Running Head:
Direct Marketing Channel
You recently submitted a report to the Vice President of Marketing recommending that the company establish a direct-marketing channel for its products. As a result of that report, the VP has decided to promote you and place you in charge of establishing a direct-marketing system where customers can purchase products directly from the company’s Web site.
Several major retailers in your existing distribution network are not happy about the company’s plans.
They argue that disintermediation will deprive them of customers, and they have even threatened to drop your company’s product lines. These retailers account for about 65% of sales. You have called a meeting of your associates to discuss this problem. Share your thoughts with them on these issues: What answer can you offer to your retail partners? Should the company adopt a direct-marketing model like the ones used by major competitors in the market or adopt a system similar to the one in which Web orders are forwarded to local retailers:
- who complete the orders and get sales commissions?
- What are the benefits of your marketing plan?
- What are the drawbacks of each plan? How will this marketing plan be carried out?
- Product: What products or services will be sold?
- Placement: What types of marketing vehicles will be used? What will be the frequency?
- Pricing: What will be the price range for each type of product or service?
- Promotion: Who is the target market? What are the features and benefits?
- What is the competitive advantage? Your assignment should be 900–1250 words. APA format. All original work it will be checked
Introduction Direct Marketing Channel
Direct marketing is one of the strongest trends in marketing. In recent era, the use of direct marketing has increased in the business organizations to attract global customers. Direct marketing includes traditional marketing and internet marketing by using both electronic and nonelectronic tools such as direct mail, telemarketing, etc. (Online Advertising Assignment Help). This paper discusses the direct marketing plan, benefits, drawbacks and the marketing mix.
Answer to Retail Partners
After developing a website for the company, most of the customers directly purchase the products from the web site. Due to this, sales of retail partners and distribution centers are affected. In this concern, it is essential to take adequate steps. In order to stop this, company will only advertise the product through internet and provide detail information that how to purchase, from where to purchase, what are prices, level of quality, etc. The company would not sell some particular and popular products through websites. Company’s web site will refer the customer to purchase these particular products from the retailer’s websites and distribution channels. This system will help the company and retail partners to maintain their profit level and popularity.
Direct Marketing Model
The model of direct marketing has changed the perception of companies to build the relationship with the consumer and perception of a consumer to buy a particular product. In recent era, most of the companies use direct marketing model, which is more than a supplementary channel or advertisement of the product. Direct marketing model helps these companies to establish a different approach of product promotion and advertisement (Advertising and Sales Promotion Assignment Help). A company should evaluate the direct marketing models used by the competitors and implemented an innovative approach of direct marketing to create competitive advantages.
Benefits
In recent era, direct marketing is very beneficial for the business organizations and its use is continuously increasing. Direct marketing enables a firm to become computerized and internet oriented. The benefits of direct marketing plan are as follows:
Identify needs of customer: The direct marketing plan is beneficial to identify the needs and requirements of the end customers. Direct marketing plan includes clear objectives; by this, a manager can easily identify the needs of the customers. Company’s web site provides the detail information about the products and services to the customer. It helps the company to identify that which kind of products are consumed by the customers and what are their expectations from the company (Decision Analysis Assignment Help).
Relationship with Customer: With the help of direct marketing plan, company can develop strong relationship with the customers. Company’s marketing plan enables the marketing manager to collect market information about needs and wants of the consumers. So, that it would possible for the company to offer products as per their satisfaction level. This helps the companies to attract and retain customers for long time. Marketing plan also allows the consumers to resolve their issues and queries about any product of the firm. By this, customer purchases product carefully. This helps the company to make successful and healthy relationship with the customers.
Reduce the Distribution Cost: Direct marketing plan is also helpful in reducing the distribution cost of the company. This marketing plan analyzes the situation of distribution channels. This helps company to reduce cost of the distribution channels and save time. Company provides direct selling of the products and services from the company’s websites. By this website, most of the customers can purchase products and services. This helps the company to reduce number of distribution channels and their cost (Advertising and Sales Promotion Assignment Help).
Drawbacks
The drawbacks of direct marketing plan are as follows:
Long process: The implementation of direct marketing plan is a long and time-consuming process. This creates problems for the company. Direct marketing plan includes many steps, which take time to analyze exact situation in reality in the company.
Costly: Direct marketing plan is a costly process in the company, because it increases operational expenses. Direct marketing plan assumes that the costs are fixed and ignore the variation in the expenses to promote and advertise the product, which reduces the ratio of profitability (Pricing Decision Assignment Help).
Carry out Marketing Plan
In order to carry out a direct marketing process, company should create advertisement strategies by using mails, hoarding, and electronic media. These help the management to promote the products and services. In order to implement the direct marketing plan, company should recruit the direct marketing personals. This personnel would prepare an outline as per the resources and budget. This will help the company to create awareness about its offers and resolve the queries of the customers.
Products and Services
In direct marketing, company can offer variety of products and services. Companies can sell automobile products, appliances, clothes, hardware, grocery items etc. through direct marketing. Many organizations provide information about Product marketing mix assignment help services and product through the internet, this enable the company to target global market.
Placement
A company can use different type of tools for direct marketing such as direct mail, television and radio, print advertisement, catalogs, telemarketing, internet, user group, membership schemes, loyalty cards etc. Direct mail is the best option for direct marketing of the products and services. Most of the insurance and financial services companies use this tool for direct marketing. Many companies use telemarketing to sell the products and services and develop personal relations with the consumers. By telemarketing, company will be able to give the detailed information about the product and services and try to solve the problems.
Price
The price range of products and services vary in direct marketing. Price of the product mainly depends on the features of the products. The price range over $30 will be a good price range. In direct marketing, lower price will be risky because the media cost covers a good portion of revenue of the company. for more info Target Pricing Assignment Help.
Promotion
Company designs its direct market plan for the different target market. This direct marketing plan will be targeted the domestic customers for selling the products and services through the websites and distribution channels. This also gives the competitive advantages to the company. By using direct selling program in domestic market, company will be able to reduce the cost to earn good profits. It helps the company to compete with the other market player or competitors in the market. In domestic market, company will be able to understand the basic needs and trends of the customer. By this, company will make the products and services according to the customers (Media selection assignment help).
Conclusion
From the above discussion, it can be concluded that by adopting a direct marketing plan, a company can reduce its distribution costs and save time of customers. To sustain the retail partners, company should provide detailed information on the website. With the help of an effective direct marketing plan, company will be able to identify the customer needs. This will also help in creating a good and healthy relationship with the customers. Direct marketing plan is a costly and time-consuming process because it analyzes the various situations about the company and the customers. In direct marketing, company can sell different types of product at different price range. In order to promote product through direct marketing, company will select domestic market. This will help the company to gain the competitive advantages.