Evaluate direct marketing?

Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves unsolicited commercial communication with consumers or businesses. The second characteristic is that it is focused on driving purchases that can be attributed to a specific "call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable results (known as "response" in the industry) regardless of medium.

The most common form of direct marketing is direct mail, commonly called junk mail, where the marketers use a reduced bulk postal rate to send paper mail to all postal customers in an area or all customers on a list. The second most common form of direct marketing is telemarketing, where marketers call selected (or random) telephone numbers. Email Marketing, including spam may have passed telemarketing in frequency at this point, and it is a third type of direct marketing. A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. This is partly due to laws in the United States and elsewhere which make it illegal. A related form of marketing is infomercials. They are typically called "direct response" marketing rather than direct marketing because they try to achieve a direct response via television presentations. Viewers respond via telephone or internet, credit card in hand.

Direct marketers also use media such as door hangers, package inserts, magazines, newspapers, radio, television, email, internet banner ads, pay-per-click ads, billboards, transit ads, etc. And according to Ad Age, "In 2005, U.S. agencies generated more revenue from marketing services than from traditional advertising and media."

If the ad in the medium asks the prospect to take a specific action--call a free phone number, visit a website, return a response card, place an order, visit a PURL, complete a survey, etc.--then the effort is considered to be direct marketing. Direct response or direct-response advertising are both synonymous terms for direct marketing.

Advantages and Disadvantages of Direct Mail
Some people respond positively to direct mail advertising and find useful goods and services on offer. Traditionally, this was more true in rural areas where people had to travel many miles to do their shopping and direct mail and mail order shopping was a major convenience. However, many people dislike it, in the same way as with telemarketers' calls and e-mail spam, and some jurisdictions like the US have laws requiring junk mailers to withhold their offerings from residents who opt out.

Advantages for marketers include the following:

Targeting - Historically, the most important aspect of direct mail was its ability to precisely target previous customers. If a suitable list was available, it could do a good job of targeting prospects.
Personalization - Direct mail can address the customer personally and be tailored to their needs based on previous transactions and gathered data.
Optimization - Because of its direct accountability, direct mail can be tested to find the best list; the best offer; the best timing (and many other factors). Then the winning tests can be rolled out to a wider audience for optimal results.
Analysis - The bulk mailing is large enough to allow statistical analyses. For example the results can be analysed to see in detail the performance of individual offers in say a squinch report which shows sales per square inch. With suitable media or source codes, the performance of lists can be captured. These enable better selection of offers and lists for future mailings.
Accumulation - Responses (and non-responses) can be added to the database, allowing future mailings to be better targeted.
Disadvantages include:

Cost - The cost per thousand will be higher than almost any other form of mass promotion (although the wastage rate may be much lower). Also, development costs in database acquisition/development.
Waste - Large quantities of paper are thrown away (see below).
Alienation - Some recipients resent direct marketing being "forced" upon them, and boycott companies that do so. Moreover, they may obtain Prohibitory Orders against companies whose direct marketing mail they find offensive.

[edit] Critiques of Direct Mail and the Movement Against it
Many consumers, as well as environmental protection groups, are concerned about the environmental impact generated by junk mail. According to 50 Simple Things You Can Do To Save The Earth:[1]

Each year, 100 million trees are used to produce junk mail.
250,000 homes could be heated with one day's supply of junk mail.
Americans receive almost 4 million tons of junk mail every year. [3]
The yearly production and disposal of junk mail consumes more energy than 2.8 million cars.
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