Direct response marketing is a marketing effort aimed at driving immediate action from specific action from the targeted audience. Such action could be an opt-in mail, calling to a provided phone number, clicking a link or buy the suggested product. It differs from mass market which simply reminds prospective customers of the existence of products and services for them to purchase. It runs on the idea that the more times clients see a particular ad, the more they are likely to buy. Direct response marketing on the other hand, targets a particular segment in the market and attempts to move the clients to act immediately
Characteristics of direct response marketing.
• Targets specific niche or audience; Direct response marketing looks for prospects within specific zones, verticals or niche marketing. It is meant to appeal to a narrow segment in the overall market.
• There is a specific offer that is made; There is a specific value added offer that is made. Most of the times, nothing is sold. However, the marketing effort aims at getting the prospect to action. E.g. request a free sample.
• The results can be tracked. Prospect response from the marketing effort can be tracked. It is easy to tell which of the marketing efforts generated customer action. In contrast, it is not possible to know what ad generated customer action in mass marketing.
• It is possible to measure results; In direct response marketing, it is possible to know how much in terms of sales or response that the marketing effort generated. It becomes easier to drop the marketing effort that does not give the expected response.
• There is a compelling message; There is a strong message that is passed to the prospective clients to elicit interest and action. There is ...
... middle of paper ...
...to explain their offers to individual customers. This method has a quick response from the prospects.
4. Coupon codes
These are discount offers to clients when they visit the directed store with the coupon number. Coupons can be put in print media or digital. They offer substantial savings when customers buy with the codes within some given time.
When well executed, direct response marketing is both beneficial to the customers and the marketers. Client will have their problems solved within a short period of time and at a discount. To the marketers, direct response marketing is not only affordable but highly effective in delivering the expected results. It can be varied depending on the feedback it generates from the clients. It is just like making money at a discount. It involves putting in little cash into marketing and reaping in big profits from the effort.
Capital One saw direct marketing as a means to record every interaction with a customer electronically. It allowed them the ability to customize products to each customer and to ensure each interaction was unique. Direct marketing gave Capital One the ability to turn a business into a scientific laboratory where every decision about product design, marketing, channels of communication, credit lines, customer selection, collection policies and cross-selling decisions could be subjected to systematic testing using thousands of experiments. It also enabled the ability to roll out products on a national scale and at full speed once they had been found to work without incurring the large fixed costs that accompany brick-and-mortar operations. It gave them the potential to reinvent the entire economics of a business. Capital One realized that few products were direct marketed and that even fewer firms were fully exploiting the power of statistical analysis.
There are three significant aspects for advertising: 1) A persuading selling message, 2) prospects for the products or service, and finally 3) at the lowest possible cost (Jefkins 5). The first aspect deals with how to persuade people in believing that the product that is being advertised is absolutely salutary. The second however identifies which ta...
...will have a better chance of bringing in new long-term customers because they have presented the information fairly and honestly.
Imagine a time when you were reading a magazine and stumbled upon an advertisement that influenced you to go out and purchase that particular product. This proves as the typical goal of marketing companies since persuasion of consumers inevitably leads to a higher profit. Likewise, advertising agencies use various different approaches in marketing their products. This approach can be exemplified by drawing comparisons from two different advertisements, Schick and Wrangler. Schick’s advertisement contains qualities that are effective and promote their product in a manner that persuades consumers, where the Wrangler ad lacks many of these qualities.
The ultimate goal of B2C marketing is to convert shoppers into buyers as aggressively and consistently as possible. B2C companies employ more merchandising activities like coupons, displays, store fronts (both real and Internet) and offers to entice the target market to buy. B2C marketing campaigns are concerned with the transaction, are shorter in duration and need to capture the customer’s interest immediately. These campaigns often offer special deals, discounts, or vouchers that can be used both online and in the store. For example, the goal of an email campaign for a B2C company is to get consumers to buy the product immediately. The email will take the consumer to a landing page on the web site that is designed to sell the product and make purchasing very easy by integrating the shopping cart and checkout page into the flow of the transaction. Any more than a couple of clicks and the customer is likely to abandon the shopping cart.
market is a set of buyers sharing common needs or characteristics that the company decides to serve (Bethel, 2007). When identifying the target market it is important to know who buys your product and who your customers are. Smart targeting benefits the consumer as well as the company. It allows the company to be more efficient and effective by focusing effort toward that segment; therefore maintaining the most profitable outcome. The consumer is rewarded by receiving the product or service that is customized for them.
direct marketing: it means selling directly to the consumer through the mail, by telephone, or door-to-door. By having direct contact with the customer, the company knows what are the needs, the preferences, and then can effectively choose the kind of products it will sell in the Moroccan market.
First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.
Primarily, strategic marketing initiates its process through market research, thereby inculcating the optimal target customers throughout the development phase of the product or service. Market research enables the firm to identify trends from the horizon, especially by studying major competitors in the market that eventually informs the firm’s product designs and development. Strategic marketing does thus enable the company to use to researched information to differentiate products for individual client niches, which provides the firm with a competitive
Once segments of customers have been defined, marketers need to select and evaluate which segments will be worth targeting. Cui and Choudhury (2003) define market targeting as marketing a product to a segment of customers due to the magnetism, for example size or growth, of the group. Marketers are able to select segments using undifferentiated, differentiated and concentrated marketing. By ignoring segment differences ...
Retargeting campaigns are highly-focused and cost-effective marketing efforts that can help your business persuade interested customers to buy your products or services, as well as continually expand your market reach.
“function that links the consumer, customer, and public to the marketer through information-information used to identify and define marketing opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications..”
In the 1990s direct marketing became the most important tool in the mix because technology had enabled a form of communication by appealing directly to the target customer. This change led to new media formats, and the subsequent development of the Internet. Digital technologies have accelerated change in the marketing communications
products they want. The goal is to not only provide consumers with what they know they
The term “direct marketing” excludes the "middle man" from promotion, as a company's message is provided directly to a potential customer. (Investopedia, 2010) Direct marketing is an advertising campaign that aims to gain an action (such as an order, a visit to a store or Web site, or a request for further information) from a group of consumers in response specific communication from a marketer. The communication may take many forms such as mail, telemarketing, direct e-mail marketing, and point-of-sale (POS) interactions. (searchcrm.techtarget.com, 2014).