Marketing Strategies In Direct Marketing

Abstract

With time, direct marketing has become increasingly popular in academics and the corporate sector. This is mainly due to the increasingly competitive marketing where most if not all companies are willing to take any profitable measure in terms of marketing, the advancement of technology and the changes in the general customer behavior that has, to date, been hard to predict. With many studies being conducted to explore the dimensions of direct marketing, the topic is yet not fully understood. For this reason, the main objective of this paper is to focus on efforts that look into direct marketing strategies that aids marketers in achieving marketing success via data mining methodologies. This paper links data mining methodologies and

There are two methods of advertisement and promotions, namely mass marketing and direct marketing. Mass marketing targets general public by using media such as newspapers, radios and television. This results in high waste and low response rate from customers who will actually buy the product [b]. Mass marketing has lost its importance in today’s competitive world since a huge volume of efforts put into marketing are lost and wasted on the wrong audience. This has changed the focus of marketers from traditional forms of marketing discussed below to a more productive direct

This is where what we now refer to as marketing departments of modern firms has emerged from. Marketing teams now play a big role in the strategic development of the firms thus their healthy insight has become more important than ever thus making direct marketing as important as it is.

Direct marketing uses the customer’s characteristics and needs and then targets a certain number of customers for marketing activities. To control the rising costs and lesser response rates from customers, direct modeling methodologies use predictive modeling by analyzing the customer data (demographic and historical purchase data) in order to select the customers who are more likely to respond to a promotion [f], [e], [d] which give higher response rate and it is an effective method for