Emerging trends in direct marketing presented at CADM education day

The 6th Annual Bob Stone Education Day was an eye opener for direct marketers. This annual event is sponsored by the Chicago Association of Direct Marketing (CADM). This years focus was on the hottest trends in direct marketing.

Some of the presenters included, Ron Jacobs, President of Jacobs & Clevenger, Susan K. Jones, Ferris State University and the Callahan Group, Zain Raj, EVP and CMO of RSCG Worldwide – Chicago, Dr. Debra Zahay, Axciom Corporation and Professor at Northern Illinois University.

Changes in technology, demographics and lifestyles are forcing direct marketers to adopt new methods. Here are some the trends that this group identified.

Globalization of Marketing - The internet has created a global economy. Any company with a web page is now marketing themselves world-wide. Most publications have on-line editions. An advertisement in a magazine, newspaper or trade publication will likely be seen in foreign countries. Huge direct mail markets have opened in Asia and Europe. China is the biggest new market for E-Bay. Companies need to plan how they will participate in global marketing.

Diffusion of Media – Mass media is dead. Messages are being delivered to smaller and smaller segments. We have hundreds of TV channels that target special interests, niche magazines that are versioned, personalized direct mail and e-mail that speaks to the recipient one to one.

Marketing to Consumer Power – Technology has shifted the power from the marketer to the consumer. The Do-Not-Call list, permission based e-mail and direct mail preference files have forced marketers to adapt. Consumers are telling them who, what, where, when, and how much they can market to them.

Multi-Cultural Marketing – The Hispanic market now comprises 30% of the U.S. population. In major markets like New York, Chicago and L.A., one half of the population is of color. The Asian market is the fastest growing, best educated and most wired of minorities. Over one million businesses in the U.S are owned by Asians. The challenges of marketing to cultures has prompted many advertising agencies to specialize in cultural marketing.

Neural Marketing – Relevance is the key to successful direct marketing. With neural marketing, different offers can be delivered based on data knowledge. Knowing a consumers favorite team, hobby, car or vacation spot can enable you to make an offer that surprises or delights the recipient.

Evolution of Testing – Marketers are testing 100’s of offers. Enhanced analytics have made it easier. Testing through e-mail has made it less expensive and faster to change copy, versions and offers.

Multi-Channel marketing – Businesses that provide storefronts, catalogs, web stores and a sales force need to accept the multi-channel approach. Let the customer choose the channel they prefer. Cross sell all divisions. Include multiple methods of response on all printed materials.

Direct Marketers will become Brand Managers - DMers understand the needs of consumers and think of them as human beings. They are used to communicating with them by name. They are use to showing results. CEOs are looking for accountability with their brand…not just awareness. That’s what direct marketing delivers. The brand is not built on awareness, but on the experience.

Direct Marketing is getting more complicated – Database management, CRM, statistical analysis are just some the competencies needed in direct marketing. There are now 14 skill areas that are required to be well versed in DM. It’s a challenge to stay current.

Those who do stay current are in the drivers seat. They control the database. They have the knowledge of the customer. They control the whole marketing process.