UNIT 20 EMERGING ISSUES IN MARKETING‐II

Structure

20.0 Objectives

20.1 Introduction

20.2 Digital Marketing

20.2.1 Tools of Digital Marketing

20.2.2 Advantages and Limitations of Digital Marketing

20.3 Face to Face Marketing

20.4 Experiential Marketing

20.5 Internal Marketing

20.6 Location Based Marketing

20.7 Augmented and Virtual Reality Marketing

20.8 Direct Marketing

20.9 Let Us Sum Up

20.10 Key Words

20.11 Answers to Check Your Progress

20.12 Terminal Questions

20.0 OBJECTIVES

After going through this unit, you shall be able to:

• explain the concept of Digital marketing;

• describe the advantages and disadvantages of Digital marketing;
• explain the importance of Face to Face Marketing in present scenario;
• dnalyse the advantages and limitations of Face to Face Marketing;
• discuss with the meaning and feature of experiential marketing;
• explore the advantages and disadvantages of experiential marketing;
 • analyse the need of Internal Marketing in an organization;
• discuss the emergence of location based marketing;
• describe the merits and limitations of Location based Marketing;
• explore the concept of Augmented and Virtual Reality Marketing;
• discuss the meaning and need of Direct Marketing; and
• examine the effect of Direct Marketing.

20.1 INTRODUCTION

World has witnessed the changing face of marketing environment from time to time. This has
changed the fate and style of marketing. There has been a paradigm shift in the marketing and
different concept of marketing has been evolved. The advent of Information Technology
revolution has brought major changes in the practices and behavior of the marketer. It has also
impacted the consumption pattern, behavior and shopping style and preferences of the
consumers. Outbreak of Corona Virus in the year 2019 has further stamped the increasing role
of IT in marketing practices. This has changed the face of marketing and different concept and
style of marketing have been adopted. In this unit, we will learn about the concept, merits, and
limitations and need of digital marketing, face to face marketing, experiential marketing,
internal marketing, location based marketing, augmented and virtual reality marketing and
direct marketing.

20.2 DIGITAL MARKETING

When marketing is done through internet and other digital platforms (such as the radio,
television, mobile applications, social media, web‐applications, search engines, websites etc) it
is called digital marketing. In Digital marketing, use of electronic devices is made. This
marketing can be done online as well as offline.

Offline Digital Marketing

When marketing is done using electronic devices where internet connection is not required,
such as radio, television, phone etc., it is called offline digital marketing. This can also be called
as enhanced offline marketing. For example we often get messages or promotional calls on our
mobile phones to promote a product or services. Another examples would be electronic or
digital/LED billboards, that is installed at public places displaying digital images that are
changed by a computer every few seconds. They have visual appeal and attract the public.
Telemarketing is also very popular. In the current pandemic situation awareness and caution
are also being created over phones. Every time you make a phone call, a message is conveyed
regarding precautions to be taken and importance of getting corona vaccination. This all comes
in the ambit of offline digital marketing.

Online Digital Marketing

When marketing is done using electronic /digital devices that requires internet connection, it is
called online digital marketing. For digital marketing, marketer needs to acquire some assets
necessarily. Marketers require to prepare or develop following resources for online digital
marketing:

• Website
• Logos, icons
• Video advertisement
• Product demonstration
• Product/service images
• E‐contents/ blogs/Vooks/testimonials etc
• Reviews of the purchaser/users
• Social media pages such as Facebook page, Twitter page etc

20.2.1 Tools of Digital Marketing

In Online /Digital Marketing, there are several tools that are used. Let us discuss those
briefly.

Search Engine Optimisation (SEO): When you search something on internet, you can see
some information or websites, few at the top on the first page. Search engine optimization
is the process of designing and managing content in a way that it appears amongst the top
few on the internet when someone is searching on internet. While creating content,
marketers have to choose keywords that are most popular. SEO manages both the quality
and quantity of traffic on the website. If the manager has optimised the search engine
content, her brand(s) would appear immediately on the website. However, SEO is an
expensive tool. You need to hire an expert who can create SEO to increase the online
visibility of your products or services.

Pay Per Click (PPC):In this marketing strategy, marketer pays for every users who clicks the
advertisement when he opens a page. Marketers advertise their products or
services(business offerings) on popular online platforms such as Google, Facebook, Twitter,
Instagram etc. When an online visitor visits these pages, advertisements pops up. If the
visitor clicks those advertisements, marketer will pay money to these online platforms. In
this PPC model, marketer has to pay money per click.

Search Engine Marketing (SEM):In order to increase the visibility of the website in search
engine, this search engine marketing style is used. Here, ad space is bought by paying fees
in search platforms.

Paid Social Media Advertising: Social media platforms are widely and popularly used
across the globe. Most Social media, such as Twitter, Facebook, Snapchat, Instagram,
Linkedin allows marketers to publish and run their advertisements on their respective
platforms to communicate about the market offerings to the prospective customers.
Marketers have been using these social media platforms. However, these social media
platforms charge for running any advertisements. Hence, this involves cost.

Social Media Marketing: Sometimes, marketers create their business pages on social
media platforms and promote it amongst the users of those platform. This style does not
involve any cost but it may have limited reach vis‐à‐vis paid social media advertising as
only friends can see those pages. It also requires lots of efforts and time. But in the long
run it can fetch fruitful results with no cost.

Content Marketing: Marketers, in digital marketing, may use electronic content to reach
out to their customers. These e‐contents can be in the form of e‐books (this is also called
as vooks), videos, posts, blogs, images etc. This content stimulates the customers to search
for the products, thus their interest is aroused for particular product or services.

Influencer Marketing: There are many popular social media users who have a huge
following and viewers. Marketers sometimes, communicate about their market offerings
through them.

Email Marketing: This is an oldest form of online marketing or digital marketing. Marketers
use this tool to advertise special deals or events.

Besides, there are several other tools too in digital marketing such as Affiliate marketing
where marketers make a deal with the external websites or agents to promote their
market offerings. Since marketers use their referrals it is called affiliate marketing. Cost‐
per‐ click, blogging, Search Engine Result Page (SERPs), Conversion Rate Optimization
(CRO), backlinks, Native advertisements etc are some of the other digital marketing tools.

20.2.2 Advantages and Limitations of Digital Marketing

Advantages: There are many advantages of digital marketing. Few of them are listed
below:

• Digital marketing may reach to masses with less effort, cost and time which may be
very beneficial to the business.

• Besides, results of digital marketing can be tracked with the help of web analytics
and other tools.

• Marketer can analyse whether the marketing efforts are effective or not and how
are the customers responding to the promotional efforts.

• With the help of data analytics, marketer can personalize their market offerings and
promotional campaigns according to the choice and preference of the customers.

• It also helps in building and managing relationship with the customers. In the
previous unit you have learnt that relationship marketing is very important.
Through digital marketing that can be done easily.

• Artificial Intelligence is going in a big way.

Limitations: Digital marketing has some limitations as well. Let us discuss them:

• For digital marketing, marketer has to have skilled and trained marketing personnel.

• IT tools change rapidly. Accordingly, they need to upgrade themselves to cope up

with the advancements in technology and tools.

• Making digital content also needs skilled professionals and to hire those, companies
may have to pay higher prices.

• This also has high competition, as everyone is using digital platforms to market their
product offerings.

• Another difficulty in digital marketing is, one bad impression can spread like fire in
the jungle as it reaches everyone in no time. If there is any negative feedback or
unaddressed complaint posted on digital platforms, it can be devastating for the
companies goodwill.
 • Besides, there are security and privacy issues too.

20.3 FACE TO FACE ( F2F) MARKETING

Face to face marketing is the style of marketing where marketers contact the potential
customers directly and makes in‐person deal through client meetings, sales events, product
demonstrations, in‐store visits, interacting events etc. It works on the principle of likeability of
human touch and feel amongst individuals. This may be Formal F2F marketing or Informal F2F
marketing. Informal F2F marketing is not planned. Anywhere the marketer meets people, she
takes a chance of interacting with them and converting it into a business deal if the person is a
potential buyer. For example, if the marketer meets someone at mall and a conversation strikes
between them. The shopper asks what do you do professionally and she narrates about her job
as a marketing head in a company dealing with the commodity say, Antiques. She further
describes about the antique articles that are available. The shopper may take interest and the
marketer, if solicited, tries to sell her market offerings to the shopper. This would be called as
Informal F2F marketing. The marketer instantly takes advantage of an opportunity to let people
know about her business and her market offerings.

There is a formal approach to this style of marketing too. In Formal F2F marketing, this meeting
is planned and scheduled. For instance, when e‐resources are sold to the college libraries, a
client meeting is scheduled with the buyers (library) and users (teachers and students) and a
presentation is made by the marketing personnel to stimulate and influence them to buy those
resources. Marketers might attend trade shows (where a booth or stall can be set up),
Conventions, Chamber of Commerce events etc to promote their market offerings.

There are certain products such as electronic appliances, tablets, personal computers,
expensive mobile phones, for which customer usually wants to know more about the product
features and benefits by actually visiting the store, discussing with the professionals available
there and then make a purchase decision. Unlike while buying groceries, customers actually
gladly wait to meet the sales representative there to know more and more about these
products. The sales representative gives the customer a personal gesture, crack jokes, offer
hospitality to make the customer feel personal touches. Likewise, in F2F marketing that
personal feeling is created to attract the customers. Amway, Tupperware, Modicare, Oriflame
etc are the companies using F2F Marketing strategies.

Advantages and Limitations of F2F Marketing

There are many benefits of F2F marketing. This strategy is very effective. This has a high
conversion rate. The customers feel more connected and safe as they get to speak face to face.
They can clear all their doubts and be assured of their purchase decision. The heterogeneity of
customers can also be addressed and they can get more personalized products or services. This
can earn the loyal customers in the business as chances of giving delight to the customer are
high here. It is not to mention that loyal customers bring more customers, thus business to the
company that too without any cost. Maintaining and managing customer relationship is the
most in this style of marketing. Events and conventions bring customers for the company.
Marketers do not have to make castle in the air. They have audience that can be converted into
their customers. Effective communication is magical and one can reap the benefits of that.

However, this is expensive so business of all sizes cannot afford it. Besides, sales personnel are
very important here. Unless, they have the magical, enchanting communication technique and
skill, this would not work. If the audience is very large then the very essence of this style is
gone.

CHECK YOUR PROGRESS A

1. Fill in the blanks:
i. When marketing is done using electronic /digital devices that requires
internet connection, it is called ___________.
ii. _________manages both the quality and quantity of traffic on the website.
iii. Under ______________ad space is bought by paying fees in search
platforms.
iv. ____________ works on the principle of likeability of human touch and feel
amongst individuals.
v. Under ________ marketers make a deal with the external websites or agents
to promote their market offerings.
2. State whether the following statements are True or False:
i. Digital marketing means the use of internet enabled platforms only.
ii. The act of publishing paid advertisements on social media platforms is
termed as social media marketing.
iii. Amway is one of the company using F2F Marketing strategies.
iv. Content marketing works by offering readers informative and useful
material that provide insight and value.
v. The results of digital marketing cannot be tracked.

20.4 EXPERIENTIAL MARKETING

We have already discussed it several times in the course that success of any business
oragnisation depends upon how are their target customers experiencing. Every organization,
thus, aims at achieving customer delight. To achieve customer delight, the organization needs
to be constantly upbeat in making necessary changes in their market offerings (products and
services) as per the changing scenario of market taste, preferences and priorities. Besides, the
marketer has to be on their toes constantly to build their competitive advantage. For this, they
need to render memorable experiences to their customers that would influence their
(customer’s) brand preferences and their purchase decisions.

On the other hand, customers may not necessarily follow rationality while making purchase
decisions. Many a times, their purchase decisions depend upon their instant mood and desire.
They look for the brands which create experiences, fond memories, and also something that
can satisfy their want with memorable emotional, sensorial and creative experiences.
Therefore, marketers now are focusing on creating and delivering real time experiences to the
customers, besides, providing them with the market offering that satisfies their want. This style
of marketing is known as experiential marketing.

This experiential marketing is done to ensure the customers’ emotional attachment to the
particular brand. This has gained popularity over the last few years and has become a
competitive strategy for many companies in the contemporary era. Marketers now conduct
various events and workshop that becomes memorable to the customers. Besides, memorable
experiences are also created by allowing the customers to use the products before they actually
buy. Once they have personalised and memorable experience, they are induced to buy the
products and advocate it to others too. Demonstrations of the products are also done.

Components of Experiential Marketing

Many experts and researchers have given various foundational elements or components for the
framework of experiential marketing. Bernd Schmitt has explained five major components of
experiential marketing which are listed below:
‐ SENSE Marketing (Sensual experience): creation of sensory experiences which
appeals to the senses through sound, sight, taste, smell and touch. This component
is used by those companies, which aim at easy distinction of their products from the
available competitors.
‐ FEEL Marketing (Emotional experience): In case of creating inducing impact so that it
stimulates the customers to buy the product.
 ‐ THINK Marketing (Inttellectual exxperience): To
T create prroblem solving and cogn nitive
experiencces. Compan nies create curiosity amoongst the customer abou ut the produ
uct or
service.
‐ ACT Marketing (Behavioural experience): In this the physical appearance of the
product iss designed in
n a way to innfluence and
d enrich the lives of the customers.
‐ RELATE Marketing
M (
(Relational experience): Promotion nal campaiggn to portrray a
product in a way thatt it affiliates with the
t socio‐cu
ultural environment off the
customerrs. For example: Manyavvar for wedd ding and festtival clothingg.

Figgure 1: Comp
ponents of Experiential
E Marketing

Sense
marketing
m

Act Feel
Marketin
ng Markeeting
Exxperienmtial
marketing

Relate Think
Marketing
M Marketing
M

Advantagges and Lim

mitations of Experiential
E Marketing

Advantagges: There are many advantages

a o experienttial marketing. This is not just ano
of other
buzzwordd. It uses se
everal tools to
t create memorable and personalized experieence. Condu ucting
some interesting eveents is one su
uch thing. Feew of the addvantages arre:
• It createss brand aw wareness am mongst the customers. The relatio onship with
h the
customerrs is made inn such a wayy that it creaates awarenness amongsst the custommers.
With the help of soccial media, a memorab nce is createed that not only
ble experien
creates brand awaren ness but also
o lasts long in the mindss of the custo
omers.
 • It enhances the credibility if the companies. A connection that is made to the
customers’ heart enhances the love and affiliation of the customers for the product.
As this marketing style tries to reach the customers in their own comfort zone.
• It creates and ensures positive perception of the products in the minds of the
Customers. As all the sensory organs of the customers are pleased and stimulated.
• By allowing the customers to try the product before they buy, it influences the
purchase decision of the customers. They are so pleased with the experience that
they quickly make buying decision.
• It encourages word‐of‐mouth publicity. Since the customer has amazing experiences
they become brand advocates.
• It can easily be combined/complemented with other marketing strategies without
disrupting the old equilibrium.
• It helps in achieving growth target of the companies as loyal customers bring in
more and more customers to the business.

Limitations: There are some limitations too of this style of marketing. Let us discuss them
quickly:
• It sounds easy but fact is that creating a memorable experience is a very daunting
task in itself. If it does not click properly to the customers, it can have a negative
impact on the customers too. Customers who are looking for a memorable
experience may feel very bad if the experience is not that good.
• It needs adequate financing to use this experiential marketing strategy, as individual
attention is to be given to the customers. Companies need to hire skilled
professional and train them. This adds the cost.
• Experiences cannot be repeated. Therefore one plan may not work all the time.
Marketer may have to plan different and original things.
• It is very hard to measure Return on Investment (ROI). After conducting an event,
the marketers may not immediately tell that these many prospective customers will
turn into active customers.

20.5 INTERNAL MARKETING

A very famous saying goes like “Charity begins at home”. The same is felt by the marketers.
Unless the market offerings are marketed well to their own marketing personnel, it may be very
difficult to be marketed to the customers. Therefore, it becomes important to convince the
marketing personnel first about the marketing offerings so that they can in‐turn communicate
to the prospective customers passionately and convince them to make a purchase decision in
their favour.
When the company’s objectives, products and services are promoted to the employees
within the organization, it is referred as Internal Marketing. This is done to make the
employees participate actively to attain the objectives of the organization. This leads in making
the employees of the organization as brand advocates. This facilitates in the development of a
company’s culture of being a loyal employee of the organization. The loyal employee may does
not only work for the financial incentives (salary, commission etc.) but also to fulfill their own
responsibility and accountability. This increases the morale of the employees. We have learnt in
management classes that higher the morale of the employees, higher shall be the productivity
which leads to attainment of company’s goals and objectives.

Thus, internal marketing can be defined as a continuous process of aligning, motivating and
empowering the employees of the company at all management level so that they diligently
work to have delighted customers in the business.

This is done through educating the employees about the company policies, aims and objectives.
Employees are encouraged to give their inputs while designing the business strategies. Their
criticism are welcomed and worked upon. These activities are performed to convince the
employees that they are going to achieve their own set target in the market. Effective internal
marketing enables the marketing personnel to increase their customer engagement.

The concept of internal marketing is not new. It came into being long ago but could not gain
much importance as different marketing concepts emerged and gained importance due to
environmental demands. However, this concept has started gaining importance.

This concept of internal marketing is based on the assumptions that personality and outlook of
the employees towards the customers of their business depends upon their own experience in
the organization. It is needless to mention that whatever marketing strategies that a company
formulates, the ultimate objective is to give their best performance to make their customers
delighted.

Method of implementing internal marketing

Generally, at the time of induction, the employees are briefed about the company’s vision and
mission, objectives etc. But that is not enough. Depending upon the socio‐cultural environment
of the business organizations there may be different methods adopted by the organizations for
internal marketing. For example in Japan, company songs are written and composed, likewise in
educational institutions and universities in India, we have institutions’ Kulgeet. These are all
done to develop a sense of belongingness amongst the employees. There are different methods
of internal marketing. They are listed briefly below.
• Delegating the authority and responsibility to the employees, so that everyone in
the organization is contributing their bit to the best of their capabilities.
• Ensuring the adequate financial incentives to the employees.
• Ensuring a conducive work environment.
• Educating the employees about company’s policies and objectives.
• Encourage employees for their participation in designing company’s policies, goals
and objectives.
• Motivate the employees to justify their salaries.
• Conduct training and development program for the employees from time to time.
• Ensure the wellbeing of the employees that encourages them to treat the company
as their family.
• Inviting and incentivizing constructive criticism from the employees.
• Appreciate and acknowledge the employees input widely and wholeheartedly.
• Maintaining Effective downward communication so that the company’s policies and
objectives are clearly communicated to all.
• Maintaining effective leadership and management in the organization.
• Focusing on ensuring and enabling the employees to create work‐life balance.
In a nut shell, it can be said that the four most essential areas within the organization, to do
internal marketing is (1) Motivation (2) Coordination (3) Information and (4) Education.

Advantages and Limitations of Internal Marketing

Advantages: There are many benefits of having happy employees in the organization. Few of
them are listed below:
• Internal marketing encourages the employees to perform better.
• Internal marketing empowers the employees; therefore, they feel more responsible and
accountable for achieving the organizational goals and objectives.
• Internal marketing boosts employees’ morale which leads to higher productivity.
• Internal marketing brings delighted customer in the organization more and more and
increases profitability and credibility of the orgainsation.
• Internal marketing helps in customer retention.
• Internal marketing ensures better coordination and cooperation among different
departments of the business organization.
 Limitations: Like everything else, it is also not free from limitations. There are certain
limitations too, they are:
• Internal marketing is a costly affair, building up a team of efficient people is not
easy. It comes with cost and huge efforts. Training and development programs
entails cost and may not always give the desired result.
• Too much thinking into something may be disastrous. Employee’s participation in
setting company’s goals and objectives may not always be a good idea.
• Individual conflicts and conflicts among the department can make the
implementation of internal marketing difficult and challenging.

20.6 LOCATION BASED MARKETING

Location based marketing is popular style of marketing that needs to know the location of the
customers. It is direct marketing. An alert is sent to the individuals through the mobile device’s
location, about the market offering available nearby. Using location data, marketers know
about the location of the customers and send them online or offline messages regarding the
availability of their nearby stores or events. It is helpful at every stage of purchase decision
from information to evaluation of the available offerings. Ever since the smart phones have
been pocketed with the individual, this style of marketing is gaining much more importance.
With the help of artificial intelligence, choice, preference and requirement of the prospects can
be known easily. With that information in hand, marketer instantly sends messages to the
customer that a product or service which the customer was seeking is available at a nearby
store allowing the customer to purchase the product or service immediately. This way, location
based marketing influences the purchase decision of the prospective customer and turns into
their brand’s favour.

Location Based marketing is also known as geo targeting marketing, geo location marketing,
proximity based marketing and hyper local marketing. It is trending widely in developed
countries.

Types of location based marketing: There are several ways in location based marketing
through which marketer may reach its customers. Let us see few of them:

Use of computer is very common. Every computer or other such devices connected to the
internet has an internet protocol address which is widely known as IP address. Location
information is also available on computers. Using that location information, marketers reach to
their target customers. This is often termed as IP address Marketing or Geo‐targeting.
Likewise, with the help of Global Positioning Satellites (GPS) also marketer reaches the
customers.

The other popular type of location based marketing is Geo‐fencing. In this, a boundary is
created within a specific area or region. Whosoever enters into that boundary becomes
prospective customers and can be reached by the marketers instantly by sending notification or
messages. Likewise there are other ways such as Beacon Marketing, Geo‐location marketing,
Geo‐conquesting, Audience targeting etc.

Location Based marketing is gaining popularity as almost everyone owns smart phones now.
Smart phones help in the identification of the customers. The marketers may forget them
easily. It is very effective in event marketing.

Advantages and Limitations of Location Based Marketing

Advantages: The benefits of Location based marketing are listed below:

• Location based marketing increases in‐store‐visits as the customers are targeted
nearby those stores and becomes easy to make them enter into the store.
• Data can be used to modify the marketing strategies that match the most to the
consumer buying behavior.
• This enables to tailor the marketing campaigns and promotional tools to attract
customers to the business. This converts the footfalls into sales increasingly.
• This is good and useful for the customers as well, as they are reminded of what
were they seeking.
• This style of marketing increases brand awareness and is very cost effective vis‐
à‐vis other methods.

Limitations: There are many such benefits, but there are limitations associated with this too.
Let us see them briefly:
• Location based marketing can only be used when the customers are using the
location technologies on their phones or computers that are connected to
internet. Owing to the privacy issue, many people do not prefer to use this
location technology.
• Location based marketing cannot target people who do not have smart phones.
• If the targeting is inappropriate, then this style of marketing may not yield
desired results.
20.7 AUGMENTED AND VIRTUAL REALITY MARKETING

When marketers make use of virtual and augmented reality technology to promote their brand
it is called as augmented and virtual reality marketing. In this technology a virtual (real life type)
environment is created. 3D and 5D movies are an example to this. In this strategy, rather than
creating and delivering physical experiences, the experiences are created virtually or with the
help of augmented reality technique. It is relatively less costly than the experiential marketing
technique. Customers can be targeted on a mass scale as this only requires a smart phone or
computer apps. The technique of augmented reality gained popularity with the popular games
such as PokemonGo, Freefire, GTA V Etc. Later on marketer started using this technology to
market their products and services. Make up company Sephora was one of the first to
popularize augmented reality marketing. Companies are using this technology to allow the
customers to try the products virtually before going for actual purchases. A complete view of
the products is given.

Service industry, like hotels and resorts, is using this technique abundantly. They give a virtual
tour of their premises and provide virtual experiences to the customers to induce them to buy
their services. These technologies immerse people into an environment. Marketers create lush,
immersive and interactive user experience. Customers feel more close to the products as they
are personalized. Few companies that are using this technique is Ikea, Oreo, TOMS shoes,
TopShop etc. Companies are developing Apps to engage the customers and giving them
experiences to market their products.

Advantages and Limitations of Augmented and Virtual Reality Marketing

Advantages: Advantages of this marketing strategy are as follow:

• It is less costly as this only requires mobile and desktop apps. Once the app is
developed, large number of customers can be targeted. Since majority of persons
have smart phones, they may be easily contacted. This facilitates in reaching the
prospective customers.
• It enables the companies to increase brand awareness.
• It enables the companies to earn customer loyalty by providing a virtual experience
of the product or service.
• It expedites the purchasing process.
•
Limitations: There are some imitations associated with this marketing strategy which are as
follow:
 • Since it is a real‐ life‐ like experience, it may not be that effective. Everybody may
not be imaginative to imagine the real experience.
• Initial costs are high. Cost of virtual reality devices is very high. Companies should
have enough financial resources to buy these devices.
• People are aware of the potential eye damage by excessive use of electronic devises,
especially in the situation like today’s pandemic when people are dependent on
electronic devises for almost all their personal and professional needs.
• Locomotion sickness is one of the major limitation of Virtual reality technique.
• It is not suitable for all kinds of products which require social interaction.

20.8 DIRECT MARKETING

In urban markets, direct marketing is gaining importance. This is an interactive mode of

marketing. In this, marketer reaches out to the target market at any location. You must be
aware that the pace, at which Domino’s Pizza grew in India after its entry in Indian market after
1996, is unprecedented. One of the reasons of their growth in India is effective implementation
of direct marketing strategies. The Direct Marketing Association of USA has defined direct
marketing as ‘an interactive system of marketing which uses one or more advertising media
to effect a measurable response and/or transaction at any location’.

Direct marketing uses two‐way communication model with the customers. For example, when
you visit a store or a shopping complex, there are people standing with some forms to be filled
up in exchange of some discount coupons. It is done online also in exchange of discount code or
promotion code. When the prospective customers fill the form, they are communicating with
the marketer. This response is measurable, the number of discount coupons distributed or
codes received, indicates the response rate to the marketers’ communication.

Besides, it is not necessary that the customers are interacting with the marketers physically.
Interaction can be done through social media messages (such as FB message or whatsapp
message) phone, mails, fax etc.

Thus, it is clear that direct marketing has three major elements:

‐ Interaction or two‐way communication,
‐ Measurable response, and;
‐ Not location specific
‐
Major objective of Direct Marketing is to get response from the customers. The most important
thing which is needed to be able to do direct marketing is Customer data‐base. The companies
using direct marketing technique need to develop a data‐base of the customers. After the
database is developed the marketer now starts the interaction with the customers and sales are
made. Another important thing in direct marketing is rendering flawless customer service. The
speed through which the orders are delivered to the customers and the time taken to resolve
the complaints of the customers decide the fate of direct marketing.

Few examples are teleshopping, home shopping channels, catalogue marketing, and online
shopping.

Advantages and Limitations of Direct marketing

Advantages: Direct marketing is quite an established concept. What is important here is to

understand the fact that it is gaining importance in today’s time. It has several benefits. Few of
them are listed below:
• It allows the marketers to market the products and services directly to the target
customers.
• It enables to measure the customers’ response quickly.
• It reaches the target customers with more personalised messages.
• It enables the marketers to set realistic goals.
• It is less costly. With a lesser cost maximum profit can be earned.
• It establishes proper interaction with the customer and builds and maintains
relationship with them.
• This combined with other loyalty programs may provide better results to the
company.

Limitations: Limitations of direct marketing are as follow:

• People may find direct marketing intrusive and annoying. As not everyone may like
to get promotional emails or calls especially when they are absorbed in their
activities.
• Response rate of direct marketing is very low. This means most of the time and
efforts are going waste by contacting the uninterested customers.
• Tools such as telemarketing are costly affair. It may not give the desired return on
investment.
• Competition is fierce and it may become difficult for the companies to compete with
their competitors’ messages.

CHECK YOUR PROGRESS B

1. Fill in the blanks:
 i. The marketing style where personalised and memorable experiences are
created to induce the customers to buy the product is termed
as___________.
ii. When the company’s objectives, products and services are promoted to the
employees within the organization it is referred as_________.
iii. Companies are using ____________ to allow the customers to try the
products virtually before going for actual purchases.
iv. Teleshoppings, direct mails, online shopping are some of the tools
of____________.
v. Marketers make use of the customer’s ________ to send them online or
offline messages regarding the availability of nearby market stores and
events.

2. State whether the following statements are True or False:

i. Experiential marketing is done to ensure the customers’ emotional
attachment to the particular brand.
ii. Internal marketing boosts employees’ morale which leads to higher
productivity.
iii. Location based marketing reduces in‐store‐visits.
iv. The companies using direct marketing technique need to develop a data‐
base of the customers.
v. Augmented and virtual reality marketing techniques are not useful for
service industry.

20.9 LET US SUM UP

When marketing is done through internet and other digital platforms (such as the radio,
television, mobile applications, social media, web‐applications search engines, websites etc) it is
called digital marketing. In Digital marketing, use of electronic devices is made. This marketing
can be done online as well as offline.

Face to face marketing is the style of marketing where marketers contact the potential
customers directly and make in‐person deal through client meetings, sales events, product
demonstrations, in‐store visits, interacting in events etc. It works on the principle of likeability
of human touch and feel amongst individuals.
Experiential marketing is done to ensure the customers’ emotional attachment to the particular
brand. This has gained popularity over the last few years and has become a competitive
strategy for many companies in the contemporary era. Marketers now conduct various events
and workshop that becomes memorable to the customers. Besides, memorable experiences are
also created by allowing the customers to use the products before they actually buy. SENSE
marketing, FEEL marketing, ACT marketing, THINK marketing and RELATE marketing are its
components.

When the company’s objectives, products and services are promoted to the employees within
the organization is referred as Internal Marketing.This is done to make the employees
participate actively to attain the objectives of the organization. This leads in making the
employees of the organization as brand advocates. This builds a company’s culture of being a
loyal employee of the organization who do not only work for the financial incentives (salary,
commission etc) but also to fulfill their own responsibility and accountability.

Location based marketing is popular style of marketing that needs to know the location of the
customers. In this marketing an alert is sent to the individuals through the mobile device’s
location, about the market offering available nearby. Using location data, marketers know
about the location of the customers and send them online or offline messages regarding the
availability of their nearby stores or events. It is helpful at every stage of purchase decision
from information to evaluation of the available offerings.

The marketers make use of virtual and augmented reality technology to promote their brand in
Augmented and Virtual Reality Marketing. In this technology a virtual (real life type)
environment is created. In this strategy, rather than creating and delivering physical
experiences, the experiences are created virtually or with the help of augmented reality
technique.

Interacting directly with the customers without any mediators is called direct marketing.
Teleshoppings, direct mails, online shopping are some of the tools of direct marketing. It
enables two‐way communication between the marketer and the potential/target customers. To
be able to do direct marketing, marketer needs to have a database and a team of experts to
design and deliver the messages.

20.10 KEY WORDS

Augmented and Virtual Reality Marketing: use of virtual and augmented reality technology by
marketers to promote their brand by creating a virtual (real life type) environment.
Digital Marketing: marketing is done through internet and other digital platforms (such as the
radio, television, mobile applications, social media, web‐applications search engines, websites
etc). This marketing can be done online as well as offline.

Direct Marketing: an interactive system of marketing which uses one or more advertising
media to effect a measurable response and/or transaction at any location.

Experiential Marketing: done to ensure the customers’ emotional attachment to the particular
brand by creating personalized and memorable experience, which induce them to buy the
products and advocate it to others too.

Face to Face Marketing: the style of marketing where marketers contacts the potential
customers directly and makes in‐person deal through client meetings, sales events, product
demonstrations, in‐store visits, interacting in events etc.

Internal Marketing: promoting the company’s objectives, products and services to the
employees within the organization.

Location Based Marketing: sending alert to the individuals through the mobile device’s
location, about the market offering available nearby. Location Based marketing is also known as
geo targeting marketing, geo location marketing, proximity based marketing and hyper local
marketing.

Search Engine Optimization: the process of designing and managing content in a way that it
appears amongst the top few on the internet when someone is searching on internet.

Social Media Marketing: creating business pages on social media platforms and promoting it
amongst the users of those platform.

20.11 ANSWERS TO CHECK YOUR PROGRESS

A. 1. i. Online digital marketing ii. Search engine optimization iii. Search engine marketing iv.
Face to face (F2F) marketing v. Affiliate marketing
2. i.. False ii. False iii. True iv.True v. False

B. 1. i. Experiential marketing ii. Internal Marketing iii. Augmented and Virtual Reality
Marketing iv. direct marketing v. location
 2. i.. True ii. True iii. False iv. True v. False

20.12 TERMINAL QUESTIONS

1. Explain the concept of internal marketing. Describe its advantages and limitations.
2. What do you understand by the term digital marketing? Discuss the tools of digital
marketing.
3. “Face 2 Face marketing works on the principle of likeability of human touch and feel
amongst individuals.” Discuss with suitable examples.
4. Define the term experiential marketing. Briefly explain its components.
5. Discuss the emergence of location based marketing.
6. Explain the importance of Augmented and Virtual Reality Marketing in present scenario.
7. Discuss the meaning, importance and limitations of direct marketing.