Limitations of Direct Marketing

sunandaC

New member
Limitations of Direct Marketing

Acquisition of data of individual customers may be difficult – Direct marketing is effective only when all information about the individual customer is available. It may be difficult to acquire this data, as people would be reluctant to part with personal information.

The customers could be exposed to information overload – In today’s rich business and personal environment everyone is bombarded with all types of data. Daily people receive letters, voice mails, catalogues etc. Welcome and unwelcome information accosts the senses through the radio, television, telephone, books etc. Direct marketers are perceived to be contributing to this overload.


Requires highly skilled staff to analyze each customer profile – In Direct marketing communications, individual customers should be addressed by name & title. Also information from database is used to produce specific appeal based on consumers personal characters &/or past purchase behavior.

It is therefore important that the profile of each individual customer is accurately maintained. This would be possible only if the staff employed is highly competent to carry out this accurately.
Customer Service rather than customer loyalty is more important in direct marketing
*

For successful implementation of direct marketing program, a company needs to take a number of decisions. It is important to determine:


What the program’s objective will be

Which markets to target through the use of a list or a marketing database

What direct marketing strategies will be employed

How must the effectiveness of the program be evaluated

To determine the effectiveness of database, the database must be frequently updated.

RFM Scoring method must be employed to databases.
RFM- Recency, Frequency, Monetary transactions between the company and the customer.

It is important to enter the data each time a transaction is made. The company can keep a track of :
How recently purchases have been made
How often are they made
What amounts of money are spent
Tracking which products/services are used increases the ability to track the customer population & develop effective marketing strategies.
 
Direct Marketing is the short term procedure to induce consumer immediately known as direct response. It has ginormous advantages and that is why it is highly preferred and the outcome is always productive.

Advantages of Direct Marketing

1) Direct Marketing Involves Direct Response

2) Direct marketing is cost-effective

3) Increase sales

4) Build Consumer connections

:SugarwareZ-167:
 
One of the main drawbacks of direct marketing is the need from customers to end unwanted contact from firms. Consumers do not appreciate privacy intrusion or the sheer mass of conversation, known as as spam or junk mail, got on a regular basis.
 
Top