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Topic: Advertising/PR

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This question has been answered, and points have been awarded.

B2b Direct Marketing Or Advertising

Posted by Anonymous on 125 Points
This is actually a follow up to a list broker question I just asked.

Is there are rule of thumb when determining when to use direct marketing vs. advertsining in B2B marketing? Here's why I ask: I know database information and in particular contact information degrades fairly quickly but I believe that to effective conduct a B2B campaign (through diredt mail) you need to have an accurate contact name. I have always done that through telemarketing ( just calling to verify the address and contact name) but that is only a viable alternative with small numbers of targets since calling 10 - 20,000 companies is not cost effective.

So is there a point when you have to say that your target market is too large to conduct a direct marketing campain and your money would be better spent on trade journal placements or advertising? I'm not considering e-mail.

Thanks for your feedback.


  • Posted by MonMark Group on Accepted
    I think you need to look at ROI. What does it cost in both dollars and in time to use DM. If you have never before advertised, and you consider CPM vs present DM costs, which would be more cost effective.

    In each issue, you will have to pay close attention to your responses per dollar. Although you didn't ask...I strongly believe that your marketing strategy within certain industries (Trades), include trade-show and/or industry participation. Become a "known expert" in the industry. Send editorial to the journals, that are truly informational and important to the industry, not just to hype your company. Develop a "White Paper" and include the link in your advertising. Send them to your website, register with personal/company information, and develop a hot-contact list. I truly believe that you should develop a marketing program and strategies that have impact for you within the target industries. Just DM and just advertising can work, but a marketing plan helps you to ensure that your advertising works better.

    I am not saying you do not have a marketing plan. You may, and it includes DM and advertising. But, in case you don't...I thought I would mention it.

  • Posted by Peter (henna gaijin) on Accepted
    Well, it varies based on your goals. if the only goal is to increase sales, direct mail will likely be high on your list. If you also want to build brand awareness, then targeted advertising would be good. Also, the people who respond to advertising could be added to your internal list of who to market to, so that is an added benefit.

    Some notes:
    1) even if you don't have the name, direct mail can be effective. Less effective than having a person's name, but still likely cost effective
    2) direct mail and advertising can be worked together, to increase the effectiveness of both (synergy).
  • Posted by telemoxie on Accepted
    I think another question you might ask is, "How can I segment that list of 20,000 prospects to focus on my best prospects?"

    It may be that your most cost-effective solution is to have a mix of promotion and advertising for the masses, a postcard to your "B" prospects, and a sustained "call, mail, call" type campaign for the prospects in your "sweet spot".
  • Posted on Accepted
    I am afraid it's not an "either... or..." situation. Direct Marketing is not an alternative for advertising! Both has its capabilities and limitations.

    Advertising brings about a certain 'emotional connect' with your Target Audience for your brand. It also is about changing attittudes. If i think IBM made only 'boxes' then the advertising tells me it also has world class software solutions. It might not have changed my 'behaviour' by making me purchase the product immediately. But it certainly puts IBM in my consideration set so that when i need a similar product, i will check it out.

    Direct Marketing is more 'action' oriented. It aims at changing behaviour patterns along with attittudes.

    So, if your immediate need is to bring in the sales, allocate a larger share of the budget to DM than Advrtising. But also do advertise to create the credibility around the brand which will help you in converting the leads that your Direct Mail Campaign will generate.

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