Learning
objectives of this chapter are
Ø Direct Marketing
Ø E-commerce/Internet marketing
Ø Relationship Marketing
Ø Quality Marketing
Ø Green Marketing
|
10.1 Direct Marketing: Meaning and Concept
Direct marketing is the
selling products or services directly to the ultimate buyers by mail order or
telephone selling or the Internet rather than through intermediaries. It is the
method of selling directly to the end buyers from the manufacturer without help
of intermediaries or channel members. In direct marketing, an immediate reaction
is expected from customers through different forms such as direct mail,
catalogue, telephone, television, and internet. Recently, direct marketing has
become wide and popular. Marketers use advertising or promotional activities to
contact consumers who, in turn, buy products without visiting a retail store.
Thus, it is the method of selling directly to the ultimate consumers without
involvement of marketing intermediaries.
In short, direct marketing
is the act of selling products or services directly to the ultimate consumers
without the use of marketing intermediaries. In this method, sellers and customers
keep direct contact through different media. Advertisement is a core of direct
marketing because it helps customers to become aware of the products or
services available so as to persuade them to buy directly from sellers or
producers.
Ø Features/Importance
of Direct Marketing
Important features of direct marketing can be
described as follows:
1. Intermediaries free: There are no any intermediaries or middlemen
in direct marketing. In this method, customers directly contact to sellers or
producers to buy products or services through different media.
2. Customer oriented: Direct marketing establishes long-term
profitable relationship with customers. As the producers remain in direct
contact with customers, they make marketing mix keeping the customers at the
center.
3. Several forms: There are many forms of direct marketing such
as direct mail, catalogue marketing, telemarketing, television marketing,
internet marketing, etc. Marketers make direct contact with customers in these
forms of marketing.
4. Direct channel/contact: In direct marketing, producers directly deal
with ultimate buyers. Without the involvement of marketing intermediaries or
middlemen, direct channel/contact is established between producers/sellers and
ultimate customers. The marketers give more emphasis on the wants, needs, and
requirement of each customer as it is one-to-one marketing.
5.
Cost effective: In this method, no middlemen are used so that
direct marketing is cost-effective. Customers also get quality products at a
reasonable price in direct marketing.
Ø Different
forms of Direct Marketing
There are different forms of direct marketing
which are briefly discussed below:
1.
Direct mail and Catalogue marketing
In direct mail marketing, the
mailing list of customers is developed with the help of customers’ list, and
the emails regarding to products or services are sent to potential buyers as per
the mail list, and if they are interested then products are delivered to
ultimate buyers through the post office, courier, and other means. Direct mail
marketing is being used widely to send new products, gifts, clothes, food
grains, books, donation, insurance, etc.
In catalogue marketing,
the sellers or producers first prepare the catalogue of merchandise or products
and sells directly to the customers. It involves selling through catalogue that
is mailed to a selected list of customers or made available in stores. To
avoid printing and distribution costs, the catalogues are being increasingly
made available online.
2.
Telemarketing
Telemarketing is another
form of direct marketing. It is the marketing of the products or services by
the means of telephone calls, typically to potential customers. It involves contacting potential
customers over the phone to sell products or services. The main objective of
telemarketing is to make a sale by the use of a telephone call.
3.
Television Marketing
Television marketing is
another form of direct marketing. It is the marketing of products or services
by the means of the television display or broadcasting, typically to potential
customers. There are two forms of television marketing such as direct response
advertising and home shopping channel. In Nepal, Sky Shop has been doing
telemarketing.
4.
Online shopping
Online shopping is a form
of direct marketing which allows consumers to directly buy product or services
from a seller over the internet using a web browser. It is also known as
e-shopping, e-web store, e-shop, e-store, internet shop, web-store, etc. Online
shopping is conducted through interactive online computer services, two way
systems that link customers with sellers electronically. Daraz and e-sewapasal
are using this form of direct marketing in Nepal.
10.2 E-commerce/Internet Marketing: Meaning
and Concept
E-marketing (also known as
electronic marketing or i-marketing or e-commerce) refers to the application of
marketing principles and techniques via electronic media or more specifically
the Internet. Simply, it is the process of marketing of a brand or product or
service using the internet. E-marketing is a type of direct digital marketing
that uses the electronic device as the marketing communication delivery method. It
is used in a number of ways by organizations and marketers for brand and
customer loyalty building, acquiring or converting customers, company
advertisements, or for communicating promotional offers, and more. For
instance, a company might put a full description of products on the internet or
online or website so that customers look at the online and select the products
or services given on it, and place an order for delivery.
E-marketing is direct
marketing. It is the fusion of information technology with traditional
marketing. It uses information technology in the process of creating, communicating,
and delivering value to customers. It is bigger than a web; it uses the internet to
do one or more of the following functions:
·
To communicate
a company’s messages about itself, its products or services.
· To conduct
research as to the natures such as demographics, preferences, and needs of
existing and potential customers.
·
To sell
products or services online.
In conclusion, e-marketing
is the process of marketing firm’s products or services through the internet.
It helps to build a direct, profitable and long-term relationship between
producers and ultimate customers.
Ø Features/Importance
of e-commerce/internet marketing
Important features of Internet marketing cab
be described as follows:
1. Online selling: Products or services are sold through online
in e-marketing. Producers, sellers, banks, hotels, transport companies, and other
organizations put catalogues of products or services on Internet online, and
customers place demand by looking at such catalogues or websites.
2. Elimination of middlemen/intermediaries: E-marketing is direct marketing so there is
no role of middlemen. Producers or sellers directly deal with ultimate
customers one by one through electronic media.
3. Data depository: E-marketing is online based marketing so millions of data can be stored and kept in electronic media. They can be looked, taken out, or studied whenever needed, and useful information can be retrieved for making a marketing decision.
3. Data depository: E-marketing is online based marketing so millions of data can be stored and kept in electronic media. They can be looked, taken out, or studied whenever needed, and useful information can be retrieved for making a marketing decision.
4. Auto-promotion: E-marketing uses electronic media to put full
details of products or services on the website which automatically acts as a promotional tool. Products or services can be displayed attractively with
amazing graphics, videos, music, and links on the Internet at a lower budget.
5. Global network/alliance: E-marketing uses the Internet-world wide web-
in order to maintain global strategic distribution and promotion of products or
services. Geographical borders do not limit the power of the Internet and as a
result, a company can reach out to a wider audience through the click of a link.
6.
Long-term relationship: With the help of e-marketing, a long-term and
profitable relationship can be built as it is globally connected and faster
than ever before.
7. The Need for electronic devices: E-marketing requires various electronic media
and devices such as computers, telephones and so on. In the lack of such
devices, e-marketing is quite impossible.
8.
Low costs: E-marketing helps a company to reach out to its wider audience using
free tools such as Viber, Skype, Twitter or IMO. So it is cost effective as
compared to traditional marketing.
9.
24/7 online (around the clock) marketing: E-marketing is 24 hours marketing. In
e-marketing, even when business doors close, customers will still be able to
access your information and business products via the Internet.
10.3 Relationship Marketing: Meaning and
Concept
Relationship marketing is
the process of creating and maintaining a value-laden relationship with customers
and stakeholders. It views marketing as an exchange where both buyers and
sellers help to shape the direction and outcome of the product that will be offered
to the market.
Relationship marketing is
a marketing approach that acknowledges the importance of both the buyer and
seller in the marketing process. It is an act of maintaining and establishing a
long-term profitable relationship with customers. All departments of a company
should work as a group with marketing to provide services to the customers.
Also, it focuses on building relationships with various stakeholders such as
employees, investors, shareholders, government, public union, etc. It helps to
increase the reputation of the company and its products or services. It helps
to satisfy customers’ needs, wants and requirements by providing quality
products anytime, and anywhere at a reasonable price. For example, the American
Airline maintains a comprehensive frequent flyer program that rewards customers’
loyalty with the promise of free flights, upgrades, and discounts.
In a nutshell,
relationship marketing is the process of creating and maintaining long-term and
value-laden relationship with customers rather than trying to encourage a
onetime sale. It tries to foster customers’ loyalty by providing exemplary
products or services.
Ø Importance
of Relationship Marketing
First and foremost,
relationship marketing is important because it helps you not only get new
customers but keeps them once you have them. With the growth of the internet
and mobile platforms, relationship marketing has continued to evolve as
technology opens more collaborative and social communication channels. Here are
some other benefits of successful relationship marketing:
1. Enhanced Customer Experience: Most people leave their current brand because
of poor customer service. Relationship marketing, whether through providing
superior customer service or simply listening and responding to feedback on
social media, leaves a good taste in customers' mouths.
2. Better Feedback: Plenty of brands are getting the hint, thanks
to social media: feedback (thoughts or reactions to a product or service) can
make or break a business. Today, you can engage with a brand on social media
and, if they care about relationship marketing, they'll reply. This gives
customers an opportunity to be heard and provides valuable feedback for brands
in areas that might need to be tweaked.
3. More Sales: It is true that when customers are satisfied
with the company and its products then they always prefer to buy from the same
company which in turn increases the volume of sales.
4. Customer retention and loyalty: With the help of relationship marketing,
firms offer quality products and services by keeping the first priorities
to its existing customers which helps to increase customer retention and
loyalty.
5. Long-term relationship: With the help of relationship marketing, a
long-term and profitable relationship can be built with customers and its
stakeholders. Once a good relationship is established with its customers,
they are likely to be connected with the company and its products or services.
6. Word of mouth marketing: Once the relationship is built strongly with
its customers, they are likely to spread the positive word of mouth about the company’s products or services to their close associates. It is one of the most
powerful marketing tools for marketers.
10.4 Quality Marketing: Meaning and Concept
Quality is about meeting
the needs and expectations of customers. It is a critical aspect of a business.
Firms compete on quality, customers search for quality, and markets are
transformed by quality. Quality is the sum of characteristics inherent in the product such as cost, performance, reliability, long-lasting, aesthetics, etc. According to the American Society of Quality
Control- “Quality is the total of features or characteristics of a product or
service that bears on its ability to satisfy stated or implied needs.”
Total quality marketing is
a dynamic idea that goes beyond the currently popular total quality management
approach in solving business problems. Total Quality Management (TQM) is a
system of management based on the principle that every employee must be
committed to maintaining high standards of work in every aspect of a company’s
operations. Good design, good functionality, reliable, durable, and value for
money are the key aspects of TQM. Customers want quality that is appropriate to
the price that they are ready to pay and the level of competition in the
market. Thus, the concept of TQM is implemented in quality marketing as to
fulfill customers’ needs, demands and requirements.
In conclusion, quality is
about meeting the needs and expectations of customers. The application of TQM
in marketing is quality marketing which ensures the quality of products or
services, quality of distribution and quality of after-sales services. It is a
market-driven idea that stresses customer satisfaction as crucial to the
success of a business in a highly competitive, modern business world. The
concept is an enhanced version of the marketing mix--the familiar "4-P
paradigm" in marketing. Thus, by incorporating quality into their product,
price, promotion, and distribution strategy, firms can compete with competitors
and achieve a competitive advantage in the market.
Quality marketing
requires the following tools for quality improvements.
· Quality circle: The quality circle (also known as quality
control circle) is an important tool of quality marketing. This was developed
in Japan in the 1960s with a view to providing suggestions about product quality to
the top level management. Quality circle is a group of 5 to 12 employees
working in the same organization to increase the quality of the products or
services. As experts of the different subject are involved in such a group, it
becomes very effective. In such a group, all employees work together to discuss the product quality issues, find out reasons, and recommend a solution to
the top level management.
·
Training: Training is another tool for quality marketing. All employees of the
organization must be involved in quality improvement activity and they should
be given knowledge of how it can be achieved. The employees must know about what
is quality, what are the aspects of quality, why is it necessary? How can
quality be achieved? Who is responsible for maintaining or increasing quality?
Thus, they should be given regular training about quality.
·
Consumers’ ideas: Another tool for quality marketing is
consumers’ ideas. Quality of products or services should be as expected by the
consumers. Consumers’ ideas are collected and analyzed in order to make new
products or add new features to existing products. As a result, the products or
services become marketable.
·
Strategic role: The marketer should get the opportunity to
play a strategic role to make quality products or services. If such a role is not
available, the quality remains limited in paper or in the advertisement. Quality
should be in the product not just in paper or advertisement.
· Statistical tools: The measurement of the quality of products or
services can be done with the help of statistical tools. They are used to measure the level of quality
of products or services and give regularity of the quality. If quality has been
regularly maintained, the customers feel satisfied and as a result,
organizational success can be achieved.
· Benchmarking: Benchmarking is the process of learning the
best practice adopted by the company’s competitors in terms of products or service
or process. From this technique, exceptionally good quality methods of other
firms can be learned and imitated for quick and quality improvement in quality
marketing.
Ø Importance
of Quality Marketing
Quality marketing is the
demand of time. Strategic commitment, the involvement of employees, quality
materials, new technology, improved method, and group efforts are major
requirements for quality marketing. Quality products help to maintain customer
satisfaction and loyalty and reduce the risk and cost of replacing faulty
goods. Companies can build a reputation for quality by gaining accreditation
with a recognized quality standard.
1.
Meet Customer Expectations
Regardless of what
industry you’re involved in, your customers aren’t going to choose you solely
based on price, but often on quality. In fact, studies have shown that
customers will pay more for a product or service that they think is made well
or exceeds the standard. Your customers expect you to deliver quality products.
2.
Quality is Critical to Satisfied Customers
If you fail to meet
customers' expectation, they will quickly look for alternatives. Quality is
critical to satisfying your customers and retaining their loyalty so they
continue to buy from you in the future. Quality products make an important
contribution to long-term revenue and profitability. They also enable you to
charge and maintain higher prices. Quality is a key differentiator in a crowded
market. It’s the reason that Apple can price its iPhone higher than any other
mobile phone in the industry – because the company has established a long
history of delivering superior products.
3.
Establish Your Reputation
Quality reflects on your
company’s reputation. The growing importance of social media means that
customers and prospects can easily share both favorable opinions and criticism
of your product quality on forums, product review sites and social networking
sites, such as Facebook and Twitter. A strong reputation for quality can be an
important differentiator in markets that are very competitive. Poor quality or
product failure that results in a product recall campaign can lead to negative
publicity and damage your reputation. If your business consistently delivers
what it promises, your customers are much more likely to sing your praises on
social media platforms. This not only helps drive your brand awareness, but it
also builds your company’s strong reputation, which in turn can boost the sales
of your products or services.
4.
Meet or Exceed Industry Standards
Adherence to a recognized
quality standard may be essential for dealing with certain customers or
complying with legislation. Public-sector companies, for example, may insist
that their suppliers achieve accreditation with quality standards. If you sell
products in regulated markets, such as health care, food or electrical goods,
you must be able to comply with health and safety standards designed to protect
consumers. Accredited quality control systems play a crucial role in complying
with those standards. Accreditation can also help you win new customers or
enter new markets by giving prospects independent confirmation of your
company’s ability to supply quality products.
5.
Manage Costs Effectively
Poor quality increases
costs. If you do not have an effective quality control system in place, you may
incur the cost of analyzing nonconforming goods or services to determine the
root causes and retesting products after reworking them.
10.5 Green Marketing: Meaning and Concept
The term “Green marketing”
came into prominence in the late 1980s and early 1990s. Green marketing (also
known as environmental marketing or ecological marketing) is the integrated
marketing business practices and products that are friendly to the environment.
It is the holistic management for identifying, anticipating, satisfying the
requirements of customers and society in a profitable and sustainable way. It involves
more than simply presenting an environmentally friendly product. It also speaks
to, and actively promotes, a company’s processes and business practices as
having low environmental impacts. Some business practices, such as reducing
production waste or energy costs, are good for both the environment and
business profitability.
According to the American Marketing
Association-“Green marketing is the marketing of products that are presumed to be
environmentally safe.”
For example, No Polythene carry bags for free:
Forest and Environmental Ministry of India has ordered the retail outlets like
BigBazaar, More, D-Mart, etc. that they could provide polythene carry bags to
customers only if customers are ready to pay for it.
Green marketing, thus, refers to holistic
marketing concept wherein the production, consumption, and disposal of products
or services happen in a manner that is less detrimental to the environment with
growing awareness about the implications of global warming, non-biodegradable
solid waste, the harmful impact of pollutants, etc. Both marketers and consumers are
becoming increasingly sensitive to the need to switch into green products and
services.
Ø Importance
of Green Marketing (Causes of adopting green marketing)
Due to the following reasons, green marketing has been given more importance in today’s business world.
1. Grab opportunities: Most firms adopt green marketing to grab
golden opportunities. For example, Coke has used its bottles as recyclable in
order to reduce the costs and wastes.
2. Government pressure: Most firms adopt green marketing due to
government pressure. The government provides clear directions to adopt green
marketing to protect consumers and society.
3. Competitive pressure: Most firms use green marketing due to
competitive pressure. In many cases, firms observe competitors promoting their
environmental behavior and attempt to evaluate this behavior.
4. Social responsibility: Most firms adopt green marketing to fulfill
social responsibility. Firms realize that they are a member of the wider community
and therefore must behave in an environmentally responsible way.
5. Costs and profits related issues: Firms may also use green marketing in order
to reduce their costs and maximize their profits. The firms develop the most effective
production process that not only reduces wastage but also reduce the costs.
Review/Important Questions
Brief Answer Questions
1.
Define direct
marketing with some examples.
2.
Give the
meaning of green marketing. Write any two importance of it.
3.
Show your
acquaintance with the term ‘e-marketing’.
4.
What is
relationship marketing?
5.
What are
components of green marketing?
Short Answer Questions
6.
What is direct
marketing? Explain the importance of direct marketing in the modern world.
7.
What is
e-commerce? Explain the role of e-commerce in today’s business world.
8.
What is
relationship marketing? Why is it given more importance in the present day
business world?
9.
What do you
understand by quality and explain the importance of quality improvement in marketing?
Comprehensive Answer Questions
10.
What are the
emerging concepts in marketing? Explain any two recent developments (emerging
concepts) in the field of marketing.
THANK
YOU!
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