meet consumer needs (Bauer and Miglautsch, 1992). Direct marketing serves as an
important tool for marketers to understand the consumer needs, maximize their
product value by matching them to the consumer needs and encouraging them to
conduct a purchase.
2.1.3 Internal Promotion versus External Promotion
Promotion in general is a broad concept since there are many different ways for a
firm to engage in it to attract consumers and prospects. In order to simplify th
concept of promotion for this research, we would divide the category of promotion
into two main categories which are internal promotion and external promotion.
Despite the ultimate goal for both types of promotion being similar which is to
increase purchase frequency and sales revenue, the level of interaction is different in
some ways. Internal promotion involves a higher level of interaction compared to
external promotion since it involves face-to-face interaction with the customer.
Internal promotion often involves engaging with a consumer’s emotions and feelings
which makes it more effective in gaining more sales from consumers through
impulse purchase.
Internal promotion could be conducted through several approaches such as: in-store
displays, store designs, packaging designs, store ambience and service and
persuasion of salespeople (Tendai and Crispen, 2009). In general internal promotion
is limited to the number of people who visit the company’s store and therefore the
simultaneous use of external promotion may be necessary in order to attract more
consumers to conduct a planned and impulse purchase at the store or online. External
promotion on the other hand involves a lower level of
interaction since it does not
 |