Download Chapter 14 slides

Direct and Online Marketing: Building
Direct Customer Relationships
Chapter 14
Rest Stop: Previewing the Concepts
• Define direct marketing and discuss its
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benefits to customers and companies
Identify and discuss the major forms of direct
marketing
Explain how companies have responded to
the Internet and other powerful new
technologies with online marketing strategies
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Rest Stop: Previewing the Concepts
• Discuss how companies go about conducting
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online marketing to profitably deliver more
value to customers
Overview the public policy and ethical issues
presented by direct marketing
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First Stop: Facebook
• Has tremendous impact and influence, not
just as a sharing community but also as an
Internet gateway
• Has the potential to become one of the
world’s most powerful and profitable online
marketers
• Entering the location based, deal-of-the-day
online markets, and the banking business
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Direct marketing
• Connecting directly with carefully targeted
segments or individual consumers, often on a
one-to-one, interactive basis
The New Direct-Marketing Model
• For many
companies today,
direct marketing
constitutes a
complete model for
doing business
Companies such as GEICO have built their
entire approach to the marketplace
around direct marketing
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Marketing at Work
• Amazon is
relentlessly
customer-driven
• Visitors receive a
unique blend of
benefits: huge
selection, good
value, and
convenience
Online pioneer Amazon.com
does much more than just sell
goods on the Web. It creates
direct, personalized online
customer experiences
Direct Marketing Benefits to Buyers
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Convenient
Easy
Private
Immediate and interactive
Access to a wealth of:
• Products
• Comparative information about companies,
products, and competitors
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Direct Marketing Benefits to Sellers
• Building customer relationships
• Offers sellers a low-cost, efficient, speedy
alternative to reach markets
• Online direct marketing results in lower costs,
improved efficiencies, and speedier handling
of channel and logistics functions
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Direct Marketing Benefits to Sellers
• Offers greater
flexibility
• Gives access to
buyers that cannot
be reached through
other channels
Southwest Airlines uses techie direct
marketing tools—including a blog, DING!
widget, and smartphone app—to inject
itself directly into customers’ everyday
lives—at their invitation
Customer database
• Organized collection of comprehensive
data about individual customers or
prospects, including geographic,
demographic, psychographic, and
behavioral data
Customer Databases and Direct
Marketing
Best Buy mines its huge database to glean actionable insights on customer interests,
lifestyles, passions, and likely next purchases. It uses this information to develop
personalized, customer-triggered promotional messages and offers.
Figure 14.1 – Forms of Direct
Marketing
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Direct Mail Marketing
• Occurs by sending an offer, announcement,
reminder, or other item directly to a person at
a particular address
• Well suited to direct, one-to-one
communication
• Permits high-target selectivity can be
personalized, is flexible, and allows the easy
measurement of results
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Direct Mail Marketing
• Traditional direct
mail can be an
effective
component of a
broader integrated
marketing campaign
Insurance companies like Farmers
Insurance rely heavily on TV advertising to
establish broad customer awareness.
However, they also use lots of good old
direct mail to communicate with consumers
in a more direct and personalized way.
Catalog Marketing
• Marketing through print, video, or digital
catalogs that are mailed to select customers,
made available in stores, or presented online
• Eliminate printing and mailing costs
• Online catalogs offer
• Unlimited amount of merchandise
• Broader assortment of presentation formats
• Real-time merchandising
Catalog Marketing
Digital catalogs: Days before the latest Lands’ End catalog arrives in the mail, customers can
access it digitally at landsend. com , at Facebook, or via the Lands’ End mobile app
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Telemarketing
• Using the telephone to sell directly to
customers
• Marketers use:
• Outbound telephone marketing to sell directly to
consumers and businesses
• Inbound toll-free numbers to receive orders from
television and print ads, direct mail, or catalogs
• Provides purchasing convenience and
increased product and service information
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Telemarketing
Marketers use inbound toll-free 800 numbers to receive orders
from television and print ads, direct mail, or catalogs. Here, the
Carolina Cookie Company urges, “Don’t wait another day. Call
now to place an order or request a catalog.”
Direct-Response Television (DRTV)
Marketing
• Marketing via
television, including
direct-response
television
advertising (or
infomercials) and
interactive
television (iTV)
advertising
Large, well-known companies—such as
Kodak—are now using direct-response
TV to get the message out directly to
customers
Kiosk Marketing
• Product or service
information and
ordering machines
are placed by
companies in stores,
airports, hotels,
college campuses,
and other locations
Red box operates more than
27,000 DVD rental kiosks in
supermarkets and fast-food
outlets nationwide
Online marketing
• Efforts to market products and services and
build customer relationships over the
Internet
Marketing and The Internet
• Internet: Vast public web of computer
networks that connects users of all types
around the world to each other and an
amazingly large information repository
• Has given marketers a whole new way to
create value for customers and build
relationships with them
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Marketing and The Internet
• Click-only companies: Dot-coms, which
operate online only and have no brick-andmortar market presence
• Include e-tailers, search engines and portals,
transaction sites, content sites, and online social
networks
• Click-and-mortar companies: Traditional
brick-and-mortar companies that have added
online marketing to their operations
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Click-and-Mortar Marketing
Staples backs its “that was
easy” positioning by offering a
full range of contact points and
delivery modes
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Online Marketing
• Click-and-mortar business trends:
• Almost all traditional companies have set up
their own online sales and communication
presence.
• Many click-and-mortar firms are having more
online success than their click-only competitors.
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Figure 14.2 – Online Marketing
Domains
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Online Marketing Domains
Business-to-Consumer (B-to-C) Marketing
• Businesses selling goods and services online to final consumers
Business-to-business (B-to-B) online marketing
• Businesses using online marketing to reach new business customers, serve
current customers more effectively, and obtain buying efficiencies and better
prices
Consumer-to-consumer (C-to-C) online marketing
• Online exchanges of goods and information between final consumers
Consumer-to-business (C-to-B) online marketing
• Online exchanges in which consumers search out sellers, learn about their
offers, initiate purchases, and sometimes even drive transaction terms
Blogs
• Online journals where people post their
thoughts, usually on a narrowly defined topic
Blogs
• Offer fresh, original,
personal, and cheap
way to enter into
consumer online
conversations
• Cluttered and
difficult to control
Purex used SocialSpark to help introduce its
Purex Complete 3-in-1 Laundry Sheets via
blogs such as Freaky Frugalite, Bargain
Briana, 3 Kids and Us, and others that reach
homemakers
Figure 14.3 – Setting Up for Online
Marketing
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Corporate (or brand) Web Site
• Designed to build
customer goodwill,
collect customer
feedback, and
supplement other
sales channels
rather than sell the
company’s products
directly
You can’t buy anything at Nestlé’s
colorful Wonka.com site, but you can
learn about different Nestlé candy
products or just hang around for a
while and “feed your imagination.”
Marketing Web site
• Interacts with consumers to move them closer
to a direct purchase or other marketing
outcome
Web Sites
• Should be:
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Easy to use
Professional looking
Physically attractive
Useful
Interactive
Linked to other related sites
Promotional
Online advertising
• Appears while consumers are browsing
the Web
Forms of Online Advertising
Display ads
• Appear anywhere on an Internet user’s screen and are often related to the
information being viewed
Search-related ads (or contextual advertising)
• Text-based ads and links appear alongside search engine results on sites
Content sponsorships
• Companies gain name exposure on the Internet by sponsoring special
content on various Web sites
Viral marketing
• Internet version of word-of-mouth marketing
Online social networks
• Online communities where people
congregate, socialize, and exchange views
and information
Online Social Networks
• Marketers can engage in these in two ways:
• Participate in existing Web communities
• Set up their own
• Challenges of participating in existing Web
communities:
• Results are hard to measure
• Such online networks are largely user controlled
E-mail marketing
• Sending highly targeted, tightly
personalized, relationship-building
marketing messages via e-mail
Spam
• Unsolicited,
unwanted
commercial e-mail
messages
E-mail can be an effective marketing tool.
But there’s a dark side—spam, unwanted
commercial e-mail that clogs up our
inboxes and causes frustration.
Mobile marketing
• Marketing to on-the-go consumers
through mobile phones, smartphones,
tablets, and other mobile communication
devices
Marketing At Work
• Marketers large and
small are weaving
mobile marketing
into their direct
marketing mixes
Zipcar’s iPhone app lets members find and
book a Zipcar, honk the horn (so they can
find it in a crowd), and even lock and
unlock the doors—all from their iPhone.
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Public Policy and Ethical Issues in Direct
Marketing
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Annoys customers
Takes unfair advantage of impulsive buyers
Internet fraud
Phishing – Identity theft that uses deceptive
e-mails and fraudulent Web sites to fool users
into divulging their personal data
• Online security
• Access by vulnerable or unauthorized groups
Public Policy and Ethical Issues in Direct
Marketing
Internet fraud has multiplied in recent years. The FBI’s Internet Crime Complaint Center
provides consumers with a convenient way to alert authorities to suspected violations
Public Policy and Ethical Issues in Direct
Marketing – Consumer Privacy
• Invades privacy
• Ready availability of information leaves
consumers open to abuse
Public Policy and Ethical Issues in Direct
Marketing – A Need for Action
• Government agencies are investigating on:
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Do-not-call lists
Do-not-mail lists
Do-not-track lists
Can Spam legislation
• Congress is drafting legislation that would
give consumers more control over how Web
information is used
Public Policy and Ethical Issues in Direct
Marketing – A Need for Action
• The FTC is taking a more active role in
policing online privacy
• In 2000, Congress passed the Children’s
Online Privacy Protection Act (COPPA), which
requires Web site operators targeting children
to post privacy policies on their sites
• Many companies have responded to privacy
and security issues with actions of their own
Public Policy and Ethical Issues in Direct
Marketing – A Need for Action
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Rest Stop: Reviewing the Concepts
• Define direct marketing and discuss its
•
•
benefits to customers and companies
Identify and discuss the major forms of direct
marketing
Explain how companies have responded to
the Internet and other powerful new
technologies with online marketing strategies
14 - 49
Rest Stop: Reviewing the Concepts
• Discuss how companies go about conducting
•
online marketing to profitably deliver more
value to customers
Overview the public policy and ethical issues
presented by direct marketing
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permission of the publisher. Printed in the United States of America.
Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall
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