The past 20 years have seen vast and unprecedented changes in all the major economies. These changes have been well documented and embrace the widespread adoption of information technologies, deregulation of both product and labor markets, and ascendancy of service industries and growing global competition for the provision of goods and services. Continuous changes in product and service markets combined with tightening quality demands require employers to seek more efficient and flexible means of production. The formation of new types of intermediaries and new forms of channel relationships cause existing firms to reexamine how they served their markets. Conducting business in the new digital age will call for a model for marketing strategy and practice. Direct marketing can therefore be seen as an umbrella title under which can be found a wide range of practices, potentially serving different interests. This study examines Direct Marketing practices contributing to company performance. The findings of the study would serve as eye opener for managerial and practical introduction to modern marketing.
Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Direct marketing also can be defined as a form of marketing that attempts to send its messages directly to consumers, using “addressable” media, such as mail.
Aftab Automobiles Limited, a sister concern of NAVANA Group, is a famous organization in automobile marketing in Bangladesh. To adjusting with challenging environment the company practices modern model for its marketing activities. Direct marketing model is one of them. The study examines direct marketing practices contributing to company performance. The major objectives of this study are to have clear understanding about Direct Marketing, its contribution to company performance and its future prospect.
The relevant data were collected from primary as well as secondary sources, including internal records.
It is fund that at the heart of the performance, AAL uses unique Direct Marketing model. The several benefits are obtained by AAL for using direct marketing: Price performance-by eliminating retailers and other costly intermediary steps together with the industry’s most efficient procurement, manufacturing and distribution process AAL offers its customer more powerful quality products for the money than competitors; Customization-every product is built to provide customers with what they want exactly, Service & support- Company uses knowledge gained from direct contract after sales customer service.
Direct marketing results in more efficient selling & lower cost, which translate into lower price for customer, dealing one-to-one with customer. This helps the company react immediately with demand. By selling directly to large corporations, government and institutional buyers, the company does not require any dealer, hence it does not pay any money. As a result, on an average the company’s costs are 15 % lower than those of its leading battery competitors.
Moreover, the practice of direct marketing delivers greater customer value, product customization, low price, fast delivery, and excellent customer service.
The company uses some form of direct marketing such as personal selling, telephone marketing, direct mail marketing, and catalog marketing. Within short period the company is successful in capturing 6% market share.
SWOT analysis is also conducted. From the extensive study on SWOT analysis it is observed that, with the help of strengths and the basic opportunities the company will be able to conquer its weakness and threats.
Practice of direct marketing depends on company’s business activities, types of consumers, types of products, infrastructure facilities of the county basically in the telecommunication sector. From the study, it found that direct marketing practices are effective in the urban area, but some forms are effective in both urban and rural area. At present a sizable number of companies follow some form of direct marketing in Bangladesh.
Last few years Bangladesh is coming up with the development of telecommunication sector and recently joins with the submarine cable that leads to quickly access to information super high-way. So, direct marketing practice will increase in Bangladesh.
At present Technological advances, rapid globalization, economic shifts, and cultural and environmental developments are causing profound changes in the marketplace. These new developments signify a brand new world of opportunities for forward-thinking marketers. Today’s outstanding marketing companies are connecting more selectively, directly, and deeply with customers to form profitable customer relationship and build customer equity. Thus, marketing calls upon everyone in the organization to “think customer” and to do all they can to help build and manage profitable customer relationships. During the past decade, marketing strategy and practice have undergone dramatic change. Major technological advances, including the explosion of the Internet, have had a major impact on buyers and the marketers who serve them. To thrive in this new digital age-even to survive – marketers must rethink their strategies and adapt them to today’s new environment. Today, however, with the trend toward more narrowly targeted or one-to-one marketing, many companies are adopting direct marketing, either as a primary marketing approach or as a supplement to other approaches. Increasingly, companies are using direct marketing to reach carefully targeted customers more efficiently and to build stronger, more personal, one-to-one relationships with them. In this framework I would like to select my topic ‘Direct Marketing Practices Contributing to Company Performance’
1.2 Background of the Study
Internship Program is a prerequisite for acquiring MBA degree. Before completion of the degree, a student must undergo the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. Only curriculum activity is not enough for handling the real business situation, therefore it is an opportunity for the students to know about the field of business through the internship program
The topic was assigned by M.M. Saiful Islam faculty member IIUC (DC).
1.3 Objectives of the Study
Main objective of this report is identify how Direct Marketing Practices Contribute to Company Performance. However, the specific objectives are as follows:
To understand the Direct Marketing systems.
- To find out the present situation of Direct Marketing System practices in AAL(BU)
- To identify the prospect of Direct Marketing.
1.4 Methodology of the Study
In the study structured questionnaire were used in order to explore some primary information. Total sample was 20 from AAL (Battery Unit) by using convenience sampling methods. These samples involve Managers, Sales Executives, administrative and service personnel.
The subject matter related to methodology of this report is the following:
a. Primary Sources
Discussion with officials of AAL.
Expert’s opinions & comments.
Face to fact conversation with the clients.
b. Secondary data
Relevant books, Newspaper, Journals etc.
Annul report of AAL
Other published papers, documents and reports.
1.5 Limitations of the Study
Non disclosure of some basic information
No availability of published materials about Direct Marketing of Bangladesh
Time is impartment issue in report writing. Schedule time span was not sufficient to carry out a research project of this big a magnitude.
2.1 Concept of Direct Marketing
Traditionally, marketers have been charged with understanding customers and representing customer needs to different company departments. The old thinking was that marketing is done only by marketing, sales, and customer support people. However, in today’s connected world, marketing no longer has sole ownership of customer interactions. Every functional area can interact with customer, especially electronically. The new thinking is that every employee must be customer focused.
Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Direct marketers communicate directly with customers, often on a one-to-one, interactive basis. Using detailed databases, they tailor their marketing offers and communications to the needs of narrowly defined segments or even individual buyers. Beyond brand and image building, they usually seek a direct, immediate, and measurable consumer response. For example, Dell Computer interacts directly with customers, by telephone or through its Web site, to design built-to-order systems that meet customers’ individual needs. Buyers order directly from Dell and Dell quickly and efficiently delivers the new computer to their homes and offices.
Direct marketing is a form of marketing that attempts to send its messages directly to consumers, using “addressable” media, such as mail. Therefore, direct marketing differs from regular advertising in that it does not place its messages on a third party medium, such as a billboard or a radio commercial would. Instead, the marketing of the service or commodity is addressed directly to the consumer.
Direct marketing is attractive to many marketers, because in many cases its effectiveness can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers respond to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer.
2.2 Model of Direct-Marketing
Early direct marketers–catalog companies, direct mailers, and telemarketers-gathered customer names and sold goods mainly by mail and telephone. Today, however, fired by rapid advances in database technologies and new marketing media- especially the Internet- direct marketing has undergone a dramatic transformation.
Some times direct marketing termed as direct distribution- as marketing channels that contain no intermediaries. Here also include direct marketing as one element of the marketing communications mix-as an approach for communicating directly with consumers. In actuality, direct marketing is both these things.
Most companies still use direct marketing as a supplementary channel or medium for marketing their goods. Thus, Lexus markets mostly through mass-media advertising and its high-quality dealer network but also supplements these channels with direct marketing. Its direct marketing includes promotional videos and other materials mailed directly to prospective buyers and a Web page (www.lexus.com) that provides consumers with information about various models, competitive comparisons, financing, and dealer locations. Similarly, office supply retailer Staples conducts most of its business through brick and mortar stores but also markets directly through its Web site. And most department stores sell the majority of their merchandise off their store shelves but also mail their catalogs.
However, for many companies, today, direct marketing is more than just a supplementary channel or medium. For these companies, direct marketing – especially in its newest transformation, Internet marketing and e-commerce – constitutes a new and complete model for doing business. More than just another marketing channel or advertising medium, this new direct model is rapidly changing the way companies think about building relationships with customers.
Whereas most companies use direct marketing and the Internet as supplemental approaches, firms employing the direct model use it as the only approach. Some of these companies, such as Dell Computer, Amazon.com, and eBay, began as only direct marketers. Other companies – such as Cisco Systems, Charles Schwab, IBM, and many others – are rapidly transforming themselves into direct – marketing superstars. The company that perhaps best exemplifies this new direct-marketing model is Dell Computer. Dell has built its entire approach to the marketplace around direct marketing. This direct model has proved highly successful, not just for Dell, but for the fast-growing number of other companies that employ it. Many strategists have hailed direct marketing as the new marketing model of the next millennium.
2.3 Benefits and Growth of Direct Marketing
Whether employed as a complete business model or as a supplement to a broader integrated marketing mix, direct marketing brings many benefits to both buyers and sellers. As a result, direct marketing is growing very rapidly.
For buyers, direct marketing is convenient, easy to use, and private. From the comfort of their homes or offices, they can browse mail catalogs or company web sites at any time of the day or night. Direct marketing gives buyers ready access to a wealth of products and information, at home and around the globe. Finally, direct marketing is immediate and interactive-buyers can interact with sellers by phone or on the seller’s Web site to create exactly the configuration of information, product, or services they desire, and then order them on the stops.
For sellers,direct marketing is a powerful tool for building customer relationships. Using database marketing, today’s marketers can target small groups or individual consumers, tailor offers to individual needs, and promote these offers through personalized communications. Direct marketing can also be timed to reach prospects at just the right moment. Because of its one-to-one, interactive nature, the Internet is an especially potent direct-marketing tool. Direct marketing also gives sellers access to buyers that they could not reach through other channels. For example, the Internet provides access to global markets that might otherwise be out of reach.
Finally, direct marketing can offer sellers a low-cost, efficient alternative for reaching their markets. For example, direct marketing has grown rapidly in B2B marketing, partly in response to the ever-increasing costs of marketing through the seals force. Lower cost-per-contact media-such as telemarketing, direct mail, and company Web sites-often prove more cost-effective in reaching and selling to more prospects and customers.
As a result of these advantages to both buyers and sellers, direct marketing has become the faster-growing form of marketing. Sales through traditional direct-marketing channels (telephone marketing, direct mail, catalogs, direct-response television, and others) have been growing rapidly.
2.4 Customer Databases and Direct Marketing
Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing.
Effective direct marketing begins with a good customer database. A customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data. The database can be used to locate good potential customers, tailor products and services to the special needs of targeted consumers, and maintain long-term customer relationships.
Many companies confuse a customer mailing list with a customer database. A customer mailing list is simply a set of names, addresses, and telephone numbers. A customer database contains much more information. In B2B marketing, the salesperson’s customer profile might contain the products and services the customer has bought; past volumes and prices; key contacts (and their ages, birthdays, hobbies, and favorite foods); competitive suppliers; status of current contracts; estimated customer spending for the next few years; and assessments of competitive strengths and weaknesses in selling and servicing the amount.
In consumer marketing, the customer database might contain a customer’s demographics (age, income, family members, birthday), psychographics (activities, interests, and opinions), buying behavior (past purchases, buying preferences) and other relevant information. Some of these databases are huge. For example, Ritz-Carlton’s database holds more than 500,000 individual customer preferences. Pizza Hut’s database lets it tract the purchases of more than 50 million customers. Internet portal Yahoo! Records every click made by every visitor, adding some 400 billion bytes of data per day to its database-the equivalent of 800,000 books. And Wal-Mart’s database contains more than 100 terabytes of data-that’s 100 trillion bytes, equivalent to 16,000 bytes for every one of the world’s 6 billion people.
FedEx uses its sophisticated database to create 100 highly targeted, customized direct-mail and telemarketing campaigns each year to its nearly 5 million customers shipping to 212 countries. By analyzing customers carefully and reaching the right customers at the right tie with the right promotions, FedEx achieves response rates of 20 to 25 percent and earns an 8-to-1 return on its direct-marketing dollars.
Companies use their databases in many ways. They can use a database to identify prospects and generate sales leads by advertising products of offers. Or they can use the database to profile customers based on previous purchasing and to decide which customers should receive particular offers. Databases can help the company to deepen customer loyalty-compa
can build customers’ interest and enthusiasm by remembering buyer preferences and by sending appropriate information, gifts, or other materials.
The database can help a company make attractive offers of product replacements, upgrades, or complementary products, just when customers might be ready to act.
Sources of Data
Although organizations of any size can employ database marketing, it is particularly well-suited to companies with large numbers of customers. This is because a large population provides greater opportunity to find segments of customers or prospects that can be communicated with in a customized manner. In smaller (and more homogenous) databases, it will be difficult to justify on economic terms the investment required to differentiate messages. As a result, database marketing has flourished in sectors, such as financial services, telecommunications, and retail, all of which have the ability to generate significant amounts transaction data for millions of customers.
Database marketing applications can be divided logically between those marketing programs that reach existing customers and those that are aimed at prospective customers.
In general, database marketers seek to have as much data available about customers and prospects as possible.
For marketing to existing customers, more sophisticated marketers often build elaborate databases of customer information. These may include a variety of data, including name and address, history of shopping and purchases, demographics, and the history of past communications to and from customers. For larger companies with millions of customers, such data warehouses can often be multiple terabytes in size.
Marketing to prospects relies extensively on third-party sources of data. In most developed countries, there are a number of providers of such data. Such data is usually restricted to name, address, and telephone, along with demographics, some supplied by consumers, and others inferred by the data compiler. Companies may also acquire prospect data directly through the use of sweepstakes, contests, on-line registrations, and other lead generation activities.
For many business-to-business marketers, the number of customers and prospects will be smaller than that of comparable business-to-consumer companies. Also, their relationships with customers will often rely on intermediaries, such as salespeople, agents, and dealers and the number of transactions per customer may be small. As a result, business-to-business marketers may not have as much data at their disposal. One other complication is that they may have many contacts for a single organization, and determining which contact to communicate with through direct marketing may be difficult.
Like many other marketing tools, database marketing requires a special investment. Companies must invest in computer hardware, database software, analytical programs, communication links, and skilled personnel.
2.5 Forms of Direct Marketing
The major forms of direct marketing include personal selling, telephone marketing, direct-mail marketing, catalog marketing, direct-response, television marketing, kiosk marketing, and online marketing.
2.5.1 Personal Selling
Personal selling is the interpersonal arm of marketing communications in which the sales forces interacts with customers and prospects to make sales and build relationships. The personal selling process consists of several steps that the sales person must master. These steps focus on the goal of getting new customers and obtaining orders from them. However, most sales people spend much of their time maintaining existing accounts and building long-term customer relationships.
As shown in Figure 2.2, the selling process consist of seven steps; Prospecting and qualifying, pre approach, approach, presentation and demonstration, handling objections, closing, and follow-up.
2.5.2 Telephone Marketing:
Telephone marketing also known as telemarketing-using the telephone to sell directly to consumers-has become the major direct-marketing communication tool.
In telemarketing, marketers contact the customer via telephone calls. One of the original attractions of telemarketing was the speed, with which marketing campaigns could be executed. While direct mail is cost-effective, it is relatively slow, since marketing pieces must be shipped by mail.
Telemarketing also lends itself well to products and services that are complex to buy, such as switching to another telephone company or purchasing a financial service. Certain types of transactions may also be subject to government regulation; telemarketing permits a company representative to walk the customer through the purchase, while ensuring compliance with laws.
Telemarketing can take several forms.
Outbound telemarketing: Calls made to customers. By using autodialers and predictive dialers, call centers can call a large number of customers.
Inbound telemarketing: Promotions and offers made when a customer calls the center.
Voice messages: A number of firms employ special technology to call customers’ answering machines.
The prospective customers are identified and qualified by various means, including past purchase histories, previous requests for information, credit limit, competition entry forms or application forms. Names may also be purchased from another company’s customer database, or obtained from a telephone directory or some other public list or forum. The qualification process is intended to find those prospective customers most likely to purchase the product or service being sold or advertised. Charitable organizations, alumni associations and political parties often use telemarketing to solicit donations.
Market survey companies often use telemarketing techniques to survey prospective or past customers of a client business to assess market acceptance or satisfaction with a particular product, service, brand or company. Public opinion polls are conducted in a similar manner.
Properly designed and targeted telemarketing provides many benefits, including purchasing convenience and increased product and service information.
2.5.3 Direct-Mail Marketing
Direct-Mail Marketing involves sending an offer, announcement, reminder, or other item to a person at a particular address. Using highly selective mailing lists, direct marketers send out millions mail pieces each year-letters, ads, brochures, samples, video and audiotapes, CDs and other “salespeople with wings.” Direct mail is well suited to direct, one-to-one communication. It permits high target-market selectivity, and be personalized, is flexible, and allows easy measurement of results. Recently, however, three new forms of mail delivery have become popular:
Fax mail: Marketers now routinely send fax mail announcing special offers, sales and other events to prospects and customers with fax machines. Fax mail messages can be sent and receive almost instantaneously.
E-mail: E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. However, the term is usually used to refer to:
Sending e-mails with the purpose of enhancing the relationship of a merchant with its current or old customers and to encourage customer loyalty and repeat business.
Sending e-mails with the purpose of acquiring new customers or convincing old customers to buy something immediately.
Adding advertisements in e-mails sent by other companies to their customers.
E-mail marketing is popular with companies because:
It is extremely cheap. Compared to direct mailing or printed newsletters the costs are negligible. The advertiser does not need to pay for production, paper, printing or postage.
It is instant, as opposed to a mailed advertisement; an email arrives in a few seconds or minutes.
It lets the advertiser “push” the message to its audience, as opposed to a website that waits for customers to come in.
It is easy to track. An advertiser can track bounce-backs, positive or negative responses, click-throughs, rise in sales.
It has been proven succesful when well done.
When most people switch on their computer the first thing they do is check their email.
Specific types of interaction with messages can trigger other messages to be automatically delivered.
2.5.4 Catalog Marketing
Direct marketing through print, video, or electronic catalogs that are mailed to select customers, made available in stores, or presented online. A catalog is a printed, bound piece of at least eight pages, selling multiple products, and offering a direct ordering mechanism. With the stampede to the Internet, more and more catalogs are going electronic. Many traditional print catalogers have added Web-based catalogs to their marketing mixes. And a variety of new WEB-only catalogers have emerged. However, the internet has not yet killed off printed catalogs–far from it. Printed catalogs remain the primary medium, and many former Web-only companies have created printed catalogs to expand their business.
Along with the benefits, however, Web-based catalogs also present challenges. Whereas a print catalog is intrusive and creates its own attention, Web catalogs are passive and must be marketed.
2.5.5 Direct response television marketing
A related form of marketing is direct response marketing and its most common form today is infomercials. They are typically called “direct response” marketing rather than direct marketing because they try to achieve a direct response via television presentations. Viewers respond via telephone or internet, credit card in hand. Order forms or coupons in magazines and newspapers are another type of direct response marketing. Direct marketing is also via television, including direct response television advertising and home shopping channels.
Mail order is a term, seldom used today, that describes a form of direct response in which customers respond by mailing a completed order form to the marketer. Mail order is slow and response rates are low. It has been eclipsed by toll-free telephone numbers and the internet.
2.5.6 Kiosk Marketing
Some companies place information and ordering machines-called kiosks (in contrast to vending machines, which dispense actual products) – in stores, airports, and other locations. Hallmark and American Greetings use kiosks to help customers create and purchase personalized greeting cards.
2.5.7 Online Marketing
This form of marketing basically involves E-business, E-commerce, and E-marketing.
E-business: the use of electronic platforms-intranets, extranets, and the Internet-to conduct a company’s business.
E-commerce: Buying and selling process supported by electronic means, primarily the Internet.
E-marketing: The marketing side of e-commerce-company efforts to communicate about, promotes, and sells products and services over the Internet.
Internet buying benefits both final buyers and business buyers in may ways. It can be convenient; customers don’t have to battle traffic, find parking spaces, and trek through stores and aisles to find and examine products. E-commerce also yields may benefits to sellers. The Internet is a powerful tool for customer relationship building. Because of its one-to-one, interactive nature, the Internet is an especially potent marketing tool. E-marketing also offers greater flexibility, allowing the marketer to make ongoing adjustments to its offers and programs. For example, once a paper catalog is mailed to final consumer or business customers, the products, prices, and other catalog features are fixed until the next catalog is sent. However, an online catalog can be adjusted daily or even hourly, adapting product assortments, prices, and promotions to match changing market conditions.
Navana Group split away in December 1995 form Islam Group after the death of its founder and main architect, the most honorable Mr. Jahurul Islam. Under the pragmatic chairmanship of honorable Mr. Shafiul Islam (Kamal) Navana Group has diversified its activities and within a short span of time this group has become one of the largest and prestigious business groups of Bangladesh. Navana Group comprises of a number of companies. Which have achieved reputation in the respective avenues.
3.2 NAVANA Group at a Glance
The flagship company of Navana group was established in 1964 under a exclusive distributorship agreement with TOYOTA, Japan to market TOYOTA cars in the then East Pakistan and have been successfully marketing TOYOTA vehicles in our market till today. Navana Limited is also marketing HINO vehicles of JAAPAN IN Bangladesh under a Sole Agency-ship agreement for more than a decade and representing GOOD YEAR tires as exclusive distributorship since 1977. This company has several show rooms and sales offices in main cities and many service centers and part outlets in all over Bangladesh. In the recent years this company established a CNG conversion unit with technical collaborations of Landirenzo Spa and SAFE Srl, Italy.
Aftab Automobiles Limited
The only vehicle assembling Company in the private sector of Bangladesh has been listed in the Dhaka Stock Exchange in 1987. The company has been successfully assembling TOYOTA & HINO vehicles for Bangladesh market since 1982, recently launched Hino-Minibus. This company has gone through an extensive BMRE and as a result of that Paints and Battery units were established. Those units already started production to meet up the demand of quality Paints and Battery in home and abroad. Besides this, the company manufactures Office home and hospital furniture for local market.
NAVANA construction limited
Came into being with a group of highly qualified engineers having long experience in various projects and earned good reputation both in home and abroad. The company is, at present working on some projects of Bangladesh Army, PWD, WASA, LGED, PDB, RHD, EPZ and also associating with different multinational and foreign construction companies in various projects in Bangladesh.
NAVANA Real-Estate Limited
Was established in 1996 to cater to the Boom in Real Estate Development in Bangladesh and now engaged in a number of commercial-cum-residential high rises building projects like Shop and office space in the posh areas of the city incorporating the state of the art technology in construction. The company is engaged in Selling Apartments and Land to ensure middle and high income people to make their own residence.
NAVANA Computer & Technologies Ltd.
NAVANA computer & Technologies Ltd. having an extensive service network and excellent team of sales & Services personnel are distributing one of the world famous brands in our region with success and satisfaction of the customer and it is one of the leading companies in Bangladesh. Within 2 years of its establishment it has already taken a substantial market share. It is also authorized reseller for Gateway & NEC brand computer and accessories and HP products. Beside above, the company is already assembling and marketing its own brand. This company also developing and marketing Software for various applications .
NAVANA Interlinks Ltd
Came into existence with a strong entity in the specialized areas of Power, water & telecommunication sector, civil aviation, railway, engineering & chemical sector, agro division (seeds, fertilizer and pesticides), has capable workforce and considerable experience. Involvement in supply and marketing of security equipment, power & telecom products, seeds, fertilizer and pesticides is presently being expanded. It is also involved in Turnkey Projects.
A separate trading and marketing wing of Navana group, which is engaged in marketing of wide range of medical / hospital equipments, medical accessories and consumables along with scientific equipment in collaboration with our associated companies with success and satisfaction to our valued customers both government and private sector. It has professional sales people capable to execute modern sales policies along with qualified trained Engineers to render after sales service of the equipment supplied. A sophisticated servicing center equipped with modern tools has been set up to ensure fastest & quickest possible service to the customers.
NAVANA Taxi Cab Co. Ltd.
To reduce air pollution and support public transport users Navana group, has introduced this company. The cab of this company has already drawn attention among the customers and passengers due to its renowned Brand “TOYOTA”
NAVANA Electronics Ltd.
NAVANA electronics ltd. was formed with full facilities to manufacture AVR (Automatic Voltage Regulator), IPS, UPS, Battery Charger, Laptop Inverter, Solar Power system etc. Our branded equipment with high quality and low price gained its place in the market.
NAVANA Distributions Ltd.
For betterment and up-gradation the living standard of modern civic citizen this company emerges for marketing of consumer products, food and other commodities of world-renowned companies and highest quality as well as its own Brand products.
NAVANA Textiles Ltd.
Navana textile ltd. A new venture of Navana Group of Companies is going to set-up a composite textile mill comprising Acrylic Spinning unit, Yarn-dyeing unit (both acrylic & cotton) & a Sweater unit (Knitting, stitching, washing & finishing). Initially this complete sweater unit will start with 500 machines capable of producing 125,000pcs per month and generate employment opportunities of 1200 persons (approx). It will also help increase the export earning in textiles sector, which contributes to the national economy of Bangladesh.
3.3 Historical Background
NAVANA GROUP (previously Islam Group) was established in 1964 by the then Group’s founder Mr. Jahurul Islam and had an auspicious step into the business under an exclusive distributorship agreement with TOYOTA of Japan to market Toyota cars in the then East Pakistan. It was indeed a great honour for our the then Chairman Mr. Jahurul Islam and the Vice Chairman Mr. Shafiul Islam Kamal (now Chairman of NAVANA GROUP) who are entrusted in the business community as pioneer in the business arena of the country. Due to the dynamic leadership of the key figure of the Group, with a short span of five years, Toyota Corona, nicknamed the “Miracle Car” captured 80 percent of the 1300-1500 cc Volkswagen, Opel, Hillman, Austin, Morris etc. This was a tremendous marketing achievement set forth by NAVANA, Toyota is still enjoying.
As an outcome of NAVANA’s pragmatic marketing strategies and huge efforts Toyota Car’s resale value has been reached the highest level in Bangladesh compared to that in other countries which has been appeared as major factor influencing customer’s buying decision in favor of Toyota. The market subsequently and till today associated with the name of Toyota as symbol of reliability, durability and quality .
In the later years the Group has entered into an exclusive distributor franchise with HINO Motors of Japan and as a result of the dynamic leadership of the Group’s Chairman and with a team of experienced marketing experts the HINO brand has been able to attain a significant market share in our heavy transport sector and now HINO is the symbol of prestige.
In the marketing front the group is enjoying a tremendous success in marketing of world reputed brand Good Year in Automobile Tyre Sector. Good Year Tyre has been able to gain a significant amount of market share and recently it has been the Market Leader in commercial tyre segment. This has been possible due to the Group’s excellent reputation, marketing strategies and due efforts.
In August 1981, the Group set up Aftab Automobiles Ltd. to assemble Toyota and Hino vehicles for the Bangladesh market. Aftab Automobiles Ltd. is the largest private sector automobile assembling plant in Bangladesh. Aftab Automobiles Ltd. became a listed company on the Dhaka Stock Exchange in 1987. In 1998 Aftab Automobiles Ltd. has gone under a massive BMRE program and as a result of the program, it started its Body Fabricating Unit, Paint Manufacturing Unit and Battery Unit.
Aftab Automobiles Limited (Battery Unit), a sister concern of Navana Group, was established in January, 2002. Company’s business is to manufacture different type of automotive batteries (from small car to big Lorries) and market the same in the country.
The company also manufactures batteries for Instant Power Supply (I.P.S.). Soon the company will go for Industrial, Motorcycle and UPS batteries. The company plans to export its product abroad very shortly.
Aftab Automobiles Ltd., the listed company on Dhaka Stock Exchange has introduced a new unit for manufacturing paints with brand name NAVANA PAINTS. The company started production in November 1999 and launched marketing through exhibition at DITF 2000. The response from the users so far is tremendous.
Over the years NAVANA GROUP, with the dynamic leadership of Mr. Shafiul Islam–Chairman, has established itself as one of the leading and fastest growing Group of companies in Bangladesh. And more diversification is awaited in the different sectors.
3.4 Corporate Directory
GROUP COMPANIES : · Aftab Automobiles Ltd.
· (Automobile Assembling Unit)
· Aftab Automobiles Ltd. (Paint Unit)
· Aftab Automobiles Ltd. (Battery Unit)
· Aftab Automobiles Ltd. (Furniture Unit)
· Navana Limited
· Navana Limited (CNG Unit)
· Navana Real Estate Ltd.
· Navana Construction Ltd.
· Navana Computers & Technologies Ltd.
· Biponon Ltd.
· Navana Interlinks Ltd.
· Navana Taxi Cab Co. Ltd.
· Navana Electronics Ltd.
· Navana Distributions Ltd.
· Navana Textiles Ltd.
· Navana Aviation Ltd.
RELATED ACTIVITY : · – Automobile Assembling
– Automobile Manufacturing – Paint Manufacturing, Marketing & Sales
– Battery Manufacturing, Marketing & Sales
· Automobile Marketing & Sales
· Real Estate Development
· Computer Hardware & Accessories
· Project Marketing
· Taxi Cab Sales & Marketing
· IPS, UPS, Stabilizer Manufacturing, Sales & Marketing
· Commodity Products Sales & Marketing
· Tyre Sales & Marketing
· Medical & Scientific Equipment Sales & Marketing
· Lubricant Marketing & Sales
BANKERS : · IFIC Bank Ltd.
· Agrani Bank Ltd.
· Pubali Bank Ltd.
· Sonali Bank Ltd.
· Muslim Commercial Bank Ltd.
· Dutch Bangla Bank Ltd.
· National Bank Ltd.
· Arab Bangladesh Bank Ltd.
· Standard Chartered Bank Ltd.
· The City Bank Limited
· Prime Bank Limited
· Eastern Bank Ltd.
TURNOVER : 1996-97 = US$ 25.04 million (Approx.)
1997-98 = US$ 40.28 million (Approx.)
1998-99 = US$ 54.79 million (Approx.)
1999-00 = US$ 59.00 million (Approx.)
2000-01 = US$ 64.00 million (Approx.)
2001-02 = US$ 78.09 million (Approx.)
2002-03 = US$ 87.50 million (Approx.)
2003-04 = US$ 102.70 million (Approx)
2004-05=US $ 110.09 million (Approx)
2005-06= US $ 126.40 million (Approx)
3.5 Company Profile: aftab automobiles ltd.
Company Name: Aftab Automobiles Limited.
Summery : Aftab Automobiles limited the largest automobiles assembling plant in the private sector was incorporated in1967 and converted to a public limited company in 1981. The company was listed with Dhaka stock exchange limited and Chittagong stock exchange limited in the year of 1987 and 1996 respectively.
In 1981, Aftab Automobiles Limited was brought into existence for assembling of Toyota & Hino vehicles for Bangladesh market. This is in fact the only private sector full-fledged assembling plant in Bangladesh with proper infrastructure and modern utilities. This company was in the later years entrusted with assembling contract of Defense for assembling heavy-duty vehicles. This is a modern, flexible & the most efficient assembly plant in Bangladesh with annual capacity of 1,200 units (per shift) of jeeps, pickups, four-wheelers, minibuses, mini-trucks, bus, and truck chassis.
Strategically located over a 12.5 acre site in Fouzderhat, approximately 20 km north of the port city of Chittagong , along the main Dhaka- Chittagong highway.
Comprehensive range of machinery and equipment. Total manpower strength of 700, comprising of management, administration, sales, accounts, and assembly personnel. Total covered space of 55,000 sft. Containing the painting, welding, and assembly sections .
Head office : Islam Chamber (4th Floor)
125/A, Motijheel C/A, Dhaka, Bangladesh
Tel: 9552212, Fax: 9566324
Branch Office : 37, Agrabad Commercial Area, CHittagong
Plant Office : Fouzderhat Industrial Area, Fouzderhat, Chittagong
Date of Incorporation : July, 1980
Date of Commencement : August, 1981
NAVANA A name, a company and finally a group of companies anchored deeply in the soil of Bangladesh with honour and dignity.
The flagship company of NAVANA Group was floated in 1964 under an exclusive distributorship agreement with TOYOTA, Japan to market TOYOTA cars in the then East Pakistan and successfully marketing TOYOTA vehicles in our country till today. NAVANA Ltd. is also marketing HINO Vehicles of Japan in Bangladesh under a Sole Agency ship agreement for more than a decade and also representing GOOD YEAR tyres under an exclusive distributorship since 1977. Since then NAVANA is doing business commanding great amount of respect and reputation from people home and abroad alike.
While doing so, the Company gained experience and in the process have become more matured, which has enabled to spread its wings wider and wider, higher and higher up in the sky in commitment, after sales service and above all non-compromising quality.
Aftab automobiles ltd. a sister concern of “NAVANA” mainly a vehicle assembling company, one of its kind in private sector, has been successfully assembling TOYOTA and HINO vehicles for Bangladesh market and have also gone into diversification of products (in manufacturing) like “NAVANA Paints” and yet very recently launched (and very much available in the market) its newest product: NAVANA BATTERY.
NAVANA has automotive battery (from small little cars to big lorries, trucks, buses etc.) plus Ips and Ups.
The philosophy & spirit that manifest the driving force for the AABL’s progress as an institution par excellence to customer satisfaction, state of the art products & services, and competence and efficiency based on professionalism indeed. The Organization has remained dynamic in its continued efforts to improve & increase core competence & service efficiency by constantly upgrading product quality, service standards, protocol and their effective participation making use of state of the art technology.
Global Business has changed rapidly and AAL has worked hard to adapt to these changes. The company looks forward with excitement and a commitment to bring greater benefits to customers.
AAL dedicated their service to the Nation through active participation in all segments of the economy & Industry. ALL is keeping pace with the changing environment.
With all harness together out strengths and putting their heads together in unity of purpose, ALL will reach Herculean heights in the domain that is its forte Product & Services.
Our motto is, “WE GIVE YOU THE QUALITY, QUALITY GIVES YOU THE GUARANTEE” and that is, ‘‘BECAUSE WE CARE FOR YOU’’ and for which we offer our customers a very special personalized after sales-service with absolute and non-compromising ‘‘QUALITY’’ with ‘‘CONFIDENCE’’.
Board of Directors : Mr. Shafiul Islam Kamal – Chairman
Mrs. Khaleda Islam – Director
Mr. Monwarul Islam – Director
Mr. Saiful Islam Shumon – Director
Mr. Sajedul Islam – Director
Management Team : Mr. Shafiul Islam Kamal – Chairman
Mr. Javed Aktar- Director
Mr. Sajedul Islam – Director
Aftab Automobiles Ltd. (Battery Unit)
Islam Chamber, 4th floor,
125/A , Motijheel C/A ,
Sales and Service Centre (Dhaka)
381-384, Tejgaon Industrial Area
(32,Shaheed Tajuddin Ahmad Sharani)
Phone : +88-02-811-5746, 913-3442, 815-6259
Fax : +88-02-913-3442 , 956-6324
E.mail : email@example.com
AAL is committed to cater to the growing needs of its product. This commitment demands immense social responsibility of ensuring quality Battery of the highest purity, proper stability, excellent safety & superb efficacy. At every stage of production, stringent control mechanism quality control, packaging, labeling, finished product testing as well as stability monitoring and documentation is maintained.
AAL commitment is to deliver a product of highest quality to the consumer. They also believe that the satisfaction of valued customers is depended on the efficacy of the Battery claimed. To ensure the objectives taken, the policy of honesty and efficiency of human resource has been developed.
AAL enjoys a very good employee, officer’s relationship characterized by friendly co-operation devotion to the work, mutual respect and fraternity, which contribute to bringing dynamism in production and to the development.
AAL always believe that people is the valuable asset. AAL makes considerable investments in attracting and developing competent professional human resources. Over the years, the company has been successful in providing an environmental and culture that promotes value and is run by customer-driven philosophy. To get the most out of its Human Resources AAL implements programs like decentralization, job enrichment and job rotation. The extent of empowerment enjoyed by employees at various levels of the organization enables each employee form the very bottom to top, to contribute to the overall momentum of the company. The talent, expertise and hard work of employees drive AAL towards achieving its goals and objectives.
The major corporations that are environmental leaders are in effect already beginning to put industrial ecology in to practice. Industry is rapidly moving into an era of new values concerning the environment in which “corporate environmentalism” will be essential for profitability and business survival.
The task of industrial ecology will be to provide the means to maintaining the key defined parameters of the natural environment, allowing the industrial.
The concept of industrial ecology may appear impractical or overly idealistic, but it is almost certainly the most plausible model for industrial environmental nexus of the future. Its component elements are evident in the policies & practices, even though the company may not explicitly recognize the concept that all process systems and equipment, and plant & factory design, will eventually be built to interconnect with industrial ecosystem as a matter of course
The company is highly committed to provide an eco-friendly environment to ensure a healthier society for a healthier tomorrow. Maintaining the ecological balance is of paramount concern of AAL. In order to achieve this objective, AAL reduces the hazardous impact on the environment through operational excellence and carefully designed facilities.
Keeping the earth clean is their primary concern AAL earnestly admits responsibility of caring for the environment & importance of reducing the environmental effects of manufacturing activities to a practical minimum.
The authorized capital of AAL is Tk. 400.00 million and the initial paid up capital is 113.46 million also have preference share capital is Tk. 200.00 million. It may be mentioned here that the reserve fund of total Tk. 92.31 million, retained earnings Tk. 10.79 million.
The performance of the company is viewed with growth has been attained b Battery units. This unit has produced a total of 23,918 pcs, of automotive batteries which is 6,777 pcs, more compared to last year. This unit has successfully achieved a growth of about 40.00 percent and has contributed an amount of Tk. 4.92 crore to company’s sales.
AAL earned comparatively a good profit every year. The company has been give dividend at the rate of Tk. 18.00 per ordinary share of Tk. 100.00 each fully paid up i.e. 18% for the year ended August 31, 2004.
As regards the Battery Manufacturing unit, the company plans to produce at least 40,000 to 50,000 pcs of Battery products during next year. Also wants to produce heavy industrial Battery and Demineralized battery water.
The Battery market consists of three types of marketers. One is home made Brand Battery, imported Battery and home made non brand battery. Mainly home made brand batteries have been produced by three well renowned companies i.e. Lucus, NAVANA, and Rangs. Out of these, Lucus hold number one position by capturing 80% market share with the support of their excellent quality and after sales service. 6% market share belongs to NAVANA. 2% market share coverers by Rangs with the brand name Rangs Power, and rest of the 12% covers by imported battery and locally made non brand battery. NAVANA also try to increase its market share quickly. Keeping this point in mind NAVANA improve its product quality and recently launch mobile after sales services, increase plant capacity and adopt some strategy for achieving this target.
4.1 Direct Marketing Practices in AAL (Battery Unit)
AAL (Battery Unit) follow the following forms of Direct Marketing system.
Direct marketing approach delivers greater customer value though an unbeatable combination of product customization, low prices, fast delivery and excellent customer services. At present AAL uses personal selling in which the sales forces interact with customers and prospects to make sales and build relationships. Company’s sales people probe customers to learn more about their problem, and then adjust the marketing offer to fit the special needs of each customer and negotiate terms of sales. The company sales people worked directly with customers. They work with wholesalers and retailers to gain their support and to help them be more effective in selling company’s products. They find and develop new customers and communicate information about the company’s product & services. They sale products by approaching customer, presenting the products, answering objections, negotiating terms and condition and closing dales . They also provide customer services & carry out market research & intelligence work. They also work with others in the company to produce customer satisfaction & company profit.
Using the telephone the company has become the effective a major way to direct marketing. By telephone, company collect order, conversation about mode of payment, and try to communicate with its customers that helps to build long lasting customer relationship.
A customer can talk by phone with company’s representative, order a fully customized product delivered to his/her doorstep with in few hours or in the same day in case of city area and takes 1 day incase of out side of city area.
Direct mail marketing
AAL also follow some form of direct mail marketing. Basically they use E-mail marketing. AAL sends the e-mail to the various company’s, institutions, government agencies to familiar of its products and service. The company sends offer, announcement, reminder or other things to a person or institution at their address. Company use highly selective mailing list. Company now routinely send fax mail announcing special offers, but the quality, price and other information of the products. By E-mails Company maintain good relationship with its old and current customer. They also use e-mail for acquiring new customer and to by something immediately.
The Company also uses the catalog form of direct marketing. The company use printed documents that contain product types, features, prices, special feature etc. Consumers can buy just about any products from a catalog.
Basically the company use these four types of direct marketing form that makes company more cost effective rather than traditional marketing system.
4.2 Benefits for using Direct Marketing Model
AAL (Battery Unit) growth & financial performance continue to differentiate the company from competitors. At the heart of that performance AAL use unique direct marketing model. Direct refers to the company’s relationships with its customers. There are no retailers or other resellers adding unnecessary time and cost, or diminishing a company understands of customer expectations.
There have several benefits gets for using direct marketing system these are:
Price for performance: By eliminating retailers and other costly intermediary steps together with the industry’s most efficient procurement, manufacturing and distribution process AAL offers its customer more powerful quality products for the money than competitors.
Customization: Every product is built to order customers get exactly and only what they want.
Service & support: Company uses knowledge gained from direct contract after sales customer service.
A customer can talk over phone with company’s representative, order a fully customized, product delivered to his or her door step with in few hours or same days in case of city area and takes 1 day incase of out side of city and all at a price that’s 10 to 15 percent below competitor price for a comparably performing Battery. Company’s backs its product with high quality service and support. As a result company consistently growth its market share with in product reliability & service and its customers are routinely among the industries most satisfied.
However, this one-to-one approach also appeals strongly to corporate buyers, because company can so easily preconfigured each battery to precise requirements. As a result, a notable portion of sales now come from large corporate, government and institutional buyers.
Direct selling results in more efficient selling and lower cost, which translate into lower price for customer. Dealing one-to -one with customers helps the company react immediately to shifts in demand, so company doesn’t get stuck with battery no one wants. By selling directly in case of large corporation, government and institutional buyers company has no dealer to pay. As a result, on average company’s costs are 15 percent lower than those of its leading battery competitors.
Moreover, the practices of direct marketing delivers greater customer value though an unbeatable combination of product customization, low price, fast delivery, and excellent customer service.
4.3 SWOT analysis of AAL (Battery Unit)
SWOT analysis makes an attempt to analyze the internal strength and weakness of a company as well as opportunities and threats that are come from external area. Such an analysis enables a company to identify and enhance its strengths further, to determine its drawbacks and ways to overcome those.
AAL launch its product with the Brand name of NAVANA. They have solid sophisticated brand reputation according to consumer perceptions. Most of the consumer associated NAVANA with concrete reputation and good brand Being a well reputation NAVANA has strong financial support for carrying out marketing approaches. It’s a better advantage of NAVANA.
Well organization structure, management and skilled and expert human resources are strength of AAL. They have maintained the right combination of talent, theoretical knowledge and practical experience.
The biggest infrastructure facilities are strength of NAVANA Battery.
Present excellent quality product also another strength of NAVANA Battery
Poor performance in the life of battery is a great problem.
Employee satisfactions are in the lowest position, mainly the sales persons are not satisfied on the work condition, compensation etc.
Poor consumer satisfaction is another important matter of concern. Wrong communication and not day to day communication is another matter of customer satisfaction.
Service facilities are not well as comparing with the competitors.
Employee turn over rate is high in NAVANA that make a communication gap between customer and the company.
Sells policies are not up dated as comparing with the other competitors.
AAL has strong financial support, adequate knowledge about marketing of the products.
Advance technological improvements in the producing high quality product that is the main expectation of the customer.
Increasing the market share, only few company in the market, increasing the demand of the Battery also an opportunities for NAVANA.
NAVANA also use its associates channels for increasing its markets.
Strong customer relationship also an opportunity for NAVANA.
Emerging of new company in the market is an important issue to capture and stay in the market.
New the company sale low price product as comparing same quality.
Strong competition comes from the competitors.
Increasing raw-materials price that raises the products cost.
External factors like change of government rules and regulation about tax and tariff.
Some new company entering into the market and imply vigorous marketing activities to attract customer this could be a strong threat for NAVANA.
Competitors make recycle Battery that decrease their production cost, for that reason they sell the product at a sow price.
From this extensive discussion on AAL (Battery Unit) strengths, weaknesses, opportunities and threats, it observed that with the help of strengths and the basic opportunities company will be able to conquer its weakness and threats. It should be noted that top management need intensive care to improve the market and to face the competitors.
The SWOT analysis drives not a very good message about ALL (Battery Unit) regarding its existing and potential performance.
It is strongly recommended that company should grave all the opportunities in time and carefully face the challenges that will make them profitable.
4.4 Prospects of Direct Marketing in Bangladesh
The prospect of Direct Marketing in Bangladesh is very close with the prospect of IT sector in Bangladesh. Practice of direct marketing depends on company’s business activities, types of consumers, types of products, and infrastructure facilities in its related areas. At present, a sizeable number of companies follow some forms of direct marketing in Bangladesh. Most of the company use personal selling form of direct marketing. For companies selling business products, the firm’s sales people work directly with customers. Often, the sales force is the customer’s only direct contact with the company and therefore may be viewed by customers as representing the company itself. In contrast, for consumer product companies that sell through intermediaries, consumers usually do not meet sales people or even know about them. The sales force works behind the scenes, dealing with wholesalers or retailers to obtain their support and helping them become effective in selling the firm’s products. Most of the company uses the telephone to sell directly to consumers basically in corporate sales. Properly designed and targeted telemarketing provides many benefits, including purchasing convenience and increased product and service information. However, the recent explosion in telephone now marketers now go on telephone marketing that an easy way of convince prospective consumers. Last few years Bangladesh is coming up with the development of telecommunication sector and recently joins with submarine cable that leads to quick access to information super high-way. So, direct marketing practice will increase in Bangladesh.
However, many companies, today, direct marketing is more than just a supplementary channel or medium. For these companies, direct marketing-especially in its newest transformation, Internet marketing constitutes a new and complete model for doing business. With all the advantages of direct marketing Bangladesh may be able to show a significant development in marketing system.
Last couple of years shows dramatic improvement in the product marketing. Different strategies, models or techniques are use to capture the market. Today’s advanced development of technology marketers face difficult job when they serve market. The development of direct marketing and to get its benefits depends upon the total social and infrastructure of the county. The following suggestions may be helpful to the AAL.
Developing new strategies: As this is a very new concept for the common people of the country, new strategies should be developed for providing smooth marketing.
Develop infrastructure facilities: Need to developed infrastructural facilities basically in telecommunication because telecommunication is an integral part for the implementation of direct marketing. So, proper telecommunication infrastructure should be developed for the implementation of direct marketing in the country.
Developed skilled people: For effective marketing it all necessary to develop skilled people. Without developing expert/skilled people good result never come in the long run. So company should develop its human resources for that purpose.
Arrangement of various training facilities: It should necessary to arrange various training facilities for the different level of employees. The authority should arrange some training facilities so as to they can get the maximum benefits of it.
Develop legal framework: Appropriate legal framework must be there to save both parties. There should be no discrepancy that may cause any harm any of the parties.
Management attitude should be changed: The old bureaucratic management style should be changed and should introduce modern management philosophy and information must be open to get the highest benefit.
Needs to give training to sales persons: Company can provide continuing sales training via seminars, sales meetings, and conference that may increase the performance of the sales persons.
Give emphasis on needs of sales people: Today’s relationship making environment, top sales people are customer problem solvers and relationship builders.
Needs proper compensation plan: The Company should have an appealing compensation plan. Compensation is made up of several elements; a fixed amount, a variable amount, expenses and fringe benefits. Different combinations of fixed and variable compensation give rise to four basic types of compensation plans: Straight salary, Straight commission, Salary plus bonus, and salary plus commission.
Introduce with modern technology: The Company should introduced with web-site. Because in recent digital buying also increase. Then with a click a ‘purchase’ button a customer can submit an order, choosing from online payment options that include a credit card, company purchase order, or corporate lease.
Increase customer awareness: Company should take necessary steps for awareness of its product with the help of advertising, promotional activities, personal communications etc.
Company should follow other tools of marketing as well as direct marketing.
The company should improve better quality of its product with comparing its competitors.
Company should make a proper sales policy with giving emphasize of customer demand and careful about competitors policy and update the policy on market situation.
Company should give attractive and effective after sales service with the help of skilled technician.
Company should give emphasize on the needs of employees that make the lower employee turn-over.
Should increase consumer satisfaction in any way and communicate regularly with the customers.
Company should introduce recycle battery that may reduce the cost of the product.
AAL should introduce with modern technologies in its plant that may lead to lower cost of production.
Monitor the competitors’ policies and develop new strategies for facing threats from the competitors.
Marketing strategy and practice have undergone dramatic change during the past decade. Major technological advances including the explosion of the Internet have had a major impact on buyers and the marketers who serve them. To thrive in this new digital age even to survive marketers must rethink their strategies and adapt them to today’s new environment.
The formation of new types of intermediaries and new forms of channel relationships caused existing firms to reexamine how they served their markets. Conducting business in the new digital age will call for a model for marketing strategy and practice. To survive and thrive in this century managers will need to hard-wire a new set of rules into their brains.
Some strategists envision a day when all buying and selling will involve direct electronic connections between companies and their customers. The new model will fundamentally change customers’ notions of convenience speed price, product information, and service. This new consumer thinking will affect every business.
The fact is that today’s economy requires a mixture of old Economy and New Economy thinking and action; companies need to retain most of the skills and practices that have worked in the past. But they will also need to add major new competencies and practices if they hope to grow and prosper in the new environment. Marketing should play the led role in shaping new company strategy. Although there has been widespread debate in recent years about the nature of even the existence of–such a New Economy, few would disagree that the Internet and other powerful new connection technologies are having a dramatic impact on marketers a buyers. Many standard marketing strategies and practices of the past – mass marketing, product standardization, media advertising, store retailing, and others-were well suited to the so-called Old Economy. These strategies and practices will continue to be important in the New Economy. However, marketers will also have to develop new strategies and practices better suited to today’s new environment. Therefore, direct marketing is an important tool for the marketers who think different in adoption of new strategy. Whether employed as a completer business model or as a supplement to a broader integrated marketing mix, direct marketing brings many benefits to both buyers and sellers. As a result, direct marketing is growing vary rapidly.
Direct marketing can offer sellers a low-cost, efficient alternative for reaching their markets. As a result of these advantages to both buyers and sellers, direct marketing has become the faster-growing form of marketing.