Written in 2008; 2,970 words; 12 sources; APA; $ 87.95
Paper Summary:
This paper examines the ways that direct marketing can provide the operational framework through which direct relations with customers may be built and maintained. The paper stresses that, because the investments required to launch a direct marketing campaign are quite high, management has to evaluate rigorously the profitability of launching direct marketing campaigns. The paper then underscores the importance of the market research through all stages of the functional value chain. The paper then points out methods of evaluating direct marketing programs such as calculating the return on investment (ROI). The paper presents Dell, Inc. and Amazon.com as examples of direct marketing programs.
From the Paper:
"A widely practiced strategy in launching this type of marketing program is to do a test run initially. Data collected from the test run will provide an indication of the level of response to be expected if the direct marketing campaign is launched. If the level of response is judged to be too low, then the management has to revise its procedures of selecting the right consumer segment. Because the costs of implementing direct marketing programs are high and because direct marketing programs usually generate a very low percentage of response, it is critical that the right consumer segment be selected."
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