Ch. 17 MKTG

Direct and digital marketing
Involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
The New Direct Marketing Model
For many companies today, direct and digital marketing constitute a complete model for doing business.
Rapid Growth of Direct and Digital Marketing
Both have become the fastest growing forms of marketing. Direct marketing continues to become more internet bases, and digital direct marketing is claiming a surging share of marketing spending and sales.
Benefits of Direct and Digital Marketing to Buyers
Convenient
Ready access to many products
Access to comparative information about companies, products, and competitors
Interactive and immediate
Benefits of Direct and Digitals Marketing to Sellers
Tool to build customer relationships
Low-cost, efficient, fast alternative to reach markets
Flexible
Access to buyers not reachable through other channels
Forms of Direct and Digital Marketing
Digital and social media marketing
Traditional direct marketing
Digital and social media marketing
Online marketing (Web sites, online advertising, e-mail, online videos, blogs)
Social media marketing
Mobile marketing
Traditional direct marketing
Face-to-face selling
Direct-mail marketing
Catalog marketing
Telemarketing
Direct-response TV marketing
Kiosk marketing
Multichannel Marketing
Involves marketing both through stores and other traditional offline channels and through digital, online, social media and mobile channels.
Online marketing
Marketing via the internet using company websites, online ads and promotions, email, online video, and blogs
Marketing Websites
Engage consumers to move them closer to a direct purchase or other marketing outcome.
Branded community websites
Present brand content that engages consumers and creates customer community around the brand.
Online advertising
Advertising that appears while consumers are browsing online, and includes display ads, search-related ads, online classifieds, and other forms
Email marketing
Involves sending highly targeted, highly personalized, relationship-building marketing messages via email.
Spam
Unsolicited, unwanted commercial email messages
Viral marketing
The digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends.
Online video
Marketing involves posting digital video content on brand Web sites or social media sites such as youtube, facebook, and others
Blogs
Online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics
Social media
Independent and commercial online communities where people congregate, socialize, and exchange views and information.
Using social media
Either set up own social media or use existing ones
Advantages of Social Media
Targeted and personal, interactive, immediate and timely, cost-effective, engagement and social sharing capabilities.
Challenges of Social Media
Consumer control over social media content could cause even the most harmless social media campaign to backfire.
Integrated social media marketing
Blend social media efforts with other elements of the brand’s marketing strategy to create brand-related social sharing, engagement and customer community.
Mobile marketing
Delivers messages, promotions, and other content to on-the-go consumers through mobile phones, smartphones, tablets and other mobile devices.
Traditional Direct Marketing Forms
Direct-mail marketing
Catalog marketing
Telemarketing
Direct-response television marketing
Kiosk marketing
Direct-mail marketing
Involves an offer announcement, reminder, or other item to a person at a particular address. Direct-mail marketing 1) is personalized, 2) offers easy-to-measure results, 3) costs more than mass media, and 4) reaches people that tend to be much better prospects.
Catalog Marketing
Involves printed and online catalogs
Benefits of online catalogs
Lower cost than printed catalogs
Unlimited amount of merchandise
Real-merchandising
Interactive content
Promotional features
Challenges of online catalogs
Require marketing
Difficulties in attracting new customers
Telemarketing
Involves using the telephone to sell directly to consumers and business customers
Outbound telephone marketing sells directly to consumers and businesses
Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail and catalogs.
Direct-response television (DRTV) marketing
60-120 second advertisements that describe products or give customers a toll-free number or website for ordering
30 minute infomercials such as home shopping channels.
Public policy issues in direct and digital marketing
Irritation, unfairness, deception, and fraud
Consumer privacy
A need for action
Irritation
Includes annoying and offending customers
Unfairness
Includes taking unfair advantage of impulsive or less-sophisticated buyers
Deception
Includes “heat merchants” who design mailers and write copy designed to mislead consumers
Fraud
Includes identity theft and financial scams
Consumer Privacy
The concern is that marketers may know too much about consumers and use this information to take unfair advantage.
A need for Action
Advertising option icon
Can Spam legislation
Children’s Online Privacy Protection Act (COPPA)
TRUSTe