Direct Marketing


Under this method of distribution the manufacturers bypass the chain of middlemen and approach the consumers directly and sell them the goods and services, without the help of wholesalers and retailers. The manufacturers inform the prospective customers about their products and its uses through advertisements (in newspapers, television, radio) or catalogues, letters and brochures. If the customer wants to buy the product, he/she may place an order to the manufacturers over the telephone or through a letter sent by post or e-mail. The product gets delivered to the customer through courier, post or by salespersons.
The benefit of direct marketing to the producer as well as consumer is in the form of doing away with the profit margin of middlemen. The manufacturer is able to supply goods to the consumer at a lower price, even after keeping a larger share of profit margin as compared to the situation of distribution through middlemen. Also, the time consuming process of the product changing hands from the producer to the wholesaler, then to the retailer and finally to the consumers, is avoided. Transactions are faster when the producer is face-to-face with the consumer. Also, the producer gets direct feedback from the customers for improvement in the products.
Direct marketing may be classified into different types, based on the mode of communication used by the manufacturers to approach the customers. The manufacturers may use - Printed catalogues to inform the customers about the products called Catalogue Retailing; - Television advertisements called Televised Shopping; and - Brochures, letters etc. sent by mail called Direct Mail Retailing. Products that can be conveniently and safely sent to the customers by post/courier and whose utility and description can be easily communicated through a catalogue, letter or television advertisement, are generally sold using the method of direct marketing. This includes books, magazines, physical exercise equipments, certain types of furniture etc.

Friday, 18th Dec 2015, 05:09:32 AM

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