Thu, 16 Jun 1994

Direct sale system needs major change, says expert

JAKARTA (JP): American marketing expert Dan Ginsburg observed here yesterday that a trend to sell and promote products directly to the customers in a personal way through direct advertising is needed these days because of changes in many aspects of life.

Today many people do not have enough time to shop, so the use of consumer credit has increased the buying power of the average consumer and the instant gratification mentality of younger consumers given to impulse spending, Ginsburg, president of Kobs and Draft (K & D), a Chicago-based direct marketing advertising agency network, noted.

"These days the distribution chain is complicated and creates a gap that separates the consumer and the seller. The direct marketing advertising accommodates an ability to communicate personally," said Ginsburg.

Ginsburg explained that direct marketing is characterized by advertising leading to a measurable action, measurement and analysis of responses, existence of a marketing data base, media selection geared to target markets and financial accountability.

He made the remarks yesterday at a news conference after establishing K & D operations here through a local company, Komunika Integrated Communication.

"Direct marketing efforts give not just an idea about the product, but all the information needed to make a buying decision while the advertisement is the marketplace," Ginsburg said after signing a cooperation agreement with Komunika.

Komunika Integrated Communication, established in 1991, yesterday penned a strategic alliance agreement with K & D Worldwide which claims to be the fourth largest direct marketing advertising agency network in the world.

Under the agreement K & D will provide Komunika Integrated communication with know-how and strategic advice.

"K & D will give advice to be implemented in certain advertising campaigns based on the experiences of other countries that have the same background," Ginsburg said.

K & D has already concluded similar deals in 20 other countries, he added.

"We will provide our client with service for direct marketing, we will create the advertising equipped with response coupons for more information, then send sales to those who respond to the advertising," said Ricky Subrata, president director of Komunika, after the signing ceremony. (yns)