BUSINESS MARKETINGModel-5: Business CommunicationROLE OF
INDIRECT MARKETINGIndirect marketing is way for a business to
market their product, idea, or service without having to use the
methods of SPAM or direct advertising and marketing. Indirect
marketing in which is no direct communication to customers by the
companies is called indirect marketing. Basically it is treated as
the next stage for brand recognition and awareness.When customers
are aware of the product and only require to be reminded about the
product than indirect marketing will be used. Indirect marketing is
generic in nature and no segmentation and targeting is required.The
retention to customers is made by presenting them in symbolic
representation without discriminating within the customers. In
indirect marketing we cannot record the immediate response of the
customers but questionnaire can be used to take response in
future.This is a chain of intermediaries through which a product
moves in order to be made available for purchase by a customer. An
indirect channel of distribution typically involves a product
passing through additional steps as it moves from the manufacturing
business via distributors to wholesalers and then retail
stores.ONLINE MARKETING OR E-MARKETINGIt means using digital
technologies to help sell our goods or services. These technologies
are a valuable complement to traditional marketing methods whatever
the size of company or business model.The Benefits of
E-marketingE-marketing gives businesses of any size access to the
mass market at an affordable price and, unlike TV or print
advertising, it allows truly personalized marketing. Specific
benefits of e-marketing include:1. Global reach A website can reach
anyone in the world who has internet access. This allows you to
find new markets and compete globally for only a small
investment.2. Lower cost-A properly planned and effectively
targeted e-marketing campaign can reach he right customers at a
much lower cost than traditional marketing methods.3. Track able
measurable results-Marketing by email or banner advertising makes
it easier to establish how effective your campaign has been. You
can obtain detailed information about customers responses to your
advertising.4. 24-hour marketing-With a website your customers can
find out about your products even if your office is closed.5.
Personalization-If your customer database is linked to your
website, then whenever someone visits the site. you can greet them
with targeted offers. The more they buy from you, the more you can
refine your customer profile and market effectively to them.6.
One-to-one marketing-E-marketing lets you reach people who want to
know about your products and services instantly. 7. More
interesting campaigns-E-marketing lets you create interactive
campaign using music, graphics and videos. You could send your
customers a game or a quiz-whatever you think will interest them.8.
Better conversion rate-If you have a website , then your customers
are only ever a few completing a purchase. Unlike other media which
require people to get up and make a phone call, post a letter or go
to a shop, e-marketing is seamless.TELEMARKETINGTelemarketing is an
act of marketing goods or services to potential customers over the
telephone. Telemarketing may either by carried out by telemarketers
or increasingly, by automated telephone calls or
robocalls.Telemarketing can be effective tool for your business and
it can be an easy and effective way to increase your profits and
promote your product or service.ADVANTAGES OF USING TELEMARKETING1.
Provide a more interactive and personal sale service.2. Create an
immediate rapport with your customers.3. Explain technical issues
more clearly.4. Generate leads and appointments.5. Sell from a
distance to increase your sales territory.6. Reach more customers
than with in-persons sales calls.7. Sell to both existing and new
customers.8. Achieve results that are measurable.DISADVANTAGES OF
TELEMARKETING1. Telemarketing can be resented particularly when
dealing with business-to-customers, and when calls are made in the
evenings.2. Customer lists may not always be clean and opted-out
this leaves you with a potential risk of breaking the law.3.
Customer lists can be very costly.4. Telemarketing has a negative
image that could damage your business reputation if carried out
poorly.5. Telemarketing has the potential to replace a sales team
and this could lead to negative feelings among employees.6.
Training staff can be time-consuming and costly.7. An outside
service provider can result in your losing control over your sales
processes because the people doing the work arent your
employees.DIRECT MAIL Direct mail is a marketing effort that uses a
mail service to deliver a promotional printed piece to your target
audience. Direct mail encompasses a wide variety of marketing
materials, including brochures, catalogs, postcards, newsletters
and sales letters. Major corporations know the direct mail
advertising is one of the most effective and profitable ways to
reach out to new and existing clients.Unlike other forms of
advertising in which youre never sure just whos getting your
message, direct mail lets you communicate one-on-one with your
target audience. That allows you to control who receives your
message, when its delivered. whats in the envelope and how many
people you reach.The most effective direct-mail inserts often use
key words and colors. Make sure the colors you use promote the
appropriate image. Neon colors, fox example can attract attention
for party planner or gift basket businesses. On the other hand,
ivory and gray are usually the colors of choice for lawyers,
financial planners and other business services.To involve the
reader in the ordering process, many mailers enclose yes or no
stickers that are tobe stuck onto the order form. Companies such as
Publishers Clearing House take this technique farther by asking
recipients to find hidden stickers throughout the mailing and stick
them on the sweepstakes entry. It also asks customers to choose
their prizes, which gets them even more involved.PUBLICITYPublicity
is the movement of information with the effect of increasing public
awareness of a subject. The subjects of publicity include people ,
goods and services, organizations of all kinds, and works of art or
entertainment.ADVANTAGESBenefits to the Manufacturer: 1.Increase in
demand of the product caused by advertising and introducing of new
techniques.2. Advertising maximizes the production level in the
enterprise.3. Reduce the slumps in profit margin of the
products.4.Large amount of production may lead to stabilize the
value of the product.
Benefits to the Retailer:1.Reduces the risk dead stock.2.Since
advertising helps in finding a way to stabilize the price. Retailer
will be confident of selling the product with more profits.3. It
also reduces the percentage overhead of the retailer.
Benefits to the Consumer:1.Well-advertised goods are normally
better.2.It helps in educating the customer and also acts as an
information service.3.Advertising also makes it possible to sell
direct to the consumer by mail order business.
DISADVANTAGES
1.Developing Newsworthy Stories One of the main goals of a
public relations campaign is to provide potential customers with
timely, newsworthy information. Businesses often issue press
releases for grand openings, product launches, employee recruitment
or participation in an event promoting a cause.2. Hard to Measure
Success Companies often find it difficult to measure a campaign's
success. Mark Nowlan, "Entrepreneur" Magazine's public relations
columnist, notes that measuring and evaluating the impact of public
relations efforts is often subjective. He suggests that it's hard
to compare and contrast impact across publications.3. Need a
Publicist You'll need an in-house or freelance publicist to launch
a successful public relations campaign. A publicist can identify
the best media to pitch, build media lists, develop press releases
and write stories. Business owners incur an expense for public
relations services, which will vary depending on your location, the
publicist's level of experience and the amount of time the
publicist spends on your project.4. Appropriate MediaSelecting the
appropriate media to pitch your stories to may prove to be
problematic, as you try to review their readership to see if they
match your target market. This takes time, which may pull you away
from other tasks, unless you hire a consultant to assist you.
Pitching to relevant media increases your chances of getting
coverage.5. Inaccurate Message or StorytellingWhen you distribute a
press release, it falls into the hands of many journalists, who may
use it to create a newsworthy story. While it can be advantageous
to have a story written about your business, you can be at a
disadvantage if the story is inaccurate, incomplete or misleading.
A writer may see a negative angle that can damage your company's
reputation.PUBLIC RELATIONThe part of public relations that is most
directly related to promoting a companys product or services is
called publicity.The main function of public relation is to
encourage and develop attitude and behavior which will create
understanding between an organization and its public and healthy
growth. Thus public relation is a form of communication.Public
relation is an activity carried on between advertising, to make the
public understand what the product actually is and thus posing a
confidence in prospects about the product.
OBJECTIVES OF PUBLIC RELATION1. Building Product Awareness When
introducing a new product or relaunching an existing product,
marketers can use a PR element that generates consumer attention
and awareness through media placements and special events.2.
Creating Interest Whether a PR placement is a short product article
or is included with other products in round up article, stories in
the media can help entice a targeted audience to try the product.
For example, around the holiday season, a special holiday food may
be promoted with PR through promotional releases sent to the food
media or through special events that sample the product.3.
Providing Information PR can be used to provide customers with more
in depth information about products and services. Through articles,
collateral materials, newsletters and websites, PR delivers
information to customers that can help them gain understanding of
the product.4. Stimulating Demand A positive article in a
newspaper, on a TV news show or mentioned on the Internet, often
results in a discernable increase in product sales.5. Reinforcing
the Brand In many companies the public relations function is also
involved with brand reinforcement by maintaining positive
relationships with key audiences, and thereby aiding in building a
strong image. Today it is ever more important for companies and
brands to build a good image. A strong image helps the company
build its business and it can help the company in times of crises
as well.TYPES OF PUBLIC RELATION1. The types of key tools available
to carryout the public relations function include:2. Media
Relations.3. Media Tours.4. Newsletters.5. Special Events.6.
Speaking Engagements.7. Sponsorships.8. Employee Relations.9.
Community Relations and Philanthropy.
FUNCTIONS OF PUBLIC RELATIONS1. Public relations functions are
categorized by the publics with which relationships are established
and to whom appeals are made to understand and/or accept certain
policies, procedures, individuals, causes, products or services.
Practitioners who perform specialized functions may play a
management role, operate as a communications technician, or
function in a dual role.2. Community Relations A public relations
function consisting of an organizations planned, active and
continuing participation with and within a community to maintain
and enhance its environment to the benefit of both the organization
and the community. This can involve partnerships, volunteer
activities, philanthropic contributions and public participation.3.
Employee Relations Employee Relations Dealing and communicating
with the employees of an organization. This can include team
building and employee empowerment.4. Government Relations Dealing
and communicating with legislatures and government agencies on
behalf of an organization.5. Financial Relations Dealing and
communicating with firms and interest groups within the
organizations industry.6. Media Relations Dealing and communicating
with the news media when seeking publicity or responding to
reporters questions. It also involves setting up and maintaining a
professional and mutually beneficial working relationship with news
gatherers and gatekeepers, in part by becoming known as a credible
source and as a provider of factual, expert information whether or
not that information results in media coverage.7. Public Affairs
Dealing and communicating with government and groups with regard to
societal (public) policies, action and legislation. Unlike
government relations, where the practitioner works strictly on
behalf of an organization, public affairs also is concerned with
the effect of public policies, actions and legislation on its
publics. from :Sowmya C N1st Mcom
