Mktg Final Ch. 17 Direct and Online Marketing

Direct marketing
A marketing channel without intermediaries.
An element of the promotion mix.
Fastest growing form of marketing.
Four primary characteristics of direct marketing
Non-public, Immediate, Customized, Interactive
Non-public
One primary characteristic of direct marketing:
directed toward a specific person
Immediate
One primary characteristic of direct marketing:
instant
Customized
One primary characteristic of direct marketing:
A postcard or newsletter
Interactive
One primary characteristic of direct marketing:
one on one and more interactive with customer, well suited to highly targeted marketing. Easy to measure.
Benefits of direct marketing to buyers
Benefits of “this” to buyers:
Convenient, Easy to use, Private, Ready access to products and information, Immediate and interactive.
Benefits of direct marketing to sellers
Benefits of “this” to sellers:
Powerful tool for building customer relationships.
Can target small groups or individuals.
Can tailor offers to individual needs.
Can be timed to reach prospects at just the right moment.
Gives access to buyers they could not reach through other channels.
Offers a low-cost, efficient way to reach markets.
Customer databases
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
(Customize offers based on your purchase behavior such as the grocery stores and they send you coupons for things that you recently purchased or similar things that you buy)
Forms of direct marketing
personal selling, direct mail, catalogue, telephone, direct-response television, kiosk, digital, online
Telemarketing
Used in both consumer and business-to-business (B2B) markets.
Can be outbound (business contacting consumer) or inbound (toll-free, customers calling in) calls.
Laws with telemarketing
Do-Not-Call legislation forbids most telemarketers to contact phone numbers that have been registered on its Web site.
Businesses that violate the DNC can be fined $11,000 per violation.
Direct-mail marketing
Involves sending an offer, reminder, announcement, or other item to a person at a particular address.
Permits high target-market selectivity.
Can be personalized, and is flexible.
Easy to measure results.
(sending out coupons…you can measure how many ppl come in and use that coupon)
Catalog marketing
More catalogs are going digital on the Internet.
Print catalogs are still the primary medium.
Benefits of web-based catalogs
Benefits of “this”:
Lower cost than printed catalogs
Unlimited amount of merchandise
Real-time merchandising
Interactive content
Promotional features
Challenges of web-based catalogs
Challenges of “this”:
Require marketing
Difficulties in attracting new customers
Direct-response TV marketing
Includes direct-response advertising, infomercials, and home shopping channels
Direct-response advertising
Type of direct-response TV marketing: TV spots that are 60 or 120 seconds long including 1-800 # or website.
Infomercials
Type of direct-response TV marketing: A 30-minute or longer advertising program for a single product.
Home shopping channels
Type of direct-response TV marketing: Entire cable channels dedicated to selling multiple brands, items, and services.
Digital direct marketing technologies
-Mobile phone marketing (ring-tone giveaways, mobile games, ad-supported, contests/sweepstakes)
-Podcasts
-Vodcasts (video files)
-Interactive TV (when you can respond to a TV ad using your remote)
Kiosk marketing
Information and ordering machines generally found in stores, airports, and other locations.
(even redbox, movie theater tickets)
Online marketing
Company efforts to market products and services and build customer relationships over the Internet.
This is the FASTEST growing form of direct marketing.
Internet trends
Internet household penetration = 74%
60 hours/month surfing the Web
Internet is most essential medium in people’s lives
Click-only companies
Type of online marketing: Operate only online without any brick-and-mortar presence. (brick-&-mortar means any standing company)
Types of click-only companies
Types of “this”:
E-tailers (Amazon.com)
Search engines and portals (Google)
Transaction sites (eBay)
Content sites (ESPN)
Click-and-mortar companies
Traditional brick-and-mortar companies that have added online marketing to their operations. Both a store and a website…almost all traditional companies have set this up.
Online marketing domains
Domains of “this”:
Business to consumer (B2C)
Business to business (B2B)
Consumer to consumer (C2C)
Consumer to business (C2B)
Business to consumer (B2C)
The online selling of goods and services to final consumers; consumers initiate & control internet exchange process.
Internet influences ~42% of total retail sales.
Business to business (B2B)
Using B2B Web sites, email, online product catalogs, online trading networks, and other online resources to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices.
Most major B2B marketers offer online product information, purchasing, and support.
(Ex: microsystems)
Consumer to consumer (C2C)
Online exchanges of goods and information between consumers. (Ebay, Craigslist, blogs)
Auction sites
Type of C2C: such as eBay offer marketplaces to buy or exchange goods.
Blogs and forums
Type of C2C: facilitate information interchanges.
Consumer to business (C2B)
Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms, e.g., Priceline: bid on vacation, hotel, flight
Conducting online marketing
Conducting “this”:
Creating a Website
Placing ads and promotions online
Creating or participating in online social networks
Using email
Online presence: creating a website
Creating a Website requires designing an attractive site and developing ways to get consumers to visit the site, remain on the site, and return to the site
Designing effective websites (The seven C’s)
The seven C’s:
Context, Content, Community, Customization, Communication, Connection, Commerce
Context
One of the seven C’s:
The website’s layout, easy to navigate
Content
One of the seven C’s:
Pictures and sound
Community
One of the seven C’s:
can reach out to community and people in many areas
Customization
One of the seven C’s:
customize offers for you based on previous purchases
Communication
One of the seven C’s:
communicate with other users
Connection
One of the seven C’s:
access site and use it
Commerce
One of the seven C’s:
commercial transactions
Corporate websites
“This” kind of website:
Provide information
Create excitement
Build relationships
Marketing website
Website that engages consumers in interactions that move them closer to a direct purchase or other marketing outcome.
Forms of online advertising
Banner ads, interstitials, pop-up/under ads, rich media ads, search-related ads
Interstitials
Form of online advertising:
takes you to an ad before you go to your next screen
Pop-up/under ads
Form of online advertising:
open up site and when you close it the pop up will be in another screen on your desktop
Rich media ads
Form of online advertising:
incorporate animation, video, sound, and interactivity
Search-related ads
Form of online advertising:
contextual advertising (Ex: is on the side bar on google. Pay per click)
Forms of online promotion
Forms of “this”: Content sponsorships, alliances and affiliate programs, viral marketing
Content sponsorships
Online promotion: sponsoring special content
Alliances and affiliate programs
Online promotions: work with firms to promote each other (posts links to your websites)
Viral marketing
Online promotions: internet version of word-of-mouth (inexpensive but hard to control)
Social media
“This” type of spending is expected to
increase from $716 million in 2008 to
$3.1 billion in 2014.
Social media
86% of US online adults now use social channels because of “this”
Social media
Because of “this” 44% of Twitter users have
recommended a product. Was yours mentioned?
Social media
Companies are saving 100’s of thousands of dollars a year on consumer insights, media targeting, and results because of “this.”
Why social media matters!
What makes “this” matter:
CONVERSATIONS ON THE SOCIAL WEB ARE
SHAPING CONSUMER PERCEPTIONS,
INFLUENCING REVENUE AND INVESTMENTS
OF BRANDS
How businesses are using social media
How businesses are using “this”:
Facebook, twitter, foursqaure, yelp
(Champions and customers can be encouraged to share positive reviews on social review sites, like Yelp)
Public Policy and ethical issues in direct marketing
“These” kind of issues in “this”:
Irritating to consumers
Taking unfair advantage of impulsive or less sophisticated buyers
Targeting TV-addicted shoppers
Deception, fraud
Invasion of privacy