Ch. 17
DIRECT AND
ONLINE
MARKETING
Building Direct Customer Relationships
Allison Reilly
Jordan Zook
Billy Scheid
OBJECTIVES
1. Define direct marketing and discuss
its benefits to customers and
companies
2. Identify and discuss the major
forms of direct marketing
3. Explain how companies have
responded to the internet and
other powerful new technologies
with online marketing strategies
4. Discuss how companies go about
conducting marketing to profitably
deliver more value to customers
5. Overview the public policy and
ethical issues presented by direct
marketing
DIRECT MARKETING
• Connecting directly with carefully
targeted segments or individual
consumers, often on a one-to-one,
interactive basis
• Direct marketers seek a direct,
immediate, and measurable
consumer response as well as brand
and relationship building
BENEFITS
TO
BUYERS
• Convenient, easy, and
private
• Customers don’t have to
trek through stores and
wait in lines to purchase a
product
BENEFITS
TO
SELLERS
• Powerful tool for building customer
relationships
• Provides a one-to-one nature of direct
marketing
• Companies can communicate by phone
or online to personalize a customers
product and experience
• Offers a low-cost, efficient, speedy
alternative for reaching their markets
CUSTOMER DATABASES
• An organized collection of comprehensive data about individual
customers or prospects, including geographic, demographic,
psychographic, and behavior data
• Useful in creating different versions of catalogs and emails
tailored to the individuals needs
• Helps locate good potential customers and generate sales leads
• Important tool for building stronger long-term customer
relationships
• Walmart captures data from more than 1 million customer
transactions every HOUR, resulting in a database with more than
2.5 petabytes of data….or 1,200 billion pages of standard print
text.
FORMS OF DIRECT MARKETING
•
•
•
•
Direct Mail
Catalog
Telemarketing
Direct-Response
Television
• Kiosk
DIRECT MAIL
• Marketing that occurs by sending an offer,
announcement, reminder, or other item directly to a
person at a particular address
• The largest direct marketing medium
• Permits high target-market selectivity, can be
personalized, is flexible and allows the easy
measurement of results
• To reduce loosing money from spam, marketers use a
permission-based program
CATALOG
• Direct marketing through print, video or digital
catalogs that are mailed to select customers, made
available in stores, or presented online
• Catalogs are becoming more and more digital
• 70 percent of online purchases are driven by catalogs
TELEMARKETING
DIRECTRESPONSE
TELEVISION
• Using the telephone to sell directly to customers
• Last year, telemarking accounted for nearly 14.9
percent of all direct-marketing
• The Do-Not-Call legislation has hurt
telemarketing so some marketers develop an
“opt-in” option and give customers special offers
• Direct marketing via television,
including direct-response television
advertising (or infomercials) and
interactive television advertising
• Direct-response advertsing : 60-120
seconds
• Infomercials: Full 30 minutes
• Recently appearing on mobile, online,
and social media platforms
KIOSKS
• Old-fashioned vending
machines but so much more
• Located in stores, airports,
hotels, college campus’, malls,
and more
ONLINE MARKETING
• Efforts to market
products and services
and build customer
relationships over the
internet
• The fastest growing form
of direct marketing
MARKETING
AND THE
INTERNET
• The internet has fundamentally changed
customers’ notions of convenience,
speed, price, product information and
service
• Click-only companies: Operate online
only and have no actual walk-in store
(Amazon, Netflix, Facebook, twitter)
• Click-and-mortar companies: Companies
that have added online marketing to
their operations
ONLINE
MARKETING
DOMAINS
BUSINESS-TOCONSUMER
BUSINESS-TOBUSINESS
CONSUMER-TOCONSUMER
CONSUMERTO-BUSINESS
• Businesses selling goods and services online to final
consumers
• Businesses using online marketing to reach new
business customer s, serve current customers more
effectively, and obtain buying efficiencies and better
prices (Ex. Sysco)
• Online exchanges of goods and information
between final consumers (Ex. Craigslist, eBay)
• Online exchanges in which consumers search
out sellers, learn about their offers, initiate
purchases, and sometimes even drive
transaction terms (Ex. Priceline.com,
Complaints.com)
EXAMPLES OF ONLINE
MARKETING :
•
•
•
•
•
Web sites
Ads and Promos
Social Networks
E-mail
Mobile marketing
SETTING UP AN ONLINE MARKETING PRESENCE
Creating Web Sites:
• Corporate (or brand) Web site : A Web site designed to build
customers feedback, and supplement other sales channels rather than
sell the company’s products directly (Wonka.com)
• Marketing Web site : A Web site that interacts with consumers to
move them closer to a direct purchase or other marketing outcome
(Samsung.com)
PLACING ADS AND
PROMOTIONS
ONLINE
• As consumers spend more and more time on the internet, companies are
shifting more of their marketing dollars to online advertising
• Online Advertising : advertising that appears while consumers are browsing
the internet, including display ads, search related ads, online classifieds, and
other forms
• The largest form of advertising is search-related ads which accounted for 46.5
percent of all online advertising (Ex. Ads alongside Google)
• Viral Marketing : The internet version of word-of-mouth marketing: a Website,
video, e-mail message, or other marketing event that is so infectious that
customers will seek it out or pass it along to friends
CREATING OR
PARTICIPATING IN
ONLINE SOCIAL
NETWORKS
• Online Social Networks : Online communities where people congregate, socialize,
and exchange views and information
• They can participate in existing communities or they can create their own (joining
is easier)
• Dunkin’ Donuts, Harley – Davidson to Nissan and Victoria’s Secret have created
YouTube channels
• Marketers need to be wary of intruding on these networks and must learn to
become a valued part of their online experience
SENDING E-MAIL
MOBILE
MARKETING
• Sending highly targeted, highly
personalized, relationship building
marketing message via E-mail
• To address the concern of Spam,
marketers now practice “permissionbased e-mail marketing”
• Marketing to on-the-go consumers
through mobile phones, smartphones,
tablets, other mobile communication
devices
• Involves placing search ads, display ads,
or videos on relevant mobile Internet
sites and online communities such as
Facebook or YouTube
• May also involve texting promos to
consumers
PUBLIC POLICY ISSUES IN DIRECT
MARKETING
• Marketers must be aware of Irritation, Unfairness, Deception, and
Fraud.
• The FBI’s internet Crime Complaint Center provides consumers with a
convenient way to alert authorities to suspected violations
• One example of fraud is phishing : a type of identity theft that uses
deceptive e-mails and fraudulent online sites to fool users into
divulging their personal data
• Another consumer concern is online security
• Another marketers concern is access by vulnerable or unauthorized
groups (Minors getting access to adult-oriented material)
• Some critics worry that marketers may know too much about
consumers lives and use that for an unfair advantage
• The direct marketing industry is addressing public policy issues
THE END