Direct mail advertising

Direct mail describes the way in which an organisation distributes printed material aimed at specifically targeted potential customers with a view to carrying on direct interchange between the two parties. Each initiative is called a ‘mail shot', ‘mailing shot' or simply ‘mailing' and it may comprise anything from a single ‘mailer' to a whole series of separate items under one cover. The usage and acceptance of direct mail advertising has increased rapidly and one reason for this is that media has become increasingly fragmented, which means that advertisers have to either spend money to reach their audience or spread the same amount over a wider range of media.

Direct mail, with increasing sophistication of computerisation, enables advertisers to segment and target their markets with greater flexibility, selectivity and personal contact; at the same time, advertisers using it know the extent to which they can track response. Direct mail advertising can be employed to achieve a number of promotional objectives, including the generation of enquiries, keeping prospects interested, keeping customers informed of new developments and improving the effectiveness of the salesperson. Thus, it can be used to sell a wide range of products or services and its uses are also varied. For example, for business, it is more effective than mass advertising for identifying different market sectors and communicating to each an appropriate message. Some of the more common uses are: for a product launch, as sales lead generation, as dealer support, for conferences, with follow-up mailing using the customer base and in the case of a market research or o product testing.

In fact, direct mail advertising offers the advertiser an opportunity to target his advertising pounds on those most likely to buy from him. Prospective recipients of direct mail can be ‘hot' or ‘cold'. ‘Hot prospecting' refers to sending the advertising message to past customers or prospects to whom the producer has tried to sell but did not succeed the first time around, while ‘cold prospecting' refers to purchasing or assembling the names and addresses of individuals or firms the producer has never dealt with but who are likely to be interested in his product or service.

Direct mail advertising can be used to sell specific products by mail and, like newspapers or magazines, direct mail advertising is tangible. The reason for saying this is the fact that the message exists in black and white on paper, which means that a lot of information and details can be communicated. Also, readers can refer to the message and review important points. (David J. Bangs, 1993) Like other advertising mediums, direct mail has its advantages and disadvantages.

Advantages of direct mail

•  The advertising message is targeted to those most likely to buy the product or service.

•  The message can be as long as necessary to tell the story fully.

•  The producer has total control over all elements of creation and production.

•  It is a “silent” medium due to the fact that the message is hidden from competitors until it is too late for them to react.

•  The sales message can be personalized to the needs of individual recipients.

•  It offers a very versatile and creative medium and is flexible in the range of materials that can be used.

•  It can be timed effectively to fit in with the overall marketing strategy and is quick to implement and to produce results.

•  It can include tangible evidence of a highly intangible service offer (for example, pictures of hotels)

•  It is a personalized communication from one individual to another.

•  It is relatively inexpensive if used for a small number of targeted customers.

•  Mailings can be sent whenever we want to send them; they can be sent all at once or at intervals so that replies may be more easily dealt with.

•  Effectiveness of a mailing can easily be assessed by the number of replies or enquiries received as a result of the mailing.

Disadvantages of direct mail advertising

•  It is expensive for large number of customers and also time-consuming.

•  It requires co-ordinating the services of many people like: artists, photographers, printers, etc.

•  Because of the shifting population, the producer must work hard to keep his mailing list up to date.

•  Likewise, a certain percentage of the names on a purchased mailing list are likely to be no longer useful.

•  Response pate is low.

•  Replies come in over a period of time. (A. Anderson and D. Kleiner, 1995)

However, when a direct mail is added to, say, a television or press campaign, the effectiveness of the overall campaign can be significantly raised. The media reaches a broad audience and can raise general awareness of the company and its products, while the direct mail campaign is targeted specifically at the groups of people or companies most likely to buy. In fact, mailing lists of respondents to couponed press advertisements or television or radio commercials with a ‘phone-in' number can be used for direct mail advertising approaches.