Direct Marketing in International Markets - Assignment Example

?International Marketing Submitted by: XXXXXXX Number: XXXXXXXX of XXXXXXX XXXXXXXX XXXXXXX XXXXXXXX Date of Submission: XX – XX – 2011 Number of Words: 2000 (Excluding Bibliography) Executive Summary With the high levels of globalisation one of the major elements of marketing which has seen an intensive growth is international direct marketing. The paper has focused on the meaning of international direct marketing which is in a narrow sense, includes all the market oriented and cross border activities and include a wide range of multi level communication which help in developing contact to the customers both directly as well as cross border (Krafft & Hesse, 2007). Here the basic characteristics of international direct marketing have also been discussed which include being flexible, meeting the customer needs, focused attention on greater convenience, also overall increased overall customer benefits (Krafft & Hesse, 2007). Also, the views of the marketing Guru Seth Gobin have also been included on the differences between mass marketing and direct marketing. Here a clear differentiation brings out one of the basic yet most important points, i.e. mass marketing is similar to a machine gun which reaches a number of customers, however the overall effectiveness is not certain until the end, while direct marketing are similar to hand guns which will result in a definite kill, i.e. conversion (Greenslade, 2009). The common aspect of the two methods is that both are equally tried and tested methods that companies adopt (Greenslade, 2009). The paper has also identified that the major issues in the consumer perspective is the lack of privacy and constant, annoying direct call marketing. Here it has also been found that several telecom companies have implemented the ‘Do not disturb’ list to allow customers from getting unwanted calls (Jobber, 2009). Apart from these several laws have also been developed to help customers overcome the issue. Introduction: Among the various different means of making contact with customer, direct marketing is one of the direct channels. This paper aims at discussing about direct marketing in an international sense. The paper will also discuss the characteristics of direct marketing and will include a detailed comparison of direct marketing and mass marketing approach (Kotler, Kotler on Marketing: How to Create, Win, and Dominate Markets , 1999). Here the aim is to identify the issues of direct marketing in the customers perspective and also will include the solution that direct marketing approach adopts as a resolution for these issues. First however it is important to understand the meaning of direct marketing in relation the international markets. International Markets and Direct Marketing: Direct marketing involves the use of consumer – direct channels to reach the customers and to deliver the goods or services to the customers without the need for middlemen. Direct marketing has a number of different channels that can be used to reach the customers directly which include aspects like direct mail, catalogue marketing, and telemarketing, interactive TVs, kiosks, websites and many more. Dobni and Luffman (2000), in their research work have indicated that each customer is to be valued, but in a different way (Dobni & Luffman, 2000). According to them, the focus has to be shifted and care is to be taken to serve the most essential customers in the best possible manner. Most essential customers are those giving an opportunity of higher revenue generation for the company (Jobber, 2004). In the current times where companies are focused on the level of competition and the high costs relating to reaching business markets, here the direct marketing tools and techniques play a strong role in the success of the company attempts. International marketing involves using of marketing principles and also the strategies across international borders (Kotler, Kotler on Marketing: How to Create, Win, and Dominate Markets , 1999). International direct marketing in a simple and narrow sense simply deals with only the market activities which use the single level of communication and are focused more so on the direct distribution and dispatching of goods and services for the individual in locations abroad (Jobber, 2009). Here all the cross border and market oriented activities where multi level of communication is used to develop cross border contact with the customers (Dobni & Luffman, 2000). The main aims and objectives of international direct marketing is mainly a) acquisition of new customers, b) building the levels of customer loyalty, c) retention of current customers or reacquiring current customers, d) branding and brand management, e) higher sales of products and services and f) building the customer service (Krafft & Hesse, 2007). The international direct marketing unlike direct marketing is more focused on communication and here the customers are the centre for all communication, including from the acquiring the customers, retaining them and also reacquiring the customers (Evans, O’Maley, & Patterson, 2004). This is more of a customer centric approach to marketing in the international markets (Dobni & Luffman, 2000). Direct Marketing Characteristics: Direct marketing can be characterized with several characteristics as discussed below. Firstly, these use the various databases to use them as market segments to which promotion efforts are mostly directed. Secondly, this method focuses on the customers as assets and here the focus is on the life time value of the customers (Evans, O’Maley, & Patterson, 2004). This method also focuses on the affinity with the customers and the development of the ongoing relationship with the customers. Here this method also uses the databases as a market segments which is used to target the customers. Direct marketing also allows a mode to develop an ongoing relationship and affinity with the customers and helps companies gain a data based market segmentation as well (Kotler & Keller, Marketing Management, 2008). Here this is also very beneficial method to be used for research and experimentation and this has also proved to be very help in measurement of the results of marketing as well as accountability of the costs involved for the same (Bearden & Laforge, 2003). This is also an interactive method of reaching the customers and helps companies gain better attention of the customers. Here companies have numerous options that they can choose from for the promotional activities and this method of marketing is also beneficial in terms of the multi channel distribution as well (Krafft & Hesse, 2007). There are a number of benefits that the international direct marketing has in terms of the customer perspective (Bearden & Laforge, 2003). These include aspects like lowered prices, greater levels of convenience, customised offers to meet the individual needs, wider choice, and trustworthiness for the customers, exclusive offers based on the customer choices and needs. Although these are benefits of international direct marketing these to a great extent help in the development of the characteristics of the method as well (Krafft & Hesse, 2007). Direct Marketing vs. Mass Marketing Approach: Seth Godin, a marketing Guru has in an interesting article differentiated between the direct marketing and mass marketing very effectively. Godin explains that, the main difference between the mass marketing and direct marketing knows it is going to work. However for the mass marketers there is no clue until the end if the marketing campaign if it will provide the desired results (Krafft & Hesse, 2007). The direct marketers however have a clear and well developed plan with ways to measure the effectiveness of their marketing campaigns from the first day (Godin, 2010). A few other major differences between mass marketing and direct marketing include the following: a) Mass marketing is focused on large scale for success while direct marketing is based on small scale testing (Kotler P. , Keller, Koshy, & Jha, 2009), b) The resources used for the mass marketing is relatively very high as compared to the direct marketing (Krafft & Hesse, 2007), c) In mass marketing the focus is on achieving success on the first attempt while direct marketing is a more stable and is a continual process, and, d) The mass marketers are not sure of the success or failure of the campaigns until the end while the success of the direct marketing is determinable from the start (Kotler P. , Keller, Koshy, & Jha, 2009). In the current times, as explained by Godin, the restraints on marketers is high and now marketers need to be able to make more measurable results which can be clearly identified and also predictable rather than a process where the results are unsure and focus is unjustifiable. Direct Marketing Issues – Consumer Perspective: Direct marketing involves a number of different forms which can be used for the reaching out to customers across the world. These include tools like email, ebills, mobiles, mail, tele and internet (Kotler & Keller, Marketing Management, 2008). One of the major issues which are the most common for all customers is the database used for the direct marketing. In the current times, customer names and details are stored in several different lists across the world (Evans, O’Maley, & Patterson, 2004). These include simple mailing lists, mobile lists, email lists and also basic registrations as customers. The customers across the world are faced with the similar issues of having their names in several databases, both knowingly as well as unknowingly, which leads to several marketers to target the customers. Most direct marketers tend to get the lists from either list providers or also from their own customer history (Evans, O’Maley, & Patterson, 2004). Here the issue is that in a number of cases, i.e. majority of cases, the targeting can be incorrect and inappropriate. Moreover, many people who are normally busy with their routine may also get annoyed with flooding irrelevant mails. At times, numerous unwanted mails might make the customer feel irritated and might result in a negative impression (Jobber, 2004). In recent article Peter Sadler of NTL Business explained that customers are willing to provide their addresses and telephone numbers, but when it comes to e-mail; they are not as equally open-minded, due to the numerous unwanted emails and marketing information that they receive (Benady, 2003). Although direct marketing is an effective means to get in contact with the customers, the customers only appreciate a company or service where their details are safe. Also, customers do not prefer to receive continuous mails, calls emails or even text messages regarding several offers or basic marketing (Godin, 2010). This is one of the biggest issues of direct marketing on the side of the customers. This also has a number of legal impacts on companies as well (Kotler & Keller, Marketing Management, 2008). Possible Resolutions: Having understood the major issue faced by consumers in relation to the direct marketing, it is important to also realise here that across several countries, there have been a number of laws that have been developed to assist the customers to overcome the “over-use” of direct marketing by a few companies (Dobni & Luffman, 2000). Here in order to reduce the level of invasion of privacy and private time, the governments across several countries have developed laws like “do not disturb” for telesales and tele marketing calls (Jobber, 2009). This allows the consumers to add their names on the list and blocks the marketers from contacting the customers. This is one of the most effective techniques that have been developed for to gain a balance in the direct marketing. The major issue has been the inability of several companies to use direct marketing effectively rather than as an hindrance for the customers (Greenslade, 2009). Conclusions: In conclusion, it is clear that although direct marketing has proved to be very effective and efficient manner of marketing for several companies, there has also been a major increase in the unwanted and inappropriate use of the technique as well. It is crucial and essential to state here that inappropriate marketing for any company, in any industry, can lead to a decline of the company (Dobni & Luffman, 2000). Companies need to focus more on personalisation in the current times where the customers’ main focus is on the service that they get based on their current spending patterns and also their choices. Hence an effective direct marketing will be one which focuses on research and personalisation of the customer needs (Benady, 2003). Bibliography Bearden, W. O., & Laforge, R. W. (2003). Marketing, Principles and Perspectives: Principles and Perspectives. Irwin Professional Pub . Benady, D. (2003). The Voice Squad, Sector Analysis: Telecoms. Precision Marketing , 19-21. Dobni, C. B., & Luffman, G. (2000). Implemeting Marketing Strategy through a Market Orientation. Journal of Marketing Management , 895-916. Evans, M., O’Maley, L., & Patterson, M. (2004). Exploring Direct and Customer Relationship Marketing. London: Thomson Learning. Godin, S. (2010, July). Getting to scale: direct marketing vs. mass market thinking. Retrieved March 9, 2011, from Seth's Blog: http://sethgodin.typepad.com/seths_blog/2010/07/getting-to-scale-direct-marketing-vs-mass-market-thinking.html Greenslade, A. (2009). A beginners guide to the difference between Direct Marketing and Mass Marketing. Retrieved March 10, 2011, from Greenslade Creation: http://www.greensladecreations.com/direct_marketing.html Jobber, D. (2009). Principles and Practice of Marketing. McGraw Hill Higher Education. Kotler, P. (1999). Kotler on Marketing: How to Create, Win, and Dominate Markets . Free Press. Kotler, P., & Keller, K. (2008). Marketing Management. Prentice Hall. Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing Management. Dorling Kindersley. Krafft, M., & Hesse, J. (2007). International direct marketing: principles, best practices, marketing facts . Springer. Read More