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Direct Marketing Services
First Research, April 2012, Pages: 10
First Research is the leading industry intelligence company that helps sales teams perform faster and smarter, open doors, and close more deals. First Research performs the heavy lifting' by synthesizing hundreds of sources into an easy to digest format that a sales person can consume very quickly to better understand a prospect's business issues.'
Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US direct marketing services industry includes about 3,500 companies with combined annual revenue of about $10 billion. Major companies include Harte-Hanks, Valassis Communications, and Vertis. The industry is fragmented: the 50 largest firms account for about 45 percent of revenue.
Companies in the industry develop advertising materials for direct distribution to consumers by mail or online.
COMPETITIVE LANDSCAPE
Demand is driven by economic activity and corporate profits. The profitability of individual companies depends on their targeting services, creative skills, and marketing ability. Large companies have advantages in economies of scale in database analytics, marketing, and automated operations, which allow them to compete more aggressively on price. Small companies can compete effectively by specializing in a particular industry, geographic market, or service type.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are letter shop services (preparing and sorting mail pieces); printing; mailing list services; concept development; and full direct mail services, which include all of the above. Full direct mail services account for about half of industry revenue; letter shop and print services each account for about 15 percent. Other offerings include fulfillment, sales promotion, and distribution services.
Historically, direct marketing referred to direct mail and telemarketing. Direct marketing can use any medium to reach specific customers, including mail, TV, print, email, banner ads, and billboards. The direct marketing industry is changing as organizations allocate more of their advertising budgets to online marketing.
The most commonly used medium for direct marketing remains direct mail,...
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