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Module 20
Marketing Plan
What is the best way to reach my
customers directly?
The four elements to consider in
developing a direct marketing plan are
goals, target customers, strategy of the
offer, testing of the program and
measuring success.
Goals
Generally speaking, a direct marketing program
is used to secure sales directly from the
producer of product or provider of service to the
intended customer. A response rate of 2 percent
is considered successful. This does not imply
that 98% of the program was unsuccessful; just
that those targeted customers were not ready to
purchase at that particular time. The targeted
customers certainly became more aware of the
product or service and will be given the
opportunity to buy again at a later date.
• Other goals for a direct marketing
approach can be assisting the sales
process by identifying prospective
customers or educating the targeted
customers. Be clear about the goals of the
program so that you can measure the
program’s success.
Target Customers
Crucial to the success of any direct marketing
program is the target market. The more qualified
the customer, the more likely the sale. Qualifying
issues can be age, gender, income, education
level, geographic location, previous mail-order
purchases, etc. For most start-up businesses,
targeted customer lists can be obtained through
groups such as the Chamber of Commerce,
professional trade associations, etc.
• Lists are available for sale with either
some minimum dollar value or minimum
number of prospects. Purchasing a list is a
good way to supplement your target
customer database, but external lists can
have duplicate names, incomplete data,
etc., so testing purchased lists is always a
good idea.
Strategy of the Offer
It is necessary to develop an effective offer
strategy that meets the target customer’s
needs. Included for consideration are the
product or service, the offer (reason to buy
at this time), the medium and the
distribution method.
Choose the product or service that is the
most attractive to the targeted customers
and create an offer that will move the
customer to purchase. For example, if
your business is carpet cleaning, your
offer might be targeted for spring cleaning
and include a discount of two rooms
cleaned for the price of one. The more
convenient and attractive the offer, the
better results will be obtained.
• Choice of medium is also important. Oversized
postcards can be very effective, since there is no
envelope to open and the offer can be stated boldly so
the potential customer doesn’t miss the message. If your
choice is included in an envelope, be sure something
eye-catching is printed on the outside of the envelope;
preferably printed in color. A telemarketing campaign
might also be a good choice, depending on your budget
and ability to launch an effective campaign.
Telemarketers need a good script, practice and training
to be successful. One advantage of a telemarketing
campaign is the ability to obtain information about your
product or service, whether or not the potential customer
purchases the item offered.
• Testing the Program
Each element of the program should be tested.
Was the choice of product or service the
appropriate item? Was the offer attractive
enough? Was it offered to the right customer?
Was the medium the best choice for reaching
the customer? Follow up is necessary to
determine that each element was the
appropriate choice, and follow up should be
directed to both customers who purchased the
product or service and those who did not.
• Measuring Success
Success of direct marketing programs can
be measured in two ways: the tangible
results of dollars spent versus revenues
produced and the intangible results of
information obtained about the market and
customers.