1. Marketing Management
4th of July 2011

2. Direct and Online Marketing
Building Direct Customer Relationships

3. Direct Marketing – Growth and Benefits
Direct Marketing: Directly connecting with carefully targeted individual consumers to obtain both an immediate response and build lasting customer relationships
Direct marketing is growing and becoming more web based as result of internet growth
Many modern companies use direct internet marketing as a business model
Direct marketing has benefits for both buyers and sellers

4. Direct Marketing – Growth and Benefits
Buyer Benefits
Convenient, Easy and Private
No need to drive, can do it at home, any time of day
Ready Access to Numerous Products
Unrestrained boundaries and unlimited selection
Wealth of Information and Easy to Compare
Variety in catalogues, companies, products and competitors
Interactive and Immediate
Buyers interact with sellers by phone or website
Greater Control
Buyer determines which sites and catalogues to browse

5. Direct Marketing – Growth and Benefits
Seller Benefits
Customer Relationship Building Tool
Database marketing with personalised communications
Low Cost,, Cheaper than employing sales force to cover all areas and target markets
Improved Efficiency
Quicker order processing
Speedy Alternative
Inventory handing and delivery
Greater Flexibility
Ongoing adjustments to prices and programs
Wider Access to Buyers
Access to customers outside of local markets

6. Customer Database and Direct Marketing
Customer Database: An organised collection of comprehensive data about individual customers or prospects
A good customer database can be potent relationship building tool
It gives companies a 360 degree view of customers and their behaviour
Consumer marketing database contains geographic, demographic, psychographic and behavioural data
Business-to-Business profiles may contain past products and services bought, past volumes and prices, key contacts, estimated spending etc
Companies use their databases to locate good customers and to generate sales leads
Large investments in hardware, software, analytical programs, communication links and skilled labour

7. Forms of Direct Marketing
Direct Mail Marketing
Catalog Marketing
Telephone Marketing
Direct – Response TV Marketing
Kiosk Marketing
New Digital Direct Marketing Technology
Mobile Phone Marketing
Podcasts and Vodcasts
Interact TV

8. Online Marketing
Online Marketing: company efforts to market products and services and to build customer relationships over the internet
Online marketing is the fastest growing form of direct marketing
Technological advances have created a blossoming digital age
Widespread use of the internet has dramatic impact on both buyers and marketers
Roughly 20% of direct marketing driven sales is now we based

9. Online Marketing Marketing and the Internet
Internet: A vast public web of computer networks that connect users of all types around the world to each other and to an information repository
The web has changed people’s notions of convenience, speed, price, product information, and service
It’s given marketers a new way to create value and to build relationships
Click-only companies operate only on the internet e.g. Amazon and Google
E-tailers e.g. Amazon and Expedia
Search Engines and Portals e.g. Yahoo and Google
Transaction Sites e.g. eBay
Content Sites e.g. Encyclopaedia Britannica Online

10. Online Marketing Marketing and the Internet
Brick and Mortar manufacturers and retailers have re-examined how they serve their markets
They’ve set up their own online sales and communications channels becoming click and mortar companies
Companies are also becoming multi-channel retailers
Difficult today to find a company without a substantial online presence

11. Online Marketing Online Marketing Domains
Four Major Online Marketing Domains include: Business to Consumer, Business to Business, Consumer to Consumer, and Consumer to Business
Business to Consumer (B2C) Online Marketing: businesses selling goods and services online to final consumers
Business to Business (B2B) Online Marketing: businesses using B2B websites, , online catalogs and other online resources to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices
Consumer to Consumer (C2C) Online Marketing: online exchanges of goods and information between final consumers
Consumer to Business (C2B) Online Marketing: online exchanges where consumers search for sellers, learn about offers and initiate purchases

12. Online Marketing Setting Up an Online Marketing Presence
Companies can set up a web presence in one of four ways:
Creating a Website,
Placing Ads and Promos Online,
Creating or Participating in Online Social Networks
Using

13. Online Marketing

14. Online Marketing Creating a Web Site
Usually the 1st step in conducting online marketing
Marketers need to design an attractive site, get consumers to visit the site, and to come back
Types of Websites:
Corporate Websites – a site designed to build goodwill, collect customer feedback and supplement other channels rather than to sell company products
Marketing Websites – a website which engages consumers in interactions which move them closer to a direct purchase or other marketing outcomes

15. Online Marketing Designing Effective Websites
To attract visitors, marketers promote websites in offline print, ads, links and other sites
Consumers abandon sites which don’t live up to expectations and which don’t measure up
Key is to create excitement and value to get consumers to stick and come back again
Seven Cs of effective website design
Context: layout and design of the site
Content: the text, pictures, sound and video which the site contains
Community: user to user communication enablement on the site
Customisation: user tailoring or how users can personalise the site
Communication: site-to-user, user-to-site, or two way communication
Connection: degree of which the site is linked to other sites
Commerce: the sites ability to enable commercial transactions

16. Online Marketing

17. Online Marketing Placing Ads and Promos Online
Online Advertising: advertising that appears while consumers are surfing the web, including display adverts, online classifieds etc
Major Forms of Online Advertising
Display ads e.g banners, pop-ups
Search related ads or contextual advertising e.g on search engines
Online Classifieds
Other Forms of Online Promotion
Content Sponsorship – carefully targeted sites
Alliance and Affiliate Programs – working with other companies online and offline
Viral Marketing – internet version of word-of-mouth

18. Online Marketing

19. Online Marketing Creating or Participating in Online Social Networks
Online Social Networks: these are online social communities where people socialise or exchange information and opinions e.g. blogs, social networking websites
Marketers engage with social networks in two ways:
Participating in existing web communities e.g. MySpase, FB
Creating their own web communities e.g. dedicated websites
Challenges of Online Social Networks:
They are new, hard to measure and difficult to use effectively
User controlled and marketers don’t drive the conversations
Consistently add value to consumers in the web community to capture value in return

20. Online Marketing Using E-Mail Marketing
It’s a growing and an important online tool
More enriched messages to compete effectively and to overcome the clutter e.g. interactive messages and animation
Dark side of marketing is spam as it clogs up your mailbox – causes irritation
Spam: unsolicited, unwanted commercial messages
Permission-based marketing is now utilised address the spam through customer’s opting in
allows for highly targeted, direct, personalised relationship building messages to be sent to consumers who want to receive
Advantages are low costs and effective targeting with high return on investment

21. Online Marketing

22. Online Marketing

23. Public Policy Issues in Direct Marketing
Irritation, Unfairness, Deception and Fraud
Excesses of direct marketing annoy or offend consumers
Direct response TV commercials which are too loud, too long and inconsistent annoy
Unwanted junk mail, spam, banner and pop up ads also irritate consumers
Informercials take advantage of impulsive or less sophisticated buyers with low resistance
Internet fraud and investment schemes including identity theft
Phishing which uses deceptive s and fraudulent websites to fool users to divulge personal data
Online security when doing transaction related and intercepting personal banking related numbers
Access by unauthorised groups and vulnerable people

24. Public Policy Issues in Direct Marketing
Invasion of Privacy
Extensive use of database information to take advantage of consumers
Names are spread to various groups whenever you apply or enter company databases
Availability of information leaves consumers open to abuse if companies make unauthorised use of information
Credit card companies and data of cardholders
Credit bureaus for people with credit records and new applications
Cellphone companies and their customer usage and personal information
Many other companies with different divisions and subsidiaries
How do we circumvent this??? A need for action pg 543

25. See you next time.
Cheers Guys!