2. 10.1 Chapter 10: DIRECT MARKETING andE-COMMERCE

3. Relationship Between Direct Marketing and e-Commerce DIRECT MARKETING: Defined E-COMMERCE: Defined RELATIONSHIP BETWEEN DIRECT MARKETING AND e-COMMERCE The Mode of the Transaction: Traditional Media Versus New Media The Mode of the Transaction: Traditional Media Versus New Media All e-Commerce is Direct Marketing, But Not all Direct Marketing is e-Commerce All e-Commerce is Direct Marketing, But Not all Direct Marketing is e-Commerce10.2

4. Direct Marketing ROLE OF DIRECT MARKETING IN PROMOTION AND IMC Closing the Sale Closing the Sale Identifying Prospects Identifying Prospects Engaging the Customer Engaging the Customer10..3

5. Direct Marketing (con’t) THE POPULARITY AND GROWTH OF DIRECT MARKETING Consumers’ Desire for Convenience Consumers’ Desire for Convenience Attitudes Toward Credit Attitudes Toward Credit Changes in Technology Changes in Technology Measurability in Direct Marketing Measurability in Direct Marketing Cost per Inquiry (CPI) Cost per Inquiry (CPI) Cost per Order (CPO) Cost per Order (CPO) Database Marketing Database Marketing10.4

6. Direct Market Merchants Have Flourished Due to Technology and Consumers’ Desire for Convenience 10.5

7. Database Marketing Mailing Lists Mailing Lists Internal Mailing Lists Internal Mailing Lists External Mailing Lists External Mailing Lists List Enhancement List Enhancement Marketing Database Applications Marketing Database Applications RFM Analysis RFM Analysis Frequency Marketing Programs Frequency Marketing Programs Cross Selling Cross Selling10.6

8. Direct Marketing Databases Allow Very Specific Targeting of Promotions 10.7

9. Database Marketing (con’t) MEDIA APPLICATIONS IN DIRECT MARKETING Direct Mail Direct Mail Selectivity Selectivity Flexibility Flexibility Consumer Preference Consumer Preference Telemarketing Telemarketing Catalogs Catalogs Infomercials Infomercials Direct Marketing in Other Media Direct Marketing in Other Media Bind-in Insert Card Bind-in Insert Card Toll Free Numbers in Traditional Media Toll Free Numbers in Traditional Media10.8

10. Catalogs Are An Important Medium in the Direct Marketing Process 10.9

11. e-Commerce Popularity Basis Same as Direct Marketing Popularity Basis Same as Direct Marketing Convenience Convenience Acceptance of Credit Acceptance of Credit Changes in Technology and Measurability of Results Changes in Technology and Measurability of Results Business-to-Consumer and Business-to-Business Business-to-Consumer and Business-to-Business e-Commerce: B2B is most powerful 10.10

12. Like Direct Marketing,Tthe Popularity of e-Commerce is Due to the Convenience it Offers Consumers 10.11

13. Model of the Stages of e-Commerce

14. e-Commerce (con’t) SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCE Identify Customers Identify Customers Attract Customers Attract Customers Communicate Communicate Personalize and Customize Personalize and Customize10.13

15. There are Many Facilitators Available for the e-Commerce Effort 10.14

16. e-Commerce(con’t) SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCE (con’t) Exchange Exchange Platforms Platforms Payment, Fulfillment and Follow-up Payment, Fulfillment and Follow-up Profiling Profiling Sites Visited, Purchases Made, Info Gathered Sites Visited, Purchases Made, Info Gathered Site Learns about Consumers when Visited Site Learns about Consumers when Visited Data Mining Captures all Consumer Data/Analyzes Behavior Data Mining Captures all Consumer Data/Analyzes Behavior10.15

17. Coordinating Direct Marketing, e-Commerce, and IMC Tremendous Challenge Tremendous Challenge Organizations Need to Seek Synergy Organizations Need to Seek Synergy Coordination is Needed for Internal and External Specialists Coordination is Needed for Internal and External Specialists Firms are Turning to a Marcom Manager Firms are Turning to a Marcom Manager to Facilitate Coordination to Facilitate Coordination 10.16