Direct Marketing

Direct Marketing is defined as the marketing method where a company presents products and services directly to end users. The method does not use any marketing middleman and relies on communication using mainly messaging systems like post, phone calls, newsletters, brochures and most importantly, well placed online adds.

By profiling target customers, a company can short list potential customers based on their interests or any of their demographic credentials. Instead of throwing money at the problem and buying expensive TV or Radio airtime, rather spend the time getting to know who your customer really is.

The right place for products and services

It is easier to sell certain services than most products. Every person out there will make use of a plumber, motor mechanic or a dentist at some point in their life. Service providers of regular or essential service only need to focus on the geographic area in which they trade. It is highly unlikely that a plumber will travel 300km to unclog a drain. Excelling in your craft in a geographic region will earn you the title of “The plumber” in general conversations in the area you serve. The highest of accolades! Add to this correct pricing and customer service levels and you’re made!

Products on the other hand need a different type of approach. You will not be selling hairbrushes to bald guy (me), or will you? Knowing your client’s profile is the starting point for marketing. I might be bald, but I have two daughters and so there will be a time in my life when I will buy those hairbrushes.

So where do you place your product taken the example above?

It comes down to the need’s hierarchy, as at a basic level I do not need a hairbrush, ever, but on a higher physiological needs level, I do need one when you manage to place this magical hair straightening brush at say, the dance competition my daughters are at. Then I will buy the thing at double the price because you triggered my higher need for it.

You can sell ice to an Eskimo, if you know he goes to a desert once a year.

Profiling

You need to sit down with your product and look firstly at the person it will serve and come to understand that persons most basic needs and track behaviour of this person or a group similar to them (demographics, buying behaviours and customer service interactions) and then place your item in their path. Then the product will not require a lot of effort to sell and will be where 80% of the clients are. They will queue to buy it. If, however, you produce hairbrushes and place them in a hardware store where bald guys like me hang out, they won’t sell! Get your product into the right place at the right price. Retailers and shopfronts (electronic or traditional) sell to 80% of their market at low margin mark-ups but they will only generate 20% of their income this way. Where do they find the lucrative 20% willing to buy their high-priced products? They need to think outside of the box to gain access to new markets.

Direct Marketing can be a formidable weapon when attempting to get access to new markets, or just to better service your current customers.

Geographic Profiles

Targeting customers in your immediate area. Very applicable to restaurants that does takeaways like pizza shops. Marketing methods will include flyers and adverts in the local newspaper and running weekday special offers for the locals.

Demographic Profiles

Demographics are personal characteristics used to categorize customers. Demographics include characteristics such as age, gender, income level and marital status. This information helps you develop a marketing strategy that appeals to individuals with this demographic profile. An owner of a women’s clothing store might attempt to reach a specific market e.g. professional women by developing an ad campaign to promote a new line of business attire.

Psychographic Profiles

Psychographic profiling attempts to segment the market based on traits such as personality and lifestyle. Some people are in the market to buy a Bentley but sadly most of us are not. Marketers may use these traits when developing a targeted advertising or promotional campaign. Someone that has bought expensive jewellery or properties would the person to market other luxury products like expensive cars or clothing.

Behavioural Profiles

Behavioural profiling analyses characteristics such as desired product benefits, price sensitivity and brand loyalty. Behavioural profiling is useful for determining buying patterns and what changes may affect these patterns. This can also tell a company how many of their customers are first-time buyers as opposed to repeat customers. If repeat purchases are low, the company may need to focus on improving quality or building brand loyalty. A bakery owner can improve quality be selecting better ingredients and encourage repeat visits by attaching coupons to customer receipts.

Getting to know your customers in a holistic manner is beneficial for everyone.