Page 13 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 1: Introduction to Sales Management

of its cost advantage. It delivers individual selling message to specific prospects at an affordable Notes
cost.
Direct marketing is targeted marketing. There is a measurable response and a feedback is built
into every direct marketing activity.

Telemarketing

It emerged during the 1980’s as the second major direct marketing technique. Marketers
encouraged consumers to use toll free telephone numbers to purchase products in the comfort of
their homes. Catalogue marketers, departmental and specialist stores, airlines, hotels, rental car
companies and other travel agencies urged the consumers to call toll free numbers. These
applications are known as inbound telemarketing.
Out-bound tele marketing is the second approach in telemarketing. This involves contacting
buyers directly on phone for selling merchandise. Many banks use this approach to sell retirement
accounts and financial products. Other major users of out-bound tele marketing are colleges,
medical research organisations and other non-profit groups for soliciting contributions.

Caselet Nature's Essence Banks on Personal Selling

hen everybody is jumping onto the retail bandwagon, Delhi-based Nature's
Essence, makers of personal care products, hopes to take on the biggies through
Wwhat it believes is its strength – direct selling and personal reach.
It looks to cash in on the "beauty wave" that is spreading across the country, thanks to the
mushrooming of salons in every nook and corner.

The 10-year-old company sells its range of value-for-money aromatherapy and herbal
products, and other cosmetics for skin, hair and body care through 600 distributors, across
10,000 salons and an equal number of retail outlets (both kirana and organised stores).
Around 60 per cent of Nature Essence's revenue ( 30 crore) comes from salons, the
company's biggest catchments area.

Says Mr Saurabh Nanda, Executive Director: "We have always believed in direct interface
with salons to educate and create awareness about our products and concepts. Our strength
is technical education and personal reach. We hope to take the salon count to 30,000 by the
end of the financial year, especially in the B and C cities, and rural areas, which offer huge
potential.
"The margins in the salon are higher than that in retail. Of course, retail too is catching up.
We have been in retail only for the last two years and we hope to take the retail store count
to 20,000 by the year-end."
Nature's Essence Range of Products
Nature's Essence is available in Big Bazaar, Apollo and Guardian Life Care pharmacies
and Reliance Retail outlets. It is in talks with Subhiksha, Vishal Mega Mart, and Marks and
Spencer too.

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