES OF DIRECT MARKETING
The most obvious benefit of direct marketing is being able to address actual and potential customers directly, in a more individualized manner. However, this is not the only advantage. Following are some more benefits that make a lot of marketers take the direct road to woo customers.
Direct marketers offer the contacted customers (potential or actual) the opportunity to respond to the marketing communication, usually within a given time-frame. This helps marketers to track the response rate and response category (positive or negative) and prepare analytics, based on which they can modify or streamline their marketing efforts and communication for better results in future.
Direct marketing involves preparing and maintaining a customer database. A database defines the target segment into a finite group and each individual in this finite group is communicated with via personal and direct communication channels such as telephone, text, voicemail, door-to-door communication, etc. In a way, direct marketers get a closer brush with their customers and in keeping their databases updated and staying in touch with their customers, such marketers have a better shot at modifying their communication and communicating relevant offers to only those customers who are most likely to benefit from it.
Most direct marketing campaigns and communication are easier and relatively inexpensive to design and create. Direct marketing channels such as emails and text also make creating the communication quicker and cheaper compared to putting up massive hoardings and paying big bucks for advertisements that may or may not be seen or heard by the target audience. This also makes it easier for direct marketers to launch test campaigns in new markets or segments as the cost and risk are considerably lower.
DISADVANTAGES OF DIRECT MARKETING
Direct marketing may be a bed of roses in some aspects but it comes with its own share of thorns as well. Following are some of the most glaring challenges and limitations of direct marketing:-
While a customer database is the spine of direct marketing and its presence is one of its biggest advantages, acquiring such data may be a mammoth task. Not everyone may be willing to participate in market and customer surveys and give out their personal and professional details. Also, data dealers and services that sell captured customer data to marketers also charge a high price to part with such data. So, the initial creation of a database may be quite an uphill task for a marketer.
This is an obvious drawback of direct marketing. Most people do not like their inboxes, voicemail boxes and mobile devices to be flooded with marketing and promotional content. To remedy this, people often use email and voicemail filters and the marketer’s communication either lands straight in the SPAM folder or gets deleted without being opened by the targeted customer.
While having a finite defined group of target customers acts as an advantage in many ways by focusing marketing efforts, this can also be a restrictive factor insomuch as the marketers reach stays limited. Despite database updates and addition of new customers, the reach of direct marketing can never touch the reach of mass marketing methods.
Various countries have laws against spamming and littering. Direct marketing communication in the form of flyers and leaflets are wasteful practices as they promote loitering and consumption of paper.
MERITS
Timing can be controlled to maximize impact.
All outcomes are precisely measurable.
Competitors are less aware of the activity.
Elimination of unlikely customers.
Relationship building- being more personal with customers.
Quick & fast response.
DEMERITS
Relatively expensive-initial costs & maintainance.
Demand from customers to end unsolicited contact from companies.
Consumers might not appreciate privacy intrusion to as spam or junk mails.
Generally poor quality leads & failing to bring a high number of repeat customers.
Thanx for the invitation. Its a pleasure contributing
Direct marketing is a sales technique involving unsolicited contact with potential customers from companies trying to sell products. A direct marketing campaign typically includes certain components, such as addressing potential customers and asking those potential customers to take immediate action, including calling or visiting a website. Common forms of direct marketing include email, online advertisements, promotional letters, catalog distribution and mobile messaging.
Advantages
There are some advantages to direct marketing campaigns. Typically, direct marketing campaigns request responses from potential customers, making the results trackable and allowing companies to quickly determine if the campaign is successful. Direct marketing campaigns are also beneficial to test consumer responses with a small campaign before scaling up and launching a full, expensive campaign. This method of marketing also builds brand loyalty as some customers enjoy receiving information on deals and discounts, and easily become repeat customers.
Disadvantages
Direct marketing also carries disadvantages. One of the main disadvantages of direct marketing is the demand from consumers to end unsolicited contact from companies. Consumers do not appreciate privacy intrusion or the sheer mass of communication, referred to as spam or junk mail, received on a daily basis. Other disadvantages include generating poor quality leads and failing to bring a high number of repeat customers.
Advantages of direct marketing could be presented as follow:
1. Selective reach. Direct marketing lets the advertiser reach a large number of people and reduces or eliminates waste coverage. Intensive coverage may be obtained through broadcast advertising or through the mail. While not everyone drives on highways where there are billboards or pays attention to TV commercials, virtually everyone receives mail. A good list allows for minimal waste, as only those consumers with the highest potential are targeted. For example, a political candidate can direct a message at a very select group of people (those living in a certain Zip code or members of the Sierra Club, say); a music club can target recent purchasers of CD players.
2. Segmentation capabilities. Marketers can purchase lists of recent product purchasers, car buyers, bank-card holders, and so on. These lists may allow segmentation on the basis of geographic area, occupation, demographics, and job title, to mention a few. Combining this information with capabilities ,marketers can develop effective segmentation strategies.
3. Frequency. Depending on the medium used, it may be possible to build frequency levels. The program vehicles used for advertising are usually the most inexpensive available, so the marketer can afford to purchase repeat times. Frequency may not be so easily accomplished through the mail, since consumers may be annoyed to receive the same mail repeatedly.
4. Flexibility. Direct marketing can take on a variety of creative forms. For example, the Discovery Network sent 17-inch TV sets to media buyers through the mail. The only message accompanying the TV sets was one on the cord that said "Plug me in" and another on a videotape that read "Play me." Upon doing so, the recipient was greeted with a seven-minute promotional video. Direct-mail pieces also allow for detailed copy that provides a great deal of information. The targeted mailing of videotapes containing product information has increased dramatically, as companies have found this a very effective way to provide potential buyers with product information.
5. Timing. While many media require long-range planning and have long closing dates, direct-response advertising can be much more timely. Direct mail, for example, can be put together very quickly and distributed to the target population. TV programs typically used for direct-response advertising are older, less sought programs that are likely to appear on the station's list of available spots. Another common strategy is to purchase available time at the last possible moment to get the best price.
6. Personalization. No other advertising medium can personalize the message as well as direct media. Parents with children at different age levels can be approached, with their child's name included in the appeal. Car owners are mailed letters congratulating them on their new purchase and offering accessories. Computer purchasers are sent software solicitations. Graduating college students receive very personalized information that recognizes their specific needs and offers solutions (such as credit cards).
7. Costs. While the CPM for direct mail may be very high on an absolute and a relative basis, its ability to specifically target the audience and eliminate waste coverage reduces the actual CPM. The ads used on TV are often among the lowest-priced available, and a video can be delivered for less than $1 (including postage). A second factor contributing to the cost effectiveness of direct-response advertising is the cost per customer purchasing. Because of the low cost of media, each sale generated is very inexpensive.
8. Measures of effectiveness. No other medium can measure the effectiveness of its advertising efforts as well as direct response. Feedback is often immediate and always accurate.
Disadvantages of direct marketing include the following:
1. Image factors. As we noted earlier, the mail segment of this industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited. Even some senders of direct mail, including Motorola, GM, and Air Products & Chemicals, say they throw out most of the junk mail they receive. This problem is particularly relevant given the increased volume of mail being sent. (One study estimates the typical American receives 14 pieces of junk mail per week.)39 Another predicts that by 2007 consumers will receive over 3,900 junk e-mails per year.40 In 2002 over 205.7 billion pieces of mail were sent in the United States alone.41
Likewise, direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way. (Some of this image is being overcome by the home shopping channels, which promote some very expensive products.) Telemarketing is found to be irritating to many consumers, as is "spam" or Internet junk mail. As you can see in Ethical Perspective 14-2, other factors have also created image problems for the direct-marketing industry.
2. Accuracy. One of the advantages cited for direct mail and telemarketing was targeting potential customers specifically. But the effectiveness of these methods depends on the accuracy of the lists used. People move, change occupations, and so on, and if the lists are not kept current, selectivity will decrease. Computerization has greatly improved the currency of lists and reduced the incidence of bad names; however, the ability to generate lists is becoming a problem.42
3. Content support. In our discussion of media strategy objectives in Chapter 10, we said the ability of magazines to create mood contributes to the overall effectiveness of the ads they carry. In direct-response advertising, mood creation is limited to the surrounding program and/or editorial content. Direct mail and online services are unlikely to create a desirable mood.
4. Rising costs. As postal rates increase, direct-mail profits are immediately and directly impacted.
Thank you for your kind invitation and I support Ms Ghada answer
