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The review of general comparison between face to face marketing and indirect marketing (from practice point of view)

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Abstract: The objective of the study is to compare direct and indirect marketing in general. The target is to gain understanding about these types of marketing. Direct marketing has always been beneficial to both customers and sellers in a number of ways. Direct mailing is the most important, accounting for approximately one-third of total expenditures in direct marketing. Marketing books and academic journals have so far failed to explain more about indirect marketing.
The review of general comparison between face to face marketing and indirect
marketing (from practice point of view)
R. Yazdanifard
Faculty of Information and Communication
Technology
Limkokwing University of Creative and Technology
Cyberjaya, Malaysia
rashad.y@limkokwing.edu.my
Abstract: The objective of the study is to compare direct
and indirect marketing in general. The target is to gain
understanding about these types of marketing. Direct
marketing has always been benefial to both customers
and sellers in a number of ways. Direct mailing is the
most important, accounting for approximately one-
third of total expenditures in direct marketing.
Marketing books and academic journals have so far
failed to explain more about indirect marketing.
Keywords-Face to face marketing, Indirect marketing
I.INTRODUCTION
Marketing leads consumer society [21]. Boone and
Kurtz [4, p 4] defines marketing as a process of
planning and executing the conception, pricing, and
distribution of ideas, goods, services, organizations,
and events to create and maintain relationships that
will satisfy individual and organizational objectives.
According to recent research paper [3] marketing is a
total business to business activity designed to plan,
price, promote and distribute want-satisfying
products to target markets to achieve organizational
objectives. Marketing creates place, time and
ownership utilities. It analyze customer needs, secure
information needed to design and produce goods and
services that match consumer’s expectations and
bring suppliers and customer together. Alqeed and
Hasouneh [1] state that marketing is becoming less
obsessed with winning over new customers and more
focused on retaining the existing customers.
Marketing helps people to obtain what they need and
want through crediting and exchanging products and
value with others. It affects everyone’s life because
no one can escape the market. According to the
research marketing means working with markets to
bring about exchanges for the purpose of satisfying
human needs and wants [2].
Teko Matubako
Faculty of Information and Communication
Technology
Limkokwing University of Creative and Technology
Cyberjaya, Malaysia
t.matubako@yahoo.co.uk
Figure 1. Shows Core Marketing Concept. Armstrong and Kotler
[2, p 3-4] defined marketing based on the following terms: needs,
wants, demands, products, exchange, transactions and markets
II. FACE TO FACE MARKETING
It is also known as direct marketing. It has been a fast
growing marketing for serving customers, partly in
response to the high and increasing costs of reaching
business markets. Many authors have defined direct
marketing as having a direct and immediate effect on
audiences [3]. Face to face marketing is direct
communication designed to generate sales, a visit to a
place of business to purchase specific product and
provide information request. Armstrong and Kotler
state direct marketing as marketing through various
advertising media interact directly with consumers,
generally calling for the consumer to make a direct
response [2].
Direct marketing is a system of marketing by which
Transactions
Markets
Wants
Demands
Products
Exchange
Needs
Marketing
Concept
organizations communicate directly with target
customers to generate a response or transaction [3]. It
carefully focuses on targeted individual consumers to
obtain an immediate response and cultivate lasting or
enduring customer relationships. Boone & Kurtz [4]
state that direct marketing is a broad concept that
includes direct mail, direct selling, direct-response
retailing, telemarketing, Internet retailing, and
automatic merchandising. People can simply order
from a catalogue using a telephone or while shopping
online. They don’t have to leave their home as there
is delivery of goods to their homes or doors. Direct
Marketing businesses like Avon sell their products
door to door, some businesses uses mail order while
others sell through their stores. This means that direct
marketing channel has no intermediary levels [2,
p322]. According to Alqueed and Hasouneh [1] the
key to modern direct marketing is the capture of
individual customer details at the first sale, so that the
marketer can begin a relationship with that customer,
subsequently treating them differently over time in
order to repeat business.
According Keller and Kotler [16] direct marketing
has been out spacing U.S. retail sales. It accounts for
almost 48% of total advertising spending and
companies spend more than $161 billion on direct
marketing per year [16].
Hussain and Perttula [12] on their recent research
stated that internet has emerged as a tool for direct
marketing. According to Keller and Kotler [16, p
572] many direct marketers today build long term
relationship with customers by sending them birthday
cards, information materials, or small premiums.
Some businesses build strong customer relationship
through frequency reward programs and club
programs. According to Alqueed and Hasouneh [1] in
their research, direct marketing campaigns to be
considered as a dialogue in a relationship marketing
sense, it is not enough to just talk to the customer
through direct media. One must also listen to what
the customer has to say and adapt the outbound
communication according to the response data
received [1]. Recent research stated that new
channels for direct marketing which are catching the
attention of direct marketers due to the proliferation
of the Internet and mobile telecommunication
includes e-mail, web, short messaging service,
multimedia messaging service and instant messenger
service[5]. The paper stated that there is evidence that
direct marketing in these electronic channels can be
extremely profitably.
The major component of direct marketing is direct
mailing. Boone and Kurtz [4, p 467-468] state that
direct mail offers several advantages such as ability
to select a narrow target market, achieve intensive
courage, send message quickly etc. According to the
research direct mailing includes both dynamics and
competitive interactions [6]. People are placed on
direct mailing lists in a variety of ways such as
personal check payments. Direct mail comes in many
forms, ranging from sales letters, posters, postcards,
brochures, booklets, catalogs, video and audio
cassettes. According to Hair, Lamb and McDaniel [9]
on their recent paper, direct marketing can be both
the most efficient and least efficient retailing methods
depending on the quality of the mailing list and
effectiveness of the mailing piece. It is the best way
for direct mailers to target their right customers.
Direct Selling
Manufactures bypass retailers and wholesalers by
setting up their own channels to sell their products
directly to consumers, for example, Dell, without
direct mailing Dell could easily mail millions of
solicitations annually [4].
Telemarketing
Telemarketing is a major direct marketing tool.
According Fontenot, G. et al [7] telemarketing is a
communication by telephone between organizations
and customers or prospects. Hair, Lamb and
McDaniel [9] defines telemarketing as the use of
telephone to sell directly to consumers. There are
outboard telemarketing which includes receiving
calls from customers and inboard telemarketing
which include initiating calls to prospects and
customers. Keller and Kotler [16, p 577] stated that
effective telemarketing depends on choosing right
telemarketers, training them and providing
performance incentives.
III. INDIRECT MARKETING
Baig, Khan and Shehzadi [3] in their recent research
paper defined indirect marketing as the process of
communicating brand cues after developing
recognition as a brand through direct marketing tools.
Indirect marketing is a medium of one way
communication with customer or audiences, for
example, nowadays people use more indirect
marketing emerged with the announcement of iPhone
to find out information and communicate that
information.
There is word of mouth advertising which is also a
strategy of indirect marketing. The research paper
[15] stated that a word of mouth is a way of
communication between people regarding product
and service performances. According to Harris and
Jim [11] word of mouth is one of the most influential
channels of communication in the marketplace, it is
seen as more credible than marketer initiated
communications. It is powerful, independent and
honest because it provides inquirer with an indirect
experience about the product through experience of
friends and relatives, which is more creditable since
there is no association of the person with the
company or product. The fairly broad type of indirect
marketing is where by a business or people leave
their URL as part of their signature and profile.
Other examples of indirect marketing would be
writing a general blog, post to other people’s blogs or
participate in discussion forums. Some of indirect
marketing strategies involve writing articles for
publication, taking part in public speaking events
participating in community events and agreeing to
speak with other business at local events [19].
Research in the nineties[8] found indirect marketing
as a way of keeping physical aspects of property in
perfect order landscaping crisp and eye catching,
vacant unit spotless and everything working properly.
The paper [8] stated that direct marketing involves
many, small, often unnoticed efforts that keep a
property competitive. It does not have dependency on
targeting or segmenting, since it is generic in nature.
It is also the best when advertisers or company’s
objective is to remind consumers about their products
or services rather than creating awareness during
introductory stage or switching competitor’s brand. It
is used as an instrument of reminding and repeating
the identity of a particular brand. Earlier research
[10] stated that often consumers rely on indirect
experiences with products, such as reading products
description or seeing products on display, to make
decisions about which products to purchase. Indirect
marketing requires a degree of authority beforehand
to be really effective.
Indirect marketing is all about getting your product or
service promoted by using the help of a third party to
get at a place where you want the promotion to occur.
The authors state that indirect marketing is a more
passive, less aggressive approach and might not be
explicitly linked to a specific product or service or
goal (is all about participating in activities that do not
push a specific product, sale or goal) [19], [20, p
154].
IV. DISCUSSION
Direct marketing is attractive to many marketers
because in many cases its positive effects can be
measured directly. There are no middlemen involved
but direct business. There is no price hike due to
wholesalers or retailers for direct marketing which
makes it beneficial to customers. Some components
of direct marketing such as direct mail can offend
consumers since they are unaware of how their
private information will be handled and used [14].
Direct distribution channels require more budget and
the intermediaries have nothing to do with
manufacturing company.
By using indirect marketing techniques a business
can attract a customer that it’s never would expected
if it had only gone after its target audience. Indirect
marketing is simple and cheap but it can also be
disadvantageous by wasting money advertising to
large number of people who will never buy the
product. An intermediary is involved between the
manufacturer and the buyer in indirect distribution.
V.CONCLUSION
Marketing affects everyone. Both face to face
marketing and indirect marketing are the key to the
optimum use of productive resources. A combination
of these two techniques can help people to build their
businesses the way they would like. According to
earlier research [13] people need both direct and
indirect marketing since a nation without sufficient
resources, men and materials to produce enough
goods and services for its people is poor.
Combination of both direct and indirect marketing is
the key to conversion rates increase to obtain more
customers, business partners or both. This will also
satisfy both the short term and long term needs of
your business. Direct marketing takes advantage of
direct mail operations to introduce customers to
larger merchandise. People employ direct marketing
when they publish their ads in papers, magazines,
online and on the radio. Face to face marketing is
more self explanatory. Indirect marketing is often
times happens on its own through actions that are not
as aggressive or channeled as direct approaches, it is
a more passive strategy. Unlike direct marketing,
indirect marketing is a medium of one way
communication between consumers and businesses or
organizations.
For understanding efficiency and effectiveness of
indirect marketing future research need to be carried
out in areas of comparing face to face marketing and
indirect marketing.
REFERENCES
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... In principle, both online and offline marketing approach has nothing to do with direct and indirect marketing. The fundamental rationale is that SMEs can market their goods directly to consumers or indirectly through retailers (Yazdanifard & Matubako, 2014). The distinction between online and offline marketing methods focuses more on the interaction between SMEs actors and their consumers. ...
... The results also prove that the method of marketing (online and offline) also distinguishes the effect of altruism on the economic morality of SMEs actors. This is in line with the thoughts of Yazdanifard and Matubako (2014) regarding the importance of business ventures for direct marketing, even though they do not explicitly state the difference in the influence of altruism on economic morality. ...
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