Chapter Outline

A. The New Direct Marketing Model

B. Benefits of Direct and Digital Marketing to
Buyers
C. Customer Databases and Direct Marketing
D. Forms of Direct and Digital Marketing
E. Online Marketing and Digital Marketing

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 Direct and Digital Marketing

•Engage directly with targeted

individual consumers and
customer communities to
obtain an immediate response

•Build lasting customer

relationships, engagement,
brand community, and sales

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 A. The New Direct Marketing Model

• Most companies still use direct marketing as a

supplementary channel or medium.
• For many companies today, direct marketing
constitutes a complete model for doing
business.

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 Rapid Growth of Direct and
Digital Marketing
• Fastest-growing form of marketing
• Direct marketing becoming more Internet-
based
• Claims a surging share of marketing spending
and sales
– Online display and search advertising, video, social
media, mobile, e-mail

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 B. Benefits of Direct and
Digital Marketing to Buyers

• Convenient, easy, and • Low-cost, efficient, and

private speedy
• Easy buyer-seller interaction • Build close, personalized,
• Quick access to products interactive, one-to-one
and relevant information customer relationships
• Brand engagement and • Offer greater flexibility
community

Benefits to Benefit to
Buyers Sellers
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 C. Customer Databases and Direct
Marketing
A customer database is an organized collection
of comprehensive data about individual
customers or prospects, including geographic,
demographic, psychographic and behavioral
data.

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 D. Forms of Direct
and Digital Marketing

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 Marketing, the Internet, and
the Digital Age
• Digital and social media marketing: Using
digital marketing tools to engage consumers
anywhere, anytime via their digital devices
• Changed customers’ notions

• Multichannel marketing: Using both

traditional and digital marketing channels

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 E. Online Marketing and Digital
Marketing
Online marketing is Marketing via the Internet
using company Web sites, online ads and
promotions, e-mail, online video, and blogs.

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 Online Marketing

• Types of Web Sites

– Marketing Web sites: Interact with consumers to
move them closer to a direct purchase or other
marketing outcome
– Corporate (Branded community) Web sites: Present
brand content that engages consumers and creates
customer community around a brand

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Online Marketing Companies

Online
Marketing
Companies

Click-and-
Click-only
mortar

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 Online Marketing Companies

•Click-only companies operate only on the

Internet.
•Click-and-mortar companies are traditional
brick-and-mortar companies that have added
online marketing in their operations.

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 Think About It

 Following is Click-only or Click-

and-mortar companies?
 eBay
 Amazon

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 Online Advertising

• Online advertising is advertising that appears

while consumers are browsing the Web,
including display ads, search-related ads,
online classifieds and other forms.
• New rich media ads now incorporate
animation, video, sound and interactivity.

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 Online Advertising

• The largest form of

online advertising is
search-related ads or
contextual advertising

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 Placing Ads and Promotions Online
• Content sponsorships - Companies gain
name exposure on the Internet by sponsoring
special content on various Websites.

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 Online Videos
• Posting digital video content on brand Web
sites or social media sites such as YouTube,
Facebook, and others.
• Can engage millions of consumers
• Its included ads that a company makes
primarily for TV but posts online before or
after an advertising campaign to extend reach
and impact.

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 Online Videos
• Viral marketing: Videos, ads, and other
marketing content that customers seek out or
pass along to friends

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 E-Mail Marketing

• E-mail marketing is the sending of highly

targeted, tightly personalized, relationship-
building marketing messages via e-mail.
– Spam :The unsolicited, unwanted
commercial e-mail messages that clog up
e-mail boxes.

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 Blogs and Other Online Forums
• Online journals of narrowly defined topics
where people and companies post their
thoughts and other content
– Benefit: Offers a fresh, original, personal, and
inexpensive way to enter into consumer online
conversations
– Limitation: Consumer-controlled medium

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 Social Media Marketing
• Social media: Independent and commercial
online communities where people congregate,
socialize, and exchange views and information
• Marketers engage in social media by:
– Using the existing ones
– Setting up their own

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 Social Media Marketing
Advantages and Challenges

Advantages Challenges

• Targeted and personal • Still being experimented

• Interactive • Difficult to measure
• Immediate and timely results
• Cost effective • Largely user controlled
• Engagement and social
sharing capabilities

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 Mobile Marketing

• Promotional content delivered to consumers

through their mobile devices
• Engage customers anywhere, anytime during
the buying and relationship-building processes

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 Direct Mail Marketing
• Sending an offer, announcement, reminder, or
other item directly to a person at a particular
address
– Tangible and creates emotional
connection with customers
– Effective component of a broader integrated
marketing campaign
– Direct and personalized
– Sent to consumers who want to receive it
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 Catalog Marketing

Catalog marketing is the use of print, video, or

digital catalogs that are mailed to select
customers, made available in stores or
presented online.
• With Internet, more and more catalogs are
going digital.

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 Catalog Marketing

• Advantages of Web-based catalogs:

- Eliminate production, printing and
mailing costs.
- Allow real-time merchandising.
– No space constraints
– Broader assortment of presentation formats
• Advantages of printed catalogs:
- Create emotional connections with
customers.
- One of the best ways to drive online sales.
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 Telemarketing

• Telemarketing involves using the

telephone to sell directly to consumers and
business customers.
• Outbound telemarketing is used to sell
directly to consumers and businesses.
• Inbound toll-free numbers are used to receive
orders from television and print ads,
direct mail or catalogs.

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 Direct-Response Television
Marketing
• Direct-response television marketing takes
one of two major forms.
– Direct-response television advertising is
television spots which describe a product and
give customers a toll-free number or Web site
for ordering.
– 30-minute or longer advertising programs are
called infomercials.

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 Direct-Response Television
Marketing
• Interactive TV (iTV) lets viewers interact with
television programming and advertising
using their remote controls.

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 Kiosk Marketing

• Product or service information and ordering

machines placed by companies
• Advancements
– Wireless-enabled
– Face recognition

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