...Direct Marketing by Geoff Lancaster © 1 Direct marketing explained Direct marketing is a collection of techniques that enables organisations to market goods and services directly to customers (business-to-customers or B2C). It is a pro-active approach to marketing that takes the product and/or service to potential customers rather than waiting for them to come to a store or other point of access. It is a form of ‘non-shop’ shopping and is sometimes referred to as ‘precision marketing’ or ‘one-to-one’ marketing. Rather than the marketing firm sending out a general communication or sales message to a large group of potential customers, even if these constitute a well-defined market segment, direct marketing tends to target specific individuals or households. In a business-to-business (B2B) context this would be an individual or a specific organisation or firm. Direct marketing is not just concerned with marketing communications. It is also concerned with distribution. In using direct marketing, the firm is making a choice to cut out the use of marketing intermediaries and sell the product or service direct to customers. This has implications for both channels of distribution and logistical decisions. Direct marketing comes in a variety of forms. It is one of the fastest growing areas of marketing and is being propelled by technical advances, particularly in the field of computer technology and the www. Academics and consultants have taken up direct marketing with enthusiasm...
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...Direct Marketing According to the official definition of the Direct Marketing Association (DMA), direct marketing is an "interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location." While there are many other possible definitions, the DMA captures the four basic concepts that set direct marketing apart from traditional marketing. The notion of interactivity, or one-to-one communication between the marketer and the prospect or customer, is one factor that distinguishes direct marketing keting from general advertising and other types of marketing. Direct marketing makes an offer and asks for a response. By developing a history of offers and responses, direct marketers acquire knowledge of their prospects and customers, resulting in more effective targeting. Measurability also sets direct marketing apart from general advertising and other forms of marketing. Direct marketers can measure the response to any offer. Measurability allows direct marketers to test a variety of lists, offers, media—virtually any aspect of a campaign—in order to allocate marketing resources to the most effective combination of elements. Direct marketing uses a variety of media, including mail, magazine ads, newspaper ads, television and radio spots, infomercials (also television but longer format), free standing inserts (FSIs), and card decks. This flexibility allows direct marketing to provide interactivity and measurability...
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...The first thing that must be done is to assess if our industry or sector is susceptible to the use of direct mailing as an aid to the generation of sales leads – so we will need a market feasibility study which will include: Description of the Industry Current Market Analysis Competition Anticipated Future Market Potential Potential Buyers and Sources of Revenues Sales Projections If the conclusion is that we should undertake a direct-mailing campaign, we will have had to face up to and overturn the following adverse arguments. We must not expect too much and must use calculations to back up the wisdom of what we are doing. When profits result from a successful marketing campaign, it nevertheless almost always reflects a tiny percentage of returns, and this return must be subject to calculation and assessment. For example, if we send out 1,000 postcards at a cost of €750 (printing and postage) we need to generate enough sales leads to at least pay for the campaign. If we are a clothing boutique say, and our average customer spends €100 per visit we would need to get 7 or 8 new average customers to break even. Direct mail marketing is about building new relationships and getting the word out about the business – we are unlikely to get rich from it. Another problem may be this; if location is important, and we send out inserts through a local direct-mail advertising company we will reach potential customers in our local community. But we will also waste...
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...“The Effects of Direct Selling Strategy to the Marketing Success of Marikina Shoe Exchange in Marikina City” Chapter 1 The Problem and It’s Background A. Introduction Direct selling has been making the greatest impact on the marketing aspect today. Direct selling is the oldest channel of distribution. It exists since ages; fulfilling consumer’s basic need for trade and the ability to communicate with the goods they exchange. From the seller's point of view, the major attraction of direct selling is offering an equal and flexible income opportunity to men and women, across all ages, levels of experience and social origins. The direct selling industry offers high level standards of consumer protection while enhancing entrepreneurship for direct sellers. Markets, in their fundamental stages, were meeting places for customers and direct sellers. Frequently, the seller used the market as one of his stopping points before continuing his village-to-village journey dealing. Direct selling offered opportunities for many who had previously run into barriers because of age, education and gender. The growth of the industry allowed many to become successful where no opportunity has existed before. Today, at the beginning of the 21st century, the customer still benefits from a personal and convenient way of purchasing products. The internet has become an important element of direct selling essentially giving each direct seller a worldwide customer base. Direct sellers have been empowered...
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...| | Sports Direct PLCPurpose: Sports retailerExample: Sports direct sell clothes and footwear specialised for leisure activitiesObjectives: 1. Maximum profit 2. Sales growth 3. Increasing market shares 4. Gain monopolyScale: InternationalSize: LargeSports Direct is an international public limited company founded in 1982 by Mike Ashley, it specialises in sports retail. It owns brands such as: Donnay, Slazenger, Firetrap, Dunlop, Everlast, Kangol, Karimor and Lonsdale. Unfortunately it sold Umbro to Nike in 2007 Sports direct, operates in Ireland, France, Holland, Belgium, Estonia, Luxembourg and Hungary. It has 500 stores in Europe (470 in the UK) and has 24,000 employees.The market strategies used by Sports Direct These strategies help with a company’s growth they are: * Market penetration- This is when a business focuses on selling products in an existing market. For example Sports Direct will focus on selling footballs in the football market as football is one of the most popular sports on the planet * Market development-This is when you sell your products in a new market. For example Sports Direct could sell basketball jerseys in the fashion market * Product development- Designing new products to accommodate customers. For example Sports Direct could design a better Kangol jumper that has improved insulation to make you feel warmer in the winter * Branding-It when you create a unique name and image for...
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...Assess the arguments in favor of the greater use of direct democracy in the UK Direct democracy, or also know as pure democracy allows people to decide and vote on policy initiatives directly, as opposed to representative democracy where people vote for representatives who then decide the policy’s, where they peoples interest’s are meant to be at heart. Direct democracy derived from ancient Greece when people had a vote in what decisions were made, however women, foreigners and slaves were excluded from voting. Now days many countries with representative democracies allow forms of direct democracy through referendums, initiative and recall. There are many benefits to direct democracy, including promoting a democratic and well-cooperated society. People have power and a say, and this opinion needs to be listened to by the government in order to please the citizens. It also provides a responsibility of the government to the people, all people have this power of a vote, and the government needs to listen to peoples concerns, as the politicians and the government will be held responsible for the well being of the people. Referendums are a form of direct democracy, and have been used in the UK many times, with the most recent being the Scottish referendum, allowing the people of Scotland to decide if they wanted to remain a part of the UK. One argument against the use of more referendums would be that the general public are not always as educated in the decision as a representative...
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...Foreign direct investment (FDI) is direct investment into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is done for many reasons including to take advantage of cheaper wages in the country, special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. As a part of the national accounts of a country, national income e quation is Y=C+I+G+x-m,I is investment plus foreign investment, FDI refers to the net inflows of investment(inflow minus outflow) to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.[1] It is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment...
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...Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans".[1] In a narrow sense, foreign direct investment refers just to building new facilities. The numerical FDI figures based on varied definitions are not easily comparable. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.[3] FDI is one example ofinternational factor movements Importance and barriers to FDI[edit] The rapid growth of world population since 1950 has occurred mostly in developing countries[citation needed]. This growth has been matched by more rapid increases...
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...Nayak D.N (2004) in his paper “Canadian Foreign Direct Investment in India: Some Observations”, analyse the patterns and trends of Canadian FDI in India. He finds out that India does not figure very much in the investment plans of Canadian firms. The reasons for the same is the indifferent attitude of Canadians towards India and lack of information of investment opportunities in India are the important contributing factor for such an unhealthy trends in economic relation between India and Canada. He suggested some measures such as publishing of regular documents like newsletter that would highlight opportunities in India and a detailed focus on India’s area of strength so that Canadian firms could come forward and discuss their areas of expertise would got long way in enhancing Canadian FDI in India. Balasubramanyam V.N Sapsford David (2007) in their article “Does India need a lot more FDI” compares the levels of FDI inflows in India and China, and found that FDI in India is one tenth of that of china. The paper also finds that India may not require increased FDI because of the structure and composition of India’s manufacturing, service sectors and her endowments of human capital. The requirements of managerial and organizational skills of these industries are much lower than that of labour intensive industries such as those in China. Also, India has a large pool of well – Trained engineers and scientists capable of adapting and restructuring imported know – how to suit...
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...Introduction of Foreign Direct Investment Foreign Direct Investment (FDI) is known as the long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer of technology and expertise. In other words, foreign direct investment is the cross-border corporate governance mechanism through which a company gains productive assets in another country. FDI is different from other major forms of foreign investment in that it is motivated largely by the long-term profit prospects in production activities that investor directly control (Wong, 2005). Wong also says that almost most of the developing and least developed countries worldwide equally participated in the process of direct investment activities. Over a long period of time, foreign direct investment (FDI) forms a major part of investment in most industrial and some developing countries. Besides that, he did explain that some FDI is intended to utilize local natural resources. Sometimes it is to employ relatively cheap labour, and sometimes to produce goods near to markets. Moreover, foreign direct investment can be a significant driver of development in poor nations. According to Katerina, John and Athanasios (2004), it provides an inflow of foreign capital and funds, in addition to an increase in the transfer of skills, technology, and job opportunities. Furthermore, they said it would be difficult to generate this capital through domestic savings, and even if it were...
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...Paul XXXXXX XXXXXXXXX University International Financial Markets: Foreign Direct Investment FIN630 – Global Financial Management March 17, 2011 Foreign Direct Investment: Vernon’s product life-cycle theory Raymond Vernon’s theory was different than the modern day theories of the 1960’s. Before Vernon, economists thought the reason a country traded with another was because of some advantage it had over the other for producing a product. The advantage was thought to be mostly related to cost; a country could produce it cheaper. Vernon did not agree with this way of thinking. Raymond Vernon believed that products have a life cycle. His theory put emphasis on invention and new products. He believed that most trade came from manufactured products especially products saved consumers time and effort from work. Vernon believed that more advanced or stronger economic countries would focus on developing new products and inventions because those economies would have the economic structure to support research and development (Katsioloudes & Hadjidakis, 2007). Vernon believed that countries varied in economic development and they traded with each other not because they were superior but because it was a good opportunity for both. For example, during the 1950’s and 60’s the United States was a much more developed economic leader than Japan; however, trade between the two countries would not come from the U.S. having an advantage over Japan. It came about because it...
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...addition, the well established company over the years has acquired human, innovative, and reputational resources which give them a competitive advantage. Consideration this, Globe Diesel has undertaken the activities in mass production of super sized construction machines such as dump trucks, excavators, cement trucks, and earth movers. Although Globe Diesel operates ten manufactures located throughout the United States, the challenging task of managing multiple activities in the production of construction machinery could prove to be troublesome, not to mention that machinery of this size and magnitude are costly to produce. These factors were influential in Globe Diesel’s decision to outsource the activity of steel production through foreign direct investments with China. This foreign entry will provide employment, balance of payment, and profits for the company. Multinational Enterprise Business Plan Globe Diesel is a multinational enterprise that engages in a large variety of activities that include; the Research, Development,...
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...Financial Services & Management Research Vol.1 Issue 8, August 2012, ISSN 2277 3622 FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN INDIA R. ANITHA* *Assistant Professor, Anna Adarsh College for Women, Chennai, Tamil Nadu, India. ABSTRACT Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. A typical characteristic of these developing and underdeveloped economies is the fact that these economies do not have the needed level of savings and income in order to meet the required level of investment needed to sustain the growth of the economy. In such cases, foreign direct investment plays an important role of bridging the gap between the available resources or funds and the required resources or funds. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the flow of foreign direct investment. This paper analyses FDI inflow into the country during the Post Liberalization...
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...FOREIGN DIRECT INVESTMENT – LOCATION ATTRACTIVENESS FOR RETAILING FIRMS IN THE EUROPEAN UNION1 Pervez N. Ghauri Manchester School of Management, UMIST United Kingdom Email: Pervez.Ghauri@umist.ac.uk Ulf Elg Dep. of Business Administration, School of Economics and Mgmt, Lund University, Sweden Email: ulf.elg@fek.lu.se Rudolf R. Sinkovics Manchester School of Management, UMIST United Kingdom Email: Rudolf.Sinkovics@umist.ac.uk 1 The authors would like to thank Handelsbanken’s Research Foundations for financial support. FOREIGN DIRECT INVESTMENT – LOCATION ATTRACTIVENESS FOR RETAILING FIRMS IN THE EUROPEAN UNION Abstract For politicians and country representatives it is becoming more and more important to look into ways to attract Foreign Direct Investments (FDI). Not only are successful location decisions of multinational companies good news for surviving in the political system, but related economic and social development implications necessitate a more comprehensive view on whether there is a race to attract FDI in Europe. And if so, what are its implications on different industries and societies within the EU. This paper focuses on the retailing industry and mandates an understanding of managerial decision making: Why do retailing companies enter particular country markets and what are the factors that determine a country’s attractiveness? A conceptual model is developed to understand the factors, corporate as well as market characteristics, which influence companies...
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...Business Ethics Second Paper – Deontological Analysis June 19, 2013 Direct-to-Consumer Drug Advertising: Ethical or Not? The United States and New Zealand are the only developed countries that allow direct-to-consumer advertising. Whether the practice of direct to consumer advertising is beneficial to the consumers or not is a highly debated subject with both positions presenting sound reasoning for their position. Whether the practice is beneficial or not to the consumer is not the question, but rather, is advertising prescription drugs directly to consumers ethical? To analyze this question I will use Rawls’s second principle of distributive justice for analysis. (2) use that method, developing the argument in support of your case; In utilizing direct to consumer advertising for prescription drugs is the advertising “reasonably expected to be to everyone’s advantage”? and “attached to positions and offices open to all?” (DeGeorge 78) One of the predominate claims of the pharmaceutical companies that the advertisements educate the consumer, thus giving them more information to evaluate their needs and to speak intelligently with their doctor. So, is the information provided in an ad or commercial “reasonably expected to be to everyone’s advantage?” It is reasonable to assume that everyone is exposed to the ads with the various media outlets used, such as TV, radio, newspaper, magazines and so forth, but is the education to everyone’s advantage? The drug...
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