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Why Rural Market is so Important?
Rural market has following arrived and the following facts substantiate this.
!"# million people
$stimated annual si%e of the rural market
&M'( Rs )*+,,, 'rore
-urables Rs *+,,, 'rore
Agri.inputs /incl. tractors0 Rs "*+,,, 'rore
# 1 " wheelers Rs 2+,,, 'rore
Infrastructure is improving rapidly.
In *, years only ",5 villages connected by road+ in ne6t 1, years another 7,5.
More than 8, 5 villages electrified+ though only ""5 rural homes have electric
Rural telephone density has gone up by 7,,5 in the last 1, years9 every 1,,,: pop
is connected by ;<-.
;ocial Indicators have improved a lot between 1821 and #,,1
=umber of >pucca? houses doubled from ##5 to "15 and >kuccha? houses halved
/"15to #750
@ercentage of A@B families declined from ")5 to #!5
Rural Biteracy level improved from 7)5 to *85
Bow penetration rates in rural so there are many marketing opportunities.
-urables Crban Rural <otal /5 of rural DD0
'<E 7,." ".2 1#.1
Refrigerator 77.* 7.* 1#.,
&M'(s Crban Rural <otal /5 of rural DD0
;hampoo )).7 7*.# "".#
<oothpaste 2#.# "".8 **.)
The various factors that afect buying behavior of in rural India are:
1. Environmental of the consumer The environment or the
surroundings, within which the
consumer lives, has a very strong infuence on the buyer behavior,
egs. Electrifcation, water
suly afects demand for durables.
!. Geographic infuences The geograhic location in which the
rural consumer is located also
sea"s about the thought rocess of the consumer. #or instance,
villages in $outh India accet
technology %uic"er than in other arts of India. Thus, &'T sells
more winding watches in the
north while they sell more %uart( watches down south.
). Family * it is an imortant buying decision ma"ing organi(ation
in consumer mar"ets. #amily
si(e + the roles layed by family members e,ercise considerable
infuence on the urchase
decisions. Industry observers are increasingly reali(ing that at times,
urchase of durable has less
to do with income, but has more to do with the si(e of the family +
that-s where rural India with
.oint family structures, becomes an attractive roosition.
/. Economic factors * The %uantum of income + the earning
stream are one of the ma.or deciding
factors, which determine to a great e,tent, what the customer will
be able to buy. 'any eole in
the rural mar"et are below overty line + for large number of
eole, agriculture is the rimary occuation. 'ore than 012 of the
eole are in smallscale agricultural oeration. These factors
afect the urchase decision.
3. Place of purchase 4512 refer &66T$ due to better %uality,
variety + rice7 8omanies need to
assess the infuence of retailers on both consumers at village shos
and at haats.
5. Creative use of product e, 9odre. hair dye being used as a
aint to colour horns of o,en,
:ashing machine being used for churning lassi. The study of
roduct end rovides indicators to
the comany on the need for education and also for new roduct
0. Brand preference and loyalty 4;12 of sale is branded items in
15 roduct categories7
Product 4colour, si(e, design, and shae7: There are many
e,amles that suort this oint.
a. #or e,amle, the Tata $umo, which was launched in rural India in
a white colour, was not
well acceted. <ut however, when the same $umo was re
launched as $acio 4a diferent
name7 and in a bright yellow colour, with a larger seating caacity
and ability to transort
good, the accetance was higher.
b. 6nother good e,amle would be =hilis audio systems. >rban
India loo"s at technology
with the viewoint of ?the smaller the better-. &owever, in rural
India, the viewoint is
totally oosite. That is the main reason for the large accetance of
big audio systems.
Thus =hilis ma"es audio systems, which are big in si(e and get
acceted in rural India by
their sheer si(e.
!. Social practices : There are so many diferent cultures, and
each culture e,hibits diferent social
ractices. #or e,amle, in a few villages they have common bath
areas. @illagers used to buy one
Aifebuoy ca"e and cut it into smaller bars. This heled lifebuoy to
introduce smaller 03gram soa
bars, which could be used individually.
). Decisionmaking by male head : The male in Indian culture
has always been given the
designation of "ey decision ma"er. #or e,amle, the 'u"hiya-s
oinion 4&ead of the village7, in most cases, is shared with the rest
of the village. Even in a house the male head is the fnal
decision ma"er. In rural areas, this trend is very rominent.
/. Changes in saving and investment patterns #rom gold, land,
to tractors, @8B-s, A8@-s
#our 6-s
Ans.# 'hallenges in Rural Marketing
<hough rural markets are a huge attraction to marketers+ it is not easy to enter the market and take
a si%eable share of the market+ in the short time due to the following reasons.
Bow Biteracy
<here are not enough opportunities for education in rural areas. <he literacy level is as low /7)50
when compared to all. India average of *#5.
;easonal -emand
-emand for goods in rural markets depends upon agricultural situation+ as agriculture is the main
source of income. Agriculture to a large e6tent depends upon monsoon and+ therefore+ the demand
or buying capacity is not stable or regular.
Many rural areas are not connected by rail transport. Facha roads become unserviceable during
the monsoon and interior villages get isolated.
An effective distribution system reGuires village.level shopkeeper+ Mandal1 <aluka. level
wholesaler or preferred dealer+ distributor or stockiest at district level and company.owned depot
or consignment distribution at state level. <he presence of too many tiers in the distribution system
increases the cost of distribution.
'ommunication @roblems
&acilities such as telephone+ fa6 and telegram are rather poor in rural areas.
<raditional Bife
Bife in rural areas is still governed by customs and traditions and people do not easily adapt new
practices. &or e6ample+ even rich and educated class of farmers does not wear Heans or branded
Auying -ecisions
Rural consumers are cautious in buying and decisions are slow and delayed. <hey like to give a
trial and only after being personally satisfied+ do they buy the product.
Media for @romotions
<elevision has made a great impact and large audience has been e6posed to this medium. Radio
reaches large population in rural areas at a relatively low cost. Dowever+ reach of formal media is
low in rural households9 therefore+ the market has to undertake specific sales promotion activities
in rural areas like participating in melas or fairs.
'areer in Rural Market
While rural marketing offers a challenging career+ a rural sales person should reGuire certain
Gualifications and speciali%ed talent.
'ultural &actors
'ulture is a system of shared values+ beliefs and perceptions that influence the behavior of
consumers. <here are different groups based on religion+ caste+ occupation+ income+ age+ education
and politics and each group e6erts influence on the behavior of people in villages.
<here is a belief among rural people that e6perience is more important than formal education and
they respect salespersons who can offer practical solutions to their problems. <herefore+ it is
desirable that sales persons+ especially those who have been brought up in cities are given a
thorough training consisting of both theory and practical aspects of village life. <he training will
help these sales persons to align themselves with the market realities and settle down smoothly in
their Hobs.
Rural market has a tremendous potential that is yet to be tapped. A small increase in rural income+
results in an e6ponential increase in buying power.
&uture <rends
Markets which are not able to face the stiff competition posed by M='s+ can restore their profits
in the rural sector. <he market share of urban market when compared to the rural market is low+
hence if Indian industries concentrate on rural markets their sales will increase. If rural markets
are brought into the limelight of development+ they pave way to prosperity. @rosperity of India lies
in the prosperity of every Indian+ hence no rural segment should be left untapped.
The major issues faced by companies are:
*Unorganized and dispersed Markets,
*Lack of proper infrastructure and other physical communication facilities,
*Media for Rural ommunication,
*Many Languages and !ialects,
*Lo" #er apita $ncome,
*Lo" Le%els of Literacy,
*&%ailability of duplicate and cheap brands
Manufacture to ustomer: This is also kno"n as direct selling because
noManufacturer middlemen are in%ol%ed' & producer may sell directly
through his o"n retail stores, for e(ample, )ata' This is the simplest and the
shortest channel' $t is fast and economical' *mall producers and producers of
perishable commodities also sell directly to the local consumers' )ig firms
adopt direct selling in order to cut distribution cost and because they ha%e
sufficient facilities to sell directly to the consumers' The producer or the
entrepreneur himself performs all the marketing acti%ities'
Manufacturer retailer ustomer: This is one stage distribution
channelRetailerManufacturer ha%ing one middleman, i'e', retailer' $n this
channel, the producer sells to big retailers like departmental stores and chain
stores "ho in turn sell to customer' This channel is %ery popular in the
distribution of consumer durables such as refrigerators, T + sets, "ashing
machines, type"riters, etc' This channel of distribution is %ery popular these
days because of emergence of departmental stores, super markets and other
big retail stores' The retailers purchase in large ,uantities from the producer
and perform certain marketing acti%ities in order to sell the product to the
ultimate consumers. Ex.Coke( parivartan).Hul ( Shaktiamma) aakhri mae
likh dena isse choose kiya
Manufacture "holesaler Retailer ustomer: This is the traditional
channelRetailer-holesalerManufacturer of distribution' There are t"o
middlemen in this channel of distribution, namely, "holesaler and retailer' This
channel is most suitable for the products "ith "idely scattered market' $t is
used in the distribution of consumer products like groceries, drugs, cosmetics,
etc' $t is ,uite suitable for small scale producers "hose product line is narro"
and "ho re,uire the e(pert ser%ices and promotional support of "holesalers'
Selection Criteria of a Distribution Channel
-hile selecting a distribution channel, the entrepreneur should compare the
costs, sales %olume and profits e(pected from alternati%e channels of
distribution' $n order to select the right channel for distributing his product, a
small.scale manufacturer should keep in mind the follo"ing considerations:
Market onsiderations: The nature of the market is a key factor influencing
the choice of channels of distribution' The follo"ing features of the market
should be considered to determine the channels:
onsumer or $ndustrial Market: $f the product is meant for industrial users, the
channel of distribution "ill be a short one' This is because industrial users buy
in a large ,uantity and the producer can easily establish a direct contact "ith
them' )ut in case for goods meant for consumers, retailers may ha%e to be
included in the channels of distribution'
/umber and location of buyers: -hen the number of potential customers is
small or the market is geographically located in a limited area, direct selling is
easy and economical' $n case of large number of customers, use of
"holesalers and retailers becomes necessary'
*ize of order: !irect selling is con%enient and economical "here customers
place order in big lots as in case of industrial goods' )ut "here the product is
sold in small ,uantities, middlemen are used to distribute such products' &
manufacturer may use different channels for different types of buyers' 0e may
sell directly to big retail stores and may use "holesalers to sell to small
ustomers buying habits: The customer buying habits like the time he is
"illing to spend, the desire for credit, the preference of personal attention and
one stop shopping significantly affect the choice of distribution channels'
#roduct onsiderations: The type and nature of the product influence the
number and type of middlemen to be chosen for distributing the product' The
important factors "ith respect to the product are as follo"s:
Unit %alue: #roducts of lo" unit %alue and common use are generally sold
through middlemen, as they cannot bear the cost of direct selling' 1n the
other hand, e(pensi%e consumer goods and industrial products are sold
directly by the producers'
#erishability: #erishable products like %egetables, fruits and bakery items
ha%e relati%ely short channels, as they cannot "ithstand repeated handling'
2oods, "hich are subject to fre,uent changes in fashion and style, are
generally distributed through short channels, as the producer has to maintain
close and continuous touch "ith the market'
)ulk and "eight: 0ea%y and bulky products are distributed directly to minimize
handling costs' oal, bricks, stones, etc', are some e(amples'
*tandardisation: ustom.made and non.standardised products usually pass
through short channels due to the need for direct contact bet"een the
producer and the consumers' *tandardized and mass.made goods can be
distributed through middlemen'
Technical nature: $ndustrial products re,uiring demonstration, installation and
aftersale ser%ice are often sold directly' The consumer products of technical
nature are generally sold through retailers'
#roduct line: &n entrepreneur producing a "ide range of products may find it
economical to set up its o"n retail outlets' 1n the other hand, firms "ith one
or t"o products find it profitable to distribute through "holesalers and
&ge of the product: & ne" product needs greater promotional effort and fe"
middlemen may like to handle it' &s the product gains acceptance in the
market, more middlemen may be employed for its distribution'
Middlemen onsiderations: The cost and efficiency of distribution depend
largely upon the nature and type of middlemen as gi%en in the follo"ing
&%ailability: -hen middlemen as desired are not a%ailable, an entrepreneur
may ha%e to establish his o"n distribution net"ork' /on.a%ailability of
middlemen may arise "hen they are handling competiti%e products, as they
do not like to handle more brands'
&ttitudes: Middlemen "ho do not like a firm3s marketing policies may refuse to
handle its products' 4or instance, some "holesalers and retailers demand
sole selling rights or a guarantee against fall in prices'
*er%ices: Use of those middlemen is profitable "ho pro%ide financing,
storage, promotion and aftersale ser%ices'
*ale #otential: &n entrepreneur generally prefers a dealer "ho offers the
greatest potential %olume of sales'
osts: hoice of a channel should be made after comparing the costs of
distribution through alternati%e channels'
ompany onsiderations: The nature, size and objecti%es of the business firm
also play an important role in the selection of distribution channel' $t includes
financial resources, market
standing, %olume of production, desire for control of channel, ser%ices
pro%ided by manufacturers5, etc' 4or e(ample a company "ith substantial
financial resources need not rely too much on the middlemen and can afford
to reduce the le%els of distribution' *imilarly a company desiring to e(ercise
greater control o%er channel "ill prefer a shorter channel'
&fter deciding the number of middlemen, an entrepreneur has to select the
particular dealers through "hom he "ill distribute his products' -hile
selecting a particular "holesaler or retailer, the follo"ing factors should be
taken into consideration:
a' Location of dealer3s business premises6
b' 4inancial position and credit standing of the dealer6
c' 7no"ledge and e(perience of the dealer6
d' *torage and sho"room facilities of the dealer
e' &bility of the dealer to secure ade,uate business and to co%er the market6
f' apacity of the dealer to pro%ide aftersale ser%ice6
g' 2eneral reputation of the dealer and his sales force6
h' -illingness of the dealer to handle the entrepreneur3s products6
i' !egree of co.operation and promotion ser%ice he is "illing to pro%ide6
j' /ature of other products, if any handled by the dealer'
&d%ertising has four characteristics: it is persuasi%e in nature6 it is non.
personal6 it is paid for by an identified sponsor6 and it is disseminated through
mass channels of communication' &d%ertising messages may promote the
adoption of goods, ser%ices, persons, or ideas' )ecause the sales message is
disseminated through the mass media9as opposed to personal selling9it is
%ie"ed as a much cheaper "ay of reaching consumers' 0o"e%er, its non.
personal nature means it lacks the ability to tailor the sales message to the
message recipient and, more importantly, actually get the sale' Therefore,
ad%ertising effects are best measured in terms of increasing a"areness and
changing attitudes and opinions, not creating sales' &d%ertising5s contribution
to sales is difficult to isolate because many factors influence sales' The
contribution ad%ertising makes to sales are best %ie"ed o%er the long run' The
e(ception to this thinking is "ithin the internet arena' -hile banner ads, pop.
ups and interstitials should still be %ie"ed as brand promoting and not
necessarily sales dri%ers, technology pro%ides the ability to track ho" many of
a "ebsite5s %isitors click the banner, in%estigate a product, re,uest more
information, and ultimately make a purchase'
Through the use of symbols and images ad%ertising can help differentiate
products and ser%ices that are other"ise similar' &d%ertising also helps create
and maintain brand e,uity' )rand e,uity is an intangible asset that results
from a fa%orable image, impressions of differentiation, or consumer
attachment to the company, brand, or trademark' This e,uity translates into
greater sales %olume, and:or higher margins, thus greater competiti%e
ad%antage' )rand e,uity is established and maintained through ad%ertising
that focuses on image, product attributes, ser%ice, or other features of the
company and its products or ser%ices'
ost is the greatest disad%antage of ad%ertising' The a%erage cost for a ;<.
second spot on net"ork tele%ision increased fi%efold bet"een =>?< and @<<A'
#lus, the a%erage cost of producing a ;<.second ad for net"ork tele%ision is
,uite e(pensi%e' $t is not uncommon for a national ad%ertiser to spend in the
millions of dollars for one ;<.second commercial to be produced' &dd more
millions on top of that if celebrity talent is utilized'
redibility and clutter are other disad%antages' onsumers ha%e become
increasingly skeptical about ad%ertising messages and tend to resent
ad%ertisers5 attempt to persuade' &d%ertising is e%ery"here, from net"ork
tele%ision, to daily ne"spapers, to roadside billboards, to golf course signs, to
stickers on fruit in grocery stores' lutter encourages consumers to ignore
many ad%ertising messages' /e" media are emerging, such as !+Rs Bdigital
%ideo recordersC "hich allo" consumers to record programs and then skip
commercials, and satellite radio "hich pro%ides a majority of its channels
ad%ertising free'
Public Relations (PR)
#ublic relations is defined as a management function "hich identifies,
establishes, and maintains mutually beneficial relationships bet"een an
organization and the public upon "hich its success or failure depends'
-hereas ad%ertising is a one."ay communication from sender Bthe marketerC
to the recei%er Bthe consumer or the retail tradeC, public relations considers
multiple audiences Bconsumers, employees, suppliers, %endors, etc'C and
uses t"o."ay communication to monitor feedback and adjust both its
message and the organization5s actions for ma(imum benefit' & primary tool
used by public relations practitioners is publicity' #ublicity capitalizes on the
ne"s %alue of a product, ser%ice, idea, person or e%ent so that the information
can be disseminated through the ne"s media' This third party DendorsementD
by the ne"s media pro%ides a %ital boost to the marketing communication
message: credibility' &rticles in the media are percei%ed as being more
objecti%e than ad%ertisements, and their messages are more likely to be
absorbed and belie%ed' 4or e(ample, after the )* ne"smagazine 8<
Minutes reported in the early =>><s that drinking moderate amounts of red
"ine could pre%ent heart attacks by lo"ering cholesterol, red "ine sales in the
United *tates increased A< percent' &nother benefit publicity offers is that it is
free, not considering the great amount of effort it can re,uire to get out.bound
publicity noticed and picked up by media sources'
#ublic relations5 role in the promotional mi( is becoming more important
because of "hat #hilip 7otler describes as an Do%er communicated society'D
onsumers de%elop Dcommunication.a%oidance routinesD "here they are
likely to tune out commercial messages' &s ad%ertising loses some of its cost.
effecti%eness, marketers are turning to ne"s co%erage, e%ents, and
community programs to help disseminate their product and company
messages' *ome consumers may also base their purchase decisions on the
image of the company, for e(ample, ho" en%ironmentally responsible the
company is' $n this regard, public relations plays an important role in
presenting, through ne"s reports, sponsorships, Dad%ertorialsD Ba form of
ad%ertising that instead of selling a product or ser%ice promotes the
company5s %ie"s regarding current issuesC, and other forms of
communication, "hat the company stands for'
Sales Promotions (SP)
*ales promotions are direct inducements that offer e(tra incenti%es to
enhance or accelerate the product5s mo%ement from producer to consumer'
*ales promotions may be directed at the consumer or the trade' onsumer
promotions such as coupons, sampling, premiums, s"eepstakes, price packs
Bpacks that offer greater ,uantity or lo"er cost than normalC, lo".cost
financing deals, and rebates are purchase incenti%es in that they induce
product trial and encourage repurchase' onsumer promotions may also
include incenti%es to %isit a retail establishment or re,uest additional
information' Trade promotions include slotting allo"ances BDbuyingD shelf
space in retail storesC, allo"ances for featuring the brand in retail ad%ertising,
display and merchandising allo"ances, buying allo"ances B%olume discounts
and other %olume.oriented incenti%esC, bill back allo"ances Bpay.for.
performance incenti%esC, incenti%es to salespeople, and other tactics to
encourage retailers to carry the item and to push the brand'
T"o perspecti%es may be found among marketers regarding sales promotion'
4irst, sales promotion is supplemental to ad%ertising in that it binds the role of
ad%ertising "ith personal selling' This %ie" regards sales promotion as a
minor player in the marketing communication program' & second %ie" regards
sales promotion and ad%ertising as distinct functions "ith objecti%es and
strategies %ery different from each other' *ales promotion in this sense is
e,ual to or e%en more important than ad%ertising' *ome companies allocate
as much as EA percent of their ad%ertising:promotion dollars to sales
promotion and just @A percent to ad%ertising' 4inding the right balance is often
a difficult task' The main purpose of sales promotion is to spur action'
&d%ertising sets up the deal by de%eloping a brand reputation and building
market %alue' *ales promotion helps close the deal by pro%iding incenti%es
that build market %olume'
*ales promotions can moti%ate customers to select a particular brand,
especially "hen brands appear to be e,ual, and they can produce more
immediate and measurable results than ad%ertising' 0o"e%er, too hea%y a
reliance on sales promotions results in Ddeal.proneD consumers "ith little
brand loyalty and too much price sensiti%ity' *ales promotions can also force
competitors to offer similar inducements, "ith sales and profits suffering for
Personal Selling (PS)
#ersonal selling includes all contact "ith customers "ith the
purpose of introducing the product to the customer, con%incing him or her of
the product5s %alue, and closing the sale' The role of personal selling %aries
from organization to organization, depending on the nature and size of the
company, the industry, and the products or ser%ices it is marketing' Many
marketing e(ecuti%es realize that both sales and non.sales employees act as
salespeople for their organization in one "ay or another' 1ne study that
perhaps supports this contention found that marketing e(ecuti%es predicted
greater emphasis being placed on sales management and personal selling in
their organization than on any other promotional mi( element' These
organizations ha%e launched training sessions that sho" employees ho" they
act as salespeople for the organization and ho" they can impro%e their
interpersonal skills "ith clients, customers, and prospects' Fmployee re"ard
programs no" re"ard employees for their efforts in this regard'
#ersonal selling is the most effecti%e "ay to make a sale because of the
interpersonal communication bet"een the salesperson and the prospect'
Messages can be tailored to particular situations, immediate feedback can be
processed, and message strategies can be changed to accommodate the
feedback' 0o"e%er, personal selling is the most e(pensi%e "ay to make a
sale, "ith the a%erage cost per sales call ranging from G@;A to G;;@ and the
a%erage number of sales calls needed to close a deal being bet"een three
and si( personal calls'
*ales and marketing management classifies salespersons into one of three
groups: creati%e selling, order taking, and missionary sales reps' reati%e
selling jobs re,uire the most skills and preparation' They are the Dpoint
personD for the sales function' They prospect for customers, analyze
situations, determine ho" their company can satisfy "ants and needs of
prospects, and, most importantly, get an order' 1rder takers take o%er after
the initial order is recei%ed' They handle repeat purchases Bstraight rebuysC
and modified rebuys' Missionary sales reps ser%ice accounts by introducing
ne" products, promotions, and other programs' 1rders are taken by order
takers or by distributors'
Direct Marketing (DM)
!irect marketing, the oldest form of marketing, is the process of
communicating directly "ith target customers to encourage response by
telephone, mail, electronic means, or personal %isit' Users of direct marketing
include retailers, "holesalers, manufacturers, and ser%ice pro%iders, and they
use a %ariety of methods including direct mail, telemarketing, direct.response
ad%ertising, online computer shopping ser%ices, cable shopping net"orks, and
infomercials' Traditionally not %ie"ed as an element in the promotional mi(,
direct marketing represents one of the most profound changes in marketing
and promotion in the last @A years' &spects of direct marketing, "hich
includes direct response ad%ertising and direct mail ad%ertising as "ell as the
%arious research and support acti%ities necessary for their implementation,
ha%e been adopted by %irtually all companies engaged in marketing products,
ser%ices, ideas, or persons'
!irect marketing has become an important part of many marketing
communication programs for three reasons' 4irst, the number of t"o.income
households has increased dramatically' &bout si( in e%ery ten "omen in the
United *tates "ork outside the home' This has reduced the amount of time
families ha%e for shopping trips' *econdly, more shoppers than e%er before
rely on credit cards for payment of goods and ser%ices' These cashless
transactions make products easier and faster to purchase' 4inally,
technological ad%ances in telecommunications and computers allo"
consumers to make purchases from their homes %ia telephone, tele%ision, or
computer "ith ease and safety' These three factors ha%e dramatically altered
the purchasing habits of &merican consumers and made direct marketing a
gro"ing field "orld"ide'
!irect marketing allo"s a company to target more precisely a segment of
customers and prospects "ith a sales message tailored to their specific needs
and characteristics' Unlike ad%ertising and public relations, "hose
connections to actual sales are tenuous or nebulous at best, direct marketing
offers accountability by pro%iding tangible results' The economics of direct
marketing ha%e also impro%ed o%er the years as more information is gathered
about customers and prospects' )y identifying those consumers they can
ser%e more effecti%ely and profitably, companies may be more efficient in their
marketing efforts' -hereas net"ork tele%ision in the past offered opportunities
to reach huge groups of consumers at a lo" cost per thousand, direct
marketing can reach indi%idual consumers and de%elop a relationship "ith
each of them'
Research indicates that brands "ith strong brand e,uity are more successful
in direct marketing efforts than little.kno"n brands' !irect marketing, then,
"orks best "hen other marketing communication such as traditional media
ad%ertising supports the direct marketing effort'
!irect marketing has its dra"backs also' Hust as consumers built resistance to
the persuasi%e nature of ad%ertising, so ha%e they "ith direct marketing
efforts' !irect marketers ha%e responded by being less sales oriented and
more relationship oriented' &lso, just as consumers gre" "eary of ad%ertising
clutter, so ha%e they "ith the direct marketing efforts' onsumers are
bombarded "ith mail, infomercials, and telemarketing pitches daily' *ome
direct marketers ha%e responded by regarding pri%acy as a customer ser%ice
benefit' !irect marketers must also o%ercome consumer mistrust of direct
marketing efforts due to incidents of illegal beha%ior by companies and
indi%iduals using direct marketing' The U'*' #ostal *er%ice, the 4ederal Trade
ommission, and other federal and state agencies may prosecute criminal
acts' The industry then risks legislation regulating the beha%ior of direct
marketers if it is not successful in self.regulation' The !irect Marketing
&ssociation, the leading trade organization for direct marketing, "orks "ith
companies and go%ernment agencies to initiate self.regulation' $n March of
@<<; the /ational !o /ot all Registry "ent into affect "hereby consumers
added their names to a list that telemarketers had to eliminate from their out.
bound call database'
Emerging Tools of MC
S!onsorshi!s (Event Marketing)
*ponsorships, or e%ent marketing, combine ad%ertising and sales promotions
"ith public relations' *ponsorships increase a"areness of a company or
product, build loyalty "ith a specific target audience, help differentiate a
product from its competitors, pro%ide merchandising opportunities,
demonstrate commitment to a community or ethnic group, or impact the
bottom line' Like ad%ertising, sponsorships are initiated to build long.term
associations' 1rganizations sometimes compare sponsorships "ith
ad%ertising by using gross impressions or cost.per.thousand measurements'
0o"e%er, the %alue of sponsorships can be %ery difficult to measure'
ompanies considering sponsorships should consider the short.term public
relations %alue of sponsorships and the long.term goals of the organization'
*ports sponsorships make up about t"o.thirds of all sponsorships'
Social Media Marketing
The concept of social media marketing basically refers to the process of
promoting business or "ebsites through social media channels' $t is a
po"erful marketing medium that is defining the "ay people are
communicating' $t is one of the significantly lo".cost promotional methods that
pro%ide businesses large numbers of links and huge amount of traffic'
ompanies manage to get massi%e attention and that really "orks in fa%our of
the business' *ocial media marketing is a potent method applied by
progressi%e companies for selling their products:ser%ices or for just publishing
content for ad%ertisement re%enue'
*ocial media is an e(tremely useful tool using "hich companies can get their
information, product descriptions, promotions all ingrained in the chain of
net"orking "orld' onsidering the ne"ness of this marketing method,
organizations are coming up "ith inno%ati%e "ays to de%elop their marketing
plans' /e" platforms are being created to approach potential clients' & large
number of business organizations are allocating budget for online business
de%elopment using social media marketing' $t is a booming sector "hich is
going to redefine the "ay marketing strategies are being formed and
nternet Marketing
$nternet marketing also referred to as, ", online.
marketing or e.Marketing, is the marketing of products or ser%ices o%er the
$nternet' The $nternet has brought media to a global audience' The interacti%e
nature of $nternet marketing in terms of pro%iding instant responses and
eliciting responses are the uni,ue ,ualities of the medium' $nternet marketing
is sometimes considered to be broad in scope because it not only refers to
marketing on the $nternet, but also includes marketing done %ia e.mail and
"ireless media' Management of digital customer data and electronic customer
relationship management BFRMC systems are also often grouped together
under internet marketing'
$nternet marketing ties together creati%e and technical aspects of the $nternet,
including: design, de%elopment, ad%ertising, and sales'
$nternet marketing also refers to the placement of media along many different
stages of the customer engagement cycle through search engine marketing
B*FMC, search engine optimization B*F1C, banner ads on specific "ebsites, e.
mail marketing, and -eb @'< strategies'
Mobile Marketing
Mobile Marketing in%ol%es communicating "ith the consumer %ia cellular Bor
mobileC de%ice, either to send a simple marketing message, to introduce them
to a ne" audience participation.based campaign or to allo" them to %isit a
mobile "ebsite'
Mobile connecti%ity not only enables people to connect to the $nternet %ia a
cellular telephone, #!& or other gadget, but also consolidates the different
communication channels in a simple, yet effecti%e medium'
heaper than traditional means for both the consumer and the marketer . and
easy enough for almost any age group to understand and engage "ith .
Mobile Marketing really is a streamlined %ersion of traditional eMarketing'
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