Answer to Question 1
Direct marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location. It typically makes use of postal mail in the form of print materials (e.g., direct mail and catalogs) or in digital/electronic form such as DVDs and CD-ROMs. Indirect marketing includes the use of intermediaries in the channel of distribution, such as distributors, dealers, and retailers. The marketer's purpose with direct marketing is to establish a relationship with a customer in order to initiate an immediate and measurable response. If a marketer has an up-to-date database, direct advertising is appropriate because the firm is provided with a number of assets, including the ability to direct advertising efforts to those people who represent the best prospects for the company's products or services, offer varied messages to different groups of customers, create long-term relationships with customers, enhance advertising productivity, and calculating the lifetime value of a customer or prospect. In situations where there is no such database, indirect advertising is appropriate.
Answer to Question 2
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