Professional Documents
Culture Documents
Learning Objectives
After studying this chapter, you should be able
to:
1. Define direct marketing and discuss its
benefits to customers and companies
2. Identify and discuss the major forms of direct
marketing
3. Explain how companies have responded to
the Internet and other powerful new
technologies with online marketing strategies
4. Discuss how companies go about conducting
online marketing to profitably deliver more
value to customers
5. Overview the public policy and ethical issues
presented by direct marketing
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Session Outline
1.
2.
3.
4.
5.
6.
7.
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No intermediaries
An element of the promotion mix
Fastest-growing form of marketing
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Convenience
Ready access to many products
Access to comparative information about
companies, products, and competitors
Interactive
Immediate response
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17-7
17-8
Direct-mail, Catalogues
Telephone marketing
Direct-response television marketing- DRTV
Kiosk marketing
Digital direct marketing
Online marketing
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Personalized
Easy-to-measure results
Lower cost outlay than mass media
Cost per contact more than mass media
17-10
Unlimited amount of
merchandise
Real-time merchandising
Interactive content
Promotional features
Dynamic
Challenges of Web-based
catalogs
Spam filter
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17-12
Benefits of Telephone
direct marketing
Purchasing
convenience
Increased product
service and
information
Interactive
Challenges of Web-based
catalogs
Unsolicited outbound
telephone marketing
Do-Not-Call Registry
TRAI restrictions
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17-15
Podcasts
Vodcasts
Interactive TV
17-16
Ring-tone giveaways
Mobile games
Ad-supported content
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Online Marketing
Marketing and the Internet
Internet is a vast public web of computer
networks that connects users of all types
around the world to each other and to a
large information repository
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Online Marketing
Online Marketing Domains
17-21
Online Marketing
Online Marketing Domains
Business to consumer (B2C) involves
selling goods and services online to final
consumers
Business to business (B2B) involves
selling goods and services, providing
information online to businesses, and
building customer relationships
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Online Marketing
Online Marketing Domains
Consumer to consumer (C2C) occurs on
the Web between interested parties over
a wide range of products and subjects
Blogs
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Online Marketing
Online Marketing Domains
Consumer to business (C2B) involves
consumers communicating with
companies to send suggestions and
questions via company Web sites
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Online Marketing
Types of Online Marketers
Click-only marketers
Click-and-mortar marketers
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Online Marketing
Types of Online Marketers
Click-only marketers operate only online without
any brick and mortar presence
E-tailers
Transaction sites
Content sites
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Online Marketing
Types of Online Marketers
E-tailers are dot coms that sell products and
services directly to final buyers via the Internet
Amazon
Expedia
Search engines and portals are ports of entry to
the Internet
Yahoo!
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Online Marketing
Types of Online Marketers
Internet service providers (ISP) provide
Internet connections for a fee
AOL
Earthlink
Shopping or price comparison sites
provide product and price comparison
information
Yahoo! shopping
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Online Marketing
Types of Online Marketers
Transaction sites take commissions for
transactions on their sites
eBay
Content sites provide financial, news,
research, and other information
ESPN.com
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Online Marketing
Types of Online Marketers
Click-and-mortar companies are brick-and-mortar
companies with an online presence
Advantages of click and mortar companies include:
Industry knowledge
Reputation
Online Marketing
Setting Up an Online Presence
Creating a Web site requires
designing an attractive site and
developing ways to get
consumers to visit the site,
remain on the site, and return to
the site
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Online Marketing
Setting Up an Online Presence
Types of sites
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Online Marketing
Setting up an Online Presence
Corporate Web site is designed to build
customer goodwill and to supplement
other channels, rather than to sell the
companys products directly to:
Provide information
Create excitement
Build relationships
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Online Marketing
Setting Up an Online Presence
Marketing Web site is designed to engage
consumers in interaction that will move
them closer to a direct purchase or other
marketing outcome
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Online Marketing
Designing Effective Web Sites
To attract visitors, companies must:
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Online Marketing
Designing Effective Web Sites
The seven Cs of effective Web site design
1.
Context
2.
Content
3.
Community
4.
Customization
5.
Communication
6.
Connection
7.
Commerce
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Online Marketing
Designing Effective Web Sites
Context is the sites layout
Content is the sites pictures, sound, and
video
Community is the sites means to enable
user-to-user communication
Customization is the sites ability to tailor
itself to different users or to allow users
to personalize the site
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Online Marketing
Designing Effective Web Sites
Communication is the way the site enables
user-to-user, user-to-site, or two-way
communication
Connection is the degree that the site is
lined to other sites
Commerce is the sites capabilities to
enable commercial transactions
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Online Marketing
Designing Effective Web Sites
The eighth C
To keep customers coming back, the site
needs to constantly change
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Online Marketing
Placing Ads and Promotions Online
Forms of online advertising
Display ads
Search-related ads
Online classifieds
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Online Marketing
Placing Ads and Promotions Online
Display ads
17-41
Online Marketing
Placing Ads and Promotions Online
Search-related ads are ads in which textbased ads and links appear alongside
search engine results on sites such as
Google and Yahoo! and are effective in
linking consumers to other forms of
online promotion
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Online Marketing
Placing Ads and Promotions Online
Other forms of online promotion include:
Content sponsorships
Alliances
Affiliate programs
Viral advertising
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Online Marketing
Placing Ads and Promotions Online
Content sponsorships provide companies with
name exposure through the sponsorship of
special content such as news or financial
information
Alliances and affiliate programs are
relationships where online companies promote
each other
Viral marketing is the Internet version of word-ofmouth marketing and involves the creation of a
Web site, an e-mail message, or another
marketing event that customers pass along to
friends
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Online Marketing
The Future of Online Advertising
Online advertising provides a useful purpose
as a supplement to other marketing
efforts and is playing an increasingly
important role in the marketing mix
17-45
Online Marketing
Creating or Participating in Web Communities
Web communities allow members to
congregate online and exchange views on
issues of common interest
iVillage.com
MyFamily.com
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Online Marketing
Using E-mail
Marketers are developing enriched
messages that include animation,
interactivity, and personal messages with
streaming audio and video to compete
with the cluttered e-mail environment
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Sale of databases
Microsoft
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The End
Channels
Direct mail
Catalogues
Telemarketi
ng
Interactive
TV
Kiosks
Websites
Mobile
devices
Convenience
Time saver
Vast choice of merchandise for customer
Price comparison
Order goods for themselves and others
Build a continuing relationship with each
customer- Marketers benefit
Customize & personalize offer- Sellers
benefit
Direct Mail
Options
Carpet bombing- mass mailing, low rate of
response, treated as junk mail
Data base marketing- define prospect
base, high response rate
Interactive marketing- use of telephone 7
web
Opportunity to up-sell and cross sell
Real time personalized marketingcustomisation
The stages of
Direct Mail campaign
Objectives- response rate
Target markets & prospects- sharply
defined
Offer elements
The product
The offer
The medium
The distribution channels
Creative strategy
Any Questions?