Direct Marketing as a Tool to Eliminate Middlemen in the Promotion Process - Essay Example

Internet and Direct Marketing Contents Internet and Direct Marketing Contents 2 Introduction 3 Discussion 3 Conclusion 7 References 8 Introduction Marketing is one of the critical functions of a business organization. It identifies customer needs, determines the target markets, and designs appropriate products, services and programmes to serve these markets. Overall corporate success hinges essentially on how effectively the marketing function of an organization is managed. This is due to the fact that marketing management provides vital means to interact with consumers, competitors and society at large, and to influence the outcome of a business operation. In this regard, it can be said that direct marketing has evolved as an important tool for organizations which seeks to eliminate the presence of “middle man” from the promotion process of an organization. Direct marketing acts as a tool by which marketing messages of organizations can be directly provided to potential consumers. It comprises newspaper advertising, door-to-door selling, and also selling over the telephone by organizations. It involves selling goods and services directly to customers rather than through retailers. Discussion Zenith Electronics LLC is a major producer of electronic consumer products, including television receivers, radios, and stereo equipment. Each of these product lines is the responsibility of a product manager. The product line of modular stereo systems of Zenith is called the Allegro line. Each system consists of an AM-FM tuner/amplifier plus phonograph plus tape deck and separate speakers. The company offers 13 different models that sell in the $ 150-$ 400 range. A modular stereo system differs on the one hand from stereo consoles, in which all of the components are built into one cabinet, and on the other hand from audio component systems, where consumers select unrelated but compatible components to make up the systems they want (Chaffey et al, 2012, p. 51). The company also produces a line of stereo console units, but the console market is in a state of decline as consumers switch to smaller sound systems. Zenith does not produce audio components but has considered it from time to time. The main goal of the company is to increase its market share and profitability in the modular-stereo-system market. Direct marketing strategies of an organization should begin with a reliable database of consumers (Tapp et al, 2014, p. 71). The strategies with regard to direct marketing must be able to build consumer value through the adoption of an approach that is considered as more personalized and also more customized for service and product offerings. The distribution processes of the company should be designed in such a way so as to meet the demands of consumers. It should also be able to build the loyalty of consumers. The existence of a consistent consumer profile is very much important for direct marketing strategies of the company because this provides a description of the dominant target markets for the company (Broderick and Picton, 2005, p. 49). The consumer database of the organization provides quantitative information regarding the characteristics of consumers and prospects. These persons can be considered by the company as willing, ready, and having the potential to purchase the products that are offered by the company. The company is in the process of collecting two types of information from those persons who tend to visit its site such as personally identifiable information and non-personally identifiable information. Personally identifiable information comprises of address, name, email address, telephone number, and company name. Such information identifies consumers in a personal manner (Thomas and Housden, 2011, p. 37). The company collects the mailing address, first name, last name and also billing information of those consumers who have purchased products of the company through its site. The registration details of any hardware or a product that has been purchased from Zenith is collected by the company and this information is tied against the name of that specific consumer. The company also collects information regarding email address, billing information, first name, last name, and mailing address of persons who have downloaded contents from the company’s website. If any consumer contacts the company regarding any question, the company collects personal information of such consumers also. If any consumer participates in sweepstakes or a contest that is conducted by Zenith, the information regarding date of birth, email address, first name and last name of such consumers is also collected by the company and stored in its database. Such efforts by the company facilitates in building the consumer database of the organization which can have a large influence on the direct marketing strategies of the organization. The company should try to reach such consumers through private mailings and phone calls. It should also make an attempt to reach such consumers on a mass-media basis such as through magazine ads and infomercials. There are numerous prospects of direct marketing such as targeting and segmentation, shopping convenience, geographical range, technological advances, lower operating costs for organizations, and lower prices to consumers. Target marketing may be considered as the decision by an organization to distinguish the different groups that comprise a market and to develop corresponding products and marketing mixes for each target segment. Target marketing is increasingly taking the shape of micro-marketing nowadays, where marketing efforts are tailored to the specific requirements of customer groups on local basis. The ultimate form of target marketing is customized marketing, where the product and marketing efforts are directed to meet the requirements of a distinct consumer or buyer organization. Market segmentation is the act of subdividing a market into distinct groups of consumers on the basis of geographical area, needs, psychological and behavioural factors. The logic of market segmentation is the idea that a single product does not usually appeal to all consumers. There are also certain problems associated with direct marketing such as low response rates, image problems, intense competition, and ethical and privacy issues. The direct marketing system of the organization Zenith Electronics is largely based on two proven principles. First it considers that using of valuable information that is collected by the company is of utmost importance in the current environment of scepticism. It also considers that in direct marketing it is very important to provide prospects with all information that is available to the company to overcome scepticism and objections that are raised by them. Second the promotional campaigns of the company must be considered as value added marketing where it tends to provide value through free information and free gift. In the world of today where technology has occupied an important place, retailers have resorted to social networking sites as a tool for marketing their products to a wide range of customers. The approaches and tools of organizations have changed a great deal with respect to interaction with consumers after the emergence of social media. In this regard it is of utmost importance that Zenith learns to apply the uses of social media in a way that would be consistent with their plan of business. The main competitors of Zenith in the modular stereo system market are Panasonic, Sony, General Electric, and Electrophonic among others. If the company tries to gain competitive advantage over its competitors, it must focus on the uses of social media marketing in this regard. Social media has made a huge progress from simply acting as a means to connect individuals with their friends and family. It has become a useful means through which consumers are able to learn new facts regarding their preferred companies and the services and/or products they sell. The company Zenith Electronics must focus on using these sites to its benefit (Blythe, 2011, p. 63). The organization can reach diverse consumers through the use of social networks which mean that most of the target markets can be reached by the company through the efficient use of social networks. This also acts as a platform through which the company can promote their products and brands to potential customers. The company should focus on becoming a want and a need to many internet users. The company should consider internet marketing as that platform where the consumers of the company mostly reside. The company must follow a strategy to be present everywhere with regard to consumers. In this regard there is no better way than internet marketing where the tracking of a wide range of customers can be made in a very easy way. Conclusion The company Zenith Electronics should focus on the direct marketing tools such as phone calls to consumers and private mailings. Phone calls to consumers by the organization may not result in higher sales for the company but it is considered as essential for the efficient utilization of the database of the organization. It will inform the consumer regarding the product if not result in sale of products for the organization. The company should also follow the mass-media basis of direct marketing such as magazine ads and infomercials. These may result in more knowledge to consumers regarding the company’s products or services. The company at the same time should also focus on internet marketing as a means to increase its performance. In the world of today, technology has occupied an important place and so it is of immense importance for the company to focus on social networking sites as a tool for marketing its products to a wide range of customers. References Blythe, S., 2011. E-Commerce law around the world. London: Routledge. Broderick, A. and Picton, D., 2005. Integrated Marketing Communications, 2nd Edition. London: Prentice Hall. Chaffey, D., et al, 2012. Internet Marketing: Strategy, Implementation and Practice 5th Ed. London: Financial Times Prentice Hall. Tapp, A., et al, 2014. Principles of Direct & Database and Digital Marketing, 5th Edition. London: Financial Times Prentice Hall. Thomas, B. and Housden, M., 2011. Direct and Digital Marketing In Practice. London: A and C Black Publishers Ltd. Read More