50521624 Introduction of Marketing

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M.D.COLLEGE MARKETING IN FINANCIAL SERVICES T.Y.F.M.

INTRODUCTION OF MARKETING

Marketing is the process of performing market research, selling products

and/or services to customers and promoting them via advertising tofurther enhance sales. It generates the strategy that underlies sales

techniques, business communication, and business developments. It is

an integrated process through which companies build strong customer

relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and

to keep the customer. With the customer as the focus of its activities, it

can be concluded that marketing management is one of the major

components of business management. Marketing evolved to meet the

stasis in developing new markets caused by mature markets and

overcapacities in the last 2-3 centuries.The adoption of marketing

strategies requires businesses to shift their focus from production to the

perceived needs and wants of their customers as the means of staying

profitable.

The term marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets anddelivering the desired satisfactions. It proposes that in order to satisfy its

organizational objectives, an organization should anticipate the needs

and wants of consumers and satisfy these more effectively than

competitors.
http://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Productshttp://en.wikipedia.org/wiki/Serviceshttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Serviceshttp://en.wikipedia.org/wiki/Productshttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Market_research


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MEANING OF DIRECT MARKETING

Direct marketing is a form of advertising that reaches its audiencewithout using traditional formal channels of advertising, such as TV,

newspapers or radio. Businesses communicate straight to the consumer

with advertising techniques such as fliers, catalogue distribution,

promotional letters, and street advertising.

Direct Advertising is a sub-discipline and type of marketing. There are

two main definitional characteristics which distinguish it from other

types of marketing. The first is that it sends its message directly toconsumers, without the use of intervening commercial communication

media. The second characteristic is the core principle of successful

Advertising driving a specific "call to action." This aspect of direct

marketing involves an emphasis on trackable, measurable, positive

responses from consumers (known simply as "response" in the industry)

regardless of medium.

If the advertisement asks the prospect to take a specific action, for

instance call a free phone number or visit a Web site, then the effort is

considered to be direct response advertising.

Direct marketing is predominantly used by small to medium-size

enterprises with limited advertising budgets that do not have a well-

recognized brand message. A well-executed direct advertising campaign

can offer a positive return on investment as the message is not hidden

with overcomplicated branding. Instead, direct advertising is straight to

the point; offers a product, service, or event; and explains how to get theoffered product, service, or event.
http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Direct_response_marketinghttp://en.wikipedia.org/wiki/Toll-free_telephone_numberhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Advertising


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Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases

its positive effect (but not negative results) can be measured directly. For

example, if a marketer sends out 1,000 solicitations by mail, and 100

respond to the promotion, the marketer can say with confidence that

campaign led directly to 10% direct responses. The number of recipients

who are offended by junk mail/spam, however, is not easily measured.

By contrast, measurement of other media must often be indirect, since

there is no direct response from a consumer. Measurement of results, a

fundamental element in successful direct marketing, is explored in

greater detail elsewhere in this article.

The Internet has made it easier for marketing managers to measure the

results of a campaign. This is often achieved by using a specific Web site

landing page directly relating to the promotional material, a call to

action will ask the consumer to visit the landing page, and the

effectiveness of the campaign can be measured by taking the number of

promotional messages distributed (e.g., 1,000) and dividing it by the

number of responses (people visiting the unique Web site page).

Another way to measure the results is to compare the projected sales for

a given term with the actual sales after a direct advertising campaign.

While many marketers recognize the financial benefits of increasing

targeted awareness, some direct marketing efforts using particular

media have been criticized for generating unwanted solicitations, not

due to the method of communication but because of poorly compiled

demographic databases, advertisers do not wish to waste money oncommunicating with consumers not interested in their products. For

example, direct mail that is irrelevant to the recipient is considered "junk

mail," and unwanted e-mail messages are considered "spam." Some

consumers are demanding an end to direct marketing for privacy and

environmental reasons, which direct marketers are able to do to some

extent by using "opt-out" lists, variable printing, and more-targeted

mailing lists. In response to consumer demand and increasing business

pressure to increase the effectiveness of reaching the right consumer
http://en.wikipedia.org/wiki/Marketershttp://en.wikipedia.org/wiki/Marketers


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with direct marketing, companies specialize in targeted direct

advertising to great effect, reducing advertising budget waste and

increasing the effectiveness of delivering a marketing message with

better geodemography information, delivering the advertising message

to only the consumers interested in the product, service, or event on

offer.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Geodemographyhttp://en.wikipedia.org/wiki/Geodemographyhttp://en.wikipedia.org/wiki/Marketing


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Types of Direct Marketing

1.Internet Marketing :-The Internet has revolutionized direct marketing for promoting the sale

of products and services to targeted audiences. Access to the Internet

provides users with services in four basic areas: information,

entertainment, shopping, and individual and group communication.

Online channels can eliminate geographic considerations. With this

capability people around the world have the same access as the person

across the street. Many businesses that can sell their products andservices through downloading or can economically ship those products

have discovered an entirely new way to market.

The Internet makes direct marketing easier, more targeted, more flexible,

more responsive, more affordable, and potentially more profitable than

ever. Virtually every business should seriously consider the Internet as a

part of their marketing mix and determine if it is a viable fit for direct

marketing.

2.Face-to-Face Selling :-The most traditional direct marketing involves the in-house sales force

personally contacting potential and established consumers. Examples of

organizations that use face-to-face selling include Mary Kay, Avon and

Amway.

3.Direct mail :-Direct mail is described as sending information about a special offer,

product or sale announcement, service reminder, or other type of

communication to a person at a particular street of electronic address.

Historically direct mail has existed in the form of printed materials, but

CDs, audio tapes, video tapes, fax mail, email and voice mail are also

used in direct mail campaigns. For example, America Onlineexperienced a highly successful campaign through mailing out CD-


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ROMs to prospective customers. Direct mail permits high target-market

selectivity; it can be personalized, it is flexible, and it allows early testing

and response measurement to take place. A highly selective and

accurate mailing lists often determines the success of direct mail efforts

to enhance response rates and control costs.

4.Catalogs :-Product catalogs are another version of direct mail where the catalogs

are the communication tool. The most common use of this approach

involves featuring a variety of products that target the needs of a specific

audience who have shown a propensity to order from catalogs. An

increasing number of business-to-business marketers are sending

catalogs on CD-ROM to prospects and customers. The average U.S.

household receives more than 50 catalogs each year ranging from

general merchandise (Spiegel and J.C. Penny) to specialty goods (Pottery

Barn and PC Connection).

5.Telemarketing :-The process of contacting people on a qualified list to sell services overthe phone has grown in popularity to the point that the average

household receives 19 telemarketing calls each year. Successful

telemarketing campaigns depend on a good calling list, an effective

script and contact structure, and well trained people that are

compensated and rewarded for making calls that result in sales. The

telecommunications industry including AT&T, MCI/WorldCom and

Sprint has used telemarketing extensively to attempt to increase their

market share.

6.Direct-response Advertising :-Direct-response advertising is communicating with potential buyers

through television, radio, magazines, and newspapers. The prospective

consumer watches, hears, or reads about the product or service and

initiates a call to a toll-free number to place their order. Television, for


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example, offers a wide range of exposure, from a 30-second commercial

to a 60-minute infomercial.

7.Kiosk Marketing :-Customer order machines, versus vending machines that actually

provide products, are another form of direct marketing. Examples of

kiosks range from computer terminals in Eddie Bauer stores so

customers can order from the entire line of products not available in the

retail store to Florsheim Shoe Company kiosks placed in airports for

home or office delivery. Your banks automatic teller machines (ATMs)

placed in convenient and high traffic areas are another example of kiosk

marketing. A combination of these direct marketing techniques may

offer the optimal revenue generation solution.


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MEANING OF ONLINE MARKETING

Online marketing is the term denoted to the definition, A marketing

tactics which controls all of its operation through internet and websitesis referred as Online Marketing.

Online marketing provide an opportunity to consider if you are

interested in starting an online business that will enable you to work

from home.

This marketing basically works on different niches and by niches I mean

different areas where we can apply online marketing techniques. Somepeople also refer it as Internet marketing.

Online marketing, specially & specifically paid placement and search

engine optimization, have a proven an excellent track record providing

companies the highest returns of any vehicle in their marketing mix.


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Benefits of Online Marketing For Consumers &

Companies:-

Benefits to Consumers:

1.Convenient :customers can shop 24 hours a day from anywhere without going to the

store physically.

2. Immediate :

consumers can interact with the seller's site to find the information,

products, or services they desire, then order or download them on the

spot.

3.Interactive Ads or Marketing Campaigns:Using advertising that engages potential customers is key in todays fast

paced, little time consumer shopping space. One benefit to eCommerce

marketing is the merchants ability to develop and improve a number of

interactive advertising or marketing campaigns designed to reach out

and engage shoppers. Videos, flash, presentations, graphics, moving

animations. They can all be used as interactive devices to help entice

shoppers to drop in and shop around for the products or services

offered. Interactive ads and applications on the Web are predicted toreach new heights as technology improves.


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Benefits to Companies:

1.Customer Relationship Building :companies can interact with customers to learn more about theirneeds and to build customer databases.

2.Reduce Costs & Increase Efficiency :avoid the expense of maintaining a physical store, costs of rent,

insurance, and utilities. Digital catalogs cost less to produce than

printing and mailing paper catalogs.

3.Greater Flexibility :unlike a paper catalog whose products and prices are fixed until the next

printing, an online catalog can be adjusted daily or even hourly,

adapting product availability, prices, and promotions to match changing

market conditions.

4.Access to Global Markets :The Internet is a global medium, which allows buyers and sellers to click

from one country to another in seconds.


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Four Ways to Conduct Online Marketing :

1.Creating an Electronic Storefront :companies can buy space on a commercial online service or it can

open its own Web site. These sites are designed to engage consumer

interaction that will move them closer to a purchase or other marketing

outcome.

2.Placing Ads Online :companies can place online ads in three ways:

(a) classified ads in special sections of major commercial online services(b) ads in certain Internet newsgroups set up for commercial purposes

(c) buy online ads that pop up while people are surfing the web. Such

ads include banner ads, pop-up

windows, "tickers" (banners moving across screen), and "road-blocks"

(full-screen ads that users

must go through to get to other screens they wish to view)

3.Participating in Internet Forums, Newsgroups, or WebCommunities :

companies may participate in or sponsor Internet forums, newsgroups,

and bulletin boards that appeal to specific special interest groups.

4.Use Online E-mail or Webcasting :companies can send out customer newsletters, special product or

promotion offers based on customer buying histories. Webcasting or

"push" programming delivers information of interest to consumers'

desktops.


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E-Commerce Domains

1.BUSINESS TO CONUMERS (B2C):-Now more mainstream and diverse has created new e-commerce

targeting opportunities Online behavior differs by age.

Online consumers differ from traditional off-line consumers. Theyinitiate and control the exchange process. Value information

highly.2.BUSINESS TO BUSINESS(B2B):-B2B sales far exceed B2C sales:-

B2B sales are estimated to reach $4 trillion in 2005.

Open trading networks:E-market space bringing sellers and buyers together.

Private trading networks:-Links sellers with their own trading partners.

3.CONSUMER TO CONSUMERS (C2C):-C2C web sites help consumers exchange goods or information

eBay is one example

Blogs:-Allows interchanges of information for special interest groups

Highly credible for advertisers.


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4.CONSUMERS TO BUSINESS(C2B):-Allow consumers to search out sellers, learn about offers, initiate

purchase, or

dictate purchase terms. Ex: Priceline.com

Some sites facilitate the feedback process between customers andcompanies.

Ex: Planetfeed.com


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TYPES OF ONLINE MARKETERS:-

1.Click-Only-Competitors:-E-tailers, search engines and portals, ISPs, transaction sites, some

content sites, enabler sites

2. Lack of planning and research:-Did not develop marketing strategies and spent lavishly off-line on mass

marketing. Over emphasis on acquisition vs. retention Low margins.

3.Click-and-Mortar Companies:-Channel conflict was initially a concernE-commerce often created new

customers, rather than cannibalizing existing ones Many firms now

enjoy greater success than their click-only competition Trusted brand

names, greater financial resources, larger customer base, industry

knowledge, and strong supplier relationships were key advantages.


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Advantages and Challenges of Online Marketing

The term online marketing is one that is simply used to define marketing on

the internet. There are other related terms such as e-marketing and e-commerce that are often used as synonyms, too.

Online marketing is a very dynamic, fast changing field, and there are many

advantages and challenges to marketing on the internet.

One of the great advantages of online marketing involves search engines.

Only with search engine marketing can you promote your product or service

directly to people who are actively looking for it!

Another advantage of online marketing is that it allows you to easily track

advertising, promotion, and sales. This means several things. First of all, you

can easily moniter your advertising and focus your efforts on the most

effective. Secondly, you can easily identify and target specific markets

individually, resulting in more effective marketing.

Another advantage to companies is that they are capable of offering bonus

offers for purchases made online as they spend less overall on their

marketing. They also use e-newsletters to get new customers and to keep oldcustomers informed and updated on new products and thereby retain their

customer base. E-newsletters are much less expensive that traditional

newsletters.

Another important aspect of online marketing is ensuring that the customer is

always satisfied. This can be a great disadvantage in terms of online

marketing as there is no in person to person interaction and this can be a

serious disadvantage. It is crucial to keep customers coming back. It is often

difficult to facilitate excellent customer communication via the internet, so

often you will need to utilize offline methods to achieve greater customer

satisfaction.

Online marketing is a great opportunity for most businesses. It is possible to

start online marketing with simple search engine advertisements and grow

from there to other concepts such as funnel construction, buzz marketing and

cool tools. However, it is important to note that there is a lot of competition on

the internet already and you will have to continue to be up-to-date with yourinformation, services and products.


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Challenges to Direct Marketing

Direct marketing requires careful planning, analysis and alertness in

order to make it a success rather than frustrating the potentialcustomers. There are even many people who consider direct marketing

to be a marketing strategy that would work out the negative way and

spoil the brand name. However, that cannot be true as there are several

businesses who have succeeded by direct marketing.

There are many challenges in direct marketing that the business owner

needs to handle with caution and ensure that the customers do not get

frustrated or irritated by the way you approach them. This is quite

common in direct marketing, as no customer would want the marketer

to target him or her personally and try to market something new. The

situation would be totally different if the same product or service is

presented to customers who are in need of the service or to someone

who is looking for them. So, the secret lies in identifying the right group

that would be interested in your products or services when you talk to

them about your business. In order to be successful in direct marketing,

you would certainly have to spend enough time in building a databaseof customers who would be interested in your service or products. Any

marketing strategy would be useful and would make sense only when it

results in sales or improvement in business. Similarly, direct marketing

would also be helpful only when it is practiced with an accurately

targeted group. Blindly contacting anyone and talking about your

services would spoil your reputation and would irritate the customers.

Though database generation is definitely not a simple task, a little more

effort and time would help you generate a list quickly. Alternatively,

you can also purchase contact lists from various database generation

companies and start your direct marketing campaign. However, care

needs to be taken in this regard as in many cases the database might

contain contact details that are outdated. You can find the right

company that has experience and reputation in database generation and

purchase the list from them as cheap lists might go to waste and spoil

your business reputation.


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The approach that you use to contact your customers is also important

as this would be the first meeting or discussion that your company

would be having with them and this is what would help you to impress

them. Therefore, any mode you use, whether it be a phone call or a

personal meeting or an email, it should be well organized and

appealing. You should already be prepared for the discussion and

should have answers for all those questions that the customers might

raise during the discussion. All possible questions should be predicted

and the answers for them should also be ready. Preparation of a

professional script would help for personal meetings and phone calls.

You can even have an email template drafted for direct marketing

through emails. However, a few things that would make the email lookpersonalized and customized should be changed before sending it

across.

Contacting the customers can either be done directly by you or can be

outsourced to other third party companies who have experience in

direct marketing and dealing with customers without any problem.

However, both the company and the sales representatives who deal with

your customers should be experienced in handling direct marketing

calls and with different types of customers. Their approach should be

professional and they should have answers for all the questions possible.

For this, you should first have these call agents educated on the various

services and / or products that you sell. They should also know about

your experience in the field, the quality of service or products, cost,

guarantee if any and so on. The main thing in dealing with customers in

direct marketing is that the information you give should be accurate and

promises or assurance that you make should be true. Any fake promisesand assurance would certainly spoil the reputation of your business and

the customers would no longer trust you and your business. Finding the

right call agents would be a great challenge and training them to talk

about your company would definitely be a tough job.

Once you are prepared and finished with all these preliminary

arrangements, you can start calling or mailing your targeted customers

by yourself or using call agents from other companies. Whatever the

case, care should be taken to see whether it is the right time to contact


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the customers. For example, customers would not be interested in

talking to a marketing person and in receiving a marketing mail when

they are on vacation or during the weekends. Therefore, such private

timings can be avoided and customers contacted during the weekdays.

This would reduce a lot of disorder and would help them to keep your

customers cool without frustrating them. After the initial discussion, if

you are asked to contact at a particular time of the day, after a week or

whenever it might be, remember to do it promptly and do not disturb

them before that.

Maintaining a tracking system that would remind you about the timing

of returning calls would also help in building a good opinion about your

punctuality and business amongst your customers. Direct marketing can

generate more leads and end up as successful sales if only these few

challenges in direct marketing are handled with care and thought. A

professional touch in every step that you take in direct marketing would

be the best way to go about it.

50521624 Introduction of Marketing

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