14 MARKETING AN INTRODUCTION

Armstrong/Kotler

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 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 private • Low-cost, efficient, and speedy
• Easy buyer-seller interaction • Build close, personalized,
• Quick access to products and interactive, one-to-one
relevant information customer relationships
• Brand engagement and • Offer greater flexibility
community • Access to buyers that they
could not reach through other
channels

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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 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

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

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.
• Its included ads that a company makes
primarily for TV but posts online before or
after an advertising campaign to extend reach
and impact.
• 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
• Blogs (or web logs) are online forums where
people and companies post their thoughts and
other content, usually related to narrowly
defined topics
• 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 (DRTV) – Direct
marketing via television that persuasively
describes a product and give customers a toll-
free number or an online site for ordering.

DRTV marketing takes one of two major forms.

1) Direct-response television advertising is television
spots (often 60 to 120 seconds in length) which
describe a product and give customers a toll-free
number or Web site for ordering.

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 Direct-Response Television
Marketing

2) 30-minute or longer advertising programs are called

infomercials.

Increasingly, as the lines continue to blur between

TV and other screens, direct response ads and
infomercials are appearing not just on TV, but
also on mobile, online, and social media
platforms, adding even more TV-like interactive
direct marketing venues.

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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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 Looking Ahead to Chapter 15

Global Marketing

13- 28

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