There are many factors to reflect upon when considering small business advertising and marketing strategies. We can’t all be advertising geniuses and entrepreneurs. Fortunately, developing a basic understanding of the underlying and governing principles of advertising and marketing is simple enough; in doing so, it is likely that you will discover that you are much more familiar with some of the mechanics of marketing and advertising than you even thought. Let’s begin by examining the two major forms of marketing strategy: direct marketing and indirect marketing.

What is Direct Marketing?

In essence, direct marketing is an advertising strategy that aims to target a specific audience or consumer profile and succeed in stimulating that group to engage and respond directly to the product or service being marketed. Direct marketing also aims to measure the response to any directly marketed materials. Traditionally, direct marketing strategies and campaigns have included telemarketing, flyer distribution, coupon printing, and direct mailing. Today, we see many direct marketing campaigns that use the internet and mobile technology to engage with consumers online; examples of this include: direct text messaging marketing, email “mail-out” distribution, and targeted online advertising.

What is Indirect Marketing?

Indirect marketing differs from direct marketing as it typically involves a third-party distributor or seller. This is how the majority of us purchase most of our consumer goods. Typically, indirect marketing does not aim to achieve the highly specific consumer audience as direct marketing does. A good example of indirect marketing advertising is that of the traditional storefront window display where a specific product may be displayed prominently within in a retailer’s commercial space. The retailer’s commercial space is what separates the product being sold from the consumer; therefore it is considered to be indirect.

Pros and Cons of Direct Marketing and Indirect Marketing Strategies

Traditionally, indirect marketing has largely dominated the mass strategy marketing system. It enables businesses to cast a wide net and aims to attract a large and diverse consumer audience. Additionally, indirect marketing through a third party enables some businesses access to amenities that they do not have themselves for example, retail space. However, indirect marketing does negatively affect the marketed product’s profit margin, whereas direct marketing is effective at cutting out the “middle man” or third party, resulting in larger returns.

Additionally, direct marketing succeeds by appealing to a specific consumer audience or target market that has demonstrated a higher probability of responding favourably to the marketed product or service. However, direct marketing strategies, especially those targeted online, continue to be controversial as rights to consumer privacy are called into question. The measure of quantitative success enjoyed by direct marketing strategies continues to motivate growth and implementation of such practices.

Which Marketing Strategy is Best for My Business? Direct Marketing or Indirect?

The answer is not as clear cut as direct marketing or indirect marketing, nor is a matter of which advertising technique is right, rather, we are talking about utilizing a variety of methods and approaches at our disposal in order to maximize our advertising and marketing dollars. Therefore, the reason why we consider it to be a marketing strategy is because there are many factors involved. Additionally, depending on the kind of business and its relative size and capital, some forms of marketing may be more feasible and appealing than others.

2013 is over and with it should go many of the standbys of the direct marketing company. The fake free magazines, the advertising postcards and impersonal cold calling tactics, that once were used everywhere, it seems experts agree should go by the wayside.  When looking at the direct marketing trends in 2014, one thing that seems to be agreed on is that companies need to narrow their focus and target groups more effectively. Whether that is to focus on retaining current customers and regaining lost ones, or creating a more personal advertising campaign and target new customers that can afford the products being sold.

Lois Geller makes a crucial point in her article when she argues that, “direct mail has always worked best when it’s personal and targeted to the right person…” Everyday, people are loaded up with advertisements and sales offers that don’t interest them. They will sift through them for the few that they may use and discard the rest. While it is impossible to personalize advertisements, by only sending mail to those who would be interested in the product being sold, it saves the company time and money and the receiver from advertising burnout. A direct marketing company is in the business of making money for themselves and their clients and this is one way that might save advertising costs while increasing revenue.

Another area that both articles above discuss is online presence. Geller talks briefly about the online advertising as an alternative to traditional television marketing but doesn’t go into much detail other than stating that “Online is great…but we know there’s a lot of business that online can’t get but direct mail can.” This statement does tie into what Russell Parsons discusses in his points on the potential for Internet use standardization across the European Union. Specifically, the General Data Protection Regulation’s stance on consent “and a consumer’s ‘right to be forgotten’”. While it is not yet law, this bill could have a large impact on any direct marketing company that specializes in online advertisement. Many companies, including Facebook and other social media sites, generate profit through advertising revenue, they are able to garner this revenue because they are able to have advertising that is personally relevant to the user that views it. They are able to do that because of software that tracks the type of music, movies, and activities that the user likes and generates a profile for them. While Facebook may not be affected by any regulations, as its users must agree to a legally binding contract in order to use the site—what Parson’s calls “explicit consent”–, this may impact other sites that use banner advertising or a person’s search history in order to target ads to them. Like radio advertising and television commercials, with the changes that digitalization have brought—and the new legislation, as well—even Internet advertising will have to change in one form or another.

The other trends that Geller discusses are targeting “older people” and men. Geller argues that older people not only have more money to spend then younger ones but also are the audience that are more likely to respond to direct mail rather than online advertising. Men, too, she believes are prime candidates for direct mail and are something she expects to be “trending any day”. While both these trends may prove to be on the ball, they are examples of what both articles discuss in terms of audience targeting. Direct marketing companies have known for years that certain demographics are more likely to respond in certain ways than others. Rural residents tend to be more conservative than urban and younger people tend to be more progressive towards technology than older generations are. Like any advice or trends it is usually best to take it with a grain of salt.

2014, it seems, will be a year of challenges. Whether it is diminishing returns on traditional mass direct mail strategies and cold calls, or potential legislation restricting Internet use and advertising, a successful direct marketing company will have to adapt with the times. Whether this is rebranding themselves or changing strategies to employ a more focused marketing campaign or creating a more personal approach that targets those people that are specifically interested in those products, thee will be many opportunities to be creative.