"The basic concept of telemarketing is that you should be offering what is not available in the retail market. Why would anybody buy from us, if we were offering what is available in the traditional marketplace? We have to keep coming out with exclusive products practically every second month or so."
- Mahesh Panna, Country Manager, Telebrands, in September 2002.
Welcome to the world of teleshopping networks, a phenomenon that had become a part of the lives of Indian TV viewers by early 2000. Day in and day out, customers were swamped with images of models showing off their 'fabulous flat abdomens,' 'blemish-free skins,' selling disease-curing teas, wondrous kitchen and household equipment, on almost every TV channel. Though teleshopping networks became operational in the mid-1990s in the country, their presence was never felt as strongly as it was during the early 21st century. A majority of these infomercials1 were dubbed versions of English (or other foreign languages).
Many consumers found it extremely amusing to see foreigners mouthing chaste Hindi (and other regional Indian languages) while advertising these products. However, it was the nature of the products being offered by these networks that attracted the maximum attention. Most of the infomercials featured products that claimed to provide miraculous results. There were products, which could help one reduce weight and get into shape without exercise or dieting. There were other products that promised to make people give-up smoking and improve body posture. The range of products included creams, potions, solutions, toys etc. Analysts questioned the reliability of such personal care products that claimed to beautify and tone up the body in a matter of days. They considered these infomercials, which depicted common people using the product and explaining its effectiveness, a farce. They argued that, these people were paid to speak well about products. Analysts criticized the teleshopping networks for trying to deceive the viewers into buying products with the belief that those people had actually used them. Despite these allegations, teleshopping as a concept was gaining popularity in India
Consumer marketing channels can be broadly classified based on the number of sales levels between the manufacturer and the consumer. One-two-three-four level channels are the most commonly used and involve wholesalers and retailers (also called mass marketing). Direct marketing is a zero-level channel, wherein marketers interact with the customer on a one-to-one basis (Refer Exhibit I for a comparison between mass marketing and direct marketing and various kinds of direct marketing techniques). Direct response marketing motivates customers to take prompt action. The prerequisites for a promotion technique to be considered as direct response marketing included placing an order directly before the potential customer and prompting the customer to take immediate action (such as requesting for additional information or making a purchase decision). Teleshopping is another name for Direct Response Television (DRTV) shopping, a concept that originated in the US
Questions:
- Discuss the key success factors for teleshopping market?
- Compare the concept of direct marketing and teleshopping as one of the major channels of marketing?