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European Journal of Economics, Finance and Administrative SciencesISSN 1450-2275 Issue 21 (2010)

EuroJournals, Inc. 2010

http://www.eurojournals.com

Defining Indirect Marketing

Iram Shehzadi

Lecturer Marketing, Lahore Business School, University of Lahore

1-KM Defence Road, Lahore, Pakistan

E-mail: [email protected]

Shusma Khan

Lecturer Marketing, Lahore Business School, University of Lahore



Ebad Baig

Director LBS & Associate Professor Marketing

Lahore Business School, University of Lahore



Abstract

Academic literature and marketing books have so far failed to define indirectmarketing and as a theoretical basis. Though in practice indirect marketing and indirect

channels of communication are being employed by advertising agencies and organization

around the world. This calls for defining indirect marketing as an academic theory that

would give students the basic understanding of what is indirect marketing as compared todirect marketing. The paper sets the theoretical basis based upon taking an understanding of

how marketing has evolved as a definition, as well as looking into the understanding of

direct marketing, indirect distribution channels, and advertising.

Keywords: Marketing, marketing management, business studies, indirect marketing

IntroductionStanton et. al. (1991) defined marketing as a total business to business activity designed to plan, price,

promote and distribute want-satisfying products to target markets to achieve organisational objectives.

The Chartered Institute of Marketing (CIM) in United Kingdom defines marketing as the managementprocess responsible for identifying, anticipating and satisfying customer requirements profitably(Smith, 1993). Further attempts to define marketing look at it as a process of planning and executing

the conception, pricing, promotion and distribution of ideas, goods, services, organisations and events

in order to create and lasting relationship with customers which should directly satisfy their individualor organisational objectives (Boone & Kurtz, 2002).

Marketing has been an ever evolving concept that has developed today into that process that not

only captures individual wants but satisfies them and adds value to the consumer in some form. Thisconnotation has been represented in the attempt to define marketing by Bearden, Ingram, Laforge

(2007) who saw marketing as an organisational function and a set of processes that create,communicate and deliver value to customers and it is a process of managing customer relationships in

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36 European Journal of Economics, Finance And Administrative Sciences - Issue 21(2010)

a manner beneficial to organisation and stakeholders or the organisation. Kotler et. al. (2008) define

marketing as the process by which companies create value for customer and build strong customer

relationships in order to capture value from customer in return.With marketing have had evolved over a period of time from a definition to a process of

communication down to a process of value creation, academic books have yet failed to define indirect

marketing and indirect marketing communication. In order to develop our understanding further anddefine indirect marketing in academic terms, we discuss the definitions of direct marketing in academic

literature and carry on with the textual framework of indirect in order to develop a coherent definitionof indirect marketing. Though definitions in academic terms evolve over time through practicalunderstanding of different processes, the first attempt is being made with this paper to define indirect

marketing for the reference of students in business and management education world-wide.

Direct MarketingDirect marketing has been defined by many authors as having a direct and immediate effect on theaudiences. This concept underlines direct marketing as an interactive form of advertising that provides

a stimuli for behavioural modification, that can be analysed and recorded, for future use (Dickson,

1997). The word direct has its origins from the Latin word directus, from dirigere, from regere

meaning put straight. Belch & Belch (2004) defined direct marketing as a system of marketing bywhich organisations communicate directly with target customers to generate a response or transaction.

MacDonald (1998) described direct marketing as a form of interactive system which uses one or more

advertising media to affect a measurable response and/or transaction at any location.The authority in UK on direct marketing, the Direct Marketing Association (DMA) defines

direct marketing as the distribution of information, products or services through any advertising

medium that invites the individual to respond directly to the advertiser (Smith & Taylor, 2005). Morerecently direct marketing has been constituted as direct communication with carefully targeted

individual customer to obtain an immediate response and cultivate lasting relationships (Kotler et. al.,

2008).Direct marketing therefore is a culmination of direct communication and targeted

communication with individuals in order to gather immediate and direct response that focuses ondeveloping continuing relationships with the customer. Moreover it helps to achieve notion of

customization, resulting in personalized and two way communications with consumers which providethe opportunity to generate leads and measure response rate. This helps to achieve objectives like

repeat customers, increasing customer satisfaction rate and making loyal customers. The focus is on

how the customer or audiences are aware of the fact that they are being targeted and that is the reasonwhy customer behavioural patterns throughout the process of communication can be traced back.

Direct marketing is generally planned and response of individuals can be pre-determined to a certain

extent in the case of direct marketing, as there is much available consumer behaviour studies on theresponses of individuals towards advertising that is direct in nature.

Theoretical SettingThe textual meaning of indirect is not direct according to the Compact Oxford Dictionary. But

indirect in terms of indirect marketing needs to be understood on several levels. Firstly we propose thatindirect marketing unlike direct marketing is a medium of one waycommunication with customer or

audiences. But the communication is by means of stealth methods that do not directly make an

individual realise that they are being targeted. Such communication may or may not result in aparticular action, but is necessary in order to maintain a mode of communication with audiences in

order for the organisation or advertiser to be able to remind customers of the existence of their brand.

Indirect marketing is the second stage of developing brand recognition and retention among audiences,

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therefore, indirect marketing is appropriate when advertisers or companys objective is to remind

consumers about their products or services rather than creating awareness during introductory stage or

switching competitors brand. Why indirect marketing has not received much attention as an academictheoretical concept is due to the lack of understanding of what is the function of indirect marketing.

Another aspect requiring understanding in terms of indirect marketing or communication is the

element of planning. Activates of indirect marketing are planned by organisation withoutunderstanding of indirect marketing. This lack of understanding has been resulting in the lack of

response from potential audiences.Indirect marketing does not have dependency on targeting or segmenting, since it is generic in

nature and is used as an instrument of reminding and repeating the identity of a particular brand.

Moreover, organizations treat their potential, existing and loyal customers uniformly and yearning

exposure of their product or brand through symbolic representations. Indirect communication has to begeneric as it should be explicable by all individuals or audiences exposed to it but shall be recognized

immediately by existing customers.

Indirect marketing does not have any method of tracing the response if any from the receiver of

the communication. Indirect sources of communication result in repetition and retention by means ofsymbolic representation of the brand and are placed in this way in order to relate to direct marketing

communication mediums. If a company has decided to make a symbolic representation on a product

they have done so by means of relating it to the direct marketing mediums that also showcase theindirect marketing symbols.

In order to define symbolic representation, we need to understand what is meant by it. Symbols

are not just symbols, signs and logos, but also celebrity and human faces, and relationship with musicand jingles as they become part of our relationship with the product or the brand. Sources generally

define symbolic representation as something visible that has an association with or represents

something that is invisible at the time of its presentation. Examples of this are the Eagle which is a

symbol of United States of America.

Discussion and Conclusion

In defining indirect marketing we have taken account of how marketing today is the process of creatingvalue for customers and maintaining relationship with them, we have also seen direct marketing as

being obvious and targeted towards particular segments where the consumer is aware of the marketingcommunication. In defining indirect marketing we have determined that such communication is not

targeted to a particular segment, it is planned, it is generic and it is by means of symbolic

representation. Therefore our definition of indirect marketing is:

Indirect marketing is the process of communicating brand cues after developing

recognition as a brand through direct marketing tools.

Indirect marketing responses cannot be traced at the moment but marketing or awarenessquestionnaires by organisations may ask clients of indirect marketing communication in the future. The

role of indirect marketing is to create awareness of the product, service or brand in order to remind and

gain responses from audiences.

Future ResearchFuture research needs to be carried out in areas of defining indirect channels of communications and

comparing direct marketing responses against indirect marketing responses, in order to gain

understanding of the efficiency and effectiveness of indirect marketing. Furthermore responsemeasurement of indirect marketing and its effectiveness in delivering its objectives,

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References1] Stanton, Etzal & Walker, 1991 -2] Smith, 1993 -3] Boone & Kurtz, 2002 -4] Bearden, Ingram & Laforge, 2007 -5] Kotler, Armstrong, Wong & Saunders, 2008 Principles of Marketing, Fifth European Edition.6] Dickson, 1997 -7] Power, Balderston & Gyles, 2000 -8] Belch & Belch, 2004 Advertising and Promotion An integrated marketing communication

perspective.

9] Smith & Taylor, 2005

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