Page 184 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes
Example: Important names connected with such programmes include Dees' Home
Shopping (DD, and C&S channels) offers home appliances, car accessories, fashion wear, footwear,
beauty care products, air tickets, and groceries etc. Teleshopping Network (ATN, DD, Sun, local
C&S), and United Teleshopping (DD National) are the other two names. So far the maximum
time allotted in India to such programmes is limited to about 5-hours/day.
Print Media: Newspapers and magazines are not considered to be 'sound choice' for direct
marketing. There are too many ads competing for attention. Specific interest newspapers focused
on financial matters, or sports and hobby magazines are sometimes used.

Telemarketing: Direct marketing through telephone is called telemarketing. It gives the marketer
a better chance of influencing the prospect and win a customer. As mentioned earlier, it is most
often used in the screening process. Companies hire several telephone-callers, mostly girls, or
operate through hired agents. Call centres have become a real arena of telemarketing activity.
Several teams of 5 to 6 members are formed and for each team there is a supervisor. Individual
team members sit in front of a computer terminal wearing a headset. They call different telephone
numbers from a list and present the sales talk based on pre-tested script and update information
on the computer screen.
Electronic Shopping: Infomercials and home shopping use TV channels. Electronic shopping is
an online information retrieval and shopping service through computers. Internet is the newest
medium for direct marketing. It can be used to access information, communication, entertainment,
and a means of transaction. Direct marketing through Internet involves business in "market
space" as opposed to physical "market place."

Direct Selling: Some authors consider direct selling as the additional element of direct marketing,
often called Multilevel Marketing (MLM).

Example: Some well-known players in this field include Amway, Oriflame, Avon, and
Modicare.

The selling steps are the same as discussed earlier. In this situation the salesperson directly sells
to customers only in their homes. Any additional distribution channels are not involved. In
India, Eureka Forbes has been very successful and is the leader in this field. Their salespeople
call on homes and make presentation and demonstrate water filters and vacuum cleaners, book
orders and ensure installation etc.

10.1.4 Advantages of Direct Marketing

1. Direct marketing offers the advantage of reaching large number of well-defined target
customers and almost eliminates waste coverage.

2. Good quality databases are available from independent suppliers and the marketer can
segment customer groups with considerable precision.
3. Direct marketer can personalise the message.
4. Direct marketing can deliver almost perfect offers to customers.

5. Marketer can build desired frequency level based on media.
6. Direct marketing offers creative flexibility in different media.
7. Direct marketer can quickly develop a list of specific profiles for direct mail.
8. Direct marketing is more effective in building customer relationship.

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