Major Alternatives, Essay Example

Food Market Inc, a regional food broker that has had an opportunity to grow greatly during the economic recession. The new economy and recession has created the need to increase the marketing strategies and the most effective strategies have been media advertising and store retailing not forgetting social media marketing which has been the latest.  There are other food brokers who happen to be the company’s competitors and are also very vibrant in their marketing strategies because they are also targeting the younger market segment.

As a result Food Market has sought ways of integrating the internet to its current marketing strategies so that it can have a competitive advantage over the other firms. In the process of analyzing the opportunities brought about by the internet, the idea to establish a direct-marketing channel for its products came up and this is what has brought controversy with the company’s retailers who have a major contribution to the sales. The retailers are threatening to drop the company’s product which would result to a great loss and that’s why there is need to device a way of how to handle this issue.

Pollick (2009) describes direct marketing as a method of sales which is controversial sometimes where advertisers contact the potential customers directly with products and services. It also entails collecting data, compiling and maintaining a large database of potential customers and clients’ personal information. These databases can either be sold to other marketing companies that are direct or shared with them. This therefore means that the customers need to accept this idea of submitting their personal information to be used in this manner for the strategy to be successful. There are several forms of direct marketing and these include; leaflets, telephone sales, catalogs, coupons, solicited or unsolicited emails, online computer shopping and brochures.

There are several benefits linked to direct marketing as stated by Sellwoo (2008). The benefits to the customer include; convenience to customers, wider selection of the products, fun and can allow direct-order customized products. The sellers also enjoy the benefits because direct marketing helps in building customer relationship, reduces the marketing costs because it is relatively cheaper than other marketing methods and is easier in results measurement hence greater accountability and control because the marketers have a record of the people they have been in contact with. Direct marketing also has an advantage when it comes to targeting because the company can successfully target its information to its intended recipients even in their various geographical locations.

Having looked at these benefits, there is need to establish the direct-marketing system and to convince the retailers to continue working with the company. The first step would be to inform the retailers on the above benefits that would accrue both to the company and to the customers. This would be done to ensure that the retailers understand the importance of the system to the company. The next step would be to let the retailers know of the different ways they can also benefit from the system so that they can continue working together with the company.

Incorporation of retailers can therefore be done best by developing a direct-marketing model where the orders from the web would be forwarded to the local retailers so that they can complete the orders and get sales commissions. This way, the company retains the 60% sales they get from working with the retailers and establish a better way to work with customers as they reap the benefits that come with adopting direct-marketing as a marketing strategy.

References

Pollick M. (September 23, 2009). What is Direct Marketing? Retrieved on October 31, 2009 from http://www.wisegeek.com/what-is-direct-marketing.html

Sellwoo S. (2008). What are the Advantages of Direct Marketing? Retrieved on November 1, 2009 from http://www.articlesbase.com/marketing…/what-are-the-advantages-of-direct-marketing-291257.html