Direct & Internet Marketing

Overview of presentation

What is direct marketing ?

What is internet marketing ? Brief introduction to web terminology

Specific direct marketing techniques - online (new media) and offline (traditional) Seminar case study: Amazon.com / Amazon.co.uk

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Marketing
Marketing is the whole business seen from the point of view of its final result - that is, from the customers point of view
Peter Drucker

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Marketing
The management process responsible for identifying, anticipating and satisfying customers needs profitably
Chartered Institute of Marketing

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The change in marketing

Mass production, mass media, mass marketing

WASTAGE
Bespoke products, addressable media, personal marketing

PRECISION
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A Definition of Direct Marketing

Direct Marketing is a cybernetic relational marketing process which uses direct response advertising in prospecting, conversion and maintenance
Bauer & Miglautsch USA, 1989

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A Definition of Direct Marketing

The planned recording, analysis and tracking of customers direct response behaviour over time in order to develop future marketing strategies for long term customer loyalty.

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What Is Direct Marketing? it is a discipline within marketing

Relationship marketing One-to-one marketing Database marketing Permission-based marketing

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What Is Direct Marketing? it is a discipline within marketing

Segment Customise Target Request permission

Profile Personalise

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What Is Direct Marketing? it is a discipline within marketing

Key features

Direct Response Measurement Database .. continuity of contact

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What Is Direct Marketing? it is a discipline within marketing

In direct marketing, the initiation of the transaction is by the use of some form of media
eg. mail order catalogues, mail shots, telemarketing, direct response advertising, email

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More

Direct Marketing may sometimes replace advertising, sales promotion, market research and sales visits but its main function is to increase the gearing on these investments.

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More Profits, More Investment

Identify Prospects Target Media Analyse Database Increase Customer Value Cross-sell, Up-sell Renewal

Sell Products

Spiral of Prosperity

Get Customer Information

Talk to Customers Regularly Build Database & Analyse

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Profiling/Targeting

Geo Demographics

Age/Gender/Location
Purchase Behaviour, Values, Attitudes, Preferences

Lifestyle

Rented

Someone Elses List Previous Respondents

Compiled

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Analysis

Cost Per Response/Conversion Order Value Repeat Order Value Renewal Rate per Numbers per Response Return on Investment

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Setting objectives

What are your marketing objectives? What is your long-term advantage over the competition? Who is your target market? How are you going to reach your customers? Where does a website and other new media options fit into the mix of available options? How much can you afford to spend?

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SMART Objectives

Specific Measurable Aspirational Relevant Time specific

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Specifically

Who is the target market for your direct marketing activities?

Individual consumers Business customers Existing customers New customers

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Which media are relevant to reaching your target?

Television Radio Cinema Posters Door-to-door In-house magazine Telephone

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Which media are relevant to reaching your target?

Statement Stuffers Take One Leaflets and Samples Fax Vending Machines Internet Text messaging Picture messaging Digital / interactive TV
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Which media are relevant to reaching your target?

Be creative!

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New media options Which ones are direct ?

Internet and other digital advertising Online sponsorship Online and other digital affiliation Email Online PR Website and web-related activities Mobile device marketing (text/picture) Digital / Interactive TV

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Definitions of website types

Bricks and mortar

No online presence (regular, old style business)

Online and offline presence (eg. John Lewis store) Brochureware or e-commerce enabled E-business (infomediary, portal eg. CNN, Yahoo) E-commerce enabled (intermediary eg. Amazon)

Clicks and mortar

Clicks only

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Definitions of website types

B2B B2C C2B C2C

Marketplace Portal

Search engine
e-tailer (clicks only retailer)

e-auction house

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A small aside .

How direct is a website?

Selected quotes from ClickZ article

The Web has settled down to become a fact of life

People don't say "Wow!" - they just use it

Average online session length is less than 83 minutes People spend less time online and are getting set in their ways Consumers spend less time with all media Only 10 percent "trust and believe" Internet advertising Just 14 percent trust ads they see on TV Engage your customers

Delight your customers

Think "apps," not "ads"
Direct and Internet Marketing
Selected quotes from ClickZ article, Sean Carton, 22 April 02

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A small aside .

How direct is a website?

Online, the power is shifting to the customer side If you want to communicate online, you need to customise, personalise and get it right the first time and every time !

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Online marketing options in detail

Banner advertising

Banners Buttons Skyscrapers Interstitials Teletext

Eg. 468 x 60; 468 x 120; 468 x 540 Eg. 150 x 150; 120 x 60 Eg. 125 x 580; 120 x 600 Pop-ups, pop-unders eg. 250 x 250 Runs across top of screen, base of browser

See IAB.org

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Online marketing options in detail

Site sponsorship

Banners, buttons, skyscrapers, interstitials, content pages Hypertext links within site content Featured partner boxes Keyword search sponsorship In association with.., powered by.., secured by..endorsements

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Online marketing options in detail

Site affiliation

Site presence: banners, buttons, recommendation boxes, etc Email marketing: solus email, inclusion in customer newsletter Other forms of marketing online and offline

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Online marketing options in detail

Email Marketing

Communication emails (e-newsletters) Sales emails (solus, co-op, e-newsletter) Viral marketing Spam

note Data Protection Act rules opt-in as basis for collection of email addresses eg. product purchase, newsletter registration, competition registration eg. age, gender, lifestyle interest, purchase habits, location

Inhouse prospect and customer list

Outsourced list

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Online marketing options in detail

Online Public Relations

Quoted text/video on media support websites

eg. Guardian Unlimited eg. internet.com, ciao.com

Quoted text/video on dedicated online media sites

Quoted text within daily/weekly/monthly customer e-newsletter or email Chat rooms / Free offers sites

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Online marketing options in detail

Quality content Consistency of branding Customise and personalise (but dont over-step the mark) Opt-out clause from all direct marketing

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Online marketing options in detail

Search Engine Placements

Registration of Keywords; Registration of URL(s) Spiders and robots seeking:

Frequency of use of keywords and uncommon words on site, in html title, html body text, metatags, alt-text against images Regular content updates on homepage and leading pages Download speed of pages Popularity of URL and embedded links Uptime of site

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What about other new media?

47 million registered mobile phones in UK 3 hours spent watching TV/digital TV per day . 30 minutes spent reading newspapers or magazines per day

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Online marketing options in detail

Mobile device marketing

WAP-enabled mobile phones SMS MMS

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Online marketing options in detail

Mobile device marketing

WAP-enabled mobile phones SMS MMS PDAs XML and Java-enabled mobile devices

2,5G (internet access) (GPRS) 3G (streaming media access)

Location-based triggers
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Online marketing options in detail

Satellite & Interactive Digital TV marketing

Eg. Sky, HomeChoice, FreeView, NTL

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An integrated approach to direct marketing

Pure online marketing approach
Pure offline approach to drive traffic online Integrated, cross-media platform approach

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Conclusions

Set your marketing objectives and strategies

How does direct marketing activity fit into the overall marketing plan? Online direct marketing (new media) only Online and offline fully integrated approach Focus on consistency of message tone and style for maximum impact across media platforms

Evaluate the full range of media options

Benefits of online/offline co-ordination:

Awareness, Positioning, Lead Generation, Support Customer Decision Making Process, Facilitate Purchase, Retain Support, Build Loyalty and Encourage Re-buy

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Conclusions

Direct marketing

improves targeting measurable results historical and predictive management information encourages long term customer relationship development improved gearing on marketing activities

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