In the international market direct marketing has evolved through the catalogue route. It was the catalogue marketer of the 1930s who set the pace, but it took direct marketing several decades to reach its present-day multimedia, interactive modes status.
In India, direct marketing was launched on the mail-order platform in the 1950s.but the growth in the earlier days was sluggish and the practice was confined to only a product categories.
Most major developments in this area took place only after the consumer boom in the mid 1980s.
Direct marketing in India has since grown by leaps and bounds. With the advent of competition in the 1990s, several firms such as Philips, Telco, Titan and BPL who were earlier marketing their product through conventional channels only are now turning to direct marketing to strengthen their marketing efforts and increase their consumer base.
They are integrating direct marketing with conventional distribution to get closer to their customer
The following major factors have contributed to the quick growth of direct marketing in India:
Successful replication of overseas products and marketing practices in India.
Eureka Forbes made history of sorts in India by successfully marketing vacuum cleaners through door-to door selling.
The firm had, in fact not done anything new. It had only been replicating here the strategy, which was earlier used in the European markets quite successfully.
Nevertheless, its success in India provided a role model for other firms to emulate.
Middlemen getting stronger.
Several firms such as those in the publishing business, are now increasingly opting for direct marketing to reduce their costs of distribution. Over the years, middlemen in India have become very strong and demanding.
In pharmaceuticals, IMFL (Indian made foreign liquor), packaged food and several other industries, the market is in fact controlled by middlemen, who dictate terms to manufacturers. In the FMCG category any new firm wanting to enter the market is virtually at the mercy of middleman.
Because of higher mark-ups the cost of distribution for products like soft drinks, confectionery, ice-cream and frozen goods has gone up to the extent that in some cases it is even higher than the cost of production. If the trend continues, it may prompt many more firms to check the direct marketing alternative.
Another reason for the spurt in direct marketing activities is that dealers usually push brands selectively, depending upon their equation with the manufacturers.
Therefore to protect their brands from discrimination and to get direct aces to the market, more and more firms are now opening their exclusive showrooms, especially in large cities and towns.
In India, direct marketing was launched on the mail-order platform in the 1950s.but the growth in the earlier days was sluggish and the practice was confined to only a product categories.
Most major developments in this area took place only after the consumer boom in the mid 1980s.
Direct marketing in India has since grown by leaps and bounds. With the advent of competition in the 1990s, several firms such as Philips, Telco, Titan and BPL who were earlier marketing their product through conventional channels only are now turning to direct marketing to strengthen their marketing efforts and increase their consumer base.
They are integrating direct marketing with conventional distribution to get closer to their customer
The following major factors have contributed to the quick growth of direct marketing in India:
Successful replication of overseas products and marketing practices in India.
Eureka Forbes made history of sorts in India by successfully marketing vacuum cleaners through door-to door selling.
The firm had, in fact not done anything new. It had only been replicating here the strategy, which was earlier used in the European markets quite successfully.
Nevertheless, its success in India provided a role model for other firms to emulate.
Middlemen getting stronger.
Several firms such as those in the publishing business, are now increasingly opting for direct marketing to reduce their costs of distribution. Over the years, middlemen in India have become very strong and demanding.
In pharmaceuticals, IMFL (Indian made foreign liquor), packaged food and several other industries, the market is in fact controlled by middlemen, who dictate terms to manufacturers. In the FMCG category any new firm wanting to enter the market is virtually at the mercy of middleman.
Because of higher mark-ups the cost of distribution for products like soft drinks, confectionery, ice-cream and frozen goods has gone up to the extent that in some cases it is even higher than the cost of production. If the trend continues, it may prompt many more firms to check the direct marketing alternative.
Another reason for the spurt in direct marketing activities is that dealers usually push brands selectively, depending upon their equation with the manufacturers.
Therefore to protect their brands from discrimination and to get direct aces to the market, more and more firms are now opening their exclusive showrooms, especially in large cities and towns.