TOPIC 9

PROMOTIONAL DECISIONS

ADVERTISING

Meaning of Advertising

 Advertising as any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.

 Advertising is paid, ongoing, non-personal communication from a commercial source such

as a manufacturer or retailer.

Key aspects of advertising

 The paid aspect- the space or time for advertising message generally must be bought (the
exception is where the advertising space or time is donated by the media).

 The non-personal component- advertising involves mass media such as Television, Radio,
and Magazine through which a message can be transmitted to large groups of individuals
often simultaneously. The non-personal nature of advertising means that there is generally no
opportunity for immediate feedback from message recipients. Thus, before the message is
sent, the firm must strive to understand how the audience will interpret and respond to it.

 The fact that an advertisement can be linked to a sponsor- one can identify the company that
is advertising. The newspaper and TV firms will usually indicate that the message is a firm’s
feature. This distinguishes ads from publicity where it is impossible to identify whether the
company influenced the publication or airing of the message. The identified sponsor could be
business firm, non-profit organization and individuals who hope to inform or persuade
members of particular audience.

 Advertising is ongoing. This distinguishes it from sales promotion such as coupons,

sweepstakes and contests, price off deals, bonus packs, sponsorships, and exhibitions which
are short term in nature.

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Types of advertising

 Brand advertising is designed to maintain awareness of a brand (e.g. Blueband, Coke or

Dettol) among consumers and to increase its market share.

 Product advertising tries to attract new users of a product (e.g. margarine, tea, milk etc.). The
objective is to make industry pie (share) bigger. This type of advertising emphasizes product
benefits.

 Corporate advertising. Firms frequently advertise their corporate name as well as brands.

 Cooperative advertising. This is an arrangement between a manufacturer and reseller (either

a retailer or an industrial distributor) whereby the manufacturer pays for all or some of the
advertising costs undertaken by the reseller on behalf of the manufacturer’s products.
Cooperative advertising helps manufacturers because it is a means to get retailers to stock
and more aggressively sell their products.

Functions of advertising

(i) Information

 Advertising creates product or service awareness.

 It tells consumers where to get the product or service, the benefits, features and so on.

(ii) Entertainment

 Entertainment includes pleasant event and message with the basic selling message, serving to
increase consumer attention, comprehension and learning of the primary message.

(iii) Persuasion

 Some persuasive ads use comparative advertising which makes an explicit comparison of the
attributes of two or more brands in an attempt to persuade customers to move to the
competing brand.

(iv) Reminder

 Because of its repetitive nature, reminder advertising continuously reminds people, both
present and potential users of the product, to continue using the brand.

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(v) Reassurance

 It is related to reminder advertising.

 It seeks to assure current purchasers that they have made the right choice.

(vi) Assistance to other company efforts

 Advertising aids other marketing efforts.

 For instance, it generates leads to prospective customers for the sales team.

(vii) Addition of value

 Advertising communications add value to a product because it influences consumer

perception of the product.

Advantages and disadvantages of advertising

Advantages

(i) Control

 Since the company pays for advertising space, it can control what it wants to say, when it
wants and to some extent to whom the message is sent.

(ii) Cost per contact is low

 Advertising can also be a cost effective method for communicating with large audiences as
costs per contact through advertising is often quite low.

(iii) Ability to create images and symbolic appeals for products and services

 This capability is very important for firms selling products and services that are difficult to
differentiate.

(iv)Value in creating and maintaining brand equity (added value or goodwill that results from
the favorable image, impressions of differentiation and/or strength of a brand name or
trademark).

(v) Ability to strive for a response when other elements fail

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 By use of humor, pleasant images, unique images and celebrities, an advertisement can easily
push the company in the market.

(vi) A large audience is attracted

 In print, circulation is supplemented by passing the copy of newspaper or magazine from one
reader to another.

(vii) A large number of alternative advertising media is available

 The firm can match medium to the target audience (market).

(i) In print media (magazines and newspapers) the message can studied and restudied by the
audience.

Disadvantages

 There are a number of disadvantages associated with advertising.

 These include:

(i) High cost of producing and placing adverts. This reduces the access of small firms to certain
media, especially television.

(ii) The lack of direct feedback of most of advertising. It is difficult for the firm to determine how
well the message was received and whether it was effective.

(iii) Credibility and ease with which it can be ignored. Consumers usually treat advertising
with skepticism. Many perceive it as biased and are concerned by its intent to solicit sales.

(iv)Clutter. Advertising can be ignored easily. Not only are consumers skeptical about many of
the advertising messages they feel and hear; it is also relatively easy for them to select and
process only those ads that interest them.

(v) The message is standardized and thus inflexible (except for the Web which is interactive).
The firm cannot focus on the needs of individual customers.

(vi)Wasted coverage because the media may reach large geographic areas where the firm’s
customers may not be residing.

(vii) Some media such as TV require long lead times before placing ads. This may prevent the
firm from taking advantage of certain events themes that could promote sales.
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(viii) Some media have very high throwaway rates. For instance, newspapers are thrown away
very fast unlike magazines that could be kept for some time.

(ix)Most ads are very brief, whether they are in print or electronic media. For instance, TV ads
are 30 seconds with very few details.

Major advertising decisions

 Setting advertising objectives.

 Setting the advertising budget.

 Developing the advertising message.

 Selecting the media.

 Evaluating the effectiveness of advertising.

Question:

Describe the above advertising decisions.

Organizing the advertising effort

 This involves answering the question – who will perform which ads tasks?

 Different firms organize advertising functions differently.

 In small firms advertising is usually done by sales department or sales people. In big
organizations, an ads department may be created to handle advertising.

 Its job may involve setting ads budget, working with an ads agency, handling direct mail
advertising, dealer displays and other ads not done by the advertising agency.

 Most big firms use advertising agencies because they offer more benefits and expertise.

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6
 PERSONAL SELLING DECISIONS

Definition of Personal Selling

Personal selling is the process of seeking out people who have a particular need, assisting them
to recognize and define that need, demonstrating to them how a particular service or product
can satisfy that need, and persuading them to make a decision to use that service or product.

Circumstances under which personal selling is likely to carry the bulk of promotional load

Personal selling is likely carry a bulk of promotional load where;

 The market is concentrated either geographically or in a few industries, or in a few large

customers.

 The product has a high unit value, is quite technical in nature, or requires a demonstration
on how it works.

 The product must be fitted to an individual customer’s need as in the case of securities or
insurance.

 The sale involves a trade-in such as after sales services like installation, repair and
maintenance.

 The product is in the introductory stage of its life cycle.

 The organization does not have enough money for an adequate advertising campaign.

Merits of personal selling compared to other promotional methods

The main advantages of personal selling compared to other promotional methods include:

 Flexibility - personal selling is more flexible than other promotional tools like
advertising, sales promotion, among others.

 Tailoring of the message - sales people can tailor their presentations to the needs and
behavior of individual customers.

 Minimizing wasted effort - personal selling can be focused or pinpointed on prospective

customers, thus minimizing wasted effort.

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  Personal selling makes a sale - other forms of promotion are designed to move a prospect
closer to a sale.

 Personal selling allows two-way interactions - the ability to interact with the receiver
allows the sender to determine the impact of the message.

 Lack of distraction - in many personal selling situations, a one-to-one presentation is

conducted. In these situations, the likelihood of distraction is minimized and the buyer
pays more attention to the sales message. This is unlike where non-personal mass media
are employed.

 Involvement in the decision process - through consultative selling, the seller becomes
more of a partner in the buying decision process, acting together with the buyer to solve
problems.

 Greater impact on customers.

 Useful in complex buying situations and when buyers are close to buying.

 Customers respond more often to personal selling than to ads (Berman & Evans, 2001).

Demerits of personal selling

Compared to other promotional methods personal selling has the following demerits;

1. Personal selling is costly - even though it can minimize wasted effort, the cost of developing
and operating a sales force is high.

2. Inability to attract quality sales people - a company is often unable to attract the quality of
people needed to do the job.

3. Inconsistent messages - Buyers usually get different messages, some of which may not
represent the management policy. For consistent message, sales people need continuous
training.

4. Sales force/management conflict - because of communication failure, corporate politics and

many other reasons, the sales force and marketing managers may not work as a team. This
may lead to failure to respond to customer needs.

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5. High cost per contact - the cost per sale is higher than that of mass communications like
advertising.

6. Poor reach - personal selling is not effective for reaching as many members of the target
audience as are other elements of promotion.

7. Potential ethical problems - since the manager does not have complete control over the
messages the sales people communicate, and because of the emphasis on making sales, there
may a tendency by the sales people to bend rules.

8. In retailing situations personal selling may discourage self-service.

9. Some customers may not view salespeople as helpful and knowledgeable but as too
aggressive (Ibid).

Personal selling responsibilities

According to Belch and Belch (1999) the responsibilities that come with personal selling
include:

 Locating prospective customers.

 Determining customer needs and wants.

 Recommending a means of satisfying the customer’s needs and wants.

 Demonstrating the capabilities of the firm.

 Closing the sale - getting the commitment of the prospect.

 Following up and servicing customers.

 Writing orders.

 Delivering the products.

 Providing retailers with merchandising assistance.

 Training wholesale and retail personnel.

 Checking stocks and restocking shelves.

 Potential customer credit investigation.

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 Providing after sales service.

 Gathering market information on customers, competitors and other stakeholders.

 Recommending introduction of new products and services.

 Recommending product or service modifications.

 Negotiating sales contacts.

 Cross selling.

 Enabling products strengths and weaknesses to be assessed.

 Reassuring customers in high-risk situations.

 Enabling a dialogue with the customer.

 Stimulating sales of impulse items.

 Improving and maintaining customer satisfaction.

 Creating awareness of items marketed through Web, mail and telemarketing.

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 SALES PROMOTION

Meaning of Sales Promotion

 Sales Promotion is a direct inducement that offers an extra value or incentive for the product
to the sales force, distributors or the ultimate consumer with the primary objective of
creating an immediate sale.
 Sales promotions refer to marketing activities other than personal selling, advertising and
publicity that stimulate consumer purchasing and dealer effectiveness, such as displays,
shows and exhibitions, demonstrations and various non-recurrent selling efforts not in the
ordinary routine.

Key aspects of sales promotion

 It involves some type of inducement that provides an extra incentive to buy. This incentive is
usually the key element in the sales promotional program. It can include a coupon or price
reduction, the opportunity to enter a contest or sweepstake, a money-back refund, or an extra
amount of the product. The incentive may also be a free sample of the product which is given
in the hope of generating a future purchase or a premium which also serves as a reminder of
the brand name or reinforces its image.

 Sales promotion is an acceleration tool designed to speed up the selling process and is often
used to maximize sales volume.

 Sales promotion may be used anywhere along the marketing channel, from producer to
retailers, from retailers to consumers, or from producers to consumers.

Type of sales promotion

Sales promotions can be broken down into two major categories: consumer oriented sales
promotion and trade oriented sales promotion.

1. Consumer oriented sales promotion

These are sales promotions directed to the ultimate consumers who purchase goods and services
for final use. They are designed to induce customers to purchase the marketer’s brand. They
include free samples, coupons, premiums, bonus packs, price off deals, cash refunds, contests,

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sweepstakes, events sponsorships such as sports sponsorship, test drives, Buy One Get One free
(BOGO), frequent shopper programs, prizes, referral gifts and other limited-time selling efforts
outside of the ordinary promotion routine.

2. Trade oriented sales promotion

These sales promotions are designed to motivate distributors and retailers of a product to make
an extra effort to promote or push it to their customers. They include discounts, commissions,
free training of personnel, contests, point of purchase displays, cooperative advertising, trade
shows and exhibitions, point of purchase materials such as banners and posters. Incentives trips
and push money/spiffs-wealth are other examples of trade oriented sales promotions.

Many marketing programs include both trade and consumer oriented sales programs since it is
important to stimulate both groups to maximize the effectiveness of the marketing and
promotional programs.

Objectives of consumer sales promotion

 Obtaining trial and repurchase.

 Increasing consumption of established brands in mature markets.

 Defend current customers from increased competition in the market place.

 Enhancing advertising and marketing efforts.

Objectives of trade-oriented sales promotion

 Obtain distribution and support for a new product.

 Maintain trade support for established brands.

 Encourage retailers to display and promote established product brands.

 Build retail inventories.

 Stimulating sales force enthusiasm for a new, improved or mature product.

 Neutralize competitive advertising and sales promotions.

 Enhancing channel relationships.

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 Increasing order sizes.

Limitations of sales promotions

i) Inability to compensate for a poorly trained sales force or for lack of advertising.

ii) Inability to give the trade (wholesalers and retailers) or consumers any compelling long term
reason to continue buying the brand.

iii) Inability to permanently stop an established brand’s declining sales trend or change the basic
non-acceptance of undesired product.

Advantages of sales promotion

 Stimulates short-term demand.

 Can remind customers of old product.

 Encourage trial of new customers.

 Controls sales fluctuations. Competitions can be timed to stimulate demand at slack periods.

 Encourage customer interactions. Compared to ads, competitions can create valuable

interaction with customer.

 Sales promotion activities can be linked to other forms of promotion such as ads and personal
selling.

 Sales promotions have eye catching appeal.

 The consumer may receive something of value, such as coupons or free merchandise.

 Sales promotions themes and tools can be distinctive.

 Sales promotions help to draw customer traffic and maintain loyalty to the retailer.

 In retail stores impulse purchases are increased.

 Customers can have fun, particularly with contests and demonstrations.

Disadvantages of sales promotion

 Can devalue the brand if not supported by other forms of promotions.

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 Increases price sensitivity and reduces loyalty of customers.

 Encourages customers to bargain hunt.

 It may be difficult to terminate certain promotions without adverse effects from the
customers.

 Many sales promotions have only short term effects.

 Sales promotions are only used to supplement other forms of promotion.

 The firm’s image may be hurt if old fashioned and boring sales promotions are used.

 Sales promotions may stress trivial selling points rather than firm’s major factors like product
variety, prices, service, quality, and value among others.

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 PUBLIC RELATIONS

Definitions of Public Relations

Public Relations are planned and sustained effort to establish and maintain goodwill and mutual
understanding between an organization and its publics.

Key aspects of the definition

(i) The planned aspect of this definition implies that PR activities are organized as a campaign
or program.

(ii) The sustained effort implies that it is a continuous process.

(iii) The basic purpose of PR is to establish and maintain mutual understanding between the
organization and its publics. This means that through PR activities, an organization wishes to
be understood by its publics and other groups.

Uses/functions of public relations

 Creating awareness of the company’s products, brands and activities.

 Helping maintain positive public visibility.

 Enhancing company’s image.

 Helping negative images to be overcome.

 Monitoring internal and external publics. Internal publics include: employees, unions, and
shareholders. External publics include: channel members, customers, media, local
community, financial community, government and special interest groups.

 Provide positive information to each public that reinforces the integrated marketing
communication plan.

 React quickly to any shift by any of the publics from the desired position.

 Minimize total promotion costs.

 Present a favorable message in highly believable manner.

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 Demonstrate innovativeness.

 Show the firm as a contributor to the public’s quality of life.

Advantages of public relations

1. Credibility

Because PR communications are not perceived the same way as advertising, the public does not
realize that the company has paid directly or indirectly for these communications. Consequently,
PR communications tend to have more credibility among receivers.

2. Cost

Compared to other promotion mix elements, the cost of PR is very low, particularly when looked
at vis-à-vis its potential effects.

3. Avoidance of clutter

Because of the nature of the communication that may be perceived as a news item, PR messages
are not subject to the clutter of ads.

4. Lead generation

Information about technological innovation and medical breakthroughs almost immediately

results in a multitude of inquiries. These may provide the firm with the potential for some quality
leads.

5. Ability to reach specific groups

Because some products appear to only a small group of consumers, using certain PR methods
may be the only effective and efficient (feasible) method to reach these consumers.

6. Image building

Effective PR leads to the development of a positive image for the organization.

7. Informative as opposed to persuasive.

8. A mass audience is addressed.

9. Carryover effects are possible (if the firm is perceived as community oriented).

10. People pay more attention to news story than to clearly identified ads.

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11. PR offers the opportunity of more message flexibility. Advertising and sales promotions are
strictly regulated by governments.

12. PR can present the company as a good corporate citizen. This improves company’s image
and reputation.

13. PR professionals can advise companies on important trends and consequences of company’s
activities on marketing effectiveness.

Disadvantages of public relations

1. It has the potential of not completing the communication process. While PR may break
through the clutter of advertisements and catch the receiver’s attention, the connection to the
source is not achieved. For instance, many PR efforts are not associated with their sponsors.

2. PR may misfire through mismanagement and lack of coordination with the marketing
department.

3. Where PR and marketing departments operate independently, the potential exists for
inconsistent communications and duplication of efforts.

4. Some firms do not believe in spending money on image related communication.

5. The effectiveness of PR is hard to measure. Often, exposure measures, such as amount of

media coverage are used but they hardly say anything about the long-term effect of PR
efforts on company goodwill or sales. Measuring effectiveness of advertising is more
straightforward.

6. With PR, journalists act as gatekeepers. If a story is perceived as having no “news value” it
may not be published. This is particularly when there is other important news.

Public relation tools

The following PR tools can be used:

a) Press release. To have information used by the press, it must be factual, true and of interest
to the media as well as the audience.

b) Press conference. Though popular with politicians, organizations can also use press
conferences effectively. For it to be covered, the topic must be of major interest to the public.

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c) Exclusives. This refers to situations where PR efforts are distributed exclusively. One media
house is given exclusive rights to a story. The media given the right to exclusively carry the
story should have a wider reach.

d) Interviews. Here, PR efforts are done through interviews by journalists. In Kenya, we have
interview programs like Cheche on Citizen.

e) Community involvement. Companies enhance their images by participating in community

activities like providing food donations, helping IDPs, flood victims, sick people and so on.
They ensure that they invite media during such events for coverage.

f) Photo kits. These come in form of a business pictorial. For example, appointments,
particularly of senior staff.

g) Supplements, particularly before a major event such as a graduation or Charter award for a
university.

h) Speeches by senior managers, especially when there is a catastrophe or a major event such as
an Initial Public Offer (IPO).

i) Trade shows and corporate reports. The specific mode of distribution is determined by the
nature of the story, and the interest of the media and the firm’s publics.

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 PUBLICITY

Meaning of Publicity

 Publicity refers to the generation of news about a person, product or service that appears in
broadcast or print media.
 Publicity refers to non-personal communications regarding an organization, product, service,
or idea that is not directly paid for or run under identified sponsorship.

Differences between publicity and public relations

 Publicity is short-term strategy whereas public relations are a concerted program which
extends over a period.

 Public relations aims to provide positive information about the firm and is usually controlled
by the firm or an agent acting for the firm. Publicity on the other hand is not always positive;
neither is it always under the control of, or paid for, by the organization.

 Publicity, whether positive or negative, often originates from a source other than the firm. In
most organizations, control and dissemination of publicity constitute one of the functions of
the public relations department. While it is part of public relations effort, publicity requires
special attention and effort.

Reasons why publicity is more powerful than other promotional tools

 Publicity is highly credible. Unlike ads and sales promotions, publicity is not usually
perceived as being sponsored by the company. As a result, the consumer perceives this
information as more objective and has more confidence in it.

 The news value aspect of publicity leads consumers to view it favorably. The bottom line is
that publicity is news. Research has shown people like to pass on [read] information that has
news value.

 Perception of being endorsed by the media. In most countries mainstream media is highly
respected. Thus information appearing in these media is highly regarded. Most readers and
viewers regard it as truth.

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Techniques of securing publicity

There are four techniques of getting in the news.

 Press release - this is the most popular technique of obtaining publicity. This can be done by
making announcements in the media of significant changes done on a company’s product or
service or launch of an innovative product or service (e.g. Mpesa).

 The exclusive feature - this is an in-depth article or broadcast message about something of
interest to a public.

 Press conference - this a meeting with the media sponsored by the company. They should not
be called too often but only when the company has a major thing to announce to the public.
For instance, introduction of a new product, service or technology, appointment of a new
president or a merger or acquisition.

 Press kits - they include press release, pictures, tapes, films, and product samples. They are
used together with press conference.

 Video news release - it is publicity piece produced by publicists so that stations can air it as
news story.

 Executive-statement releases - these are news releases quoting CEOs and other corporate
executives. Executive statement releases are published in news section. This location carries
a lot of credibility.

 Feature articles - these are detailed descriptions of products or other news worthy programs
that are written for immediate publication in print media or airing by broadcast media. It can
also be distributed through the internet.

 Special events can also be used to generate publicity. Many companies sponsor events such
as musical or sport events as a means of promoting goodwill among consumers, stockholders
and other relevant portions of the public.

Advantages of publicity

The advantages associated with publicity include:

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1) Credibility - in most cases the message is highly credible. When information appears in a
neutral source such as a newspaper or television news broadcasts, it is more likely to be
believed than when it comes directly from the advertiser

2) Very low cost because the company is not paying for time or space in mass media such as
TV.

3) News value - this leads consumers to view it favorably. People pay more attention to news
stories than to clearly identified ads.

4) Perception of being endorsed by the media makes publicity to be viewed favorably by the
public unlike other elements like advertising.

5) Publicity can support the other components of the promotional mix.

6) The negative effects of publicity are short term and over time positive promotional efforts
can reverse any damage.

7) Positive publicity can generate significant word of mouth communications.

8) A mass audience is addressed.

Disadvantages of publicity

1. Timing - timing of the publicity is not always completely under the control of the marketer. It
may be released earlier than desired or too late to make much of an impact.

2. Accuracy - the press release is one of the major methods for getting publicity. Unfortunately
the information sometimes “gets lost in the translation”, that is, it is not always reported the way
the provider wishes it to be. As a result, inaccurate information, omissions or other errors may
result.

3. Coordination - publicity is not always well-coordinated with the other components of the
promotional mix.

4. Although there are no media costs for publicity, there are costs for a public relations staff,
planning activities, and the activities themselves such as retail store openings.

5. The firm cannot be able to control the publicity message, placement and coverage given by a
certain medium.

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22
 DIRECT MARKETING

Definition of Direct Marketing

 Direct marketing refers to a system of marketing by which an organization communicates

directly with target consumers to generate a response or transaction.
 This response or transaction may take the form of an inquiry or a purchase or even a vote.

Major forms of direct marketing

 The major forms of direct marketing include direct mail marketing (E-mail, fax mail, voice
mail, postal mail etc.), telephone marketing, kiosk marketing, face to face selling, catalogue
marketing/selling, direct response advertising, online marketing and mobile marketing (e.g.
SMS).
 Regardless of the tool used, it is important to display a toll free number and web site address
so that consumers are able to contact the company for additional information.

a) Direct response advertising.

 The objective of direct response advertising is to sell products or services direct to the public,
using ads, which describe the item, its price and methods of supply.
 These ads may appear in such media as the newspapers, magazines, TV or radio. This
technique may be effective where the product or service is well known and understood.
 For example, popular music may be sold through TV advertising by the customers being
asked to specify the title, what form they want it (e.g. compact disc) and to send their address
and correct remittance (money).
 When radio is used radio ads must repeat the response number frequently so that consumers
can make the contact.
 For print media toll free number and website information should be provided.

b) Telemarketing. This is selling or promoting products or services over the telephone.

c) Direct selling. It involves direct, personal presentation, demonstration and sale of products
and services to consumer in their homes, job sites, offices or other locations.

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d) E-mail marketing- this is another direct marketing method in addition to Web sites. The
virtues of E-mail advertising are: targeting, personalization, cost efficiency, effectiveness,
measurability/accountability, speed and safety.

e) Internet (online marketing) - it provides another channel for direct marketing. This direct
marketing method is fast and goods and services can be suggested to consumers based on
past purchasing.

f) Kiosk marketing - this involves placing information and ordering machines-called kiosks (in
contrast to vending machines, which dispense actual products)-in stores, airports and other
locations.

Advantages of direct marketing

a) Selective reach

 Direct marketing provides the advertiser with the opportunity to reach a large number of
persons and more effective reach through the elimination or reduction of coverage wastage.

b) Segmentation capabilities

Direct marketing offers more precise segmentation.

c) Frequency

Depending on the medium utilized, it may be possible to build frequency levels.

d) Flexibility

Direct mail can take on a variety of creative forms. Direct mail pieces can be prepared in such a
way as to be very attractive and with high quality messages that attract the customer’s attention.

e) Timing

While many media require long-range planning, direct mail can be much timelier. Direct mail be
can be put together very quickly and distributed to the target population.

f) Personalization

No other advertising media can provide the ability to personalize the message like direct mail.

g) Costs

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Some direct marketing tools are cheaper when compared to advertising and sales promotion.

h) Measures of effectiveness

No other medium can measure the effectiveness of communication or marketing efforts than
direct marketing.

i) Ability to target potential customers specifically

Direct marketing offers targeting precision.

j) Invisible to competitors

Direct marketing activities are less noticeable to competitors compared to other promotional
activities.

k) Provides a new distribution channel and support for existing channels

Direct marketing provides a new distribution channel for the marketers.

l) Enables testing of markets, products, and services

Marketers can use direct marketing tools to test whether there is a market for their products and
services.

m) Convenience

From the comfort of their homes buyers can browse mail catalogues or company websites at any
time of the day and night.

n) Easy to use

Buyers can be able to use direct marketing methods from the comfort of their homes and offices.

o) Private

Buyers can be able to use direct marketing methods in privacy.

p) Immediate and interactive

Buyers can interact with sellers by phone or seller’s website and decide the products, and
services they want and order them on the spot.

q) Wider reach

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Direct marketing gives sellers’ access to buyers that they would otherwise not reach through
other channels. An example is the Internet that enables the sellers to reach many customers
across the world.

Disadvantages of direct marketing

a) Image factors

Direct mail is often referred to as “junk” mail.

b) Accuracy

The accuracy of direct marketing approaches such as direct mail and telemarketing (vis-à-vis
target potential customers specifically) is directly related to the accuracy of the lists utilized.

c) Content support

Direct mail as direct marketing medium may not be able to effectively create the desired mood
that will lead to behavior the marketer is seeking. Others like direct response advertising have
their ability to create mood limited to broadcast and print methods.

d) Intrusive nature of the medium

Direct mail is intrusive in nature and many people may value their privacy. It may annoy or
offend customers.

e) Proliferation of direct mail

Direct mail has increased in the recent past causing a lot of clutter.

f) Unfairness

Some direct marketing methods and messages try to exploit the impulsive nature of some buyers.
This may be regarded as unfair because some buyers may be unable to resist the temptations
from such messages.

g) Fraud

Some direct marketers pretend to be conducting research while in the real sense they are trying to
sell their products and services.

h) Customer dissatisfaction

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This occurs as a result of late delivery or nondelivery, deceptive claims, items broken or
damaged in transit, the wrong order being delivered and lack of information provided.

i) Maintaining a consistent image between different methods of marketing products. For

instance between retail store-based and direct marketing efforts.

j) Increase in postal rates has made mailing of catalogs to be quite expensive.

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