This is usually the most costly tool but is one of the most effective tools in the promotional mix. It is effective since it builds a long-term relationship between the client and employee that will continue coming back. This is of great benefit especially when dealing with clients that spend large amount of cash. The client could want a hotel for fifty people or he or she might be buying vehicles for each of his 30 businesses. Cultivating this relationship will increase the chances of future opportunities if his or her expectations are met.
However, this method does involve some risks. The client might decide that he or she does not need the services or products anymore thus causing the company to lose money. Companies invest heavily in this method take on greater risk since they depend on the cultivation of a relationship with a client that could falter eventually. Direct Marketing is comparable to personal selling.