Direct Marketing and Internet Marketing - Essay Example

Direct Marketing and Internet Marketing Name Name of Institution Direct Marketing and Internet Marketing Introduction Direct marketing and internet marketing are marketing methods that are gaining importance in a world that is changing at a fast pace. The importance arises from the fact that the methods allow businesses to communicate with potential and existing clients and cultivate long-lasting relationships. Mullin (2002), defines direct marketing as the delivery of marketing messages to customers in a format that is favourable to the customer and in a way that does not involve intermediaries. At present, customers have numerous choices and expect individual attention and respect from the creators of selected products and services. Direct marketing is a means of ensuring that these needs are catered to. On the other hand, internet marketing leverages information technology to achieve marketing communication objectives that are the same as the ones for direct marketing. This paper concentrates on the application of direct marketing and internet marketing to improve marketing outcomes at Vodafone Australia. Company Overview Vodafone Australia is the ranked third behind Optus and Telstra in firms that operate mobile networks. According to Michael (2012), the firm faced considerable challenges in 2010 due to its failure to satisfy the needs of its exploding customer base. This was the period when the sales of smartphones picked up, causing a breakdown in Vodafone’s network that had not expanded to meet the demand. Michael (2012) notes that the firm lost 554,000 customers in 2011 alone, with the firm making considerable financial losses. In recent years, the firm has implemented a turnaround strategy that has achieved relative success. The firm’s total customers rose to 5.44 million in 2015, with the company reporting increase in revenue (Ramli, 2016). According to Adhikari (2016), Vodafone’s rebound can be attributed to the rebuilding of its network, an expanded retail network, strategic partnerships, and comprehensive efforts to salvage the Vodafone brand. The next logical step after the turnaround will be efforts to challenge the two leading firms by retaining the existing customer base and attracting clients from Telstra and Optus through marketing campaigns. This paper argues that direct marketing and internet marketing can improve the marketing outcomes for Vodafone. Direct Marketing As stated, direct marketing involves sending a message to current and potential consumers in a way that is desirable to the consumer and without the involvement of intermediaries (Mullin, 2002). Direct marketing is a potent tool for businesses, and its advantages include its low costs, the creation of customer relationships, targeting small groups, and high efficiency and speed (Kotler et al., 2015). It is evident that the first step that should be undertaken by a firm seeking to leverage direct marketing is the creation of a database of both the existing and potential clients (Kotler et al., 2015). In the case of Vodafone, the firm is in an advantageous position given that it offers services that require clients to register. The registration of existing customers gives Vodafone access to names, addresses, email addresses, and other personal information. It is essential that Vodafone obtains the permission to use this information for marketing purpose. This should facilitate the use of the existing consumer database to build and maintain value-laden relationships with its existing customers. When it comes to the target market, Vodafone lost a considerable number of customers in the period when its market share exploded before the network had developed the capability to serve these consumers. The firm needs to locate the details of these consumers who left the network and include them in the pool of target consumers. Additionally, sources like the Bureau of Statistics, Australia Post, and the Direct Marketing Association can facilitate the acquisition of information on targeted consumers (Belch, 2014). The acquisition of the database should allow Vodafone to use several forms of direct marketing for improved marketing outcomes. First, the company can use direct mail where letters, brochures, and other paper-based material will be sent to an approved mailing list of known customers. Kotler et al. (2015), notes that direct mail has a high cost and that analysts predict that its use will continue to decline as a result of newer technologies such as mobile marketing and email. However, direct mail offers a viable tool over some of the newer technologies where consumers can block communications from certain sources. Direct mail offers a tangible piece of communication that targeted individuals and businesses can view thereby increasing the level of engagement and the chance that the target consumer can respond favourably. In the case of Vodafone, direct mail can be used to communicate its successful turnaround and reinforce the message that its current network can match and surpass the quality offered by Telstra and Optus. This message should be combined with special offers for new customers who switch from rival networks as well as efforts to convince the existing clients to switch from prepaid to the more profitable postpaid services. Direct mail can also be used to send special rewards to clients who opt into loyalty programs thereby extending the value-laden relationship between Vodafone Australia and existing clients. The other form of direct marketing that businesses can employ is the use of catalogues. According to Egan (2014), a catalogue acts as an alternative to retail chains since it allows customers to access a list of products and services for evaluation and purchase. In the modern world, catalogues exist in the form of online stores where customers can compare offerings from a firm and make purchase decisions without involving intermediaries. Vodafone’s website has an online store that offers some of the latest mobile phones, tablets, modems, and data plans for personal and business clients (Vodafone, 2016). This means that the firm will need to concentrate on other forms of direct marketing to gain improved marketing outcomes. According to Kotler et al. (2015), direct marketers can also use television and radio commercials to pass messages to consumers and provide toll-free numbers for further inquiry and purchases. It is worth noting that the use of such broadcast media has the added advantage of allowing businesses to build up its database of potential consumers. This would be extremely important to Vodafone as it seeks information on clients who can be convinced to switch to a different network. As a mobile phone operator, Vodafone can utilize broadcast media to retain a presence in these traditional sources of media that remain popular with older generations. Furthermore, broadcast media can offer access to millions during popular sporting events like the forthcoming Olympic Games, cricket games, the Melbourne Cup, and the AFL (Moriarty et al., 2014). As an operator of a mobile network, Vodafone should maximize the potential of telemarketing. Telemarketing is a method of direct marketing that covers a wide array of activities that can generate sales, offer customer service, build databases, and conduct surveys. It is worth noting that telemarketing can involve consumers being invited to make calls or being the recipients of calls. Vodafone can leverage telemarketing to protect its market share and combine it with other marketing techniques to invite calls from target consumers. Internet Marketing Consumers around the world have embraced the internet at a rate that has been phenomenal. This trend has been evident in Australia, with consumers increasingly using the Internet to seek information on products and services before they make purchase decisions (Belch, 2014). On the other hand, businesses can use the internet to lower their client acquisition costs. This can be achieved through digital media and social media marketing. Digital Media Digital media marketing takes place on virtual platforms like email, branded websites, user generated content, mobile, advergames, search engines, and online video. An evaluation of Vodafone shows that it lost a considerable number of customers at the point where these digital platforms were gaining traction. This means that the firm has to expend a lot of time, effort, and funds to project a new image if it is to challenge the two larger firms in the form of Telstra and Optus. Digital media provides a tool that can allow Vodafone to achieve this objective. For instance, search engine optimisation and marketing can be used to increase the visibility of Vodafone’s website in search results related to smartphones and data plans (Belch, 2014). In turn, the website should be designed in a way that will facilitate interaction with visitors leading to the purchase of devices and data plans and the acquisition of customer data for Vodafone’s database. Additionally, the firm can place mobile ads given that the phone is becoming the primary tool for internet access for many people. These mobile advertisements should extend to the use of SMS where the business communicates with existing and potential customers. The strategic use of the brand website, mobile ads, search engine marketing, and search engine optimisation will allow Vodafone to undertake a campaign that shows its new network capabilities. In addition to these digital platforms, Vodafone has developed an app that is available on the Google and Apple Stores. The app offers a convenient way to select plans and view and pay their bills thereby assisting Vodafone Australia to retain its market share. The firm has also utilized online video to target an expanding number of consumers who stream videos on mobiles and PCs. For example, the firm produced an online video titled ‘The Wait’ which communicated the start of a new Vodafone that had a wider coverage (Gonsalves, 2013). Online video should continue to be used, but the emphasis should be on showing that the network offers levels of satisfaction that are higher than those offered by the competitors. The company can also use email to communicate with customers. According to Belch (2014), data shows that most Australians check their email at least once a day and that many of them exchange their email addresses for information on discounts and promotions. A major limitation of email is that there can be little engagement owing to the many emails that individuals have to attend to. However, Vodafone can use email as the main medium for communicating offers and rewards to boost the level of interaction. In summary, these digital platforms will allow Vodafone to interact with customers in more meaningful ways leading to improved outcomes for the brand. Social Media Social media can be described as a platform that allows people to exchange beliefs, ideas, and information (Saravanakumar & SuganthaLakshmi, 2012). The majority of Australians use social media on a weekly basis, making it a valuable tool for firms that seek to create content and interact with consumers (Belch, 2014). The use of social media for advertising is fraught with challenges, but the increased usage of platforms like Twitter and Facebook means that they cannot be ignored. Vodafone Australia has a presence on these platforms leading to engagement and the development of social relationships with clients. The firm can also monitor communication between users on these platform related to its brand and help shape the image that it has completed its turnaround. However, extreme care should be taken when using social media as it has the power to cause harm and even destroy a brand. Conclusion In summary, this essay defines direct marketing and internet marketing and notes their growing importance in a rapidly evolving business environment. The paper then discusses Vodafone Australia and shows how the company lost market share and completed a turnaround through the improvement of its network and marketing efforts. The next step in the firm’s transition is the acquisition of a bigger share of the Australian Market. This is a challenging endeavour given the strength of Telstra and Optus. Notwithstanding the difficulties, this essay shows that the implementation of direct marketing and internet marketing will allow Vodafone to attain improved marketing outcomes. The paper recommends the use of direct mail, an online catalogue, broadcast media, and telemarketing as the major forms of direct marketing. When it comes to internet marketing, a broader strategy will be effective given the low cost of acquiring new customers through the internet. The paper has acknowledged the importance of social media marketing and highlighted that care should be taken when using this form of internet marketing. In conclusion, the paper shows that the proper application and integration of direct marketing and internet marketing can lead to positive marketing outcomes. References Adhikari, S. (2015). Vodafone confident ‘Vodafail’ is history. The Australian. Retrieved 22 April 2016 http://www.theaustralian.com.au/business/business-spectator/vodafone-confident-vodafail-is-history/news-story/3b355ef9604e97636090aae52552a37f?nk=07e2cbdb07c5aef0296f17aa9cb60085-1461565829 Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2014). Advertising: An integrated marketing communication perspective. McGraw-Hill Education. Egan, J. (2014). Marketing communications. Cengage Learning EMEA. Gonsalves, J. (2013). Vodafone's new advertising campaign commercial - 'The Wait', July 2013. Retrieved 24 April 2016 https://www.youtube.com/watch?v=1PotIy1JgdQ Kotler, P. Burton S. Deans, K. Brown, L. Armstrong, G. (2015). Marketing. Pearson Higher Education Australia. Michael, S. (2012). How did Vodafone become Vodafail? News Corp Australia. Retrieved 22 April 2016 http://www.news.com.au/more-information Moriarty, S., Mitchell, N. D., Wells, W. D., Crawford, R., Brennan, L., & Spence-Stone, R. (2014). Advertising: Principles and practice. Pearson Australia. Mullin, R. (2002). Direct Marketing: A step-by-step guide to effective planning and targeting. Kogan Page Publishers. Ramli, D. (2016). Vodafone Australia rebound strategy paying off as subscribers sign up. The Sydney Morning Herald. Retrieved 22 April 2016 http://www.smh.com.au/business/vodafone-australia-continues-rebound-strategy-and-grows-subscribers-20160222-gn08ne.html Saravanakumar, M., & SuganthaLakshmi, T. (2012). Social media marketing. Life Science Journal, 9(4), 4444-4451. Read More