StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Wholesaling/Retailing and Direct Marketing - Article Example

Cite this document
Summary
Another channel for marketing that is commonly used is the internet. Direct marketing retailers now prefer using the internet because it has the potential to cut costs for…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Wholesaling/Retailing and Direct Marketing
Read Text Preview

Extract of sample "Wholesaling/Retailing and Direct Marketing"

Multi-channel management in direct marketing retailing Traditionally, direct marketing retailers have used call centers and mail order as channels for marketing. Another channel for marketing that is commonly used is the internet. Direct marketing retailers now prefer using the internet because it has the potential to cut costs for the retailer. This does not mean, however, that direct marketing retailers have abandoned the use of call centers entirely. In this article, I look at the benefit of using various channels as opposed to using just one channel.

The article also investigates the benefits that consumers associate with various channels of marketing.This article is of interest to me because it investigates the benefits that direct marketing retailers get when they use various channels of marketing. There has been a shift by direct marketing retailers towards orders that are Internet-based. They have discovered that using the internet is cheaper when compared to a call centers which costs a lot of money to maintain. The internet channel is also convenient and available.

Information is also readily available. The article states, however, that internet usage has not entirely eliminated the other channels of direct marketing. The author explores the advantages of the internet as a channel for marketing as opposed to other channels. Studies that have been conducted to establish the various factors that influence the type of channel that a consumer chooses to use have suggested five factors that influence consumer behavior (Balasubramanian 12). The author argues that the choices made by the consumer are influenced by psychological factors.

The article focuses on the costs that come with the choice of marketing channel. The focus is on the choice of channel that is used especially in cases where remote channels are the only ones applicable. These remote channels, the article states, provide products whose prices are the same regardless of the distance involved. As such, the channels used are determined by other factors other than the prices.According to the author, the cost of operating a call center is relatively higher than that of operating the internet.

When using a call center, the firm will incur costs in dialing up. A lot of time is also spent when waiting for the call to be picked, when providing the client with information, as well as the time needed to verify the information provided. The internet, therefore, is more convenient many homes have access to the internet. The client only requires logging into the home page of the retailer, navigating the website before logging out. This saves both the consumer and the retailer time and money (Ozimek 70)The number of items in the shopping basket also determines the channel that the consumer decides to use.

Studies conducted show that whenever there are many items in the shopping basket the consumers chose to use the internet channel as opposed to the call center option. This decision is influenced by the fact that it takes less time to enter orders into the shopping cart when using the internet channel than it is when using the call center channel. It is tedious to also read the item names to the associate at the call center and to wait for a confirmation. When using the internet channel, it is faster and less tedious to enter the various items into the consumer’s cart.

In conclusion, it is not advisable to do away with the call center channel as it is the recommended channel for direct marketing retailers to provide customer support over an extended period of time.Works citedBalasubramanian, S., Raghunathan, R. and Mahajan. "Consumers in a multi-channel environment: product utility, process utility and channel choice." Journal of Interactive Marketing (2005): 12–30.Ozimek, Jane Fae. " Multi-channel management in direct marketing retailing: Traditional call center versus Internet channel " Journal of Database Marketing (2010): 70–77.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Wholesaling/Retailing and Direct Marketing Article”, n.d.)
Wholesaling/Retailing and Direct Marketing Article. Retrieved from https://studentshare.org/marketing/1620783-wholesalingretailing-and-direct-marketing
(Wholesaling/Retailing and Direct Marketing Article)
Wholesaling/Retailing and Direct Marketing Article. https://studentshare.org/marketing/1620783-wholesalingretailing-and-direct-marketing.
“Wholesaling/Retailing and Direct Marketing Article”, n.d. https://studentshare.org/marketing/1620783-wholesalingretailing-and-direct-marketing.
  • Cited: 0 times

CHECK THESE SAMPLES OF Wholesaling/Retailing and Direct Marketing

Strategic Marketing of The North Face

To overcome the difficult situation, the North Face has to introduce new marketing plan which include: aggressive advertising campaign, improvement of customer relations, and price skimming.... The aim of strategic marketing is to meet the needs and expectations of customers, and the organization's ability and capacity to satisfy them.... The North Face is one of the companies which develops unique strategies and marketing approach in order to compete on the market and increase sales....
7 Pages (1750 words) Case Study

Setting the Product and Branding Strategy

This chapter is devoted to the marketing and management of services.... They influence significantly the development and implementation of the marketing strategies for the service firms and pose certain challenges.... marketing strategy elements for the services, besides traditional four Ps, include also people, physical evidence and process.... Three main tasks the marketing of services should fulfill are differentiation of the offer from the competition, effective management of the service quality, and improving the employees' productivity....
9 Pages (2250 words) Essay

Retailing and Wholesaling

Smaller companies, using technology and direct and database marketing approaches, can compete not only effectively, but in many cases more efficiently than can large companies.... It is these basic marketplace assumptions that are being challenged by direct and database marketers (Dunne and Lusch 2007).... Professor Leo Aspinwall advanced the depot theory to explain some of the reasons for the changes that have occurred in the physical handling and storing of goods, the growth of manufacturers' wholesale branches, and the changing position of general-line wholesaling....
10 Pages (2500 words) Essay

Marketing Management

The essay entitled "marketing Management" is focused on the issues of marketing.... According to the text, a marketing concept entails the pre-production activities related to a product, selling and marketing it extensively when it's on the shelves of the retail outlet.... hellip; 'Throughout the evaluation of the marketing concept, the basic notion that competitive advantage can be created by giving what they want has remained unchanged....
10 Pages (2500 words) Essay

Strategic Marketing Plan for the Reiss Company

The strategic plan should define the main steps for the company in its desire not to keep the marketing share it possesses at… The importance of the marketing plan for any company is in the fact, that it defines the strategic company course for the higher profits and more stable marketing position.... Any strategic marketing plan should include the two major components: the first one is how the company will behave in the competitive environment and the second one is what daily tactical operations should be involved into the strategic marketing plan implementation....
19 Pages (4750 words) Essay

India and Its Retail Sector: Wal-Mart in the Political Sphere

This paper will focus on India and its retail sector analyzing the opportunities, it presents for Wal-Mart.... The retail industry in India has some inbuilt favorable factors particularly in the political, legal and economic spheres, which may facilitate foreign-invested retail firms' like Wal-Mart's entry....
6 Pages (1500 words) Essay

Business Plan Startup Company: ServiKali

A paper "Business Plan Startup Company: ServiKali" reports that marketing strategies differ from one organization to another as well as depend on the situation.... hellip; The marketing strategy of an organization can be defined as a process that facilitates optimal utilization of the resources available so as to achieve organizational objectives of earning the profit and increasing market share.... Another important aspect of marketing strategy is to gain competitive advantage....
6 Pages (1500 words) Thesis

Unit 3 Assignment-Marketing Strategy (Asus Computers)

Distribution mix The company has a two-dimensional distribution strategy that includes retailing and wholesaling.... The company also offers certain services that have marketing Strategy for ASUSTek Computer Inc.... deals with a number of electronic products, especially computer materials....
2 Pages (500 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us