Indirect Marketing - Definition, Importance & Example
Published in Marketing and Strategy Terms by MBA Skool Team
What is Indirect Marketing?
Indirect Marketing is a marketing approach in which the products and services are not promoted to target customers using the traditional paid, obvious and direct marketing channels like TV, Print, Digital etc. but are promoted in a more subtle indirect way. In indirect marketing focus is on promoting the products in a more organic way with innovative channels like content marketing, thought leadership and other media.
In the context of marketing there are two types of marketing, direct and indirect. The channel in which there is no direct communication to customers by the companies is mostly known as indirect marketing. It is treated as the next stage for brand recognition and awareness.
Importance of Indirect Marketing
Indirect marketing is becoming very important in modern world. Customers are exposed to a lot of direct marketing over a day. TV, print, radio, digital, newsletters and other promotions are used a lot by companies to promote the products and service offerings. Over the time, customers would or may start ignoring them or the promotional campaigns would become less effective.
Indirect marketing gives a good option to companies to actually show the effectiveness of the products to the customer using more subtle and indirect channels. Knowing about a product on a blog or through a podcast with actual usage to the customer can go long way in building trust. Positive brand association with a category or a problem can be formed through indirect marketing. Only direct marketing may not work in today's connected world hence indirect way of marketing can really consolidate and help a brand standout.
When customers are aware of the product and only require to be reminded about the product than indirect marketing will be used. Indirect marketing is generic in nature and sometimes no segmentation and targeting is required. The retention to customers is made by presenting them in symbolic representation without discriminating within the customers. In indirect marketing we cannot record the immediate response of the customers but questionnaire can be used to take response in future.
1. It makes a customer more connected with the brand
2. It helps company in the longer run as customers form an image of the brand in relation of a solution when they needed it.
3. It can cost less as compared to direct marketing which is campaign oriented
4. Indirect marketing can not only promote a product but can also connect and solve an issue for a customer before a sale.
Disadvantages of Indirect Marketing
1. It is at a high level and required lot of research and commitment on part of the company to create marketing through indirect channels.
2. It is not easy to execute and monitor when compared to traditional direct marketing
3. Not every company and brand can do successful indirect marketing
Example of Indirect Marketing
Social media accounts of brands with organic content to connect with customers is a good example. Many big brands have their official social media profiles where they post about new products, share articles about their products, interviews, rankings etc. which helps them standout from their competitors. Here a customer is connecting with the brand on their own without any direct channel being used. Well know n brands have lots of customers connecting through these indirect channels.
Webinars are also another example of indirect marketing where companies conduct webinars on relevant issues and position themselves as leaders along with networking with B2B as well B2C contacts.
Hence, this concludes the definition of Indirect Marketing along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.