83%(12)10 out of 12 people found this document helpful
This preview shows page 7 - 9 out of 14 pages.
7.Explain why direct marketing has been so successful. Do you see this trend continuing into the future? (LO1)
Chapter 14 - Direct MarketingThe changing marketing environment. The increased use of credit cards, lack of time, and acceptance of mail-order products by consumers have all increased the effectiveness of the direct marketing medium.Cost efficiencies. The continued high cost of mass media, and the lack of availability of time and space in some of these media have forced advertisers to consider alternative ways of advertising. Likewise, the increasing costs of personal selling directly favor the use of telemarketing and direct mail.Target marketing. As marketers more narrowly define their markets, direct marketing media offer a more effective way of reaching them through the reduction of waste circulation.Database technologies. More effective database marketing techniques also promote more specific targeting. Companies are now able to know more and more about their customers (and potential customers) by building more effective databases. As noted, Kimberly Clark can literally track babies through childhood,changing the products advertised and the appeals as the child gets older.Advances in technology. Direct marketing no longer means just catalogs and direct mail. Videotext systems, home shopping channels, the Internet and other innovations have allowed for more successful direct marketing efforts. Even the success of cable television has aided the direct marketer, who now has a more specific target audience at which to target direct marketing efforts. Advances in technology have also increased the value of the databases, as names can be added and purged, and information can be updated much more quickly.Effectiveness measures. Perhaps the greatest value of direct marketing is the ability to measure the effectiveness of the program. As noted in the text, direct marketers have very sophisticated measures of effectiveness which can tell them almost immediately how their programs are working.There is little doubt that direct marketing has achieved acceptance. At the same time,many marketers are still bothered by the image of the industry. While companiessuch as Porsche and American Express benefit the industry through direct marketingparticipation, negative stereotypes of "rip-off" artists still persist. Every time such arip-off occurs, the industry takes a step backward.