Download Advertising and Promotion - Education

Chapter 14
Direct Marketing and Marketing
on the Internet
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Direct Marketing
• Interactive system of marketing which uses
one or more advertising media to effect a
measurable response and/or transaction at
any location.
• Common purposes of direct marketing:
– Close the sale
– Identify prospects for future contacts
– Provide in-depth information
– Seek information from consumers
– Foster (enhance) brand loyalty
Direct Marketing Today
• More than just mail-order
– Used by organizations throughout the world
– Often is not integrated with other advertising
efforts.
• Four Principle Purposes
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Close a sale with a customer
ID prospects and develop customer info.
Engage customers, seek their advice and
Generate brand loyalty
What’s Driving Direct Marketing?
• CONVENIENCE! for today’s dual income and
single parent households.
• More liberal attitudes toward using credit
• Greater access to (Tax) toll-free calling
• Computer technology to facilitate transactions
• On-line shopping
• Cost per inquiry (CPI) and cost per order (CPO)
advantages of direct marketing
The Growth of Direct Marketing
• The catalog
• Use of consumer credit cards
• Direct-marketing syndicates
(agencies)
• The changing structure of the market
worldwide
• Technological advances
• Various other factors
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide 14-1
Direct Response Media
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Direct Mail
Catalogs
Broadcast media
Infomercials
Irwin/McGraw-Hill
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The Internet
Print media
Telemarketing
Electronic
teleshopping
© The McGraw-Hill Companies, Inc., 1998
Slide 14-2
Database Marketing
• Knowing who the best
customers are as well as
what and how often they buy
• Mailing lists
– Internal lists
– External lists
The Marketing Database
• Includes data collected directly from
individual customers
• Marketing database applications
– CRM analysis
– Marketing programs
– Cross-selling
• Privacy concerns
Advantages of Direct Marketing
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Selective reach
Segmentation capabilities
Frequency
Flexibility
Timing
Personalization
Cost efficiencies
Ability to measure effectiveness
Slide 14-4
© The McGraw-Hill Companies, Inc., 1998
Disadvantages of Direct
Marketing
– Direct mail is expensive.
• May cost 15 to 20 times more to reach a
person with a direct mail piece than with a
TV commercial
– Mail lists can be plagued with bad
addresses.
– Mail delivery dates can be unpredictable
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide 14-5
Web Objectives
• Disseminating (Circulating) information
• Creating awareness
• Gathering research information
• Creating an image
• Stimulating trial
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide 14-7
Advantages of the Internet
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Target marketing
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Market potential
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide 14-9
Disadvantages of the Internet
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Measurement problems
Audience characteristics
Clutter
Potential for deception (Deceiving)
Costs
Limited production quality
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide 14-10
E-Mail
• Bulk e-mail is known as “spam”
– However, e-mail is an increasingly popular tool for
marketers.
• Advantages
– Cheap
– Good response rates
Direct Response Advertising
• Multiple media can be deployed
to generate an immediate,
measurable response.
• Most common media used are
direct mail and telemarketing.
• However all conventional media
can be used.