A firm outsources many of its value chain activities. Compared to a firm that does everything in-house this is likely to incur
Answers
It enables promoting products or services that might not be known to consumers. Products or service with a sound value proposition, matched with an attractive offer, supported with effective communication, delivered through a suitable direct marketing channel and targeting the relevant customer segment can result in a very effective cost of acquisition. Relative to other channels of distribution (say retailing) direct marketing as a practice principally relies on the proposition, offer, communication, choice of channel and the target customer and so less dependent on the brand strength. Despite the proven ability of direct marketing to generate measurable results, most companies continue to use general or branding advertising to market their products or services.