Euli Chaves wants to sell difficult-to-find Brazilian grocery items to U.S. buye

Question

Euli Chaves wants to sell difficult-to-find Brazilian grocery items to U.S. buyers via a mailed catalog. He has been informed that a 2-percent response rate to direct mail is considered good, but he needs at least a 4-percent response rate (to make a purchase) in order to earn the profit margin he seeks. Is a 4-percent response rate achievable, or should he forget direct mail and switch to general advertising to sell his products?

Stick with direct mail. He can get 4% with direct mail if he targets his product and offers to a narrow target audience with a high quality mailing list of those people.

He should switch to general advertising because direct mail cannot product a 4% response rate.

He should switch to general advertising because it is mass marketing to millions of potential buyers.

He should stick with direct mail as his promotion media because it is so cheap.

Stick with direct mail. He can get 4% with direct mail if he targets his product and offers to a narrow target audience with a high quality mailing list of those people.

He should switch to general advertising because direct mail cannot product a 4% response rate.

He should switch to general advertising because it is mass marketing to millions of potential buyers.

He should stick with direct mail as his promotion media because it is so cheap.

Explanation / Answer

Ans.

Stick with direct mail. He can get 4% with direct mail if he targets his product and offers to a narrow target audience with a high quality mailing list of those people.

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