11.a.

Difference Between Selling and Marketing

Selling Marketing

Definition
The selling theory believes that if companies and The marketing theory is a business plan,
customers are dropped detached, then the customers which affirms that the enterprise’s profit lies
are not going to purchase enough commodities in growing more efficient than the
produced by the enterprise. The notion can be opponents, in manufacturing, producing and
employed argumentatively, in the case of imparting exceptional consumer value to the
commodities that are not solicited. target marketplace.
Related to
Constraining customer’s perception of commodities Leading commodities and services towards
and services. the consumer’s perception.
Beginning point
Factory Marketplace
Concentrates on
Product Consumer needs
Perspective
Inside out Outside in
Business Planning
Short term Long term
Orientation
Volume Profit
Cost Price
Cost of Production Market ascertained
What is Selling?

The selling theory believes that if companies and customers are dropped and
detached, then the customers are not going to purchase enough commodities
produced by the enterprise.

What is Marketing?

The marketing theory is a business plan, which affirms that the enterprise’s profit
lies in growing more efficient than the opponents, in manufacturing, producing and
imparting exceptional consumer value to the target marketplace.

12.a what are the basic elements of market segmentation?

Market segmentation is the division of an entire market group based on consumers

with similar market needs. The marketing of a men's clothing line may be based on
advertising during football games. But when manufacturers discover that a large
percentage of the product is actually purchased by a wife, girlfriend or mother, a
new segment requiring its own separate marketing is identified.

Measurable
Measurability is an important element of market segmentation. Though a new
segment is identified, without knowing just how many potential consumers it
encompasses, it may not be worth the risk. Commercial advertising, changes in
product placement and jumbling price points all come with a price tag to the
marketer. If the amount of consumers, and the potential purchasing power of those
consumers, cannot be measured, the marketer cannot accurately create a marketing
budget to target the segment.
Accessible
For a market segment to be valid, it must be accessible as a marketing target. In
other words, if a manufacturer identifies a potential new market segment, it must
determine a means to advertise to that market. If the segment cannot be targeted
successfully through commercials, direct mail, radio ads, newspapers or the other
means typically used by the marketer, creating a new advertising campaign for this
segment is not a financially sound adventure. But if the segment can be reached by
creating new advertising and selling the product in a different location, it becomes
a worthwhile prospect.
Different
A market segment is defined as having a different response to the marketing mix
elements, also known as the four P's. A target market group will be identified
based on reactions to the product itself, the price point given, the promotion or
advertising methods for the product and where it is sold, or its placement. When a
group of consumers inside that market expresses different demands for the product,
it morphs into its own segment. There is a huge demand for cell phones, but
teenagers and adults have different demands for the product. These two segments
will react differently to a commercial for a cell phone, the price of the phone and
how it is sold. The manufacturer of the phone will devise separate marketing
strategies to reach each of the segments.
Profitability
Defining and targeting a new market segment is the first step toward creating a
potential niche market. But before expending time, energy and money into
attempting to capture this new segment, run some test questions. How durable is
this market segment and is it large enough to garner a profit? Back-to-school
products may have a short advertising life span, but the amount of consumers that
can be captured in that time make it a potentially profitable venture.
13. A

The Objectives of Market Research

The objectives of market research are as diverse as the businesses that employ
them. However, they can be broadly categorized into understanding the market,
understanding the customer, and understanding the competition. Here are some of
the primary objectives of market research:

Understanding Customer Needs

Market research helps in identifying and understanding the needs, preferences, and
behaviors of customers. This insight is crucial for developing products and services
that meet customer demands effectively.

Assessing Market Opportunities

It helps in identifying potential market opportunities, including unmet needs, gaps

in the market, and emerging trends. This allows businesses to capitalize on new
opportunities for growth.

Market Segmentation

Market research enables businesses to segment their target audience based on

demographics, psychographics, and other factors. This segmentation helps in
tailoring marketing strategies to specific customer groups.

Competitive Analysis
It provides insights into competitors’ strengths and weaknesses, market share,
pricing strategies, and product offerings. This information helps in developing
competitive strategies and differentiating products and services

Product Development

Market research guides product development by providing feedback on product

concepts, features, and design. It helps in creating products that align with
customer preferences and market demand.

Pricing Strategy

Businesses can determine optimal pricing strategies through market research. It

helps in setting competitive prices while maintaining profitability.

Marketing Effectiveness

Evaluating the effectiveness of marketing campaigns and channels is another

objective of market research. It allows for the allocation of resources to the most
productive marketing efforts.

Risk Mitigation

Market research can identify potential risks and challenges in entering new markets
or launching new products. This information enables businesses to develop risk
mitigation strategies.

Brand Perception

Understanding how consumers perceive a brand is vital for brand management.

Market research helps in assessing brand reputation, loyalty, and awareness.

Sales Forecasting
Market research aids in forecasting sales and demand for products and services.
Accurate forecasts are essential for inventory management and production
planning.

14.A

What are discounts?

Discounts are promotions that businesses offer to their customers that reduce the
cost of items or services, often by a percentage or using specific criteria. For
example, a store may offer a 50% discount on particular products. Businesses can
use discounts to shed unwanted inventory, promote new items for sale or attract
customers. These discounts also provide value to the customers, who may find it
easier to make these purchases due to the lower prices.

12 discount types businesses can use

Discounts can encourage customers to buy more, talk about the business and
continue using the brand's products and services. Here are 12 discount types used
by retail and e-commerce businesses:

1. Buy one, get one free discounts

A buy-one-get-one-free discount, also called a BOGO discount, typically

encourages customers to purchase two of the same item. Sometimes the free item
is not the same as the featured item and represents a product of equal or lesser
value. As part of this promotion, the customer receives one of the items for
free.This discount can help businesses move inventory and encourage customers to
increase their order size. Customers may also perceive more value because they
receive two items for the price of one. This discount type works for both retail and
e-commerce settings, though sometimes e-commerce shoppers still pay a shipping
fee on the free item.

2. Percentage sales
A percentage sale is discounts an item based on a percentage of its value.
Businesses sometimes set percentage sales based on specific criteria. For example,
a business may offer a 30% discount on purchases for customers who are members
of its loyalty program. A business could also provide a 25% discount on orders
when customers purchase three or more items.The effectiveness of percentage
sales may rely on customers' perceptions. People tend to view a percentage as
being more valuable than a promotion with a static price attached. For example,
saying an item is 50% off may sound like a more significant discount than saying it
is $5 off, even if they amount to the same dollar value.

3. Early payment discounts

In some situations, businesses may offer early payment discounts to encourage

customers to fulfill their payments within a specific period. An early payment
discount may also encourage customers to avoid missing payments by giving them
an incentive to pay before the due date. For example, a supplier may offer a
discount on a buyer's purchase order if they agree to pay the invoice within 10 days
rather than the 30-day final deadline. This discount type can also apply to customer
retail credit cards, loyalty rewards programs and other paid subscription services.

4. Overstock sales

When a business holds a surplus of stock of a product, it creates a loss. When

sitting on shelves, these products do not generate income and cost the business
money while taking up storage space. Businesses often host an overstock sale to
move inventory at a discounted price and recover some of those costs. While an
overstock sale may not recover all of what the business spent on acquiring the
products, it can help mitigate some losses from the additional
stock.Related: What Is Inventory Turnover?

5. Free shipping discounts

Businesses use free shipping discounts to encourage customers to make online

purchases. These discounts help make the online shopping experience easier and
less costly. Some brands put a minimum order cost or quantity threshold to help
reduce the cost of free shipping. For example, you can offer free shipping only on
orders over $50. This discount can also help businesses stay competitive. If a
customer finds a product for the same price from two stores, the option that offers
free shipping typically makes more financial sense for them.

6. Price bundling

Often used by phone and internet service providers, price bundling allows
customers to bundle several services under the same plan for a discounted price.
This discount often gives customers more services for a lower price, helping the
business increase the number of people using multiple services.Retail businesses
can also use this discount method, sometimes called cross-selling. This technique
motivates customers to purchase complementary items and increases their
purchase quantity. For example, a store may sell laptops and accessories. It can
offer customers a discount on a laptop case when they purchase a
laptop.Related: Cross-Selling: What It Is, How It Works and Examples

7. Bulk or wholesale discounts

This discount type applies to customers who purchase items in bulk, often offered
by wholesalers, manufacturers or suppliers. Wholesalers typically offer discounts
based on a threshold of units included in the order. For example, a 10,000 unit
purchase can carry a 10% discount on the total cost of the units. Some large retail
and grocery businesses have created customer loyalty and subscription programs
and offer bulk items at a discount for members.

8. Seasonal discounts

Businesses may offer seasonal discounts during slow periods for particular items.
These discounts may cover items currently not in season or part of an upcoming
sales season. For example, a clothing retailer may offer discounts on ski wear
during the summer when fewer people typically make such purchases. Seasonal
discounts allow customers to buy these seasonal items for next year at a lower
price. Businesses often use the post-holiday season to offload excess inventory at a
discounted price.

9. Referral discounts
Referral discounts offer customers an incentive each time they refer a new
customer to the business. Existing customers receive a unique referral code that
they can share with other people. This referral code may offer a two-way discount,
with the new customer earning a discount on their first purchase and the referrer
receiving discounts based on the number of customers they bring to the business.
Businesses can use this discount method to drive organic traffic and create
excitement or awareness about their offerings.Related: Referral Marketing
Benefits and Strategies

10. Loyalty program discounts

Loyalty programs that offer discounts encourage customer loyalty by providing

benefits only members can get. The format of these programs can vary. For
example, a business may reward customers with points when they interact with or
purchase from them. When these customers reach a particular threshold of points,
they may receive a discount code or offer.Encouraging customers to continue
supporting and engaging with the business can help boost their loyalty. This tactic
may also utilize the concept of FOMO, or fear of missing out, by motivating new
customers to sign up for these programs to receive such benefits. Businesses can
also use loyalty programs to drive customers to their email funnel. These programs
often require customers to provide information such as email addresses, phone
numbers and credit card information.Read more: What You Need To Know
About Customer Loyalty Programs

11. Email subscription discounts

An email funnel is a marketing technique that drives customers to your website or

brand by gaining leads through emails and email promotions. Offering a
discounted product or service to a customer in exchange for signing up for the
business' promotional emails or e-newsletters provides them tangible value. This
method also works with cart abandonment, where a new customer puts their
information in your checkout form and then abandons the sale. A follow-up email
promotion may remind them to return to their cart and follow through with the
purchase.
12. Trade-in credits

Businesses can offer trade-in credits when they release new versions of products,
encouraging customers to bring in the old versions they own and purchase the new
ones. For example, a business that sells smartphones may offer customers a $100
discount on a new model if they trade in a previous model. Trade-in credit
programs provide used good retailers with either additional stock or give retailers
recyclable materials to use in future products. Establishing recycling or upcycling
programs through trade-in credits can also aid branding efforts, showing
businesses' commitment to being ecologically friendly.

15.A

What Are Sales Promotions?

Sales promotions are short-term incentives designed to encourage customers to
make a purchase or take a specific action. Examples include:

 Discounts or markdowns
 Buy-one-get-one (BOGO) offers
 Coupons or promo codes
 Free samples or trials
 Contests or giveaways

While these promotions can be powerful tools for boosting sales, they are not
without their challenges.

A Disadvantage of Sales Promotions: Eroding Long-Term Value

One of the most significant disadvantages of sales promotions is the potential to
erode the perceived value of your products or services. When customers frequently
encounter discounts or promotions, they may begin to associate your brand with
lower prices, making them less likely to purchase at full price in the future.

Why This Happens:

 1. Conditioning Customer Behavior
Frequent sales promotions can train customers to wait for discounts rather
than buying at regular prices. This behavior can lead to inconsistent sales
and reduced profitability over time.
2. Decreased Brand Perception
Offering frequent discounts might give the impression that your products or
services lack quality or are overpriced at their regular rates. This can harm
your brand’s reputation and perceived value in the market.

Other Drawbacks of Sales Promotions

While value erosion is a significant concern, there are other disadvantages to
consider:

Short-Term Focus

Sales promotions often prioritize immediate results over long-term growth. While
they can provide a quick sales boost, they may not contribute to sustainable
customer relationships or brand loyalty.

Example: A business might see a spike in sales during a holiday promotion, but if
customers don’t return once the promotion ends, the impact is fleeting.

Impact on Profit Margins

Offering discounts and deals cuts into your profit margins, which can be
detrimental if the promotion isn’t well-planned or doesn’t generate enough volume
to compensate for the lower pricing.

Example: If you discount a product by 30% but don’t see a significant increase in
sales, the promotion may result in a net loss.
Risk of Attracting Bargain Shoppers

Sales promotions can attract price-sensitive customers who are only interested in
the deal, not the brand itself. These customers are less likely to become loyal and
may switch to a competitor offering a better discount.

Overreliance on Promotions

Businesses that depend too heavily on sales promotions may struggle to market
their products without discounts. Over time, this reliance can harm the brand’s
ability to sell at full price or compete on factors other than cost.

Cannibalizing Future Sales

A sales promotion may encourage customers to buy now, but it can also deter them
from making purchases in the future at regular prices. This can result in revenue
spikes followed by slower periods.

Section -C

17. Marketing research is the term used to cover the concept, development,
placement and evolution of your product or service, its growing customer
base and its branding – starting with brand awareness, and progressing to
(everyone hopes) brand equity. Like any research, it needs a robust process to be
credible and useful.

Marketing research uses four essential key factors known as the „marketing mix‟,
or the Four Ps of Marketing:

 Product (goods or service)

 Price (how much the customer pays)
  Place (where the product is marketed)
 Promotion (such as advertising and PR)

These four factors need to work in harmony for a product or service to be

successful in its marketplace.

The marketing research process – an overview

A typical marketing research process is as follows:

 Identify an issue, discuss alternatives and set out research objectives

 Develop a research program
 Choose a sample
 Gather information
 Gather data
 Organize and analyze information and data
 Present findings
 Make research-based decisions
 Take action based on insights

Step 1: Defining the marketing research problem

Defining a problem is the first step in the research process. In many ways, research
starts with a problem facing management. This problem needs to be understood,
the cause diagnosed, and solutions developed.

However, most management problems are not always easy to research, so they
must first be translated into research problems. Once you approach the problem
from a research angle, you can find a solution. For example, “sales are not
growing” is a management problem, but translated into a research problem, it
becomes “why are sales not growing?” We can look at the expectations and
experiences of several groups: potential customers, first-time buyers, and repeat
purchasers. We can question whether the lack of sales is due to:

 Poor expectations that lead to a general lack of desire to buy, or

 Poor performance experience and a lack of desire to repurchase.

This, then, is the difference between a management problem and a research

problem. Solving management problems focuses on actions: Do we advertise
more? Do we change our advertising message? Do we change an under-performing
product configuration? And if so, how?

Defining research problems, on the other hand, focus on the whys and hows,
providing the insights you need to solve your management problem.

Step 2: Developing a research program: method of inquiry

The scientific method is the standard for investigation. It provides an opportunity

for you to use existing knowledge as a starting point, and proceed impartially.

The scientific method includes the following steps:

 Define a problem
 Develop a hypothesis
 Make predictions based on the hypothesis
 Devise a test of the hypothesis
 Conduct the test
 Analyze the results

This terminology is similar to the stages in the research process. However, there
are subtle differences in the way the steps are performed:

 the scientific research method is objective and fact-based,

using quantitative research and impartial analysis
  the marketing research process can be subjective, using opinion and
qualitative research, as well as personal judgment as you collect and analyze
data

Step 3: Developing a research program: research method

As well as selecting a method of inquiry (objective or subjective), you must select

a research method. There are two primary methodologies that can be used to
answer any research question:

 Experimental research: gives you the advantage of controlling extraneous

variables and manipulating one or more variables that influence the process
being implemented.
 Non-experimental research: allows observation but not intervention – all
you do is observe and report on your findings.

Step 4: Developing a research program: research design

Research design is a plan or framework for conducting marketing research and

collecting data. It is defined as the specific methods and procedures you use to get
the information you need.

There are three core types of marketing research designs: exploratory,

descriptive, and causal. A thorough marketing research process incorporates
elements of all of them.

Exploratory marketing research

This is a starting point for research. It’s used to reveal facts and opinions about a
particular topic, and gain insight into the main points of an issue. Exploratory
research is too much of a blunt instrument to base conclusive business decisions
on, but it gives the foundation for more targeted study. You can use secondary
research materials such as trade publications, books, journals and magazines and
primary research using qualitative metrics, that can include open text surveys,
interviews and focus groups.

Descriptive marketing research

This helps define the business problem or issue so that companies can make
decisions, take action and monitor progress. Descriptive research is naturally
quantitative – it needs to be measured and analyzed statistically, using more
targeted surveys and questionnaires. You can use it to capture demographic
information, evaluate a product or service for market, and monitor a target
audience’s opinion and behaviors. Insights from descriptive research can inform
conclusions about the market landscape and the product’s place in it.

Causal marketing research

This is useful to explore the cause and effect relationship between two or more
variables. Like descriptive research, it uses quantitative methods, but it doesn’t
merely report findings; it uses experiments to predict and test theories about a
product or market. For example, researchers may change product packaging
design or material, and measure what happens to sales as a result.

Step 5: Choose your sample

Your marketing research project will rarely examine an entire population. It’s more
practical to use a sample - a smaller but accurate representation of the greater
population. To design your sample, you’ll need to answer these questions:

 Which base population is the sample to be selected from? Once you’ve

established who your relevant population is (your research design process
will have revealed this), you have a base for your sample. This will allow
you to make inferences about a larger population.
 What is the method (process) for sample selection? There are two
methods of selecting a sample from a population:
 1. Probability sampling: This relies on a random sampling of everyone
within the larger population.

2. Non-probability sampling: This is based in part on the investigator’s

judgment, and often uses convenience samples, or by other sampling
methods that do not rely on probability.

 What is your sample size? This important step involves cost and accuracy
decisions. Larger samples generally reduce sampling error and increase
accuracy, but also increase costs. Find out your perfect sample size with our
calculator.

Step 6: Gather data

Your research design will develop as you select techniques to use. There are many
channels for collecting data, and it’s helpful to differentiate it into O-data
(Operational) and X-data (Experience):

 O-data is your business’s hard numbers like costs, accounting, and sales. It
tells you what has happened, but not why.
 X-data gives you insights into the thoughts and emotions of the people
involved: employees, customers, brand advocates.

When you combine O-data with X-data, you’ll be able to build a more complete
picture about success and failure - you’ll know why. Maybe you’ve seen a drop in
sales (O-data) for a particular product. Maybe customer service was lacking, the
product was out of stock, or advertisements weren’t impactful or different enough:
X-data will reveal the reason why those sales dropped. So, while differentiating
these two data sets is important, when they are combined, and work with each
other, the insights become powerful.

With mobile technology, it has become easier than ever to collect data. Survey
research has come a long way since market researchers conducted face-to-face,
postal, or telephone surveys. You can run research through:

 Email
  SMS
 Slack
 WhatsApp
 Social media (polls and listening)

Another way to collect data is by observation. Observing a customer’s or

company’s past or present behavior can predict future purchasing decisions. Data
collection techniques for predicting past behavior can include market
segmentation, customer journey mapping and brand tracking.

Regardless of how you collect data, the process introduces another essential
element to your research project: the importance of clear and constant
communication.

And of course, to analyze information from survey or observation techniques, you

must record your results. Gone are the days of spreadsheets. Feedback from
surveys and listening channels can automatically feed into AI-powered analytics
engines and produce results, in real-time, on dashboards.

Step 7: Analysis and interpretation

The words ‘statistical analysis methods’ aren’t usually guaranteed to set a room
alight with excitement, but when you understand what they can do, the problems
they can solve and the insights they can uncover, they seem a whole lot more
compelling.

Statistical tests and data processing tools can reveal:

 Whether data trends you see are meaningful or are just chance results
 Your results in the context of other information you have
 Whether one thing affecting your business is more significant than others
 What your next research area should be
 Insights that lead to meaningful changes
There are several types of statistical analysis tools used for surveys. You should
make sure that the ones you choose:

 Work on any platform - mobile, desktop, tablet etc.

 Integrate with your existing systems
 Are easy to use with user-friendly interfaces, straightforward menus, and
automated data analysis
 Incorporate statistical analysis so you don’t just
process and present your data, but refine it, and generate insights and
predictions.

Here are some of the most common tools:

 Benchmarking: a way of taking outside factors into account so that you can
adjust the parameters of your research. It ‘levels the playing field’ – so that
your data and results are more meaningful in context. And gives you a more
precise understanding of what’s happening.
 Regression analysis: this is used for working out the relationship between
two (or more) variables. It is useful for identifying the precise impact of a
change in an independent variable.
 T-test is used for comparing two data groups which have different mean
values. For example, do women and men have different mean heights?
 Analysis of variance (ANOVA) Similar to the T-test, ANOVA is a way of
testing the differences between three or more independent groups to see if
they’re statistically significant.
 Cluster analysis: This organizes items into groups, or clusters, based on how
closely associated they are.
 Factor analysis: This is a way of condensing many variables into just a few,
so that your research data is less unwieldy to work with.
 Conjoint analysis: this will help you understand and predict why people
make the choices they do. It asks people to make trade-offs when making
decisions, just as they do in the real world, then analyzes the results to give
the most popular outcome.
 Crosstab analysis: this is a quantitative market research tool used to analyze
‘categorical data’ - variables that are different and mutually exclusive, such
as: ‘men’ and ‘women’, or ‘under 30’ and ‘over 30’.
  Text analysis and sentiment analysis: Analyzing human language and
emotions is a rapidly-developing form of data processing, assigning positive,
negative or neutral sentiment to customer messages and feedback.

Stats IQ can perform the most complicated statistical tests at the touch of a button
using our online survey software, or data from other sources. Learn more about
Stats iQ now.

Step 8: The marketing research results

Your marketing research process culminates in the research results. These should
provide all the information the stakeholders and decision-makers need to
understand the project.

The results will include:

 all your information

 a description of your research process
 the results
 conclusions
 recommended courses of action

They should also be presented in a form, language and graphics that are easy to
understand, with a balance between completeness and conciseness, neither leaving
important information out or allowing it to get so technical that it overwhelms the
readers.

Traditionally, you would prepare two written reports:

 a technical report, discussing the methods, underlying assumptions and the

detailed findings of the research project
 a summary report, that summarizes the research process and presents the
findings and conclusions simply.

There are now more engaging ways to present your findings than the traditional
PowerPoint presentations, graphs, and face-to-face reports:
  Live, interactive dashboards for sharing the most important information, as
well as tracking a project in real time.
 Results-reports visualizations – tables or graphs with data visuals on a
shareable slide deck
 Online presentation technology, such as Prezi
 Visual storytelling with infographics
 A single-page executive summary with key insights
 A single-page stat sheet with the top-line stats

You can also make these results shareable so that decision-makers have all the
information at their fingertips.

Step 9 Turn your insights into action

Insights are one thing, but they’re worth very little unless they inform immediate,
positive action. Here are a few examples of how you can do this:

 Stop customers leaving – negative sentiment among VIP customers gets

picked up; the customer service team contacts the customers, resolves their
issues, and avoids churn.
 Act on important employee concerns – you can set certain topics, such as
safety, or diversity and inclusion to trigger an automated notification or
Slack message to HR. They can rapidly act to rectify the issue.
 Address product issues – maybe deliveries are late, maybe too many
products are faulty. When product feedback gets picked up through Smart
Conversations, messages can be triggered to the delivery or product teams to
jump on the problems immediately.
 Improve your marketing effectiveness - Understand how your marketing
is being received by potential customers, so you can find ways to better meet
their needs
 Grow your brand - Understand exactly what consumers are looking for, so
you can make sure that you’re meeting their expectations
19. What is Advertising?
Any paid form of non-personal presentation and promotion of goods and services
by an identified sponsor is known as Advertising. It is one of the most popular
tools of promotion. Information or details regarding benefits, price, and
availability of the products and services are provided with the help of
advertising. The main aim of advertising is to increase the demand and sale of
goods and services. Newspapers, televisions, magazines, etc., are common
modes of advertising.
According to David Ogilvy, "If you are tiring to persuade people to do
something, or buy something, it means to me you should use their language, the
language in which they think ".
According to William J. Stanton, “Advertising consists of all the activities
involved in presenting to a group, a non-personal, oral or visual, openly spon-
sored message regarding a product or service or idea, this message is called
advertisement, is disseminated through one or more media and is paid for, by the
identified sponsor”.
According to the American Marketing Association, “Any paid form of non-per-
sonal presentation and promotion of ideas, goods and services, by an identified
sponsor. The medium used are print broadcast, and direct”.
Table of Content
 Importance of Advertising
 Features of Advertising
 Merits of Advertising
 Demerits/ Limitations of Advertising
Importance of Advertising
Advertising is important because of the following reasons:
1. Informing and Educating Customers: Advertising serves as a pivotal tool
for informing potential customers about various aspects of products,
services, promotions, and special events. By utilizing this platform, firms can
effectively communicate essential information such as availability, price, product
function, and unique qualities.
2. Promoting Products and Services: The significance of advertising lies in its
role as a catalyst for promoting products and services. This function is
instrumental in enabling businesses to compete effectively for the attention of
buyers in a competitive market. Through advertising, businesses can create brand
awareness, attract potential customers, and establish a compelling presence in the
marketplace.
3. Boosting Employee Morale: Effective advertising extends beyond customer
outreach and can have a positive impact on the internal dynamics of a business.
A well-crafted advertising campaign can enhance the overall reputation of a
business, subsequently boosting employee morale.
4. Increasing Brand Exposure: Advertising plays a pivotal role in significantly
increasing a brand's exposure to the target audience. This increased visibility can
directly impact sales and revenue for businesses of all sizes. By reaching a
broader audience and ensuring the brand is in front of the right people,
advertising becomes a powerful tool for acquiring new customers and expanding
market reach.
5. Enhancing Sales: Advertising is not just about creating awareness but also
driving tangible results. By strategically showcasing product qualities and
benefits, advertisements can influence consumer behavior, leading to increased
sales. This is especially powerful when combined with compelling calls to action
that prompt immediate purchases.
Features of Advertising
The features of Advertising are as follows:
1. Paid Form: It is a paid form of communication, as the sponsor has to bear the
cost of advertising. So it is commercial in nature. It involves a huge cost and is
never free of cost.
2. Impersonality: As there is no face-to-face contact between the customer and
the advertiser, it is considered to be an impersonal method. Since it is a one-
sided communication, a monologue is created, not a dialogue.
3. Identified Sponsor: It is always undertaken by an identified sponsor, who
bears the cost. The name or the identity of the advertiser is disclosed in the
advertisement.
Merits of Advertising
The merits of advertising are as follows:
1. Mass Reach: Advertising has a mass reach as it can reach a large number of
people at a time. For example, advertisements by the government to get
vaccinated against Covid-19 reached mass through advertisements in
newspapers, televisions, radio, etc.
2. Enhancing Customer Satisfaction and Confidence: A product that is
publicly advertised gets authenticity as there is a proof for it. The products which
are advertised widely are preferred more by the customers as they feel more
comfortable. Advertising wins the confidence and trust of the customers about
the product and they feel more satisfied.
3. Expressiveness: Advertising has become one of the most prominent mediums
of communication as it uses the latest techniques, graphics, and media. Modern
advertising makes products more attractive, appealing, and expressive.
4. Economy: As advertising targets mass, it is economical. The total cost of
advertising is spread over a large number of people and because of this, the per
unit cost of reaching a prospective buyer is less as compared to other
promotional techniques.
Demerits/ Limitations of Advertising
The demerits of advertising are as follows:
1. Less Forceful: As there is no direct contact between the buyers and the
marketer, it is less forceful. The messages conveyed through advertising are
impersonal and buyers sometimes do not pay attention to them.
2. Lack of Feedback: Evaluation of the effectiveness of the advertisement
cannot be done easily, as there is no immediate and accurate feedback from the
customers. It is one-sided communication.
3. Inflexibility: Advertisement is inflexible, as it cannot be modified as per the
requirements of different target groups. It uses standardised messages to
communicate with people, and once an advertisement is made, it is very difficult
to change it, as it involves a lot of costs.
4. Low Effectiveness: Advertisement has low effectiveness as in this fast-
changing world, advertisements are increasing in numbers and it has become
very difficult to make the advertisement heard by the target group. Further, there
is no scope to clear the queries and doubts of the target groups due to a lack of
two-way communication.

20.

Direct marketing is a great way to address your audience and communicate quickly
and clearly. In this post, we'll look at the benefits and challenges of running direct
marketing campaigns.

Benefits of direct marketing

Personalised messaging

With telemarketing, email, and traditional mail, you can personalise your message.
This is a good way to remind your audience what you offer, but it also fosters trust
by showing you appreciate their business. Consider Netflix, for example. Their AI
algorithm uses the massive amount of user data they have to identify your
engagement and viewing patterns, which allows them to generate personalised
recommendations. Not only do you see these suggestions when you log in to
Netflix, but they also prompt you by sending emails about new and upcoming
shows you might like. Most CRM and analytics systems nowadays have built-in
tools to help you analyse customer behaviour and customise your messages.

Hypertargeting

When you run a direct marketing campaign, such as through email or post, you can
be extremely specific when choosing your target audience. By starting with a large
demographic and filtering them based on other traits, you'll end up advertising to a
smaller group of leads who will find your campaign message more relevant. This
means even if you have a limited reach, your conversion rates will be higher
because you're focusing your efforts on people who are more likely to be interested
in your offering. Though activities like television and display ads have a broader
reach, they also increase your chances of speaking to an irrelevant audience.

Flexibility

Most direct marketing activities are relatively low-risk because you don't rely on
external forces to drive your efforts. You can experiment with a variety of
activities and messages without negatively impacting your business. For example,
you can conduct tests on email copy, subject lines, and delivery times to identify
the perfect combination. Unlike A/B testing with two video ads on television,
email experiments are also easier and more affordable.

Less resource intensive

Aside from their affordability, direct marketing campaigns also require fewer
people to manage them. For example, email marketing, SMS, and direct
advertising have automation options that reduce manual work and save time for
your team. These methods are also more budget-friendly to start with when
compared to other outbound marketing activities.
No intermediary

When you market directly, people who want to hear more about your business will
reach out to you personally. Without a third party between you and your customer,
you cut down on expenses and reduce conversational barriers.

Well-defined sales funnel

Since you don't have anyone between you and your audience, you can establish a
clear customer journey in your sales and marketing funnel. Every response you
receive from a potential customer is an opportunity to follow up with accurate
answers. This reduces the steps customers have to take to interact with you in
person, a crucial element in building trust and relationships.

Measurable success

Direct marketing often yields quick results that you can measure and reflect upon.
For example, when you use telemarketing for research or a fundraiser, you'll
instantly know how many people are tuned in to your campaign.

Direct marketing challenges

Legal considerations

In many direct marketing activities, you have to be aware of legal regulations such
as the Privacy Act, the Spam Act, and Do Not Call Act. Although it's a
straightforward process to comply with these guidelines, it still requires you to
monitor and update your communication channels regularly. For more information
on communications regulations, check the Australian Communications and Media
Authority.
Unwelcome and intrusive

A big part of direct marketing is aimed at potential customers who may not
appreciate being advertised to. Unless your messaging and targeting are well-
researched, your audience may find you intrusive and share their disappointment
with their friends and family. This word-of-mouth negativity can impact your
brand reputation.

Requires an established market

For a direct marketing campaign to generate results, you should be a familiar name
in the market. Being known helps catapult your reach. If you're entering a new
market, it might be better to start off with reputation-building activities like content
marketing and events.

Environmental cost

Offline activities like traditional mail and brochures often end up in landfills,
causing unnecessary waste. To reduce your impact, consider environmentally-
friendly materials such as recycled paper, home-compostable and bio degradable
packaging, and reusable cartons.

Direct marketing is an effective way to promote and generate awareness for your
business. However, your expenses may vary based on the size of your business,
your industry, and the type of activities you choose. For example, aside from
printing costs, magazines and brochures involve added costs like packaging and
distribution. So if you're a small business with a limited budget, it may be better to
distribute your brochures via email.

We hope this post gives you an idea of which direct marketing activities can be
most beneficial for you. If you have any questions you'd like us to address, leave a
comment below and we'll get to it as soon as possible!

Advantages Of Direct Marketing

Here are the advantages of direct marketing:

 Targeted – With direct marketing, you can send specific messages to certain
groups of customers and potential customers based on their buying
behaviour or demographics. The more you target your marketing, the more
successful your campaign will be.
 Builds Loyalty – A direct marketing campaign can build brand loyalty by
continually sharing your brand’s message on different direct marketing
channels.
 Personal – You can personalise the message for your audience. Personalised
direct mail will help improve response rates.
 Measurable – Direct marketing campaigns can be tracked and monitored to
analyse the results of the campaign effectively.
 Affordable – Some direct marketing campaigns, like postcard marketing or
email marketing, can be very cost-effective.
 Informative – Direct marketing campaigns deliver detailed information on
your products and services.

Disadvantages of Direct Marketing

However, although there are many advantages of direct marketing, there are some
disadvantages you need to consider:

 Intrusive – Some people find direct marketing annoying and intrusive. If

people find your marketing mail annoying, it can create a negative brand
association.
 Environmental Impact – Some direct marketing techniques are associated
with having an environmental impact, mainly direct mail. This can be
reduced by targeted direct mail campaigns and using recycled materials.