4/4/14
Direct and Online Marketing

“Direct marketing” = consists of connecting directly with targeted consumers on a
one-to-one, interactive basis

How is it done?
o Companies develop or purchase customer databases
 Mine geographic, demographic, psychographic, behavioral data
 Locate good prospects
 Generate sales leads

Types:
o “Direct-mail” = involves an offer, announcement, reminder, or other item to a
person at a particular address
 AKA junk mail, FSI, personalized, easy-to-measure results, expensive
but high CPM (cost per thousand)
 Still worth their money as long as ½-1% reply
o “Catalogs” = can be printed and mailed or delivered via internet
 Sit around and still popular
 Benefits and challenges of web-based catalogs
o “Telemarketing” = involves using telephone to sell directly to consumers and
business customers
 Outbound telephone marketing = sells directly to customers
 Inbound telephone marketing = used to receive orders
o “Direct-response television (DRTV)” = involves short-format TV ads and
longer infomercials that describe products or give customers a toll-free or
website to purchase
 Less expensive than other forms of promotion and easier to track
results
 iTV = allows viewers to interact with their TVs using their remote
controls

HSN launched “Shop By Remote” = instantly purchase any
item on HSN with your remote control (On-Demand TV
shows)
o “Kiosks/displays” = mini-stores, variety of locations, less costly than
traditional retail
o “Pop Up Stores” =
 SWAS = store within a store
 Starbucks within Target

Stores that remain in place for only a short duration
 Ex: Halloween Store

Direct Marketing Disadvantages:
o Database Costs
o Content Support
o Image factors
o “Do Not Contact”

Direct Marketing Advantages
o Targeted
o Little Waste
o
o
o
o
o

Customization
Flexible/Testing
Cost (CPM)
Effectiveness
Relationship Building
“E-Commerce”
o Electronic commerce (AKA e-business)
o Consists of buying and selling products or services over electronic systems
such as the internet, WorldWideWeb
o US #1, China growing quickly, India/Indonesia will also experience strong
growth
o Internet is helping create whole new business models:
 “Business to Consumer”
 E-commerce that takes place between businesses and
consumers
 Internet influences over 50% of all US retail purchases
 “Business to Business”
 Involves exchange of products and services (info) between


businesses on the internet
“Consumer to Consumer”
 Involves consumers selling products and services to other
consumers
 Ex: Ebay, Craigslist
“Consumer to Business”
 Involves consumers providing input, feedback directly to
businesses (Priceline, Complaints.com)
 Direct marketing –
 DRTV (direct television)
 In a magazine – coupons fsi free standing inserts
Four business models
C2b c2c b2b b2c
On-line Marketing
- web sites
o creating a web site requires designing an attractive site and
developing ways to get consumers to visit, use, and return to
site often
 Sticky websites (websites that make people come back)
 Corporate web site is designed to build customer goodwill,
and to supplement other channels by providing basic
information about the company
 Mostly 1 way
 Marketing web site is designed to engage consumers and
move them closer to a purchase or other marketing
outcomes
-
-
search advertising
internet advertising
o banners
o ad
podcast, vodcast, webcasts
o k.
Email provides about $40 for every $1 spent
Social networks
-
allow members to congregate online and exchange views, common
interests
old spice ad agency expanded tv campaign with personalized YouTube
videos delivered via twitter
ads on social networks
Google portfolio
Search engine
Mobile marketing
Sending ads using the ip address that is on smart phones
Nest (
On-line Tools