Published by MBA Skool Team, Last Updated: September 16, 2016
What is Direct to Consumer?
Direct to consumer marketing is defined as promotion of product directly from manufacturer to consumers without involving the intermediaries in the process. Direct to consumer marketing is useful for SME (Small and Medium Enterprises) as they have marketing budget constraint and needs brand awareness. Direct to consumer increases direct interaction with end consumers thus gives an idea about needs, wants and expectations of consumer. Direct to consumer marketing can create a lasting effect on customers than any other forms of promotion and can also help in building strong customer relationships.
Direct to consumer is more effective on targeted customers. So a thorough market research must be conducted before selling directly to consumers and customers must be segmented on basis of age, demographics and other parameters and then targeted as per their preferences.
There are various ways of doing direct to consumer marketing such as door to door marketing which is carried on by marketing representatives of the companies. Also cold calling a list of customers and direct mail marketing to targeted group of individuals are types of direct to customer marketing. Direct to customer marketing has very low conversion rate and customers are generally irritated by tele-marketing calls and promotion mails. So a thorough market research and targeted customers can give exceptional results. Do not disturb and mark as spam options are preventing sellers to reached desired customers. Thus the use of direct to consumer marketing can lead to a strengthened brand image and increase customer knowledge.
Hence, this concludes the definition of Direct to Consumer along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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