M.Manoj prabhakar
L.G. Prabhu
S.Vasand
C.Vinodh kumar
Abstract
Permission marketing was popularized by Seth Godin in 1999. In this type of marketing
customer provides the permission to receive certain type of promotional offers. Here the
brands offer an opportunity for customers to volunteer to be marketed to. Main positive
aspect of permission marketing is that it guarantees that consumer pay more attention to the
marketing message. It allows the marketer to express their messages slowly and calmly. The
traditional approach that is followed in marketing is otherwise known as interruption
marketing. It is named so as it interrupts consumers routine work schedule and delivers the
message. As the clutter of brands is increasing with lightning speed, it is highly impossible to
capture the attention of consumer in interruption marketing unlike permission marketing.
This paper clearly explains the contrast between the two approaches and explains the
conceptual model of permission marketing.
Introduction
What does marketing aims at? What do the brands expect from the customers? Marketing
mainly aims at grabbing the valuable attention of customers. It expects the customers to pay
attention towards their marketing messages they deliver. Internet has become an important
Platform for many brands to convey their message and grab the eyeballs of customers. Clutter
is a big problem in World Wide Web. Internet pages are increasing beyond imagination. For
example, the bow tie research study by IBM, Compaq and Alta Vista reports sampling over
600 million pages and the search engine, Google, claims to index over a billion pages. Search
engines and Internet portals were attempts at helping consumers navigate through this clutter.
But when individuals search for information at these places, they are presented with hundreds
of selections. Consumers will not go through all selections and are most likely to focus on the
first few results. Hence, search engine optimization has become an important research area.
However, due to heterogeneity in the algorithms used by search engines, it is not always
possible for ones site to be featured in the top few. Therefore, it is clear that search engines
alone will not help consumers find sites relevant to their needs. Increasingly, search engines
tap into smaller and smaller fractions of the overall Web with no engine capturing more than
16% of the Web content. Email is still one of the cost effective way to contact the customers.
It is cheaper than the usual traditional approaches that in followed in marketing. According to
American management association more than half of the marketers rely on E mail. Growth of
E mail and internet usage led to a new approach to marketing which is known as Permission
marketing
Interruption marketing
The traditional approach that is followed is called as Interruption marketing. Because the key
idea of all adds is to interrupt what the viewers are doing in order to get them to think about
something else. Advertising according to Seth Godin is The science of creating and placing
media that interrupts the customer and get him or her to take some action. But without
interruption there wont be any action and without action advertising flops. The marketplace
for advertising is becoming more and more cluttered. So it became increasingly difficult
interrupt the customer. Every day we are exposed to more amount of media. Most of them are
optimized to interrupt what we are doing. And it is getting increasingly harder to find a little
peace and quiet. Brands offer products from womb to tomb. They go in for mass advertising
to capture the eyeballs of customer and to grab their attention. There are advertisements from
airports to urinals. It is highly impossible for customers to pay attention to every
advertisement they come across.
Permission marketing
Permission marketing makes a lot of sense compared to spam mails. Sender of spam realizes
two things. Firstly the cost of obtaining a new E mail address is minimal and so the marginal
cost of obtaining a new additional customer is nearly zero. There are various software
programs to obtain E mail addresses from websites for no cost. Moreover these marketers get
into deceptive practises. Therefore many marketers have slowly adopted permission
marketing. Though this idea of customer initiated marketing is a new one it is closely related
to two marketing concepts. Relationship marketing by Sheth and Parvatiyar in 1995 and oneto-one marketing by Peppers and Rogers in 1993 are closely related to the concept of
permission marketing. Relationship marketing proposes that marketers should focus on long
term relationship with customers rather than single transaction. The core idea of one-to-one
marketing is that marketers must think of segment of size one and customize the marketing
mix to each customer. Permission marketing builds on relationship marketing and one-to-one
marketing by adding a new twist known as customer-initiated-targeting. Some scholars
believe that when customers target marketers and control the term of relationship it will lead
to increased attention and thereby will result in increased participation.
Permission can also be used as a metric to evaluate a companys customer databases.
Consider two customer databases. Databases 1 has been assembled by customers providing
the firm permission to send them marketing offers from other companies. Database 2 has
been put together by customers not giving permission to share any information or any
promotional messages to them. The level permission provided to the marketers is greater in
Database 1. As a result, it is worth more. This is big issue for Internet-based-companies such
as Amazon.com that have claimed that their real asset is their customer database.
Five steps of permission marketing
be inefficient for a consumer to sign up with several firms in the manner of model 1, the other
models are likely to be more common.
Advertiser
Customer
Partner 1
Partner 2
Portal/Media Site
Consumer
Mm
Partner 3
Advertiser 1
Advertiser 2
Infomediary
Consumer
Advertiser 3
Partner 1
Consumer
Advertiser 2
Infomediary
Consumer
Advertiser 3
Partner 2
Consumer
Advertiser 1