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TRIMILLENNIUM MANAGEMENT : CUSTOMER
COMMUNICATIONS
Mediums will still be the message !By Shunu Sen
People communicate with one another, and, generally speaking, on a
one-to-one basis. This has been so for many many years. From the dawn of history, the
simplest way to do this has been through face-to-face communication. However, as it became
necessary to talk to people over long distances, mankind discovered new ways of doing so.
However, consumer communications, in which a buyer is being spoken to by a seller, is a
more recent occurrence.
For many years, we had town-criers, who not only announced
news, but also communicated bargains from the marketplace (which they were paid to
announce). Then, we had news-agents who collected advertisements for the newspapers they
represented. Still, the history of advertising is relatively recent.
For, while the medium changed, from leaflets and pamphlets
to newspapers and magazines and, eventually, to radio and TV, the basic idea remained the
same: a seller displaying his goods in public, and in competition with other sellers to,
often, a diffident audience through a medium which was, essentially, being read, heard or
seen for either education or entertainment. Under such a situation, consumer communication
was an intrusion of little or no interest to many who were really involved in watching the
medium for some other purpose.
However, the process itself had several beneficial effects.
First, sellers could display their wares to many potential buyers. This led to
competition, product improvement, lower prices, and better consumer understanding and
information. Secondly, and equally importantly, the sellers paid handsomely for the use of
the medium resulting in a flow of income to the owner of the medium. This allowed the
owner of the medium to make the medium available to potential viewers and listeners free
of cost, or at a small fee. Everyone benefited: the medium, the messenger, and the man on
the street.
But, for most of the 20th Century, consumer communication
was one voice talking to many. An advertisement appearing in a newspaper or a colour
magazine was read and processed by the minds of many readers. In the case of radio and TV,
it was a single message at one point in time, which the owner of the brand or product idea
would beam to hundreds, even thousands of viewers.
The advertiser had no opportunity to either select his
audience-beyond some very broad specifications-or have a tailor-made message for every
single member of the audience. The fact that there was a growing demand for this
particular need led to custom-made packages being offered by newspapers, magazines, and
broadcasters. But it was still a question of one message going to many, and the choice of
a specific audience was limited to broadly describing the audience in terms of socio
economic characteristics or age bands, language and, to some extent, income and
geographical distribution.
Enter Direct Marketing. The focus of successful direct
marketing is to enable the seller to narrow the focus of his communication to specific
individuals, and, if possible, provide her with tailor-made solutions to her product
needs. While Direct Marketing, where a seller communicates a sort of tailor-made
communication to a particular type of individual, is not particularly new in most parts of
the world, it has not made real progress within India. This is, primarily, due to the lack
of suitable databases. But it is still not easy to contact the particular man you wish to
talk to at the particular time you wish to do so.
This leads us to the real revolution that started in the
closing years of the 20th Century, which will continue in the first part of this
millennium, and jolt the entire field of communications. This change is, in some way, due
to the computer, the instrument on which I am writing this essay. The computer, along with
the Net, will change consumer communications beyond all recognition in the years to come.
This is because it is possible for the buyer to contact the seller, and the seller to
respond to the buyer in specific terms, which meet the buyer's needs.
This conversation will take place between the buyer and the
seller; it will be a private conversation. The two-way communication will enable the
seller to display her or his goods; the buyer will show her or his interest-or the lack of
it-in purchasing the product; and the seller will then make her or him an offer on a
medium shared by them, and not on a third-party channel. Competition will continue to be
rampant as the Net will contain many such offerings, and the buyer need only choose
between the offerings which are made available to her or him at the specific point in time
when she wishes to make the purchase-decision.
This new form of consumer communication, which in itself
subsumes the act of commerce, is in its infancy. Yet, we can see several examples of it.
For instance, Amazon.com offers almost any known publication for purchase at a competitive
price, anywhere in the world. In order to help you make your choice, you can not only read
reviews by experts and specialists in the field, but also the comments of other customers
who have read the book. Indeed, you are free to leave your comments or ask your questions.
Take the example of the computer company Dell. You can log onto their Website and actually
configure a computer-at your price. This machine, which may be unlike any other machine in
the world, will be delivered to you in 48 hours. For almost any questions or help, you
need go no further than your computer, and only in the rarest of cases will it be
necessary for Dell to send a serviceperson to your house.
Indeed, from a one-seller, many-buyer scenario, consumer
communications in this millennium will become a many-sellers, one-buyer scenario. There
are many sites which can help you choose between different airlines and different hotels;
thus, an individual can make her or his travel plans on her or his terms, and at a cost
far less than what it would have taken through the traditional route. The Net also
provides opportunities for advertising to specific target-groups, such as the non-resident
India residing in the US, or the housewife in South Delhi. This was not possible in
traditional forms of communication between buyers and sellers.
And so, where will we go as we look further into this
century? I just do not know. All that one can say is that we have just touched the surface
of the relationship that a buyer can have with multiple sellers. And this is a
relationship that will grow in the years to come in many different ways and myriad shapes.
Siddharth Sen is the CEO of quadra
advisory services
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