Wholesaling/Retailing and Direct Marketing - Article Example

Multi-channel management in direct marketing retailing Traditionally, direct marketing retailers have used call centers and mail order as channels for marketing. Another channel for marketing that is commonly used is the internet. Direct marketing retailers now prefer using the internet because it has the potential to cut costs for the retailer. This does not mean, however, that direct marketing retailers have abandoned the use of call centers entirely. In this article, I look at the benefit of using various channels as opposed to using just one channel.

The article also investigates the benefits that consumers associate with various channels of marketing.This article is of interest to me because it investigates the benefits that direct marketing retailers get when they use various channels of marketing. There has been a shift by direct marketing retailers towards orders that are Internet-based. They have discovered that using the internet is cheaper when compared to a call centers which costs a lot of money to maintain. The internet channel is also convenient and available.

Information is also readily available. The article states, however, that internet usage has not entirely eliminated the other channels of direct marketing. The author explores the advantages of the internet as a channel for marketing as opposed to other channels. Studies that have been conducted to establish the various factors that influence the type of channel that a consumer chooses to use have suggested five factors that influence consumer behavior (Balasubramanian 12). The author argues that the choices made by the consumer are influenced by psychological factors.

The article focuses on the costs that come with the choice of marketing channel. The focus is on the choice of channel that is used especially in cases where remote channels are the only ones applicable. These remote channels, the article states, provide products whose prices are the same regardless of the distance involved. As such, the channels used are determined by other factors other than the prices.According to the author, the cost of operating a call center is relatively higher than that of operating the internet.

When using a call center, the firm will incur costs in dialing up. A lot of time is also spent when waiting for the call to be picked, when providing the client with information, as well as the time needed to verify the information provided. The internet, therefore, is more convenient many homes have access to the internet. The client only requires logging into the home page of the retailer, navigating the website before logging out. This saves both the consumer and the retailer time and money (Ozimek 70)The number of items in the shopping basket also determines the channel that the consumer decides to use.

Studies conducted show that whenever there are many items in the shopping basket the consumers chose to use the internet channel as opposed to the call center option. This decision is influenced by the fact that it takes less time to enter orders into the shopping cart when using the internet channel than it is when using the call center channel. It is tedious to also read the item names to the associate at the call center and to wait for a confirmation. When using the internet channel, it is faster and less tedious to enter the various items into the consumer’s cart.

In conclusion, it is not advisable to do away with the call center channel as it is the recommended channel for direct marketing retailers to provide customer support over an extended period of time.Works citedBalasubramanian, S., Raghunathan, R. and Mahajan. "Consumers in a multi-channel environment: product utility, process utility and channel choice." Journal of Interactive Marketing (2005): 12–30.Ozimek, Jane Fae. " Multi-channel management in direct marketing retailing: Traditional call center versus Internet channel " Journal of Database Marketing (2010): 70–77.