2. ©2000 Prentice Hall ObjectivesObjectives ä Growth & Benefits of Direct Marketing ä Customer Databases & Direct Marketing ä Major Channels for Direct Marketing ä Marketing in the 21st Century: Electronic Commerce ä Public & Ethical Issues in Direct Marketing

3. ©2000 Prentice Hall Why Growth in Direct Marketing ä Market “Demassification” ä Effort of “Traditional Shopping” ä Continuous Access ä Next-day Delivery ä Specialty Items ä Increase in Computer Power

4. ©2000 Prentice Hall To Customers To Companies Fun, Convenient & Hassle-Free Saves Time Larger Merchandise Selection Comparison Shopping Mailing Lists for Almost Any Market Customized Offers Ongoing Relationships with Customers Timed to Achieve Higher Readership & Response Order Products for Themselves or Others Alternative Media/Message Testing Benefits of Direct Marketing Privacy Measurable Response

5. ©2000 Prentice Hall Uses for Databases 1. Identify Prospects 2. Match Customers & Offers 3. Deepen Customer Loyalty 4. Reactivate Customers

6. ©2000 Prentice Hall Direct Marketing Channels Catalog Marketing Catalog Marketing Kiosk Marketing Kiosk Marketing Online Marketing Online Marketing Direct-Mail Marketing Direct-Mail Marketing Direct-Response TV Marketing Direct-Response TV Marketing Telemarketing Face-to-Face Selling Face-to-Face Selling

7. ©2000 Prentice Hall Lifetime Value Cost of Campaign:$10,000 100 new members @ $70 $7,000 1st year “cost” $3,000 2d Year 80 renewals @ $70 $5,600 Two year “gain” $2,600 Two year “gain” $2,600 3d Year… 4th Year...

8. ©2000 Prentice Hall Objective Information Initiation of Information Requests Design Desired Offerings “Information Rich” Buyers Employ “Agents” or Solicit Bids Find Specialized Third- party Sellers

9. ©2000 Prentice Hall Convenience Information Fewer Hassles Consumers Companies Quick Adjustments to Market Conditions Lower Costs Relationship Building Audience Sizing Benefits of Online Marketing

10. ©2000 Prentice Hall Online Marketing Channels Electronic Presence Corporate Website Marketing Website Electronic Presence Corporate Website Marketing Website Advertising Online Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups Buy Online Ads That Pop Up While Consumers are Surfing Advertising Online Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups Buy Online Ads That Pop Up While Consumers are Surfing Participating in Forums, Newsgroups & Web Communities Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online Participating in Forums, Newsgroups & Web Communities Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online Using E-Mail and Webcasting Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PC’s Using E-Mail and Webcasting Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PC’s

11. ©2000 Prentice Hall Challenges of Online Marketers ä Limited Consumer Exposure & Buying ä Skewed User Demographics & Psychographics ä Chaos & Clutter ä Security

12. ©2000 Prentice Hall Public & Ethical Issues in Direct Marketing IrritationUnfairnessDeception & FraudInvasion of Privacy

13. ©2000 Prentice Hall ReviewReview ä Growth & Benefits of Direct Marketing ä Customer Databases & Direct Marketing ä Major Channels for Direct Marketing ä Marketing in the 21st Century: Electronic Commerce ä Public & Ethical Issues in Direct Marketing