DIRECT MARKETING AS A MARKETING COMMUNICATIONS TECHNIQUE 423Introduction
The success of direct marketing originates from the corner shopkeeper’s philosophy of having
close and personal contact with customers, knowing everyone’s needs and wants, providing
them with the best solutions to their problems and giving them excellent after-sales service.
This makes them happy and loyal customers. The growing opportunities offered by technology,
automation and database-supported marketing intelligence systems, and the reductions in
computer hard- and software prices, have encouraged marketers to execute their market-
ing activities with an emphasis on efficiency and quantifiable objectives. Advertising budgets
are being cut and the cost-effectiveness of communications media becomes crucial.^1 Direct
marketing activities do not require huge production costs like, for instance, TV commercials
and, consequently, are more accessible to all kinds and sizes of companies. They are also very
flexible, highly selective (easy to target) media. Knowledge of customer habits and needs and
other detailed market information are considered to be highly valuable tools for marketing
strategy development. This is due to fundamental changes in the marketplace in the 1990s.
The threat of high-quality/low-price private label brands has changed consumers’ attitudes
towards brands. As there is less and less difference between products, consumers are finding
brand loyalty increasingly irrelevant. Manufacturers have to look for communications tools
that motivate consumers to try products and give them incentives to keep using their brands.
These changes have led to the growing importance of one-to-one communications and relation-
ship marketing, based on lifetime bonding of customers. Direct marketing has given added value
to this kind of marketing activity in comparison with traditional mass marketing.
With a high Internet penetration the number of e-mail addresses has been increasing at a
fast pace, allowing direct marketers to develop e-mailing campaigns that are more flexible
and much cheaper than traditional direct marketing media. E-marketing and e-mailings will
be discussed later (see Chapter 15) under e-communications.Direct marketing as a marketing communications technique
The definition of direct marketing has undergone various changes. In the beginning (the 1960s),
it was considered as a type of distribution (direct selling through a different channel), as used by
mail order companies. In the 1970s, direct marketing became a marketing communications
tool with emphasis on feedback and optimising response rates on mailings and other direct
marketing tools. From the 1990s onwards, long-term relationship-building and increasing
customer loyalty (‘retention marketing’) became the main issues in direct marketing.^2 These
different views on direct marketing are reflected in the quite diverse definitions of direct
marketing found in the literature. Hughes defines direct marketing as ‘any marketing activity
in which you attempt to reach the consumers directly, or have them reach you’.^3 Kobs stresses
the importance of a database as a basic tool for direct marketing activities (a communications
tool according to him) in his definition: ‘Direct marketing gets your ad message direct to the
customer or prospect to produce some type of immediate action. It usually involves creating
a database of respondents.’^4
In general, direct marketing means contacting customers and prospects in a direct way
with the intention of generating an immediate and measurable response or reaction. ‘Direct’
means using direct media such as mailings (including e-mailings), catalogues, telephone or
brochures, and not through intermediaries such as dealers, retailers or sales staff. An immediate
response is possible via the Internet (e-mail/website/social media), answering coupons, phone
or a personal visit by the customer to the store or retailer. In order to make direct contact with
customers and prospects, a database is required. Databases can be considered as the heart of
direct marketing. Some issues on database marketing are explored below.M13_PELS3221_05_SE_C13.indd 423 6/5/13 2:56 PM