ROI are three letters which represent the key metric for analyzing any marketing idea. ROI stands for return on investment. Let's assume you invest $10,000 in a given marketing project. Coming back out of that project is $15,000 in sales. Hence, the ROI is 50%. Keep in mind this $15,000 is sales and not revenue. The 50% ROI is not the equivalent of 50% profit margin on those expended marketing funds.

Marketing falls into two general arenas. The first is mass marketing. This is when the business broadcasts its message far and wide. Any and all may hear it, and there is no focus regarding delivery of the message. The second form is called direct marketing. This entails crafting a specific message and attempting to deliver it with laser focus to a smaller defined group.

Traditionally, direct marketing was accomplished solely from regular snail mail. Direct marketing campaigns would typically include avenues like postcard marketing. Ensure you select a good printer or you might be about to accidentally send out a postcard mailing. Postcard printing can be done quite economically. Efforts can be as basic as print greeting card bundles during the holiday season. This regular mail avenue still does provide great benefits for appropriate businesses.

For other businesses there now are many new modalities for transmitting a direct message. Examples include e-mail, fax and text messages. Text messaging appears to now be a superior method especially when pursuing a younger demographic. Whichever technology is employed, there are common direct marketing rules which must be followed.

The first rule is to target the right customers. Mailings or other campaigns arriving to uninterested customers certainly will not produce attractive ROI. Prior to initiating a direct mail campaign of any variety it is critical to know exactly who your market is. Additionally, it is desirable to know the levers which will move this demographic to action.

Assuming you are targeting the right recipients, it then becomes paramount to deliver an effective message. The words contained in your copy are obviously important. However, also critical is the colors and design of the given piece of communication. If the recipient's interest is not piqued up front, then ROI will be sorely disappointing.

Most importantly, a business must be able to measure ROI to begin with. If you do not have tracking mechanisms, then it becomes impossible to ascertain which revenue emanates from which campaign. This equates to operating in the dark. A business owner who has no clue as to ROI is unable to effectively select the appropriate avenue.

If you are solely engaged in mass marketing, then you are sending a message to many unreceptive parties. A focused direct marketing component is required within any overall strategy. Study who your customers are. Decipher what appeals to them and craft a targeted direct marketing campaign and your ROI will bring a large smile to your face.