marketing - Industrial Engineering

532 PART 7 COMMUNICATING VALUE
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: :: Direct Marketing
Direct marketing is the use of consumer-direct (CD) channels to reach and deliver goods
and services to customers without using marketing middlemen. Direct marketers can use a
number of channels to reach individual prospects and customers: direct mail, catalog marketing,
telemarketing, interactive TV, kiosks, Web sites, and mobile devices. They often seek
a measurable response, typically a customer order, through direct-order marketing.
Today, many direct marketers build long-term relationships with customers. 2 They send
birthday cards, information materials, or small premiums, Airlines, hotels, and other businesses
build strong customer relationships through frequency reward programs and club programs. 3
Direct marketing has been a fast-growing avenue for serving customers, partly in response
to the high and increasing costs of reaching business markets through a sales force. Sales produced
through traditional direct marketing channels (catalogs, direct mail, and telemarketing)
have been growing rapidly, along with direct-mail sales, which include sales to the consumer
market (53%), B2B (27%), and fund-raising by charitable institutions (20%),4
Direct marketing has been outpacing U.S. retail sales. It accounts for almost 48% of total
advertising spending, and companies spend more than $161 billion on direct marketing per
year, accounting for 10.3% of GDp'5
The Benefits of Direct Marketing
Market demassi!ication has resulted in an ever-increasing number of market niches,
Consumers short of time and tired of traffic and parking headaches appreciate toll-free