2 Previewing the Concepts Direct marketing and its benefitsDatabase in direct marketingMajor forms of direct marketingInternet and other new technologies with online marketing strategiesOnline marketing to profitably deliver more value to customers
3 Direct MarketingConnecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationshipsLO 1: Define direct marketing and discuss its benefits to customers and companies
4 New Direct Marketing Model OLD supplementalNEW complete model for doing businessSome only approachFastest-growing form of marketingDirect marketing expenditures generate $2.1 trillion in sales, about 10% of U.S. economyDirect marketing sales are expected to grow at 5.3% annually through 2013Continues to become more Web-orientedInternet marketing is the fastest-growing form of direct sales
5 Benefits of Direct Marketing Benefits to buyers:Convenient, easy to use and privateProvides greater controlReady access to productsReady access to wealth of comparative informationCan reach consumers in remote locationsImmediate and interactiveLO 1: Define direct marketing and discuss its benefits to customers and companies
6 Benefits of Direct Marketing Benefits to sellers:Builds customer relationshipsProvides a low-cost, speedy way to reach markets, including business marketsOffers lower costs, improved efficiencies, and speedier handling of channel/logistics functionsOffers greater flexibilityGives access to buyers that could not be reached through other channelsLO 1: Define direct marketing and discuss its benefits to customers and companies
7 Customer Databases and Direct Marketing Customer database: An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral dataMany uses for customer database:Locate potential customers and generate sales leadsLearn more about customers and fine-tune offerings and communications
9 Direct-mail Marketing Sending an offer, announcement, reminder to a person at a physical or virtual addressLargest direct marketing medium (34%)One-to-one communicationUse of traditional forms may declineCombination with other mediaOften perceived as “junk mail”
10 Catalogue Marketing Catalog marketing: Direct marketing through print, video, or digital catalogs distributed by mail, in stores or onlineCatalog marketing trends:More catalogs are going digital, minimizing costs and allowing real-time merchandisingPrint catalogs are the primary medium, driving web traffic and creating consumer connectionsExpected U.S. catalog sales in 2013 = $182 billion
11 Catalogue Marketing Catalog marketing trends: More catalogs are going digital, minimizing costs and allowing real-time merchandisingPrint catalogs are the primary medium, driving web traffic and creating consumer connectionsExpected U.S. catalog sales in 2013 = $182 billion
12 Telephone Marketing 17% of all direct marketing sales Used in both consumer and B2B marketsOutbound VS InboundDo-not-call legislation (DNCL)Outbound: Sell directly to consumerInbound: Toll-free ordering or order faxing
13 Direct-response Marketing DRTV – 60 or 120 sec longInfomercials – 30 min (or longer)Home shopping channels – dedicated to selling multiple brands, items & services
14 Kiosk MarketingInformation and ordering machines generally found in stores, airports, and other locationsE.g., in-store Kodak kiosks allow customers to transfer pictures from digital storage devices, edit them, and make high-quality color prints
16 New digital MarketingMOBILE content, display or sponsorship advert & mobile messaging (SMS), expected to growPOD & VOD - Ad-supported podcasts, downloadable ads, informational features, and other promotionsiTV - Viewer engagement is higher than regular TV ads
17 Online Marketing Online marketing: Marketing and the Internet: Efforts to market products,and services and buildcustomer relationshipsMarketing and the Internet:80% household penetration rateOnline marketing efforts are expandingClick-and-mortar companies are having more online success than click-only companies
18 Online MarketingB2C -Online buying continues to grow; the Internet influences 35% of total retail salescustomers initiate and control the Internet exchange process (diiff from off-line purchase) gratefulpalate.comB2B - Businesses using B2B websites, , online catalogs/trading networks, and other online resources to reach and serve customers, obtain buying efficiencies and attain better prices, offer online product information, purchasing, and support, used to build stronger customer relationships cisco systemsC2C - Online exchanges of goods and information between final consumers, Auction sites such as eBay offer marketplaces to buy or exchange goods, Blogs and forums facilitate information interchangesFirms should monitor blogs for what is being saidC2B - Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction termsE.g., GetSatisfaction.com allows users to post questions, voice complaints, or deliver compliments to companies
19 Online Marketing Creating a website Placing ads and promotions online Creating or participating in online social networksUsing
20 Online Marketing Corporate websites: Marketing websites: Corp -Build customer goodwill, collect customer feedback, and supplement other sales channels, rather than to sell the company’s products directlyMtkg - Engage consumers in interactions that move them closer to a direct purchase or other marketing outcome
21 Online Marketing The seven Cs of effective website design: ContextContentCommunityCustomizationCommunicationConnectionCommerceConstant change encourages repeat visitsLO 5: Discuss how companies go about conducting online marketing to profitably deliver more value to customers
22 Online Marketing Placing ads and promotions online: Online advertising is a major medium to build brands and attract visitors to sitesForms of online advertising: Banner ads, Interstitials, Pop-up or pop-under ads, Rich media ads, Search-related ads (contextual advertising)Other forms of online promotion:Content sponsorships (sponsoring special content)Affiliate programs (work with other companies to promote each other)Viral marketing (Internet version of word-of-mouth)
23 Online Marketing OfficeMax’s ElfYourself.com viral website: Viral marketing: OfficeMax’s ElfYourself.com viral website has propelled itself into the digital record books. With no promotion at all, the site logged more than 193 million visits between late November and early January. One-third of those visiting the site were influenced to shop at OfficeMax.
24 Social Network Marketing Online communities where individuals and companies can exchange informationE.g., MySpace, Facebook, Twitter, YouTubeMarketers can participate in existing online communities or set-up their ownFocused niche networks are emerging which can be used to target special interest groups
25 Email Marketing Cost-efficient, lowest cost Used to welcome new customers, qualify leads, announce events, cross-sell and upsell, promote new products and build customer relationshipsPermission-based marketing is keyAccording to the Direct Marketing Association, marketing produces a ROI 40 to 50% higher than other forms of direct-marketing media
26 Challenges of Direct and Online Marketing Internet fraud and phishingOnline securityDifficult to restrict access by vulnerable or unauthorized groupsInvasion of privacyLO 5: Discuss how companies go about conducting online marketing to profitably deliver more value to customers
27 Previewing the Concepts Direct marketing and its benefitsDatabase in direct marketingMajor forms of direct marketingInternet and other new technologies with online marketing strategiesOnline marketing to profitably deliver more value to customers
28 Chapter 14 Case1. Conduct a brief analysis of the marketing environment and the forces shaping the development of StubHub?2. Discuss StubHub’s business model. What general benefits doe sit afford buyers and sellers? Which benefits are most important in terms of creating value for buyers and sellers?
29 Chapter 14 Case3. Discuss StubHub as new intermediary. What effects has this type of intermediary had on the ticket industry?4. Apply the text’s e-marketing domains framework to StubHub’s business model. How has each domain played a role in the company’s success?
30 Chapter 14 Case5. What recommendations can you make for improving StubHub’s future growth and success?6. What are the legal or ethical issues, if any, for ticket-reselling websites?