What is Direct Marketing?
Direct marketing is a form of marketing where a company or salesperson provides physical marketing materials to consumers.
The company or salesperson provides this information in order to convince a consumer of the product’s value in the hopes of making a sale.
Direct marketing typically takes place through catalogs, mailers, fliers, and in-person sales demonstrations. More recently, it has also been seen online through online advertisements email marketing campaigns.
One of the key advantages of direct marketing is that it removes the middle man from the sales process. In a traditional sales structure, a middle man (say, a retail store) will advertise a product in exchange for a cut of that product’s sales price. That means the business makes less money from selling the product and the consumer pays more money.
Theoretically, direct marketing allows companies to make more money from selling a product while consumers pay less money to buy a product. That’s why direct marketing is popular among companies with small advertising budgets. These companies may not be able to afford expensive TV or internet advertising campaigns and don’t have the brand recognition of larger companies – but they can still win customers over with physical sales materials.
In 2010, commercial and nonprofit marketers spent a total of $153.3 billion on direct marketing, according to this book published by the Direct Marketing Association. That accounts for 54.2% of all advertising spending in the United States – which makes direct marketing the most popular form of advertising in America.
Popular Types of Direct Marketing
Direct marketing has been around for centuries. In the last few decades, however, direct marketers have been able to access a wide range of new tools that help them reach consumers more easily. Here are some of the popular types of direct marketing available today:
-Email Marketing: Marketers build (or buy) a database of “leads” that may be attached to demographic data (like gender, age, salary, etc.). Then, marketers build email campaigns to convince these leads to buy certain products.
-Online Marketing: Online marketing is a general term that covers things like display advertisements that appear online, search advertisements and SEO, and social media marketing on sites like Facebook and Twitter.
-Mobile Marketing: Mobile marketing might take place in the form of text messaging (say, text messaging a database of phone numbers you purchased on built). Or, it could take place through mobile applications.
-Telemarketing: One of the oldest and most successful forms of direct marketing is telemarketing, where salespeople contact customers by phone. Over the years, telemarketing has faded out of fashion due to the creation of Do Not Call registries in America, Canada, and other developed countries.
-Direct Response Marketing: With direct response marketing, the buyer must contact the seller directly to purchase a product or service. Many multilevel marketing companies follow this sales model.
-Direct Response Television: Direct response marketing via television typically involves infomercials and commercials. This is considered a form of direct marketing because buyers are encouraged to perform an immediate response (like asking the buyer to call a number on-screen to order a product). TV shopping channels and home shopping networks are also considered a form of direct marketing because items can be sold with reduced overhead.
-Direct Response Magazines, Newspapers, and Other Media: Direct response marketing in other media can take place in the form of coupons you cut out of your newspaper, or in the form of toll-free numbers you hear over the radio (to give two examples).
-Direct Mail: Direct mail advertising is an old and popular form of direct marketing where direct mail is sent to potential buyers based on their age, income, gender, and other demographic information.
-Direct Selling: Direct Selling involves selling products via face-to-fact contact with the customer. This could be in the form of door-to-door selling, or in the form of product parties (like Tupperware parties) and other events. See below for a more detailed explanation.
Direct Selling Versus Direct Marketing
There’s a lot of confusion between direct marketing and direct selling.
When many people think of direct marketing, they think of multilevel marketing companies and other similar businesses.
The truth is: multilevel marketing companies typically use direct selling as a core part of their business model. Direct selling is just one of many types of direct marketing strategies.
The difference between direct selling and other forms of direct marketing is that direct selling typically involves selling through one of the following means of communication:
-Other personal contact situations, like sales parties
Advertising and Promotion: An Integrated Marketing Communications Perspective defines direct selling as follows:
“The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.”
One of the key distinctions between direct selling and direct marketing is that with direct selling, individual salespeople seek out a relationship with the customer. With direct marketing, a business organization is seeking a relationship with the customer without the involvement of a retail outlet or third-party salesperson.
The Professional Direct Marketer Way
Direct Selling System
If you want to become a direct digital marketer in today’s crowded yet innovative how-to-stand-out in the Internet Marketing landscape, you need a sales system and successful selling approach.
That is why we have broken down the new elements and factors that have gone into the Direct Marketer PRO system. This is the new wavy wing of the world wide web latest and greatest direct response marketing sales system. It has been built for the mass market appeal by the Empower Network and iPAS2.
Make sure you keep your eyes peeled for this space as new information continues to be sent out about the up and coming Direct Marketer PRO product line.
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