MKTG CHPT 14

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

New Direct Marketing Model
Most companies still use direct marketing as a supplementary channel or medium.

For many companies today, direct and digital marketing constitute a complete model for doing business.

Rapid Growth of Direct and
Digital Marketing
Fastest-growing form of marketing
Direct marketing becoming more Internet-based
Direct marketing claims a surging share of marketing spending and sales
Includes online display and search advertising, video, social media, mobile, email
Benefits of Direct and
Digital Marketing to Buyers
Convenient, easy, and private

Easy buyer-seller interaction

Quick access to products and
relevant information

Brand engagement and community

benefits of direct and digital marketing to sellers
Low-cost, efficient, and speedy
Build close, personalized, interactive, one-to-one customer relationships
Greater flexibility
forms of direct and digital marketing
forms of direct and digital marketing
Digital and social media marketing
Using digital marketing tools to engage consumers anywhere, anytime via their digital devices
Digital age
Changing customers’ notions of convenience, speed, price, product information, service, and brand interactions

it has given marketers a whole new way to create customer value, engage customers, and build customer relationships. Some companies operate only online. They include a wide array of firms, from e-tailers to search engines and portals, transaction sites, content sites, and online social media.

Omni-channel retailing
Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
Online Marketing
Marketing via the Internet using company Web sites, online ads and promotions, email, online video, and blogs
marketing web sites
Engage consumers to move them closer to a direct purchase or other marketing outcome
branded community web sites
Present brand content that engages consumers and creates customer-brand community
Online advertising
Appears while consumers are browsing online

online advertising is search-related ads or contextual advertising. In this form of advertising, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing.

email marketing
sending highly targeted, highly personalized, relationship-building marketing messages via email. When used properly, email can be the ultimate direct marketing medium.
spam in email marketing
unsolicited, unwanted commercial email messages that clog up our email boxes. Spam has produced consumer irritation and frustration. To address these concerns, most legitimate marketers now practice permission-based email marketing, sending email pitches only to customers who opt in.
Online Videos
Posting digital video content on brand Web sites or social media
viral marketing
Videos, ads, and other marketing content that customers seek out or pass along to friends

digital version of word-of-mouth

Blogs and Other Online Forums
Online journals of narrowly defined topics where people and companies post their thoughts and other content
benefits of blogs and forums
A fresh, original, personal, and inexpensive way to enter into consumer online conversations
limitations of blogs and forums
Cluttered, difficult to control and largely a consumer-controlled medium
Social media
Independent and commercial online communities where people congregate, to socialize and share messages, opinions, pictures, videos, and other content
two ways marketings engage in social media
Using the existing ones-easiest
Setting up their own- ex nike running community
Niche social media
cater to the needs of smaller communities of like-minded people, making them ideal vehicles for marketers who want to target special interest groups.
Advantages social media
Targeted and personal
Interactive
Immediate and timely
Cost effective
Engagement and social sharing capabilities
challenges social media
Effective usage uncertain
Difficult to measure results
Largely user controlled
Integrated Social Media Marketing
Large companies design social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics.

Firms that use social media effectively create brand-related social sharing, engagement, and customer community.

Mobile Marketing
features marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices.

to engage customers anywhere, anytime during the buying and relationship-building processes.

Retailers can use mobile marketing to enrich the customer’s shopping experience at the same time they stimulate buying.

Engages customers anywhere, anytime during the buying and relationship-building processes

Direct-Mail Marketing
Sending an offer, announcement, reminder, or other item directly to a person at a particular address
direct mail offers
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
Catalog Marketing
Print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online
benefits of catalog marketing
Eliminates printing and mailing costs
No space constraints
Broader assortment of presentation formats
Real-time merchandising capabilities
Prices can be adjusted instantly
Telemarketing
Selling directly to customers using the telephone
Outbound and inbound telephone marketing
Rise of do-not-call legislation resulted in opt-in calling systems
Direct-response television (DRTV) marketing
Direct-response television advertising-DRTV ads are often associated with somewhat loud or questionable pitches for cleaners, stain removers, kitchen gadgets, and nifty ways to stay in shape without working very hard at it.
Interactive TV (iTV) advertising
Interactive TV (iTV) advertising
form of direct-response television marketing
lets viewers interact with television programming and advertising.
lines continue to blur between TV screens and other video screens, interactive 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.
Kiosk Marketing
Product or service information and ordering machines placed by companies
Smart kiosks
Wireless-enabled
Facial recognition
Some machines even use facial recognition software that lets them guess gender and age and make product recommendations based on that data.
Public Policy Issues in Direct and Digital Marketing
Irritation, Unfairness, Deception, and Fraud

Consumer Privacy

A Need for Action

Irritation
Loud, long, and insistent TV commercials
Junk mail and spam
Unfairness
Taking unfair advantage of impulsive buyers
Deception and fraud
Investment scams or phony collections for charity
Internet fraud
Phishing
Online and digital security
Access by vulnerable or unauthorized groups
Internet fraud is phishing
type of identity theft that uses deceptive emails and fraudulent online sites to fool users into divulging their personal data.
online and digital security
fear that unscrupulous snoopers will eavesdrop on their online transactions and social media postings, picking up personal information or intercepting credit and debit card numbers.
access by vulnerable or unauthorized groups
For example, marketers of adult-oriented materials and sites have found it difficult to restrict access by minors.
Consumer Privacy
Fear of invasion of privacy
Ready availability of information leaves consumers open to abuse
A Need for Action- government investigations
Do-not-call, do-not-mail, do-not-track lists
‘Can Spam’ legislation
Congressional legislation – Give more control to consumers over how online information is used
Federal Trade Commission (FTC) – Policing online privacy
marketers actions
Self-regulatory principles
Advertising option icon
Privacy rights of children
Self-regulatory principles
call for online marketers to provide transparency and choice to consumers if Web viewing data is collected or used for targeting interest-based advertising.
advertising option icon
little “i” inside a triangle, that is added to most behaviorally targeted online ads to tell consumers why they are seeing a particular ad and allowing them to opt out.
privacy rights of children
In 2000, Congress passed the Children’s Online Privacy Protection Act (COPPA), which requires online operators targeting children to post privacy policies on their sites. They must also notify and obtain parental consent before collecting personal information from children under age 13.
Companies’ actions
Own security measures
Industry-wide measures
What are the three major forms of digital direct​ marketing?
Online​ marketing, social media​ marketing, and mobile marketing
Traditional direct marketing tools include​ ________.
face-to-face selling,​ direct-mail marketing, catalog​ marketing, telemarketing,​ direct-response television​ marketing, and kiosk marketing
Which of the following statements is true regarding traditional direct marketing​ forms?
Marketers use both outbound telemarketing and inbound telemarketing.
According to the​ text, what is perhaps the toughest public policy issue now confronting the direct marketing​ industry?
invasion of privacy
Which of the following statements is true regarding sellers and their use of direct and digital​ marketing?
Sellers have opportunities to engage in​ real-time marketing.
​Geico’s website is designed to quickly turn an inquiry into a sale. Geico has designed​ a(n) ______ website.
marketing
How does Google earn approximately​ 90% of its​ revenues?
selling contextual advertising
WSJ: How PG&E’s CIO Sped Up Mobile App Deployment
mobile app boosting employee productivity to increasing safety.
lowering costs, increasing innovation and accelerating the time it takes for software developers to provision a platform needed to build mobile apps
GPS-based asset inspection app allows field workers to locate a gas or electric asset, such as a power line or service pole in a neighborhood or in a rural mountain range.
allows employees to submit information about security concerns, such as safety hazards in substations.

“It’s an opportunity for employees to speak up and share any issues and concerns they have, really reinforcing safety and innovation and continuous improvement,”

Forbes: The State Of Digital Advertising: The Google, Facebook Duopoly Tightens Its Grip
behavioral shift: consumers to turn to their mobile devices to look up everything from the details of a product to directions. Mobile is surpassing desktop as the choice to access the Internet.
Google dominates search, Facebook rules display:growth in both usage and time spent, which continues to draw advertisers in greater numbers.
Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm
Video: Inside an Amazon warehouse on Cyber Monday
629 items sold per second
kiva robots to handle orders, they carry the entire shelf to an amazon ‘picker’ that saves tons of time
Video: Protecting your privacy:: What you need to about Amazon’s Alexa and other devices