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17-1
Chapter 17
Chapter 17
Direct and Online
Marketing
PRINCIPLES OF MARKETING
Eighth Edition
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17-2
Benefits of Direct Marketing
Benefits of Direct Marketing
Benefits of Direct
Marketing to Customers
Marketing to Companies
Benefits of Direct
Direct Marketing Consists of Direct Communications
with Carefully Targeted Individual Consumers to
Obtain an Immediate Response.
Fun, Convenient & Hassle-Free
Fun, Convenient & Hassle-Free Saves Time Saves Time Larger Merchandise Selection Larger Merchandise Selection Comparison Shopping Comparison Shopping
Mailing Lists for Almost Any Market
Mailing Lists for Almost Any Market Customized Offers Customized Offers Ongoing Relationships with Customers Ongoing Relationships with Customers
Timed to Achieve Higher Readership & Response
Timed to Achieve Higher Readership & Response
Order Products for Themselves or Others
Order Products for
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17-3
Trends Leading to the Growth of
Direct Marketing
Trends Leading to the Growth of
Direct Marketing
Increasing Number of Market
Niches with Distinct Preferences
Increasing Number of Market
Niches with Distinct Preferences
Higher Costs of Driving, Traffic
and Parking Congestion
Higher Costs of Driving, Traffic
and Parking Congestion
Consumers Lack of Time
Consumers Lack of Time
Convenience of Ordering
From Direct Marketers
Convenience of Ordering
From Direct Marketers
Growth of Customer Databases
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17-4
Identifying Prospects
Identifying Prospects
Deciding Which Customers Should
Receive a Particular Offer
Deciding Which Customers Should
Receive a Particular Offer
Deepening Customer Loyalty
Deepening Customer Loyalty
Reactivating Customer Purchases
Reactivating Customer Purchases
Customer Databases and Direct Marketing
Customer Databases and Direct Marketing
Customer Databases are an Organized Collection of
Comprehensive Data About Individual Customers or
Prospects Including: Geographic, Demographic,
Psychographic, and Behavioral Data.
Customer Databases are an Organized Collection of
Comprehensive Data About Individual Customers or
Prospects Including: Geographic, Demographic,
Psychographic, and Behavioral Data.
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17-5
Forms of Direct Marketing
Communication
Forms of Direct Marketing
Communication
Catalog Marketing
Catalog Marketing
Kiosk Marketing
Kiosk Marketing
Online Marketing
Online
Marketing Direct-MailMarketing Direct-Mail
Marketing
Direct-Response TV Marketing
Direct-Response
TV Marketing TelemarketingTelemarketing
Face-to-Face Selling
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17-6
Online Marketing and Electronic
Commerce
Online Marketing and Electronic
Commerce
•
Online Marketing is conducted through interactive
Online Marketing is conducted through interactive
online computer systems, which link consumers
online computer systems, which link consumers
with sellers electronically.
with sellers electronically.
•
Two types of Online Marketing Channels:
Two types of Online Marketing Channels:
–
Commercial Online Services offer online information and
marketing services to subscribers who pay a monthly
fee. (i.e. AOL, CompuServe & Prodigy)
–
The Internet (the Net) is the vast global and public web of
computer networks.
•
The explosion of Internet usage has created a new
The explosion of Internet usage has created a new
world of
world of
electronic commerce
electronic commerce
, a term that refers to
, a term that refers to
the buying and selling process supported by
the buying and selling process supported by
electronic means.
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17-7
The Benefits of Online Marketing
The Benefits of Online Marketing
Convenient
Convenient
Private
Private
Abundance of Information
Abundance of Information
Interactive
Interactive
Immediate
Immediate
Consumers
Consumers
Companies
Companies
Consumer Relationship Building
Consumer Relationship Building
Reduces Costs
Reduces Costs
Increases Efficiency
Increases Efficiency
Provides Flexibility
Provides Flexibility
Global Medium
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17-8
Online Marketing Channels
Online Marketing Channels
Creating an Electronic Storefront
Buy Space on a Commercial Online Service Open It’s Own Web Page
Creating an Electronic Storefront
Buy Space on a Commercial Online Service Open It’s Own Web Page
Placing Advertisements Online
Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups
Buy Online Ads That Pop Up While Consumers are Surfing
Placing Advertisements Online
Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups
Buy Online Ads That Pop Up While Consumers are Surfing
Participating in Forums, Newsgroups & Web Communities
Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums
Web Communities: Sites Where Members Exchange Views Online
Participating in Forums, Newsgroups & Web Communities
Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums
Web Communities: Sites Where Members Exchange Views Online
Using E-Mail and Webcasting
Customers Send Questions, Suggestions & Complaints Via E-Mail
Using E-Mail and Webcasting
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17-9
Challenges of Direct Marketing
Challenges of Direct Marketing
Limited Consumer Exposure and Buying
Limited Consumer Exposure and Buying
Skewed User Demographics and Psychographics
Skewed User Demographics and Psychographics
Chaos and Clutter
Chaos and Clutter
Ethical Concerns
Ethical Concerns
Security
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17-10
Integrated Direct Marketing
Integrated Direct Marketing
•
Direct marketing campaigns that use
multiple vehicles and multiple
stages to improve response rates
and profits.
•
Marketers seek to improve response
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17-11
Public Policy and Ethical Issues in
Direct Marketing
Public Policy and Ethical Issues in
Direct Marketing
Irritation
to
Consumers
Irritation
to
Consumers
Unfairness,
Deception,
or
Fraud
Unfairness,
Deception,
or
Fraud
Invasion
of
Privacy
Invasion
of
