Core Concepts of Marketing

(Marcin) #1
16 CHAPTER 1 INTRODUCINGMARKETING

verylittledirectcontactwithitscustomersandmustdistributeitsproductthroughvarious
retailoutletsalongsideitscompetitors.Communicationisimpersonal,asevidencedbyits
nationaltelevisionandprintadvertisingcampaigns,couponing,andpoint-of-purchasedis-
plays.Thesuccessofmassmarketingiscontingentontheprobabilitythatwithinthehuge
audienceexposedtothemarketingstrategy.. thereexistsufficientpotentialcustomersinter-
estedintheproducttomake~hestrategyworthwhile.
Directmarketingestablishesa somewhatpersonalrelationshipwiththecustomerby
firstallowingthecustomertopurchasetheproductdirectlyfromthemanufacturerandthen
communicatingwiththecustomerona first-namebasis.Thistypeofmarketingisexperi-
encingtremendousgrowth.Apparently,marketershavetiredofthewasteassociatedwith
massIParketingandcustomerswantmorepersonalattention. Also,modemmechanisms
forcoliectingandprocessingaccuratemailinglistshavegreatlyincreasedtheeffectiveness
ofdirectmarketing.Cataloguecompanies(Spiegel,J.e.Penney),telecommunicationscom-
panies(Sprint),anddirectmailcompanies(PublishersClearingHouse)areexampleofdirect
marketers.Amodifiedtypeofdirectmarketingisrepresentedbycompaniesthatallow
ordelingofproductbycallinga toll-freenumberormailinginanordercardaspartofan
advertisement.
Although(officially), Intemetmarketingisa typeofdirectmarketing,it hasevolved
soquicklyanddemandedtheattentionofsomanycompaniesthata separatesectionhere
is'varranted.Essentially, Intemettechnology (whichchangesbythemoment)hascreated
a newwayofdoingbusiness.IntheInternet age,thewayconsumersevaluateandfollow
throughontheirpurchasedecisionshaschangedsignificantly."Callnow!"isnolongeran
effectivepitch.Consumershavecontroloverhow,when,andwheretheyshopontheInter-

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