Direct and Internet Marketing - Essay Example

Direct and Internet Marketing Table of Contents Table of Contents 2 Introduction 3 LiteratureReview 4 Direct Marketing 4 Internet Marketing 5 Relationship marketing and direct marketing 6 Role of database 6 Carbon Trust 6 PEST factors 7 Importance of direct marketing 9 Conclusion 10 References 12 Bibliography 13 Introduction Earlier there were very few companies who used to give enough importance to marketing. Previously organizations used to believe that marketing is nothing but a luxury that can not be exercised by all the companies. One of the main reasons behind this concept was that earlier number of firms in a particular industry was very small. As a result competition among them was not that intense. However with the passage of time more number of players has entered in a particular industry and this has resulted to intense competition. Over the years with the increase in the intensity of competition, organizations have understood that in order to stay ahead in this intense competition they need to focus on marketing. In today’s competitive business scenario marketing is the key for the success of any company or product or brand. In the last few years various new concepts of marketing have arrived in the market. Direct marketing is one of these newly developed marketing concept which is one of the most widely used marketing strategies that most of the organizations are adopting. In direct marketing potential customers are approached individually and this is one of the main reasons behind the huge acceptance of direct marketing. Another important factor that has redefined the term ‘marketing’ is internet. It has been found that in the last decade internet has arrived as one of the largest medium of communication. Today, in most of the developed as well as developing countries, products are purchased by the consumers online. So, it can be stated that both direct and internet marketing are two of most important concepts of marketing. This paper includes a detail overview of direct and internet marketing from both theoretical and application perspective. Bothe marketing concepts are discussed in the context of an organizations named Carbon Trust which is a UK based organization. Literature Review Direct Marketing Direct marketing could be referred to a process but not a technology. The process of direct marketing is aimed at not only selling the product but also creating and maintaining healthy customer relationships that would be profitable for the organization in future (Nash, 2000). As far as the definition of direct marketing is concerned, the most widely accepted one is provided by the direct marketing association. According to this association direct marketing could be considered as an interactive process where advertising media is used with the purpose of effecting a measurable transaction and/or response at a particular location. Direct marketing is an interactive process because it involves personalized communication between the customer and the marketer. The process of direct marketing includes media like telephone, mail etc. Another important characteristic of direct marketing is that it is measureable. This is mainly because in direct marketing, marketers are able to measure the final outcome of the process and the totally cost of the process precisely. In 2003 the marketing services industry was dominated by the direct marketing. The process gave total revenue of $2.87 billion. Today the concept of direct marketing is heavily influenced by the computer technology and internet. Most of the potential customers are contacted through e-mail. Furthermore, today organizations are allowed to store and retrieve almost all the information regarding their customers. This make the process of direct marketing easier as marketer can access to all the required information regarding his/her customer prior to approaching him/her (Lee, Johnson, 2005). Direct marketing can be used effectively in both ‘business to customer’ (B2C) as well as business to business (B2B) model. Perhaps the best example of a company that has been using direct marketing over the years is Dell. Dell has huge individual as well as institutional customer base and the company reach all its customers through direct marketing. Usually dells customers are contacted through its call centers and websites (Baker, 2003). Internet Marketing One of the most widely used marketing strategies in the recent past is the internet marketing as the number of internet users is increasing rapidly throughout the world. A general definition of internet marketing would say that it refers to the way of achieving marketing objectives with the use of internet or any other digital technologies that are related to the internet. In reality internet marketing would involve the web site of a company along with various other online promotional tools like banner advertising, search engines, direct e-mail (Marketing online, n.d.). It also includes links of other web sites with the purpose of acquiring new customers and providing services to the existing customer base. It is very important to integrate the traditional media like Television and print with the modern internet technology, otherwise achieving success would be difficult. There are several benefits that could be derived from internet marketing. Internet marketing, if used effectively can achieve four major strategic objectives which are market penetration, market development, product development and diversification. Organizations can use internet in order to increase the sale of existing products in the existing market. Internet is a huge medium of communication where products could be heavily advertised. Organizations can develop new markets by launching and advertising products in the international without making any significant investment in sales infrastructure. Internet can even be used to create new product, although these products would be typical information products like market reports. Customers can purchase these products online. Relationship marketing and direct marketing Both direct marketing and internet marketing are parts of relationship marketing. The main concept of relationship marketing is based on the fact that relationship with the customer is the most important in order to attain the marketing objectives. In direct marketing marketers directly meet with the customers as a result they always try to build healthy long term relationship with them. In internet marketing also direct interaction takes place between the customers and marketers. As a result there is high chance of building effective relationship with the customers. Role of database Information and computer technology has changed the process of direct marketing. Today, marketers, before meeting any customer, can access to all the required information regarding that customer as there is something called database which store all these information. As a result it becomes easy for the marketers to create and maintain a good relation with the customers. However there could be problems regarding various privacy issues as it has been found that marketers are misusing customers’ personal information. Carbon Trust Carbon Trust, a not-for-profit company, whose main objective is accelerating the movement of creating a low carbon economy. The company is renowned for providing specialist support to the public sector and business organizations so that they can reduce carbon emissions, commercialize low technologies that emit little amount of carbon and save energy. Major customers of Carbon trust include ASDA, British Airways, Aberdeen, Coca Cola, British Telecom and Alliance Boots. The company provides financial support and specialist advice to its customers and helps them in reducing carbon emission. It helps in commercializing and developing ‘low carbon’ technologies. Various services of the company include 0% business loans, carbon saving advice, carbon surveys, energy management, building design advice, carbon foot printing, online training tool, telephone support etc. PEST factors PEST refers to the political, economic, social and technological environment of a particular country. Analysis of all these factors helps an organization to have a clear understanding regarding its external environment. How PEST factors influence the Carbon Trust is discussed below. Political As far as United Kingdom is concerned there are three levels of government that are likely to have great influence on the business organizations. These three are local government such as county council, central government which is run from London and finally European government that is run from Brussels. Central and European government are the most important in the context of an organization or an industry (Business Studies online, n.d.). As far as carbon Trust is concerned, it is likely to be heavily by any decision of central government or European government regarding environment as the company is objectives are aligned with the UK government’s objective of cutting carbon emission by minimum 80% within 2050. Economic United Kingdom is one of the most developed economies not only in the entire Europe but in the entire world. It is one those few economies that has trillion dollar GDP. However recent global financial meltdown has badly affected the UK economy, although the process of recovery has already started as the government has taken several important steps which include lowering down the interest rate to almost 1%. However, Mervyn King , governor of Bank of England has recently stated that the rate recovery of UK economy would be much slower than it was expected to be. According to the country’s central bank, growth rate of the UK economy would be around 3.5% in the upcoming quarter (Hopkins, February 10, 2010). Economy of the country greatly influences the business of Carbon Trust as the company provides specialty advice and financial help to its customers so that they can reduce their carbon emission. But considering the current state of economy organizations are most likely to safeguard their own interest first, then they would consider various issues regarding environment. So, present economic condition of the country makes the job more difficult for the Carbon Trust. Social Society has always been an important factor that needs to be considered by any business organization anywhere in the world. As far as United Kingdom is concerned most of the people fall in the age group of 15-64. Population growth rate (.279%) is also not satisfactory for the country. It has been found that 90% of country’s total population lives in urban area. Another important fact is that 99% of total population is officially literate (Central Intelligence Agency, n.d.). This social structure of the country would certainly help the Carbon Trust Company in the process of achieving its objective because it is very easy to make understand people who are educated and matured. Environment One of the most discussed issues in all around the world today, is environment. Government of each and every developed as well as developing countries are concerned with the increasing pollution and the threat of global warming. Every country is setting their individual goal regarding reduction of carbon emission. UK government has also set its own objective according to which the country would be cutting carbon emission by almost 80% within the year of 2050. Carbon Trust is such a not-for-profit organization that is involved in the process of reduction of carbon emission. It actually helps other organizations to cut the emission of carbon gas. The company would certainly get all the required support from the government of the country in the process of achieving its objectives and goals. Importance of direct marketing Today direct marketing is important especially when the service is marketed instead of a tangible product. Organizations adopt direct marketing as their marketing strategy because it is such a process where the response could be measured which is very important as a measureable response is likely to be producing ultimate or immediate profit (Stone, Jacobs, 2007) Furthermore direct marketing has been found to be very much effective in creating and maintaining good relationship with the customers. The strategy is crucial in case of Both B2C as well as B2B. In case of carbon trust scenario is little different as compared to any other traditional business organization. First of all the organization was set up by the government of United Kingdom itself, although it works as an independent company. However it does not work with the main objective of making profit, rather its main focus is on reducing the carbon emission and involves as many organizations as possible in this movement. These organizations are considered as Carbon Trust’s customers. In the context of Carbon Trust direct marketing is the best way to attract the customers. It is entirely on a business to business basis. It is very important that the marketer of the company meet the customer personally and explain various services of Carbon Trust. Not only services, marketers would also require explaining the reasons behind adopting these services and the effect of adopting these services to their customers. In the context of Carbon Trust direct marketing is important at the operational and tactical level. At the strategic level the objective and the strategies regarding direct marketing are developed, but all these strategies are implemented at the operational level. Generally marketing executives personally meet with the customers. Some times they might be assisted by their immediate senior management. As far as internet marketing is concerned it would be very much important for promoting the online training tools of Carbon Trust. Internet is a huge medium of communication. Product can be promoted to all around the world through this medium. Conclusion In today’s competitive business scenario direct marketing as well as internet marketing is two of the most heavily exercised marketing concepts. In direct marketing a personalized interaction take place between the marketer and the customer. This interaction allows the marketer to build a useful and effective long term relationship with the customer which is crucial in the current business environment. On the other hand internet marketing is also one of the most popular marketing strategies that are used over the last few years. The use of internet marketing is likely to increase at a high rate in coming days as the number of user of internet is rapidly increasing. Both these strategies would be effective in the context of Carbon Trust Company which was established by UK government. The main objective of this company is to help its customers in the process of reducing carbon emissions. This is actually aligned with the objective of UK government (reducing carbon emission by 80% within 2050) regarding environment. Direct marketing would be effective for the company in order to build long term relationship with its customers and internet marketing would be useful in promoting various online training tools. References Business Studies online, No Date, Political Factors, [Online] Available at: http://www.businessstudiesonline.co.uk/GcseBusiness/TheoryNotes/Module%206/PdfNoPrint/05_Political.pdf [Accessed on February 12, 2010] Central Intelligence Agency, No Date, United Kingdom, World Fact Book, [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html [Accessed on February 12, 2010] Nash, E. L. 2000, Direct marketing: strategy, planning, execution, McGraw-Hill Professional Lee, M. Johnson, C. 2005, Principles of advertising: a global perspective, Routledge Baker, M. J. 2003, The marketing book, Butterworth-Heinemann Hopkins, K. 10 February, 2010. Britains economy faces slow recovery, Guardian.co.uk [Online] Available at: http://www.guardian.co.uk/business/2010/feb/10/britain-faces-slow-economic-recovery [Accessed on February 12, 2010] Marketing online, No Date, An introduction to internet marketing, [Online] Available at: http://www.marketing-online.co.uk/ch1.pdf [Accessed on February 12, 2010] Stone, B. Jacobs, R. 2007, Successful direct marketing methods: interactive, database, and customer-based marketing for digital age, McGraw-Hill Professional Bibliography Armstrong, G. No Date, Marketing An Introduction, Pearson Evans, M. Malley, L. O. Patterson, M. 2004, Exploring direct and relationship marketing, Cengage Learning EMEA Egan, J. 2008, Relationship Marketing: Exploring Relational Strategies in Marketing, Financial Times Prentice Hall Hofacker, C. F. 2000, Internet Marketing, Digital Springs Lee, O. 2001, Internet marketing research: theory and practice, Idea Group Inc (IGI) Tapp, A. 2009, Principles of direct and database marketing, Financial Times/Prentice Hall Read More