Direct and Online Marketing Bluefield College November 18, 2010

Direct Marketing Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. The new direct-marketing model: Direct marketing has undergone a dramatic transformation. Most firms use direct marketing as a supplemental channel or medium. For many companies, direct marketing constitutes a new and complete model for doing business. Some firms employ the direct model as their only approach (e.g., Geico, Amazon, eBay).

Growth of Direct Marketing Fastest growing form of marketing. 10% of U. S. economy ($ 2.1 trillion) is generated by direct marketing sales. Direct marketing sales are expected to grow at 5.3% annually through 2013. Direct marketing continues to become more Web-oriented and Internet marketing is the fast-growing form of direct sales.

Benefits of Direct Marketing Benefits to buyers: Convenient Easy to use Private Ready access to products Ready access to wealth of comparative information Immediate and interactive Benefits to sellers: Powerful tool for building customer relationships Offers a low-cost, speedy way to reach markets Offers lower costs, improved efficiencies, and speedier handling of channel and logistics functions Offers greater flexibility Reaches buyers that could not be reached through other channels

Forms of Direct Marketing

Forms of Direct Marketing Direct-mail marketing: Involves sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address. Largest direct marketing medium. Well-suited to one-to-one communication. Use of traditional forms may decline as marketers switch to newer digital forms. Can be used effectively in combination with other media, such as web sites. Often perceived as “junk mail”. Catalog marketing: Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online.

Forms of Direct Marketing Catalog marketing trends: More and more catalogs are going digital: Minimizes costs, and web space is unlimited. Allows real-time merchandising. Print catalogs are still the primary medium. Drives web traffic and can create an emotional connection to the consumer. Telephone marketing: Accounts for 17% of all direct-marketing driven sales. Used in both consumer and B2B markets. Marketers use outbound and inbound calls. Outbound: Sell directly to consumer. Inbound: Toll-free ordering or order faxing. Do-not-call legislation has impacted the telemarketing industry. Many telemarketers have shifted to other forms of direct marketing.

Forms of Direct Marketing Direct-response TV marketing: Direct-response television advertising (DRTV): TV spots that are 60 or 120 seconds long. Infomercials: A 30 minute or longer advertising program for a single product. Home shopping channels: Entire cable channels dedicated to selling multiple brands, items, and services.

Forms of Direct Marketing Kiosk marketing: Information and ordering machines generally found in stores, airports, and other locations Redbox operates more than 15,000 DVD rental kiosks nationwide New digital direct marketing technologies: Mobile phone marketing: Mobile ad spending is expected to grow. YouTube video Podcasts and vodcasts Interactive TV (ITV): Viewer engagement is much higher than with regular TV ads Online marketing is the final form of direct marketing. See you Tuesday – Topic: Online Marketing