MARKETING MODEL

Marketing Model



Direct Marketing for increased customer satisfaction

When goods are sold directly to the consumer without passing through the hands of wholesalers or retailers. Direct marketing can take the form of telephone sales, mail order sales, door-to-door sales, and sales obtained through responses to television advertising which refers customers to the manufacturer of goods. In some countries direct sales are extremely popular. Amway, Avon, and Mary Kay have international reputations in the direct sales arena.

Theory of Direct Marketing model

Assuming that all local laws are followed, direct marketing may be a way of testing a foreign market before taking the plunge into full overseas operations. In fact, it may be found that in some organizations direct marketing efforts can take the place of some current international activities with little or no reduction in the bottom line.

Direct marketing is sometimes confused with direct mail. It is not a medium but a marketing technique, comprising an interactive system of marketing, which uses one or more communications media (direct mail, print, telephone, broadcast) for the purpose of soliciting a direct and measurable consumer response. Its objective is to make a sale or obtain a sales lead inquiry.

Direct marketing is a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers 'directly,' for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors, retailers or wholesalers. Therefore - 'direct' in the sense that the deal is done directly between the manufacturer and the customer. As mentioned above, 'direct' also in the sense that marketing communications are targeted at consumers by the manufacturers. For example, a brand that uses channels of distribution would target marketing communications at wholesalers/distributors, retailers, and consumers, or a blend of all three. On the other hand, a direct marketing company could focus upon communicating directly with its customers. Direct marketing and direct mail are often confused - although direct mail is a direct marketing tool.

There are a number of direct marketing media other than direct mail. These include (and are by no means limited to):

Inserts in newspapers and magazines.

Customer care lines.

Catalogues.

Coupons.

Door drops.

TV and radio adverts with free phone numbers or per-minute-charging.

The Internet and New Media.

The Internet and New Media (e.g. mobile phones or PDA's) are perfect for direct marketing. Consumers have never had so many sources of supply, and suppliers have never had access to so many markets. There is even room for niche marketers - for example Scottish salmon could ordered online, packed and chilled, and sent to customers in any part of the world by courier.

Many companies use direct marketing, and a current example of its use, as part of a business model, is the way in which it is used by low-cost airlines. There is no intermediary or agent, customers book tickets directly with the airlines over The Internet. Airlines capture data that can be used for marketing research or a loyalty ...