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Week 10 Handout

Overview
Together with the boom of internet usage and digital technologies/devices is the surge in internet buying as well
as the dramatic transformation of direct and digital marketing. After learning about all the elements of the
marketing mix and delving deeper into the different tools of marketing communications, we now look at the
trending tools of today’s marketplace, i.e. direct and digital marketing, which should both be carefully
integrated with the other elements of the promotion and marketing mixes in order to maximize the benefits of
present technologies in successfully creating customer engagement, value, and relationships through a more
personal and satisfying online customer experience.

Learning Objectives
Below are the learning objectives for Module 10:
1. Explain the definition, importance, and forms of direct and digital marketing ( 01 Direct and Digital
Marketing )
2. Examine various online marketing strategies ( 02 Online Marketing )
3. Discuss how social media and mobile marketing is used effectively ( 03 Social Media and Mobile
Marketing )
4. Identify the traditional direct marketing forms and the issues in direct marketing ( 04 Traditional Direct
Marketing )
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01 Direct and Digital Marketing

Introduction
With the boom of internet usage and digital technologies nowadays, direct marketing is greatly evolving and
being widely adopted as companies narrow down their target segments and explore the use of digital marketing
through online, social media and mobile marketing channels. Direct and digital marketing involve engaging
directly with carefully targeted customers, i.e. individual consumers as well as customer communities and
groups. The aim is to obtain immediate response and develop sustainable customer relationships by creating
marketing offers and content that are tailor fitted to the needs and interests of narrowly targeted segments or
individual buyers in order to build customer engagement, brand community and sales.
Today, direct marketing is not only defined as a direct distribution or marketing channel, involving no
intermediaries in reaching and delivering to customers, but also as an approach integrated with digital marketing
for directly engaging targeted customers and creating brand community. In fact, although there are several
companies using direct marketing as a supplementary channel (e.g. omni-channel retailing), there is a growing
number of companies using direct and digital marketing as their sole approach and a complete model for doing
business, reaching out and selling to their target customers through their online, mobile and social media
channels only (e.g. Google, Netflix, Facebook, Amazon).

Benefits of Direct and Digital Marketing

Direct and digital marketing poses several benefits to both buyers and sellers, which are enumerated in the
diagram below. All of which highlight how direct and digital marketing is such a powerful tool for building
customer engagement, community, and personalized relationships, as it influences and moves customers
throughout the buying process.
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Forms of Direct and Digital Marketing

Direct and digital marketing have become the fastest-growing form of marketing. Nowadays, direct marketing
becomes more and more internet-based, and digital direct marketing is taking up a big chunk of marketing and
advertising spending, even overtaking television advertising, as consumers spend a great amount of time using
their smartphones, tablets, computers, internet-ready TVs, and other digital devices.
The major forms of direct marketing are the traditional direct marketing tools and the new digital direct
marketing tools, as illustrated in the diagram below and to be elaborated in the succeeding pages. In any case,
it is important to know both sides and find ways to blend them together into an effective and fully integrated
marketing communications strategy. The ultimate goal remains the same- to create customer value and develop
lasting customer relationships; both forms of direct marketing tools aim to achieve this by building direct
customer engagement and community.

Additional Sources:

• Watch this video, expounding more about how the traditional and digital forms complement each other
and can benefit a company by attracting more of their target customers:
https://www.youtube.com/watch?v=reB8bm7330A
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02 Online Marketing
Introduction
With the rise of the digital age and the so-called “Internet of Things” (IoT) as 60% of the world population are
able to have access to the internet (refer to the additional resources at the bottom of this page for more world
statistics), people and companies are able to connect digitally with information, brands, and each other anytime,
anywhere. As such, customers’ notions of convenience, speed, price, product information, service, and brand
interactions have been transformed, giving marketers a whole new way to create customer value, engage
customers, and build customer relationships.
Digital usage and impact is expected to continuously grow, as more and more people are spending more and
more time online and even resorting to online shopping/buying. Because of this, numerous companies now
market online (i.e. marketing using the internet). In fact, as mentioned earlier, some companies have even used
the online channel as their sole approach and model for doing business, as enumerated in the diagram below
with a few familiar examples. Indeed, it’s already quite rare to still find a company that doesn’t have a
substantial online presence, as even the traditional ones are now starting to create their own online channels,
even by just having their own company website and/or company email.

Websites and Branded Web Communities

One of the basic forms and first steps of online marketing is creating a company website. Although websites
vary greatly in purpose and content, as defined by the usual forms of websites illustrated in the diagram below,
the key objective is more than just creating one, but creating enough engaging and valued content to get
consumers to visit the site, stick around, and come back again. Most people prefer substance over style and
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function over flash; hence, it is very important to create effective website content by providing useful
information, interactive tools, updates, and other exciting features in order to successfully generate customer
engagement and build closer customer relationships.

Here’s a few more tips in creating an effective website. Can you think of a successful website in our local
market scene, exemplifying all these qualities in their company website?
https://www.youtube.com/watch?v=06jf_fh3JVs

Online Advertising
Companies are now shifting more of their marketing efforts to online advertising given more consumers
spending more time online as well. Online advertising has become a major promotional medium, as it has
become effective in attracting more consumers to visit company websites and other online channels.
The main forms of online advertising are online display ads and search-related ads, which now account for the
largest portion of companies’ digital marketing budgets. While online display ads may appear anywhere on an
internet user’s screen and incorporate animation, video, sound and interactivity, search-related ads or
contextual advertising mostly appear as text- or image-based ads and links alongside search engine results.
Let’s take a closer look at the difference between the two by watching the video below. Which form of online
advertising do you see more often?
https://www.youtube.com/watch?v=95lCjI96ymI
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Email Marketing
Despite the many channels of online marketing, email marketing remains the top choice and one of the most
important digital marketing tools given that email is now accessible in mobiles devices and a large percentage
of people prefer that companies communicate with them via email. In fact, when used properly, email can be
the ultimate direct marketing medium, as emails have evolved from text-only messages to colourful, inviting,
and interactive ones- more highly targeted and personalized for more effective relationship-building.
Then again, because of the abusive use of email marketing, the growing number of spam emails (i.e.
unsolicited, unwanted commercial email messages) has created a fine line between emails that add value for
consumers and emails that already seem intrusive and irritating. As such, permission-based email marketing is
now being practiced, sending emails only to customers who opt in. This way, customers can choose to receive
only what they want to get, generating higher return rates as companies are able to target carefully those
customers likely to welcome and positively react to their promotional messages.
Here are some of the best practices for email marketing. These tips can serve as a very useful checklist when
you decide to review your partner company’s email marketing channel (if any) or if you will recommend for
them to have one.
https://www.youtube.com/watch?v=TV_yEiVpCjI

Online Videos
Because the online video audience is soaring, posting digital video content on various sites has become another
effective form of online marketing, ranging from instructional videos and public relations pieces to brand
promotions and brand-related entertainment. Online videos also serve as a part of multi-platform video
campaigns, bridging traditional TV with online and mobile media in order to extend reach and impact.
Nowadays, going viral is what most marketers aim, as viral marketing is the digital version of word-of-mouth
marketing, which can be very inexpensive since the customers are the ones already seeking them out and
passing them along to their network of friends. Then again, given the transforming notions and needs of
consumers nowadays, it poses a great challenge for marketers to create and seed content online that will actually
be liked by and strike a chord with consumers for them to actually make it viral. Hence, it takes a different level
of creativity and depth of consumer insights to really capture the attention of target customers and influence
them enough to spread it to their respective circles, with a chain reaction that produces successful viral
marketing.
Here are some examples of video marketing ads that became viral in the international scene, yet some of which
actually reached our network and you’ve probably seen already before.
https://www.youtube.com/watch?v=E12gnySyA7I

Can you think of other video marketing ads that went viral in the Philippines? Visit this link for some examples
of viral video marketing campaigns in the local scene:
http://www.innov8tivedd.com/3-examples-successful-video-marketing-campaign-in-ph/
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Blogs and Other Online Forums

Blogs are online forums people and companies use to post their thoughts and other content, and marketers now
tap into the blogosphere with brand-related blogs in order to reach customer communities and provide a channel
for them to interact and share product experiences. Some marketers even use third-party blogs or blog
influencers to help get their messages out and have a wider reach.
Companies utilizing this marketing tool have an avenue to enter into consumer online and social media
conversations in a more personal and even cheaper way. Even though blogs can be difficult to control since
consumers mainly control them, companies who can monitor and maximize such blogs can use it to their
advantage in engaging more customers in more meaningful relationships and gather substantial insights that can
improve their marketing programs.
Similar to online videos, blogs can also go viral if it’s capturing enough for people to participate in and even
share with their networks. Here are some tips to make blogs serve their purpose as a marketing tool and even
become viral.
https://www.youtube.com/watch?v=D0QJgx_C4rc

Additional Sources:
• You may refer to these websites to see the percentage of world population using the internet as of 2020:
https://www.statista.com/statistics/617136/digital-population-worldwide/
https://www.internetworldstats.com/stats.htm (Click on Asia’s statistics and check out the above world
average penetration rate of internet users in the Philippines)

• To learn more about the importance of websites, you may read through this article:
https://www.lyfemarketing.com/blog/importance-of-a-website/

• Here are some of the current web design trends that can help companies boost the visual appeal of and
attract more users to their websites. https://www.youtube.com/watch?v=LadpP5XR1aM

03 Social Media and Mobile Marketing

Introduction
Various online social media and other digital communities have boomed together with the fast-growing number
of people using the internet and interacting online. Such independent and commercial online social networks
became the most popular channel for people anywhere around the world to congregate, socialize and share any
kind of content. As such, marketers are now riding the huge social media wave, following and taking advantage
of venues wherever consumers congregate.
Social media marketing has become a very important component in businesses. In fact, a lot of small businesses
nowadays humbly start with only social media as their marketing channel. Because of this, the social media
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themselves are transforming their communities into a suitable platform for marketing content, benefiting both
social media users and brand/business owners.

Social Media Marketing

Today, we can see various social media networks for just about every interest, hobby, or group as well as for
numerous brands and businesses- be it large companies or small businesses. Marketers can engage in social
media either by using existing social media or setting up their own, both with the main goal to create substantial
brand communities in order to engage their target customers and build deeper customer relationships.
Although we are already seeing a number of advantages companies gain from social media marketing, it also
presents some challenges given its vast range of possibilities that can actually boomerang and even go against
the company’s own marketing efforts if not handled well. Even though social media provides a venue to make a
brand a part of consumers’ conversations and even their lives, marketers have to earn the right to be there by
becoming a valued part of the online experience brought about by a steady flow of engaging content. The
diagram below enumerates the advantages and challenges posed by the fast-growing trend of social media
marketing.
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Managing social media content may be very challenging given the complexity of consumer behaviors and
interactions. However, maximizing its benefits and effectively using it can lead to greater returns. In fact,
several large companies are now designing full-scale social media efforts that will support and be integrated
with the other elements of a brand’s marketing strategy. Integrating a broad range of diverse media aims to
create not just online brand-related social engagement and customer community, but also a stronger influence
on customers’ buying behaviors into actually patronizing the brand.
Find out more about the benefits of utilizing social media marketing by watching this video. What is your top-
of-mind brand/company that has effectively employed social media marketing?
https://www.youtube.com/watch?v=9m45nVsvvEY&t=1s

Mobile Marketing
Mobile marketing enables marketers to engage customers anytime, anywhere during their buying and
relationship building processes. This involves delivering their marketing messages, promotions, and other
content to on-the-go consumers through their mobile devices, as mobile phones, smartphones, tablets and other
devices have largely proliferated.
Nowadays, most people rely heavily on their mobile devices, even considering them as a handy shopping
companion. Mobile devices can provide on-the-go product information, price comparisons, product reviews and
access to deals and coupons, which then provides a rich platform for engaging consumers more deeply as they
move through the buying process. Mobile marketing has become effective in stimulating immediate buying,
making shopping easier, and even enriching brand experience as it creates substantial engagement and impact
through mobile online sites and/or mobile apps.
Similar to other forms of direct marketing, mobile marketing should be used responsibly and effectively to
avoid creating consumer irritation over interrupting mobile ads. Again, the key is to attract consumers by
providing genuinely useful information and offers that will influence them and make them want to engage.
Let’s take a look at some of the best practices on how to engage customers using mobile marketing by watching
the video below. As a consumer, do you think mobile marketing is effective or becoming overly used and
bordering annoying? What brands/companies can you think of that use this tool effectively and successfully in
the Philippine market?
https://www.youtube.com/watch?v=7Xi7sC-JZaI

Additional Source:

• Here’s an updated world tally on the penetration rate of mobile devices. This shows us the growing
reach of mobile marketing. https://www.bankmycell.com/blog/how-many-phones-are-in-the-world
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04 Traditional Direct Marketing

Introduction
Online and social media marketing are just part of the existing tools of communication to reach out to and
engage with customers. Most companies still use digital marketing alongside other approaches in order to create
a fully integrated marketing communications strategy. Despite the surge in digital marketing tools, traditional
direct marketing tools are still relevant and heavily used today.

Forms of Traditional Direct Marketing

The diagram below enumerates and describes the different forms of traditional direct marketing.
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Although traditional direct marketing tools somewhat still thrives, most of them are already evolving, as they
get integrated with digital marketing tools. For instance, old-school catalogs used to be solely printed copies
sent out to customers or made available in-store. Nowadays, online catalogs are being created to maximize the
benefits of an online platform. Moreover, TV marketing is also evolving because of interactive TVs, which rely
on the internet to enable real-time interaction with customers and immediate purchasing.
What value do you think traditional direct marketing tools still put on the table? How do you think companies
that still use purely traditional marketing forms can succeed in today’s fast-changing environment, especially
during the time of the pandemic?

Issues in Direct Marketing

Although there are several advantages of direct marketing, aggressive tactics may bother or even harm
consumers. The diagram below lists down such consumer issues identified with direct marketing.

With these alarming concerns, especially on consumer privacy, government initiatives are being put into place
to regulate how online, social media, and mobile operators can obtain and use consumer information (e.g. Data
Privacy Act). This calls for strong actions from companies to monitor and prevent privacy abuses, which can
then lead to increasingly negative consumer attitudes as well as lower response and engagement rates. This is
the reason why direct marketing must be used for carefully targeted customers, who are willing to respond to
and will appreciate such marketing tactics. In the end, delivering customer value is still the top priority- no
matter what medium or channel or strategy is used, the main objective is to effectively engage your target
customers and develop sustainable and profitable relationships with them.
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Week 10: Wrap-up and Looking Ahead

Wrap-up
With the fast-changing environment and transforming consumer needs brought about by the rise of the digital
and internet age, it is important for marketers to explore the digital world and employ tools that will enable
faster and wider reach of customers. Such more accessible and even more personalized digital marketing tools
create added customer value all throughout the buying process and allow more meaningful customer
engagements, hence closer and even more sustainable customer relationships, which is ultimately the main goal
of the entire marketing process.

The Marketing Process

Looking Ahead
After completing all of the modules for this course and learning about the basics of marketing, you are now one
step closer to finishing your marketing plan term project. All the lessons discussed throughout the term are
helpful for you to create customer value-centered strategies for your respective partner company/business.
Always bear in mind the ultimate goal, reiterated in every module- to engage the target customers and develop
stronger and more profitable relationships with them by providing superior and sustainable customer value and
satisfaction.