Direct and Digital Marketing: Loyalty Schemes

Résumé du document

Marketing is a central idea in the world of business since the customer is made aware of the products and services a business offers. This is very important since information and the way that particular information is relayed to the customers gives them the chance to buy or not hence confirming profit or loss for the various businesses. Currently a number of marketing strategies have been developed to aid in the process of reaching a customer in order to close a business deal. In the past, many believed in face-to-face marketing, print media, and such like rudimentary channels but currently various ideals have developed such as direct and digital marketing. One of the marketing gurus, David Ogivly once said that, 'One day, all agencies will be direct marketing agencies'. In as much as this phrase was correct in his futuristic mind, the problem is that communication in marketing strategies developed and the ones used by the agencies in his days might not have been sufficient and effective. Berry suggests, in a rephrase of Ogivly's statement, 'One day, all communication agencies will embrace direct marketing'. This, according to Berry will be the major idea in the modern world of business.

Extraits

[...] Contrasting direct marketing and digital marketing, there is a method used when personal mails are delivered through post and this is referred to direct mail. The key factor here is the personal address where a named person, at a specific location or address. It means that a letter of some description is sent to an identified person who is also a potential buyer. This is very involving since a firm has to identify its potential clients and has their mail addresses. [...]

[...] The coupons with low prices and promotions imply that clients of Sainsbury are getting unbeatable value on the products most needed by them. Benefits of the Sainsbury Loyalty Program to Consumers The shoppers effectively receive just less than discount on goods purchased at the stores. According to the Answers.com, after a shopper has spent 250 Pounds, there is always a 500 points earned and this can translate to a rebate of 2.50 pounds to be redeemed at the next shop. [...]

[...] This normally results into repeat purchases and hence more profit for the stores as well as granting the customer a greater chance of getting more rewards. In the light of the above elements, Sainsbury seems to have a more comprehensive mix for its loyalty program unlike Asda that has rolled out the program where customers' say is considered and later with their support being helpful to the stores, are rewarded accordingly. Asda may not have a very successful loyalty program that makes customers want to come for repeat purchases since most clients look for the monetary value of any rewarding schemes. [...]

[...] According to Dunkley, coupons for Sainsbury are generated on- the spot through standalone printers installed across the stores huge chain of supermarkets. Using this system, “customers will benefit from discounts on branded and Sainsbury's own brand” items with a little savings on certain retailers most popular items (Dunkley, 2009). This can be considered a very successful option in loyalty schemes since customers always prefer taking coupons or vouchers with them hence a very practical way of having individuals constraining their budgets in hard economic times. [...]

[...] It has to be recognized that promotional budget can be devoted to a loyalty scheme in order to ensure a customer centered orientation of businesses. This attracts more clients and helps to give confidence to your customers in order that they can always trust what the retailer or selling party offers. Works Cited Berry, Mike. The new integrated direct marketing Hampshire: Gower Publishing, Ltd Dunkley, Jamie (27th Sept 2009) Sainsbury Unveils new Loyalty Scheme Retrieved April 2010 from http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/6237650/Sa insbury-unveils-new-loyalty-scheme.html Frei, Frances (Oct 2009) Illusions of Customer Loyalty Retrieved on April 2010 from http://decisiontolead.com/tag/asda/ Johnson, K. [...]