Post on 11-Jan-2016
1
Chapter 17
Direct and Online Marketing: The New Marketing Model
2
Most Mass Marketing Involves One-Way Communications Aimed At Consumers.
Mass Marketing and Direct Marketing
Direct Marketing Involves Two-Way Interactions With Customers.
3
What is Direct Marketing?
Direct Marketing Consists of Direct Connections With
Carefully Targeted Individual Consumers to Both Obtain an
Immediate Response and Cultivate Lasting Customer
Relationships.
4
The New Direct Marketing Model
Some firms use direct marketing as a supplemental medium.For many companies, direct marketing - especially Internet and e-commerce companies - constitutes a new and complete model for doing business.Some firms use the new direct model as their only approach.Experts envision a day when all buying and selling will involve direct connections between companies and their customers.
5
Convenient
Easy & Private
Product Access &Selection
Abundance of Information
Interactive & Immediate
Buyers Benefits
Sellers BenefitsConsumer
Relationship Building
Reduces Costs
Increases Speed & Efficiency
Provides Flexibility
Global Medium
Benefits and Growth of Direct Marketing
6
Demassification – Focus is Toward Minimarkets
Demassification – Focus is Toward Minimarkets
Higher Costs of Driving, Traffic and Parking Congestion
Higher Costs of Driving, Traffic and Parking Congestion
Consumers Lack of TimeConsumers Lack of Time
Convenience of Ordering From Direct Marketers
Convenience of Ordering From Direct Marketers
Growth of Customer DatabasesGrowth of Customer Databases
The Growth of Direct Marketing
7
Average ConsumerAverage Consumer
Customer AnonymityCustomer Anonymity
Standard ProductStandard Product
Mass ProductionMass Production
Mass DistributionMass Distribution
Mass AdvertisingMass Advertising
Mass PromotionMass Promotion
One-Way MessageOne-Way Message
Economies of ScaleEconomies of Scale
Share of MindShare of Mind
All CustomersAll Customers
Customer AttractionCustomer Attraction
Mass Marketing Individual CustomerIndividual Customer
Customer ProfileCustomer Profile
Customized Market OfferingCustomized Market Offering
Customized ProductionCustomized Production
Individualized DistributionIndividualized Distribution
Individualized MessageIndividualized Message
Individualized IncentivesIndividualized Incentives
Two-Way MessagesTwo-Way Messages
Economies of ScopeEconomies of Scope
Share of CustomerShare of Customer
Profitable CustomersProfitable Customers
Customer RetentionCustomer Retention
One-to-One Marketing
Mass Marketing Vs. One-to-One Marketing (Tab. 17.1)
8
Customer DatabasesCustomer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects Including: Geographic, Demographic, Psychographic, and Behavioral Data.
9
Identifying Prospects Identifying Prospects
Deciding Which Customers Should Receive a Particular Offer
Deciding Which Customers Should Receive a Particular Offer
Deepening Customer LoyaltyDeepening Customer Loyalty
Reactivating Customer Purchases Reactivating Customer Purchases
Database MarketingDatabase Marketing is the Process of Building, Maintaining, and Using Customer Databases
and Other Databases for the Purposes of Contacting and Transacting With Customers.
How Companies Use Their Databases:
10
Direct Mail
KioskMarketing
OnlineMarketing
Telemarketing
Direct-ResponseTV Marketing
Catalog
Face-to-Face Selling
Forms of Direct Marketing
11
Discussion ConnectionsWhen was the last time you bought something via direct marketing? How did you buy it? What did you buy and why did you buy it
direct? When was the last time that you rejected a
direct marketing offer? Why did you reject it?
Based on these experiences, what advice would you give to direct marketers?
12
Online MarketingOnline Marketing is conducted through interactive online computer systems, which link consumers with sellers electronically.Two types of online marketing channels: Commercial Online Services offer information
and marketing services to subscribers who pay a monthly fee. (i.e. American Online)
The Internet (the Net) is the vast global and public web of computer networks.
13
Who is the Online Customer?
They tend to be younger, more affluent, better educated, and more male than the general population; female usage almost equals males.Other characteristic of net users: Half are 40 years or older, Differ psychographically, in approaches
to buying and responses to marketing.
14
Create an Electronic Online Presence
Buy Space on a Commercial Online Service
Company Can Open It’s Own Corporate or Marketing Web Page
Place Advertisements OnlinePlace Ads in to Build Internet
Brands or Attract Visitors to Web Site
Buy Online Ads That Pop Up While Consumers are Surfing,
“Banners”Content Sponsorships
Creating Online Marketing
What is the focus of Web pages for companieslike Butterball?
Are they more for selling,or for information?
What information could a site like this provide?
•Cooking help
•Recipes
•CookingSafety
15
Participate in Forums, Newsgroups & Web
CommunitiesForums: Discussion Groups on Commercial Online Services
Newsgroups: Internet Version of Forums
Web Communities: Sites Where Members Exchange Views Online
Use E-Mail and WebcastingCustomers Send Questions,
Suggestions & Complaints Via E-Mail
Webcasting: Automatic Downloading of Information to
PC’s
Creating Online Marketing
16
Limited Consumer Exposure and BuyingLimited Consumer Exposure and Buying
Skewed User Demographics and PsychographicsSkewed User Demographics and Psychographics
Chaos and ClutterChaos and Clutter
Ethical ConcernsEthical Concerns
SecuritySecurity
Promise and Challenge of Online Marketing
17
Integrated Direct Marketing
Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits.Marketers seek to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs.
18
An Integrated Direct-Marketing Campaign (Fig. 17.2)
Paid ad with aresponse channel
Direct Mail
Outbound Telemarketing
Face-to-facesales call
Continuing Communication
19
Irritation to
Consumers
Unfairness,Deception,
orFraud
Invasionof
Privacy
Public Policy and Ethical Issues in Direct Marketing
20
Review of Concept Connections
Discuss the benefits of direct marketing to customers and companies and the trends fueling its rapid growth.Define a customer database and list the four ways companies use databases in direct marketing.Identify the major forms of direct marketing.Compare the two types of online marketing channels and explain the effect of the Internet on electronic commerce.Identify the benefits of online marketing to consumers and marketers and the four ways marketers can conduct online marketing.Discuss the public policy and ethical issues facing direct marketers.