Direct marketing allows the organization to communicate with customers through direct
mail, e-mail, mobile marketing, catalogs, telemarketing, and direct response advertising.
The Internet has had a tremendous impact on every aspect of direct mail.
Direct marketing methods are certainly not new. What is new is the ability to design and
use them more efficiently and effectively because of the Internet and the ability to develop
and compile comprehensive databases (Marketing Insight 8–7).
Cellular technology such as a smartphone enable the customer to purchase wherever they
happen to be. Marketing by way of these handheld devices has become known as mobile
For the American consumer facing a “poverty of time,” direct marketing offers many
benefits. In addition to saving time, consumers often save money, get better service, and
enjoy increased privacy; many even find it entertaining.
Direct marketing activities are often very effective in generating sales leads when a
customer asks for more information about a product or service and can also increase store
traffic when potential buyers are encouraged to visit a dealership or retail store.
Advertising: A paid form of nonpersonal communications about an organization, its product, or
its activities that is transmitted through a mass medium to a target audience.
Average frequency: The number of times customers, on average, are exposed to an
advertisement within a given time period.
Consumer promotions: Promotions directed at consumers designed to induce the customer to
try the product, reward brand loyalty, encourage the consumer to trade-up or purchase larger
sizes, stimulate repeat purchases, and reinforce other advertising or personal selling efforts.
Cost per thousand: A common measure of efficiency or productivity in advertising, cost per
thousand (CPM) refers to the dollar cost of reaching 1,000 prospects.
Direct marketing: Direct communication with customers through direct mail, e-mail, mobile
marketing, catalogs, telemarketing, and direct response advertising.
Expenditure question: The methods used to decide how much to spend on advertising, ranging
from simple (a percent of sales), to more complex (the task approach which determines goals and
how much it will cost to accomplish each goal).
Frequency marketing program: Programs designed to reward customers for purchases of a