Forms of Direct Marketing - Essay Example

Direct Marketing Introduction Direct marketing is referred to as selling products directly to the consumers without passing through intermediaries such as brokers, wholesalers, or distributors. As modern technology has made information easier, companies have made a big effort to sell their products directly to clients (Growing Michigan’s Future 2.2). Presently, most companies contain millions of tons of information about their customers with an objective to using in selling their products directly to them. This stored data is utilized to reach out to the customer directly and establish a kind of relationship that benefits both parties (Andersson, Cederbrink & Lövsund, np). This stored data may include such information about the customer that ranges from demographic information, age, gender, profession, purchase history, and personal characteristic. A plethora of companies is drastically adopting this mode of direct marketing to promote their products and services to customers. Some of the examples of such companies include banks and insurance companies as the leading entities on this direct marketing business. According to Pearson (551), direct marketing has emerged as an important tool to both buyers and marketers. The current trend shows that direct marketing is slowly turning to be web-based, and presently the internet marketing accounts for a bigger share of direct marketing. Based on the figures that were published by the interactive advertising bureau of Canada (IAB), the internet is one of the leading modes of direct marketing in Canada. In total of percentage of how direct marketing is conducted, it is thought that about 23% of advertisements direct to customers reach to customers on a weekly basis (Pearson 552). In fact, direct marketing is drastically turning out to be the major player of marketing in most sectors of business. According to information by the IAB, it is projected that by the year 2016, direct marketing will emerge to be the number one mode of business in the world. This paper will highlight the different forms of direct marketing, and then highlight some of the ethical issues cited against this form of business. Then provide opponents of this form business. Finally, this paper will critically argue against these criticisms and show how direct marketing is ethical. Further, it will demonstrate it as a good practice that brings about more advantages to all parties involved. Forms of Direct Marketing Direct marketing can take a myriad of forms. Direct mail marketing is one form of direct marketing that is used by both business-to-business and business to consumer needs. This form of direct marketing entails materials sent via traditional mail to the prospective customers. This form of marketing is mostly associated with the term ‘direct marketing.’ Nevertheless, there are more other forms of direct marketing on top of this form of marketing (ICO Information Commissioner’s Office 13). This method has some drawbacks involving the potential of messages not reaching the intended customers. Email marketing is another common tool used by marketers to reach out to their prospective customers. This method is unique and it utilizes the advent of the internet. Currently, email marketing has emerged as a popular option in the field of direct marketing, as it is able to allow the creation of dynamic, avoid package costs, create compelling marketing materials for almost free, envelopes as well as other items with traditional mail. Though commonly used for direct marketing, this channel has some few drawbacks. The “spam aspect” is the most popular drawback that comes with this mode of marketing as a tool. For instance, you might find yourself in hot soup if your email report cases of spam. Spam emails can lead to the total rejection of any emails from the seller and thus affecting the long-term image the buyer and the seller. Telemarketing is another resourceful tool that has been in operation for a very period. Previous incarnations found this tool being used to calling consumers at their homes, but currently this mode of communication is used to target business-to-business projects. However, this kind of method can be effective in meeting the objectives of both the seller and the buyer, this method can also be very expensive to install and manage. Voice marketing is an excellent option used to market products by small businesses or perhaps those who are seeking to reduce the costs incurred in direct marketing. In simple terms, voice marketing is simply a recorded message sent out to the targeted clients. Because there is no live operator, these calls are less expensive than the costs incurred by the other forms of direct marketing. Though this are the mostly used by large and relatively small companies, you might find other forms of direct marketing (ICO Information Commissioner’s Office 13). These methods may include door-to-door marketing, fax marketing, and even guerilla marketing strategies such as dishing out flyers. Criticisms of Direct Marketing Though direct marketing is and was meant to promote the speed at which information is shared between the seller and the buyer, some critics have come out strongly to point out that it bleaches the fundamental right to autonomy. These critics point out that the morality of advertising lies in the primacy of personal autonomy in the holistic life of all humanity. Bunch (1) considers the following definition as what is known as autonomy. “I wish my decisions and my life to depend on myself, but not on external forces of any kind. I wish that I remained to be the instrument of myself, but not to the men’s acts of will. How I wish I were a subject, but not an object that can be tossed up and down by persons. Above all, I wish to be conscious of myself as a thinking being, active being, willing being, and bearing responsibility for my choices and analyze them by reference them to my own purposes and ideas.” Certainly, those people who feel that they strongly need to make their own decisions, they also expect to make their own decisions when it comes to purchasing products or services (Bunch 1). Based on this universal right to have autonomous decision-making, some people feel that direct marketing is not ethical. Another aspect of direct marketing is heavily criticized is the notion education. Those who engage in the business of direct marketing label this process as a source of extra education to the consumers. Bunch (2) content that there is some considerable evidence indicating that for instance people do not get satisfied with the products as advertized. They continue to argue that the evidence showing direct marketing as an educational tool is not enough. These proponents also assert that direct marketing results to a distorted form of information. For instance, they argued that companies are more likely to promote their products with only positives, resulting to the consumers purchasing things without a total informed consent (Bunch 2). Another aspect of direct selling that has attracted much criticism is the notion of “hope.” This notion that direct marketing promotes hope to the buyers. These critics argue that direct advertisement can be used as a tool to deliver falsehood information to the buyers. By taking advantage of overt deception, this way buyers end up taking advantage of selling their poor quality products to buyers (Bunch 3). Emotions are very powerful determinants, both in the capacity to make decisions and the content of the ultimate decision over something. In doing this, emotions frame the deliberation by filtering through the information with the objective of providing models of effectively interpreting what is presented. In terms of the way the direct marketing is conducted, critics point out that the ‘pull’ aspect of the process might lead to consumers getting a row deal. By ‘pull’ it means that the product is sold directly from the seller to the consumer without passing the ‘push’ chain. Direct marketing promotes the idea of relative information on the part of the sellers. Critics point out that Sellers ought to make a decision over what to buy and not to buy based on a full of information regarding the positives and negatives of the advertised product (Carrigan & Attalla 565). It is this relative information that most critical argue against to brand direct marketing an unethical business model. Direct Marketing Is Not Unethical And It a Good Practice Though direct marketing is considered as being an encroachment to customers’ privacy, this practice is ethical and can lead to a positive relationship between the seller and the buying, thus benefiting both. Basically, there is no problem with other people keeping some of your personal information for mutual purposes. By keeping other people’s information such as emails, name and location, there is harm whatsoever that has been done to the owner of the information. In any case, the owner of such information will have the final say when it comes to making the final decision. Through building of a strong relationship between the seller and the buyer, it is easy for the seller to gain a stronger understanding of the needs of the buyer and produce just that (Pearson 550). A relationship between two or more entities means that each of the involved parties willingly shares information about themselves for the common good of both. In most cases, direct sellers would have to seek for the permission from the buyer before keeping that information. These buyers do not get information from any other person, but from the customers who agrees to share the information. Besides the positive relationship built by direct marketing, there is sustainable profit to both parties. In fact, managing relationships is the short-term objective of direct sellers, but the long-term objective is meeting a sustainable profitability to both parties involved. Some scholars argue that the primary focus of relationship building is customer retention, but in reality, dealing with existing customers is more profitable and to both sides. There is a much superior profit linked with maintain a long-term customer loyalty. With loyalty, it means both parties are satisfied with each other’s dealings. Ethically, direct marketing is a very good deal for the buyers because it is easy, convenient, and private. Direct buyers do not share an individual’s information to others, but rather the information remains to be between the seller and the buyer. Direct buyers provide easy access to the relevant information buyers are looking for without the need to wonder from place to place. Parking cars, moving for long distances are some of the difficulties involved in non-direct forms of marketing (Pearson 551). Nevertheless, with direct marketing, an individual does not require subscribing to all these hustles but rather sit and wait for the information to reach at his her desk. In fact, what is only required of this individuals is to browse through the web from the comfort of their chairs and everything will be done. It is no any harm when you are able to share your information to access a myriad of information regarding the trending products in the market. For instance, direct marketers can offer a limitless amount of products to customers without any form of difficulty presented by geographical boundaries. You can compare the amount of products available in the web to what you can get in mortar-and-brick stores. The difference is huge, and this reason enough to consider direct marketing an ethical and good practice that does not have any harm to buyers whatsoever. In addition, direct marketing channels provide buyers an access to a wealth of information about rivaling companies for comparative purposes. With these channels, it is very possible for buyers to access information about products, services and compares their quality and price across different companies without much hustling (Pearson 551) Utilizing information from a good website or catalogue is more resourceful than using scripts provided by retailer shops. For instance, there is a plethora of information provided by amazaon.com in regards to different products and services. By utilizing these direct selling channels such as amazon.com, customers are able to access more information about the product they are about to purchase by going through the positive and negative reviews labeled against a particular product. This way, a customer stands a better chance of purchasing something based on his or her informed consent. Consent has been a major issue with direct selling, but through this channel, customers are able to access some critical information that perhaps they could not get from other channels of marketing. Any form of marketing that provides a chance for the involved entities to mutually interact is ethical and should be supported to the fullest. Consensus is reached between the seller and the buyer through phone calls or perhaps through exchange of emails. By this kind of exchange of information, it is considered that any form of information shared is mutual and no party can claim any form bleach in the process. Consumers in this form marketing have more control to of purchase because of a range of information to have in regards to different alternative markets. Direct selling should be viewed as unethical and a tool of flawed or malice, but rather a means of building customer-seller relationships. Pearson (552) posits that by using database marketing, current marketers can target small groups or perhaps individuals and conduct their business through an establishment of personalized communications. One-on-one communications would ensure that the customer has an opportunity to enquire about any burning information just like in non-direct business model. To meet this requirement of making informed decision, sellers always initiate a kind of communication through phone calls, online chatting to learn more about the needs and requirements of customers. Through phones calls and online chatting, customers stand a chance of gaining more information about the products they are about to purchase, thus leading to informed consent. Autonomy is another contagious issue with direct marketing. Despite being branded as encroaching into somebody’s autonomy. In a world characterized by fast-changing technology, it will be very difficult for an individual to absolutely own his her autonomy of information. Technology is fast consuming every aspect of humanity, including business. Almost all sectors are run through technology, and it will be very difficult for one to cope without embracing this kind of technology. Business is among the many sectors that have drastically succumbed to technology, it will not be moral to share some personal information to benefit the goodies that come along with technology. Anybody can be a seller just the so-called ‘sellers.’ On this note, direct selling is an opportunity for sellers to have a low-cost, efficient, speedy alternative means of reaching their target markets. Direct marketing has enormously grown in business-to-business marketing due to the ever-increasing costs of marketing via the sales force (Pearson 553). By venturing into direct selling, sellers are more likely to cut down on the expenses used in promoting their business products. Direct selling ensures that sellers target only potential customers instead of targeting the whole world. On a similar note, direct marketing should be viewed as a tool that enhances lower costs, speedier handling of channels and logistics, improved efficiencies, inventory handling, as well as delivery. For instance, direct marketing as in the amazon.com ensures there is no need for storing products, which will ensure lower operation costs (Pearson 553). Greater flexibility is another advantage associated with direct selling. For instance, this form of business allows marketers to keep on doing advancements to the business programs and prices, or perhaps make immediate or timely advancements in accordance with the trends in the market. It could be difficult for sellers to meet all of the customers through the traditional methods of selling. However, through direct selling, meeting such a group of potential sellers that cannot or could not be reached by traditional modes of selling is a possibility (Pearson 553). Sellers can utilize technology to send out a promotion of their products and through this, means get to transact business with this kind of group of people from areas where it could not be possible to transact business. A web user in a geographically different zone is at the same position to access a product just like the person in the zone where the product is produced. This is the reason why direct selling stands out on its criticisms and proves to be a much stronger tool worth taking. Conclusion Conclusively, direct marketing is a business trend that is gradually consuming the whole world with a lighting speed. Despite the speed at which this mode of business is fast spreading, there are those who think that this mode of business is not ethical and ought not to be embraced. Critics of this mode of business hold that by accessing and keeping individual’s personal information, it goes against the principles of autonomy. These critics argue that nobody should be holding the right of keeping somebody’s personal information without the consent of the owner. This way these critics point out that it goes to tampering personal identity, which is a preserve of the owner. Nevertheless, a critical review of these criticisms show that most of term are not well founded and have no good intention as envisaged by the letter and spirit of development. Direct sellers do not obtain information without first requesting it from the owners themselves. Sellers first obtain the information by requesting it from the owners on a mutual consent. From these sought information, these sellers keep it in their data bank to use it in the future to developing a relationship with the buyers. Through constant communication, customers can seek for some extra information about the products they intend to purchase. By this information, it means that contrary to what the critics hold about of lack of consent direct selling offers prior information about the product so as the customer can make an informed consent. It is therefore the opinion of this paper that direct marketing is ethical and worth its place in the business fraternity. Works Cited Andersson, A., Cederbrink,P.,& Lövsund,M. Managing Customer Loyalty through Direct Marketing A Case Study of the Relationship between Länsförsäkringar Kalmar Län And Their Beneficiary Customers.2009. Viewed 24th April 2015.< http://www.diva-portal.org/smash/get/diva2:283489/FULLTEXT01.pdf> Bunch, W.H. Ethics of Direct Advertising to Consumers. 2008. Viewed 24th April 2015. < http://www.samford.edu/WorkArea/DownloadAsset.aspx?id=21474839082>. Carrigan, M and Attalla, A. “Emerald Article: The myth of the ethical consumer - do ethics matter in purchase behavior?” Journal of Consumer Marketing.2001. Viewed 24th April 2015. Growing Michigan’s Future. Chapter Two: Direct Marketing-Producer to Consumer.n.d. Viewed 24th April 2015. http://thedma.org/wp-content/uploads/DMA-Guidelines-May-2011-new-graphics.pdf ICO Information Commissioner’s Office. Direct Marketing. 2013. Viewed 24th April 2015. Pearson. Direct and Online Marketing. 2010. Viewed 24th April 2015. < http://www.pearsoned.ca/highered/showcase/kotler/pdf/9780132473958_ch17.pdf> Read More