Page 272 - DMGT408DMGT203_Marketing Management

Unit 11: Marketing Communication Tools (Promotion Mix)

1. One-step Approach: The marketer uses the medium to obtain an order. For example, Notes
exercise equipment and household items are presented through TV commercials, or many
magazines insert subscription forms in their issues. The viewer or the reader places the
order by calling a toll-free number. Magazine subscription forms can be filled and posted
in postage-paid envelops.
2. Two-step Approach: This may involve the use of more than one medium. This may be
done to first screen, or qualify prospects and then in the second step the marketer makes
the effort to elicit a behavioural response. For example, many banks first use telemarketing
to determine the potential based on interest, employment, and income and then follow-
up by sending an agent with more information to close the sale.

Direct Mail: Direct mail is unsolicited mail, most of us are familiar with. For some of us it is
fairly irritating and we call it “Junk mail” and throw it or ignore without reading. Companies
of all sizes and shape use direct mail. This mail is generally based on mailing lists the companies
buy from independent sources, or in some cases is confined to customers who have made
purchases earlier.

Example: Google, Yahoo, Hotmail, AOL, Amazon, Fabmart, Indiatimes, and many others
have vast lists of home and e-mail addresses.

Direct mails generally generate lower response rates from potential customers. The cost of
direct mail as e-mail is practically nothing. John Goodman, CEO India and South Asia, Ogilvy &
Mather believes the Internet is the perfect medium for direct marketing.

Example: HUL (Denim aftershave, Lux), Hyatt Regency, and several banks have
effectively used direct mail for their credit cards.

Catalogues: Both, consumer and B2B companies may send catalogues of their entire product
lines, mostly in print form, sometimes also online, as CDs, or even videos. Considering the
global scenario, many companies use catalogue to sell variety of merchandise including clothing,
and cosmetics. According to Direct Marketing Association forecast, catalogue sales has reached
$17.3 billion in 2006. Internet has particularly boosted the catalogue business and companies
present their catalogues and accept orders over the Internet.

Example: Catalogues of marketers such as Fabmart, Amazon, McGraw-Hill, Prentice-
Hall, Dell and others are available at their websites and anyone can place the order then and
there. Some companies started as catalogue companies and subsequently also branched into
retail outlets, such as First and second bookseller initially had a website that presented its
catalogue but now also has a retail outlet in New Delhi. Anjali Textiles, Otto-Burlingtons Mail
Order (P) Ltd., Mothercare India, Charag Din and others use catalogues.

Some authors make a distinction between manufacturer-originated and trading house-originated
direct mail marketing by using either direct mail or catalogue. If the marketer is a manufacturer,
it is called Direct Mail Marketing, and when the source is a trading house, it is called Mail Order
Marketing or Mail Order Business.

Broadcast Media: Direct marketer can use television and radio. Almost entire advertising with
respect to direct marketing occurs on television. This type of advertising is either in the form of
direct-response advertising, or support advertising. Direct-response advertising encourages
customers to place orders by using a toll-free telephone number. Support advertising informs
customers generally to take part in sweepstakes or expect something in mail.

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