Direct marketing

As direct marketing and direct marketing (including direct-response advertising) is called within the market communication of marketing any advertising program that contains a direct address of potential customers with the invitation to reply. The next stage in the marketing, direct sales.

• 3.1 Single-stage direct marketing campaign
• 3.2 Multi-level direct marketing campaign

• 4.1 strengths
• 4.2 weaknesses

Sub-areas of direct marketing

Direct mail

Main article direct mail.

Direct mail is a simplified form of direct marketing. In contrast to the general mass advertising, however, direct mail has a much higher target group security, because it is in contrast for example to the radio or television advertising, either personalized or delivered directly.

Dialogue Marketing ( Direct -Response Marketing)

The aim of the dialogue marketing is to identify a recipient as a potential buyer, so this has expressed an interest in the company and responds to the advertising message. In contrast to direct marketing (including direct-response advertising) is in dialogue marketing the opportunity to sit down with the company in conjunction, therefore, actively reinforced (response gain). In practice, an advertising agent, such as a mailing, for example by loose inserts, glued giveaways, enhanced by offering sweepstakes or invitations to events. These advertising messages can also be enhanced, for example by the use of a particularly exclusive types of paper, cardboard or special colors. Accompanying measures, such as a downstream SMS or your follow - mailing, be used to intensify the personal approach and to increase the possibility of a response ( Response) by a second advertising impetus to the recipient.

A particularly frequently used instrument in direct marketing is the call center. In a personal telephone call the advertising company receives additional information about the customer and his preferences. The dialog can received much better to customers' questions, argued and convinced as for example in a mailing with Response section to return simplex dialogue. This is reflected in significantly higher success rates compared to traditional mailing. On the other hand, the cost per contact several times higher than in an advertising letter with basic facilities. High-quality mailings cost but sometimes more than one call and therefore worthwhile only with correspondingly high-priced goods.

The knowledge about the history of the customer relationship with the company is a key success factor, because to keep an existing customer is underestimated tion, seven to eight times more cost effective than to acquire a new customer. The Purpose of direct marketing are extensive:

• Sale of products
• Customer information on new products
• Reactivation of existing customers
• Telephone Sales
• Appointment for the sales force

See also sales pitch sales psychology and personal selling.

Database Marketing

See also the Articles Customer Relationship Management

As external sources in preparation for a direct marketing campaign, no information from publicly available sources such as phone books or business directories can be used, as these sources may not be used for promotional purposes. Address dealers (so-called list broker or list brokers ) provide addresses from customer databases to directly ad- driven business and generate data sets according to their wishes, they should not be present in this form. Internal data sources are the company's customer files. The returns are recorded in the same database, and are available for further processing ( follow-up, subsequent offers, reactivation) ready.

So the database marketing plays an important role because it is responsible for all activities relating to the structure, design and the use and maintenance of a database. The better the information is processed, the more accurate conclusions are possible on the purchase and consumption behavior. The goal is, firstly, to avoid large and costly wastage when addressing to select the other hand, the right customers for the action from the database.

With the help of database marketing as the market segmentation is translated into concrete actions. The important thing is the constant maintenance of the database, because the evaluation of the returns from the actions as well as other internal data sources such as field service report system and sales statistics can be time better and better predictions about the chances of success of the various instruments of the marketing mix for the company concerned.

Planning a direct marketing campaign

As part of planning a direct marketing campaign, there are a backbone to which you can hold on to. It comprises eight steps that should be taken into account in the planning.

1 Situation Analysis

• Where is my company?
• What market share do I have?
• What can I offer?
• What are the requirements / search my customers?
• What does the competition?
• How do I get new e -mail addresses?

2nd target-setting

• Target content: What should be achieved with the campaign? Who should be addressed?
• Zielfristigkeit: How long the campaign will take place?
• Target Audience: Who is to be achieved?
• Achievement: What should be achieved? ( Paragraph? Profit?, Etc.)
• Target Market: On what market you want to be active?
• Target Budget: What budget is available and what those resources are used?

Third strategy determination

• Market development strategy
• Market penetration (including penetration strategy )
• Product development strategy
• ( Diversification strategy )

4 Communication Planning

• Single-stage campaign
• Multi-stage campaign
• Flowchart of communication

5 Implementation Planning ( Planning )

• Rough scheme of the procedure. generate: (eg obtaining v. quotations, order placement, order address, set / Display, print sharing, address purchase, letter shop, at the customer's inbox, Response), e- mail addresses

6 scheduling ( Scheduling )

• Schedule and timing of individual steps in the implementation planning

7 Budget Planning

• Statement of costs

8 control

• Response rate = reactions: Releases
• Cost per interest (CPI ) = Total cost: prospective
• Cost per order ( CPO) = Total cost: orders
• Break-even Point ( BEP ) = advertising cost per 1,000 Shipments ( selling price - unit cost ) x 100
• Break-even Point ( BEP ) = advertising cost per piece: contribution margin per order

Commercial forms of direct marketing

Promotions in direct marketing can be done in various forms. Here we divided them into single-stage or multi-stage actions. Contributing factors include the number of customer contacts made. It is irrelevant whether these contacts are made in writing, by telephone or otherwise. A mix of these forms of communication is possible.

Whether an action is carried out in one or more stages, may depend on several factors:

• Type of product
• Price of the product
• Support the promotion
• Cost per contact
• Communication possibilities of advertisers
• Advertising target
• Break-even

Single-stage direct marketing campaign

Multi-level direct marketing campaign

Review of direct marketing

Strengthen

The key strength of direct marketing is its measurability. Through the use of promotional codes or the direct comparison of the promoted persons with the Werbereagierern costs and benefits of direct marketing actions can be put directly into relation with each other. From this direct measurability follows the opportunity to evaluate direct promotions based on "hard" indicators. Also a direct consequence of this property is the ability to optimize direct marketing campaigns based on tests.

Depending on the criterion, the individual customers of a "Star Customer " differ to a " waiver customers." By way of distinguishing one can design an advertising campaign for each customer. To justify a "Star Customer", which has high sales and profit potential, and best growth prospects, a high marketing expenses. This is reflected for example in the form of client service - before, during and after the purchase - preferred delivery or consideration of special requests from.

A so-called " waiver clients," which is characterized by a low revenue potential and low growth prospects, it is better to give up, because he usually already has a negative contribution margin. This differentiation and selection of customers is one of the success factors of database marketing.

Furthermore, customer relationships are built, which should lead to customer loyalty and ultimately to a close customer relationship. Regular customers generate still the most sales. So it is a regular customer to move up to seven times easier (or cheaper) to buy than to acquire a new customer for itself. Therefore, the direct marketing not only for the acquisition of new customers benefits, but serves mainly to bind tightly to the target regular customers to the company.

This customer focus and customer satisfaction have continued positive radiation effects on the market. Especially with the direct-response advertising, it is possible to open up new target groups, as the receiver of an advertising message expressed his interest so that he responds to the advertising message. The data thus obtained can be used again in other actions to make advertising more individual.

Due to the over-saturation of the consumer with mass advertising fewer promotions lead to the desired success. In contrast, the individual contact address in particular reduces the wastage of advertising media used, and thus leads to a profit improvement due to the cost reduction potential. Thus, the direct marketing allows an efficient use of financial resources.

Weaken

However, the direct marketing also has its legal and business boundaries. It has a relatively short duration compared to traditional advertising media. However, this purely preferable Taking care of regular customers of new customer acquisition, is a short and one-sided thinking. In particular, the new customer activation, it is only possible to build a growing potential repeat customers. Without steady inflows would slowly grow old and eventually die out.

It must also be ensured that the dialogue with the customer, not mechanically, but should be tailored to the specific needs. This dialogue is - the more individual it is tailored to the individual customer - correspondingly expensive. In addition, costs of data collection and the construction and maintenance of the appropriate databases arise. All of this must be justified by the corresponding yield, the customer brings.

Furthermore, the essence of direct marketing is always associated with a harassing element. This can lead to an unreasonable invasion of privacy of potential recruits depending on the intensity of advertising. Against this rising intensity of direct mail are increasingly receiver defend by attaching the label "no advertising " at the mailbox and entering into the Robinson list. Fighting several companies to a small number of customers who wooed can be filled partially with an unreasonable amount of advertising. The Marketing Management is here challenged to find a balance between request frequency and corporate image.

General, the jurisdiction in Germany for a relatively high level of consumer protection provides, since they provide the privacy takes precedence over the profit of a company. So far, so-called cold calls were prohibited by law only in individuals. Basically, however, the prohibition of harassment applies by telephone advertising for calls to the trader. Following a decision of the OLG Frankfurt 24 July 2003 (6 U 36/ 03) ( § 3 UWG now) are so-called " cold calls " to attract new customers because customers Fangs by harassment under § 1 UWG old version prohibited. Even the Supreme Court prohibits cold calls to traders in its judgment of 16 November 2006 ( Case No. I ZR 191/ 03).

The case law exceptions are only permitted if the addressee has demanded the call itself, or if there are reasonable grounds to believe, the callee is fully agrees with the call. This is regularly accepted only to ongoing business. In particular, the case law disputes the argument that the entry of a company in the Yellow Pages 'll take an interest in receiving offers.

Direct Marketing Associations

• German Dialogue Marketing Association
• Swiss Marketing Association
• Direct Marketing Association Austria

Measuring

One of the leading trade fairs in the field of direct marketing are the mailing days, which take place every year at the Congress Center Nuremberg since 2000. 2008 a total of 7000 visitors, convention and workshop participants were counted.