Download Marketing Chapter 14 Lecture Presentation - Direct

Direct and Online Marketing
Bluefield College
November 18, 2010
Direct Marketing
Connecting directly with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships.
 The new direct-marketing model:
– Direct marketing has undergone a dramatic
transformation.
– Most firms use direct marketing as a supplemental
channel or medium.
– For many companies, direct marketing constitutes a
new and complete model for doing business.
– Some firms employ the direct model as their only
approach (e.g., Geico, Amazon, eBay).
Growth of Direct Marketing
 Direct marketing:
– Fastest growing form of marketing.
– 10% of U. S. economy ($ 2.1 trillion) is
generated by direct marketing sales.
– Direct marketing sales are expected to grow at
5.3% annually through 2013.
– Direct marketing continues to become more
Web-oriented and Internet marketing is the
fast-growing form of direct sales.
Benefits of Direct Marketing
 Benefits to buyers:
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Convenient
Easy to use
Private
Ready access to products
Ready access to wealth of comparative information
Immediate and interactive
 Benefits to sellers:
– Powerful tool for building customer relationships
– Offers a low-cost, speedy way to reach markets
– Offers lower costs, improved efficiencies, and speedier handling
of channel and logistics functions
– Offers greater flexibility
– Reaches buyers that could not be reached through other channels
Forms of Direct Marketing
Forms of Direct Marketing
 Direct-mail marketing:
– Involves sending an offer, announcement, reminder, or other item
to a person at a particular physical or virtual address.
– Largest direct marketing medium.
– Well-suited to one-to-one communication.
– Use of traditional forms may decline as marketers switch to
newer digital forms.
– Can be used effectively in combination with other media, such as
web sites.
– Often perceived as “junk mail”.
 Catalog marketing:
– Direct marketing through print, video, or digital catalogs that are
mailed to select customers, made available in stores, or
presented online.
Forms of Direct Marketing
 Catalog marketing trends:
– More and more catalogs are going digital:
• Minimizes costs, and web space is unlimited.
• Allows real-time merchandising.
– Print catalogs are still the primary medium.
• Drives web traffic and can create an emotional connection to the
consumer.
 Telephone marketing:
– Accounts for 17% of all direct-marketing driven sales.
– Used in both consumer and B2B markets.
– Marketers use outbound and inbound calls.
• Outbound: Sell directly to consumer.
• Inbound: Toll-free ordering or order faxing.
– Do-not-call legislation has impacted the telemarketing industry.
• Many telemarketers have shifted to other forms of direct
marketing.
Forms of Direct Marketing
 Direct-response TV marketing:
– Direct-response television advertising (DRTV):
• TV spots that are 60 or 120 seconds long.
– Infomercials:
• A 30 minute or longer advertising program for a
single product.
 Home shopping channels:
– Entire cable channels dedicated to selling
multiple brands, items, and services.
Forms of Direct Marketing
 Kiosk marketing:
– Information and ordering machines generally found in stores,
airports, and other locations
– Redbox operates more than 15,000 DVD rental kiosks nationwide
 New digital direct marketing technologies:
– Mobile phone marketing:
• Mobile ad spending is expected to grow. YouTube video
 New digital direct marketing technologies:
– Podcasts and vodcasts
– Interactive TV (ITV):
• Viewer engagement is much higher than with regular TV ads
 Online marketing is the final form of direct marketing.
See you Tuesday – Topic: Online Marketing