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Evaluating Direct Marketing Campaign A C - Tài liệu tham khảo | Đại học Hoa Sen
Evaluating Direct Marketing Campaign A C - Tài liệu tham khảo | Đại học Hoa Sen và thông tin bổ ích giúp sinh viên tham khảo, ôn luyện và phục vụ nhu cầu học tập của mình cụ thể là có định hướng, ôn tập, nắm vững kiến thức môn học và làm bài tốt trong những bài kiểm tra, bài tiểu luận, bài tập kết thúc học phần, từ đó học tập tốt và có kết quả
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EVALUATING DIRECT MARKETING CAMPAIGN -A CASE STUDY OF DIALOG By IQBAL CASSIM A DISSERTATION Submitted to
The University of Wolverhampton Business School
In partial fulfilment of the requirements For the degree of
Master of Business Administration Module Code - 7MG001 2014 A Dissertation Entitled
EVALUATING DIRECT MARKETING CAMPAIGN -A CASE STUDY OF DIALOG By Iqbal Cassim (1124181)
We hereby certify that this Dissertation submitted by Mohamed Cassim Mohamed
Iqbal conforms to acceptable standards, and as such is fully adequate in scope and
quality. It is therefore approved as the fulfilment of the Dissertation requirements for
the degree of Master of Business Administration. Approved:
Dissertation Supervisor: Mr. Chamara De Zoysa Date: CERTIFICATION STATEMENT
'I declare that this Dissertation/Research Project, is in its entirety, my own work,
and that this work has not previously been presented in whole or part, for any
other award, or published in whole or in part elsewhere, including this university’ Signed ii ABSTRACT
The purpose this study is to evaluate how the direct marketing campaign made impact in the
growth of Dialog Axiata PLC by increasing the sales and market share of the organization.
Currently, in the highly competitive business arena, an organization should adopt all the
positive marketing approaches and strategies to increase the sales and market share in order
to make the organization profitable for the survival and for the growth.
The empirical part of this case study was conducted in December 2013. Mixed methodology
was adopted and the quantitative data from the questionnaire was collected from 200 existing
customers of the organization in cluster of Gampaha district with the help of my mates. To
validate the quantitative outcome, the qualitative data collection conducted through semi-
structured interview with senior management of the organization and with the industrial
experts. Four main direct marketing tools were taken for the research which have been
employed by the organization such as Face to Face selling, Phone calls and SMS selling,
Outdoor promotions and internet marketing. Further, these tools have been evaluated how
they linked with customer satisfaction as the key performance indicator for the growth of the
organization. The responses were made according to the 5 point likert scale in the
questionnaire. The collected data was analyzed through the SPSS Data editor in all possible
aspects to identify the effectiveness of each tools and techniques. Further, how these
techniques created awareness and served the consumers. Also, it has been analyzed how these
tools are successfully carried out in the organization to create enormous contribution to make
awareness among the target consumers.
The study indicates positive evidence that the direct marketing approaches have contributed a
higher capacity norm to the growth of the organization through creating awareness of the
products and services, increasing the higher volume of the sales, increasing the market share
by acquiring loyalty consumers to the network. It was concluded that the direct marketing
approaches have supported for the growth of Dialog Axiata PLC. Furthermore, it has been
recommended for any market oriented companies that direct marketing campaign is a key
marketing strategy which will contribute for the growth of the organization. iii ACKNOWLEDGEMENTS
First, I thank to the almighty Allah for giving me all the supports to complete this study
successfully and to become an MBA and for the blessings of him. Second, I would like to
thank my supervisor and the course coordinator Mr. Chamara De Zoysa for the continuous
guidance and supports that he gave me since my course registration till now. Also, I take this
opportunity to thank all my lecturers specially Dr. Shaukat Ali the dissertation coordinator
and academicals staffs in both institutions of BCAS Sri Lanka and the University of
Wolverhampton-UK for the maximum supports they provide me during my study.
I would like to convey my sincere thanks especially to my wife, kids and all my family
members who ever, for the sacrifices they did and the tolerance what they have paid over the
period of time. Further, I take this opportunity to thank my brother for the encouragements
and supports what I received from him.
Finally, I must be thankful to all my mates who have studied with me in this MBA
programme for their tremendous contribution through sharing ideas and knowledge in every
stages. Special thanks go to my two mates, who helped me a lot in the process of samples
collection namely Safraz and Irshad for thei r fullest supports. iv Table of contents 1.0 Chapter One-Introduction
1.0 Introduction………………………………………………………………………..…………04
1.1 Background of the Industry and Organization…………………………….…….…..……….04
1.2 Significance of the research……………………………………………...…………………..05
1.3 The objective of the research…………………………………………………………..…….05
1.4 Research questions………………………………………………………...…………………05
1.6 Main content…………………………………………………………………………………06
1.7 Need for the study……………………………………………………………………………06
1.8 Report structure……………………………………………….………………….…………..07
2.0 Chapter Two- Literature Review
2.1 Introduction………………………………………………………….………………………08
2.2 Definition of direct marketing…………………………..…….…………………………….08
2.3 The importance of direct marketing…………………………………….…..….……………09
2.4 Direct Marketing techniques……………………………………….…………….………….11
2.4.1 Face to Face selling (personal selling)……………….…………….……………...11
2.4.2 Outdoor promotions……………………………………………………………….13
2.4.2.1 Sales Promotion……………………………………………...…………………..13
2.4.3 Telemarketing-Phone calls & messaging………………………………………….14
2.4.4 Internet marketing………………………………………………………….………16
2.5 The importance of customer satisfaction for the growth of the organization…….……...….17
2.6 Conclusion and introduction to the next chapter…………………………………….………19 3.0 Chapter Three Research – Methodology and Design
3.1 Introduction………………………………………….………………………………………20
3.2 Research Structure/Design……………………………….………………………………….20
3.3 Population and sample of the study………………………………..……………..………….21
3.4 Data collecting method………………………………………………….…..……………….21
3.4.1 Primary Data……………………………………………………….…... 22 …………. 1
3.4.2 Secondary Data……………………………………….…………………...……….22
3.5 Limitation of the research……………………………………………………………………23
3.6 Data analysis……………………………………………………………….……….………..23
3.7 Conclusion and introduction to the next chapter…………………………..……..…………24
4.0 Chapter Four-Results, Analysis and Discussion
4.1 Introduction…………………………………………………………………..………..……..25
4.2 Demographic characteristic of the Research Respondents………………….…..…………..25
4.3 Reliability……………………………………………………………………….…. ……….. . 26
4.4 General Information Analysis………………………………………………..…….………..27
4.4.1 The retention with the organization…………………….………………..….…….27
4.4.2 How many dialog products and services the respondent own………..…...……..28
4.4.3 The mode of Awareness…………………………………………..…………..……28
4.4.4 The mode of purchase the product and service…………………..…. …… . .…….. 29
4.5 Descriptive statistics Analysis……………………………..…………………………..……30
4.6 Identifying the effective Tools/techniques of Direct Marketing Approach……..……...….32
4.6.1 Awareness…………………………………………………………...…….……….32
4.6.2 Impact on respondents…………………………………………………………….33
4.6.3 Interest on purchasing the product…………………..……………………………34
4.6.4 Reachability………………………………………………….…………………….35
4.6.5 Frequency…………………………………………………….….…………………36
4.7 Customer satisfaction Analysis…………………………………………..………………….37
4.8 Correlations Analysis………………………………………………..………………………38
4.9 Semi-structured interview…………………………………………………..……………….39
4.9.1 Direct Marketing Approach…………………………………………….………………….40
4.9.2 Customer satisfaction and Organizational growth…………………………….…………..40
4.9.3 Conclusion of semi-structure interview……………………………………...……………41
5.0 Chapter Five-Conclusions, Implications and Recommendations
5.1 Introduction………………………………………………………………….……….………42
5.2 Conclusions……………………………………………………….….………………………42
5.3 Implications and Recommendation…………………………………………….……………43 2
5.4 Limitation of the study……………………………………………………..…...…………44
5.5 Areas for further research……………………………………………………….…………..44
5.6 Reflection………………………………………………..………………….….……………45
5.7 Reference List………………………………………………..…….…………..….…………46
Appendix 1- Questionnaire…………………….……………………….……...…..….……….52
Appendix 2- Semi-Structured interview……………………..………………..…..…. . … …….59
Appendix 3- Dialog Annual Report pg. 26
Appendix 4- SPSS Analysis Data 3 Chapter One - Introduction 1.0 Introduction
In the current competitive business world, market oriented companies are increasingly hold the
approach of direct marketing as it is growing effectively in the current business atmosphere. This
case study is evaluating the direct marketing campaign in Dialog Axiata PLC, and identifying
what the direct marketing techniques were utilized in the organization and how effective they
were and how were these techniques made impact in the organizational growth.
1.1 Background of the Industry and Organization
In 1980 telecommunication industry in Sri Lanka experienced initial changes with restructuring
and partial privatization of the state-owned operator as it is de- linking from the government
owned post and telecommunication services. Allowing the market entry in the mobile telephony
market made competition in the fixed wireless local loop (WLL) segment of the fixed market.
The establishment of a five-member regulatory commission was a great change in
telecommunication sector of Sri Lanka as its more workable independence than the typical
government department in Sri Lanka. It initiated and reflected a commitment on the part of the
policy makers to pro-competitive reforms with telecommunication sector of Sri Lanka being seen
as more open among developing country in the Asia pacific region for a huge potential for
growth (Jayasuriya and Knight-John, 2004 in Knight-John, 2007, p.4). Following that, entry of
several investors start enter into the country‟s telecommunication industry mainly Cell tell,
Mobitel, Dialog, and few other companies. At present Dialog Axiata has captured higher market
share in the industry with over 8.2 million customer base.
Dialog Axiata PLC is a subsidiary of Axiata Group Berhad and the company operates 2.5G and
3/3.5G for mobile as well as 4G for multimedia and mobile internet services. In April 2013, the
company launched mobile 4G FD-LTE services and becoming the first 4G FD-LTE service
provider in South Asia. Dialog Axiata PLC provides its product and services through its fully
owned subsidiaries Dialog Broadband Networks (Pvt) Ltd and Dialog television (Pvt) Ltd. The
company is providing mobile solutions, fixed broadband services and direct-to-home (DTH)
Digital satellite TV series supplies a broad collection of international and local content in both
with standard definition (SD) and high definition (HD). 4
1.2 Significance of the research
The aims of the research are to identify the direct marketing techniques and evaluate how these
techniques have been successful in the journey of Dialog Axiata PLC. Since the company
channelled through the business partners operations at the early stage and implemented the direct
marketing strategy when the organization realized the requirement of the direct marketing
techniques to achieve the objective of the company and fulfil the necessity by implementing
direct marketing strategy over the run. Direct marketing is a channel-agnostic method of
advertising that allows businesses to communicate straight to the customers, with advertising
techniques such as phone Calls, messaging, email, interactive consumer websites, online display
ads, outdoor advertising and promotion, promotional letters, door to door concept and many other techniques.
The objective of the research will identify the effectiveness of the process how it was
successfully carried out in the organization and evaluate positive and negative factors which
were experienced by the company. Further, it will analyse the literature, identify the issues when
it is practically implemented by the organization and how it was resolved to compete the
challenges as a company to become a number one in the telecom industry in Sri Lanka. In
considering the above, this research / study mainly focused on identifying the direct marketing
techniques that the organization used and evaluating the effectiveness of DM in the growth of the organization.
1.3 The objective of the research (i)
Identify the direct marketing techniques used in the organization. (ii)
Identify which DM tools more effective in the growth of the organization. (iii)
Evaluating the effectiveness of the approaches of direct marketing. (iv)
Evaluating how effectively the DM techniques made impact in the growth of the organization. 1.4 Research questions
This research mainly focuses the below mentioned Research questions, (i)
What are the DM techniques used in the organization. (ii)
Which techniques were more effective in the growth of the company 5 (iii)
How effectively these techniques create customer awareness in the market. (iv)
How effectively these techniques create growth in the sales and growth of the organization 1.5 Main content
There are many studies available which shows the growth of direct marketing approaches where
fulfils and make communication between the organization and the customers. In current business
environment it has been identified as most significant tools which make benefits to the
organization by making customer relation marketing to promote their product and service to their
customer without a middleman. In this study, the direct marketing approach has been evaluated
that how it has been contributed for the growth of the Dialog Axiata PLC by making continuous
profits to the organization since the organization starts to use those techniques in their business
approach. Further, this study identifies what are the tools used in the organization as direct
marketing techniques, and out of those which tools were more effective to make significant
contribution to increase the customer base to make profits of the organization and how far it has
contributed to make satisfied customers for the organization to obtain their loyalty towards the
organization which will benefit for the growth of the organization. 1.6 Need for the study
In the current business era, “Direct marketing has become as a fundamental marketing tool in a
growing variety of businesses”, (Scovotti and Spiller, 2006, p.188). Compare to the other
marketing activities, the direct marketing activities grew faster and it has been identified as logic.
Deighton and Glazer (1997) concluded “the logic of direct marketing has become the logic of all
marketing‟. The direct marketing is being identified by many authors as a best marketing tool in
the business environment for the growth of an organization and DM has become an integral
element in the marketing managers‟ arsenal worldwide, (Scovotti and Spiller, 2006, p.188).
Though many authors wrote many journals about the direct marketing, there is no wide range of
study about the evaluation of the direct marketing concept to identify the effectiveness by
implementing the direct marketing techniques. This study is evaluating the direct marketing
campaigns in Dialog Axiata PLC and how effectively it has been carried out and what are the
direct marketing techniques were exploited and how effective was it. 6 1.7 Report structure
This report is concluded with five chapters and the first chapter is Introduction and describes the
study, industrial and the organization background and the purpose of this study. The second
chapter comes as the literature review where it reviews the theoretical framework relevant to the
case study and the theory how it relates with the business and critically reviewed. The
methodology of the research is presented in the chapter three and this provides description of the
data collection method and answers to the research questions. The chapter four is analyzing the
findings from the research questionnaire. The data collected from the research will be presented
and discussed in this chapter. The final chapter (chapter 5) will be the conclusion and discusses
the implications of the research and identified the areas which could focus for the future studies in this particular topic. 7
Chapter Two- 2.0 Literature Review 2.1 Introduction
This chapter reviews the present literature conducted by academics which related to this
particular research questions and critically analyses the positive and negative arguments placed
by the scholars in their studies. In order to increase the sales, companies are using many
techniques and tools. In this literature review chapter, it has been reviewed; the main elements
which make positive impact in the sales as direct marketing tools to make growth of the
organization. As the direct marketing tools what are the techniques have been utilized in the
organization such as, face to face selling (direct selling), Internet marketing, outdoor promotional
activities (Events and Shows) and phone calls and SMS selling are to be reviewed. Furthermore,
it is reviewed how these techniques are related to the customer satisfaction which lead to the growth of the organization.
2.2 Definition of direct marketing
In the competitive business market, the main objective of all the organizations is selling their
products and services to the customers. In order to achieve their objective, firms are using
different marketing strategies to promote their products and services. In that way direct
marketing is a strategic method of promoting that allows the businesses to communicate its
products and services directly to the customers without a middleman. Though there is a big
argument among the scholars in defining the direct marketing. (Karson and Korgaohkar, 2001 in
Scovotti and Spiller, 2006, p.189) added even though direct marketing is growing and there is no
settlement about what is direct marketing. It seems to be some difficult to define the direct
marketing (Hoekstra and Schijns, 1995). Direct marketing has been defined by many authors‟
different aspects. Direct marketing has been defined by the Direct Marketing Association (DMA)
as a communicating system which uses one or more marketing media to mark a quantifiable
response and/or transaction at any place. (Kolter and Armstrong, 2008) defined direct marketing
is a method used by companies to make value for customers and creates firm-customer
relationships to obtain return in the form of sales, profits, and long-term customer equity from
the customer. World federation of direct selling association (WFDSA) defined direct marketing
as the method of selling the products and services through a face to face way to the customers on 8
a non-fixed retailing place (Yen et al, 2008, p.215). In order to validate this definition Peterson
and Wotruba (1996) briefly defined direct selling is the face to face selling without a fixed
retailer point (Yen et al, 2008, p.215).
In highly competitive market, an organization needs to introduce all positive strategies to
increase the sales to make the organization profitable, also the customers' purchasing behaviour
is constantly changing and it's not predictable, in such situation direct marketing identified as a
key method to enhance promotion drives as well as to improve strong customer relationship
(Chen, Chiu & Chang, 2005) and (Mart nez-L pez & Casillas, 2008 in Adel Flici 2011, p.11).
The CEO of DMA Lawrence Kimmel (2011, p.1) added "Every day, new developments in data
and analytics, sharpen and deepen our understanding of how to create highly effective marketing
strategies via traditional channels such as email, direct mail, broadcast media and telecommunications".
Though there are disputes in defining the direct marketing or the direct selling, in commonly the
entire scholars and authors agreed direct marketing is a strategic approach of an organization to
market and sell their products and services directly to their potential customers without an
involvement of a middleman with cost effectively to make profitable for the organization. The
definition problem is so serious, due to that, the identity and effectiveness of direct marketing is
losing as a marketing method (Rapp, 1989 in Scovotti and Spiller, 2006, p.189).
2.3 The importance of direct marketing
Comparing the traditional marketing and the direct marketing, there are some advantages and
disadvantages between them and they have been identified by the scholars in their studies.
Merlin identified direct marketing as an instant or immediate selling and revenue for the
organization with less expensive and traditional marketing is considered the products and
services are for future transaction, it creates desire of the product and awareness of the product
and compare to the direct marketing it is more expensive and it is creating the teaching for future
buying activities (Merlin, 2012, p.2). Direct Marketing is identified and agreed by many authors
as important tools to increase sales performance, market share and profitability of an
organization. Merlin (2012) described direct selling as promotion and transaction of consumer 9
product straight to the customer and it is not depended on fixed retailer outlet, direct mail or
product advertising. Direct selling is a worldwide concept in the century of 21st, not only
convenience for consumer but also for the organization to improve their financial standard on
long run by reducing the cost for middleman and advertising (Merlin, 2012).
Currently, direct marketing became a powerful tool in marketing communication in several ways
and it has been identified to have more benefits such as efficiency and cost effective way of
communication. It has opened up opportunity for companies to directly deal with thousands or
millions of individual customers in a way that was previously unimaginable (Palmer and Lewis,
2009). In the direct marketing methods, each approach presenting opportunities as well as
challenges. As opportunities it's a greater choice of low-cost means of communicating and the
challenges for the firm is to evaluate the effectiveness of this new channels. (Kolter et ,
al 2012) concluded many of the automobile majors in India uses direct marketing
approach such as contact programs, direct mail, events and SMS campaign for their potential
customers. In the competitive business arena, the organizations identified direct marketing
techniques as the most important tools to promote their products and services in the rural areas
where the traditional marketing cannot fulfil these requirements. Further, it is identified as a cost
effective approach. Kotler et al (2012) added in the rural area, the direct marketers have taken
different strategy as the direct marketing tools where they promote through mobile traders. In the
traditional marketing and direct marketing, where the direct marketing has been identified as a
customer oriented type. (Tapp, 2008) added direct marketing uses customer details to perform
three main activities such as analyse customers‟ data, formulate a marketing strategy and
implement it to obtain direct responses from customers.
In current trend direct marketing related with relationship marketing by many journalists in their
work and relationship marketing is emerging as a new phenomenon. The involvement of the
middlemen gradually decreased between producer and consumer due to the technological
advances and direct marketing playing a major role in the industrial era (Sheth and Parvatiyar,
1995). The basic purpose of any method of direct marketing techniques is to obtain a quantifiable
response which will create an instant or subsequent profit (Stone and Jacobs, 2008). The 10
advantage and the importance of direct marketing or the direct selling it is communicating,
measurable (instant/immediate), firm and flexible and very cost effective compare to the traditional marketing.
2.4 Direct Marketing techniques
The objective of direct marketing is to promote the products and services of an organization.
Further, direct marketing is a techniques or tools where an organization encouraged involving in
the competitive market in order to promote their products and services to the prospective
customers. Though the techniques which were employed by the organization differ depend on
scenario. Merlin (2012) added in his study customers still profits from a personal and useful path
of purchasing products. Convenience of customers is a value points needs to be considered in
deciding the techniques what would be useful for an organization. Face to face selling, internet
marketing, phone calls, SMS and ads on mobile devices, catalogues and postal mailing, online
advertising, telemarketing, text messaging, email marketing, shows and seminars, kiosk
marketing, mobile traders and many more other techniques. Though in this case study the
researcher has identified few techniques or tools such as personal selling or face to face selling,
outdoor promotions, phone calls and SMS (telemarketing) and internet marketing which were
employed in this organization to be reviewed in the literature for those particular techniques in the direct marketing.
2.4.1 Face to Face selling (personal selling)
Nowadays, most of the organizations engaged with promoting their product and services through
sales force due to the high competition in the business arena. Face to face selling is an approach
of direct marketing where the organization employed to increase the sales volume in order to
increase the market share and increase profitability of the organization. Personal selling is a
verbal demonstration in a conversation with buyers with the purpose of selling the product
(Achumba, 2000 in Olumoko et al, 2012, p.148). Customers always prefer their convenience
with busy schedule, even when they need to purchase a product or service the initiating point
will not be triggered. When they get the opportunity they will initiate the purchase of the product
or service. Olumoko et al (2012) identified personal selling or face to face selling is an exclusive
component of marketing communication, while advertising; personal selling creates awareness, 11
provides information of the products and services and personal selling approach deliberated to
meet specific need of prospect. Kotler and Armstrong (2008) defined personal selling that the
communication between the customer and sales person in order for making sales of the products
and services. As the advantage of personal selling Kotler et al (2012) identified three qualities
such as personal interaction, cultivation and response which will benefit to the organization.
Most of the organizations engaged in promoting their products and services through face to face
selling or personal selling by utilizing the sales forces of the organization. The organizations
identify their target audience and conducting several types of activities such as business to
business (B2B), door to door (D2D), corporate and individual clients to visit them and promoting
their products and services as well as making highly effective awareness compare to the other
norms of advertisement. Though the negative factors identified in these types of method of
selling, the customers have the anxiety and these activities make harm for the privacy of them.
Further, in the rural area the customers are not willing to make a comfortable conversation with
sales force for some reasons such as uncertainties and un-trust. The general opinion about the
sales forces in the perception of the consumer is not healthy. The common views of consumers
are that sales people are forceful, dishonest, aggressive and irritating (Bahhouth et al, 2013,
p.291). The reason for the „negative‟ attitude about sales force can possibly be traced back
to the revolution of the industry and when the sales people given target to achieve by the
organization within a defined time frame, they had to adopt a very aggressive tactic to sell out or
promote their products and services (Bahhouth et al, 2013).
Generally, a sales person is the one, who represents on behalf of the organization to promote the
products and services to the customers. Further communication style, attitude, and code of
conduct, make impact in the perception of the customers and on the customers‟ purchase
decision. Williams and Spiro (1985) identified in their study that communication styles are a
factor of the success of the sales dealings. Though personal selling or face to face selling have
significant contribution as a direct marketing tools for the organization, the organization should
play a major role in producing most effective sales force to promote their products and services
to acquire more loyalty customers and retain their existing customers. When a customer had a
bad experience, the negative word of mouth communication will spoil the image of the 12
organization. (Boone and Kurtz, 1992, in Fam and Merrilees, 2008) added that sales forces are a
key promotion tool in communicating store image and influencing customers to buy. 2.4.2 Outdoor promotions
Due to the higher competition in the business ground, now the organizations have been
compelled to identify the techniques and tool to implement as the business strategy in order to
improve the market share and the profitability of the organization. By many scholars the
consumers are considered as the king and most important stakeholder in any business. As a direct
marketing strategy, many organizations are conducting outdoor promotion, events and shows to
promote their products and services to their potential consumer without waiting until they initiate
the purchase, providing and facilitate the consumer to do it with go to the market strategy. 2.4.2.1 Sales Promotion
The final objective of the organization is to increase sales and make the business profitable in
order to increase the growth of the organization (Rizvi and Malik, 2011). Sales promotions are
carried out by the organization in order to increase the sales, usage or sample of the product or
service (Odunlami and Ogunsiji, 2011). Sales promotion is mostly effective in driving product
trial and unexpected purchases (Aderemi, 2003 in Odunlami and Ogunsiji, 2011, p.9). In the
vision of increasing the sales of the organization, the organization should adopt some sales
promotional activities which are the most important methods in order to increase the sales of the
organization. Osman et al (2011) identified sales promotion is one of the tools or techniques
which gives not only interest to the consumers to buy more or try the product or service but also
makes sales growth and attracts new customers. Kotler et al (2012) identified sales promotion as
a key element in the marketing operation. Though, Blattberg and Neslin (1990) identified that the
sales promotion acts as demand promoter that do not endure the threat associated with the new
product. In order to survive in the market, an organization should carry out marketing activities
to increase sales to be profitable for the organization. In that way currently in a competitive
business environment most of the organizations have chosen sales promotion as an important
tool to increase the sales of the organization. Also, it has been identified that making awareness
of products and services and sample trial help the consumer to consider switching the brand and
initiate the sudden purchase. (Blattberg et al, 1995) Identified in sales promotions, short-term 13
retail price reduction makes spike in the organization‟s sales. Chandon (1995) added the sales
promotion directly impact consumers, sales force and retails behaviour. The studies of the
scholars are demonstrated that the sales promotion has a significant impact in the sales growth of
the organization and it makes awareness among the consumers about the products and services. Further (Blattberg et ,
al 1995) added that advertised promotions have positive effects on store traffic.
Presently, many organizations employed outdoor promotional activities to increase the volume of
the sales and introducing price reduction or special price strategy to boost the sales as well as to
increase the market share. (Sinha & Smith, 2000 in Osman et al, 2011, p.79) added buy-one-get-
one-free ( BOGOF) is important technique where consumers would be easy to purchase the
product as there is no additional cost for them ,at the ordinary price they are offered additional
product, it is more valuable perceived by customer. This technique would be useful to seller for
stock clearance rather to price promotions (Sun & Wang, 2007 in Osman et al, 2011, p.79).
In the marketing field, often assumed perception stronger than reality, as always consumer make
their decisions centred on the perception and the price is linked with perception of the consumer
where the consumer believe in the sales promotion; the price of the product should be reduced
than the normal price (Rizvi and Malik, 2011). Consequently, it is a big problem in the
marketing strategy the outdoor promotion compulsorily should be conducted with price
reduction or in a combined product sales with special price to get productivity through those sales promotional activity.
2.4.3 Telemarketing-Phone calls & messaging
Telemarketing is a tool of direct marketing where an organization make phone calls and sending
messages to promote their products and services. Mobile phone marketing has been defined as
the use of mobile phone which promotes products, services and ideas to the consumer by
providing personalized information with specified time and location (Roach, 2009). Further he
added it is one to one types of communication and most significant of an inventive approach of
direct marketing. Mobile telephony made a revolution in the field of communication, the fast
growth of mobile telephony made telemarketing to emerge as a dominant tool of direct 14
marketing and it is a low cost solution to direct marketing (Geetika et al, 2012). Telemarketing is
the method of marketing goods, promoting services or customer service over the phone (Siriban, 2008 in Geetika et ,
al 2012, p.98). Contemporary marketing approach depends progressively
upon awareness of the customers, how far customer orientation and satisfaction of the customer
(Srinivasan, 2013). Many of the organization employed telemarketing approach, where they
make phone calls and sending SMS to improve the awareness of their products and services as
well as making interactive marketing by whishing them on their birth day and especially on
festival day to improve the customer satisfaction and to improve the retention of the customers.
Geetika et al (2012) concluded most of the respondents did on occasion get prejudiced by phone
calls and SMS after getting the information made the purchase.
Currently, telemarketing boomed as simple and cheap tool of direct marketing not only to
acquire new customers to the business but also to retain the existing customer through the
relationship marketing. Today many marketers make long-standing relationship with consumer
(Kotler et al, 2012). Since, the telemarketing is started to grow the traditional media declined
slowly. Though the telemarketing has significant impact in the growth of direct marketing, there
is a barrier in developing this channel for the evolution of direct marketing. Telemarketing and
the Telephone Consumer Protection Act (TCPA) defined telemarketing is a practice where
traders make a phone call with the intention of proposing a commercial transaction. Presently,
there is a common opinion among the consumers when an organization calls them to promote
their products and services, which harms and interrupt to the privacy of the customer. Geetika et
al (2012) concluded majority supported the opinion that telemarketing calls are annoying and they disturb their privacy.
(Mehrotra and Agarwa, 2009) added that telemarketing calls influence consumer attitude alleged
intrusiveness such as interference of privacy, when customers engaged in work the ringing of the
phone is a reason for a big deal of disturbance and this will make the consumer negative feeling
about that call in general and will make unfavourable attitude headed for purchasing the product.
It has been identified as disadvantage of this method of direct marketing. When there is no retail
presence, many consumers are hesitant to buy the products and services from the direct
marketers or promoters and disturbing selling practices and consumer moans about dishonest
direct marketers (Mehrotra and Agarwa, 2009) particularly in telemarketing, it is a disadvantage. 15