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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
14. Direct Marketing © The McGraw−Hill
Companies, 2003
Exhibit 14-4 Porsche
targets direct mail to
upscale audiences
other advertising medium—an estimated $46.5 billion in 2001. 14 Mail-order sales
exceeded $582 billion in 2001 ($359 billion in the consumer market). 15 Direct mail is
not restricted to small companies seeking our business. Respected large companies
such as General Electric, American Express, and Citicorp have increased their expenditures
in this area, as have many others. Sales through direct mail in the business-tobusiness
market are expected to reach over $345 billion by the year 2006. 16
Many advertisers shied away from direct mail in the past, fearful of the image it
might create or harboring the belief that direct mail was useful only for low-cost products.
But this is no longer the case. For example, Porsche Cars North America, Inc.,
uses direct mail to target high-income, upscale consumers who are most likely to purchase
its expensive sports cars (Exhibit 14-4). In one example, Porsche developed a
direct-mail piece that was sent to a precisely defined target market: physicians in specialties
with the highest income levels. This list was screened to match the demographics
of Porsche buyers and narrowed further to specific geographic areas. The
direct-mail piece was an X ray of a Porsche 911 Carrera 4 written in the language of
the medical audience. This creative campaign generated one of the highest response
rates of any mailing Porsche has done in recent years. 17 The materials shown in
Exhibit 14-5 are just some of the ones sent by Mercedes to introduce its new sports
utility vehicle. The Express retail chain and Vogue magazine teamed up to offer the
store’s credit card holders a one-year subscription to the magazine, to be charged to
their credit cards.
Keys to the success of direct mail are the mailing list, which constitutes the database
from which names are generated, and the ability to segment markets. Lists have
become more current and more selective, eliminating waste coverage. Segmentation
on the basis of geography (usually through Zip codes), demographics, and lifestyles
Exhibit 14-5 Mercedes
used direct mail to
introduce its new SUV
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Chapter Fourteen Direct Marketing