The Teleshopping Business in India


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Case Details:

Case Code : MKTG036
Case Length : 12 Pages
Period : 1990 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Varied
Industry : Media and Advertising
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Offering 'Miraculous' Products! Contd...

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 and more and more customers were showing readiness to try innovative products.

Background Note

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 in the mid-1980s.

It is one of the direct response marketing techniques. Other major direct response marketing techniques included catalog and direct mail retailing, and interactive/online home shopping. While in catalog/direct mail retailing, product details are communicated to the customer through a catalog or mailer (letters, brochures, pamphlets), in interactive/online shopping, product details and pictures are sent directly to the customers through an electronic medium such as the Internet...

Excerpts >>


 

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