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Chapter 14. Direct Marketing and Marketing on the Internet. Irwin/McGraw-Hill. The McGraw-Hill Companies, Inc., 1998. Direct Marketing. Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location .

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Chapter 14

Chapter 14

Direct Marketing and Marketing on the Internet

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998


Direct marketing
Direct Marketing

  • Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

  • Common purposes of direct marketing:

    • Close the sale

    • Identify prospects for future contacts

    • Provide in-depth information

    • Seek information from consumers

    • Foster (enhance) brand loyalty


Direct marketing today
Direct Marketing Today

  • More than just mail-order

    • Used by organizations throughout the world

    • Often is not integrated with other advertising efforts.

  • Four Principle Purposes

    • Close a sale with a customer

    • ID prospects and develop customer info.

    • Engage customers, seek their advice and

    • Generate brand loyalty


What s driving direct marketing
What’s Driving Direct Marketing?

  • CONVENIENCE! for today’s dual income and single parent households.

  • More liberal attitudes toward using credit

  • Greater access to (Tax) toll-free calling

  • Computer technology to facilitate transactions

  • On-line shopping

  • Cost per inquiry (CPI) and cost per order (CPO) advantages of direct marketing


The growth of direct marketing
The Growth of Direct Marketing

  • The catalog

  • Use of consumer credit cards

  • Direct-marketing syndicates (agencies)

  • The changing structure of the market worldwide

  • Technological advances

  • Various other factors

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-1


Direct response media

Direct Mail

Catalogs

Broadcast media

Infomercials

The Internet

Print media

Telemarketing

Electronic teleshopping

Direct Response Media

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-2


Database marketing
Database Marketing

  • Knowing who the best customers are as well as what and how often they buy

  • Mailing lists

    • Internal lists

    • External lists


The marketing database
The Marketing Database

  • Includes data collected directly from individual customers

  • Marketing database applications

    • CRM analysis

    • Marketing programs

    • Cross-selling

  • Privacy concerns


Advantages of direct marketing
Advantages of Direct Marketing

  • Selective reach

  • Segmentation capabilities

  • Frequency

  • Flexibility

  • Timing

  • Personalization

  • Cost efficiencies

  • Ability to measure effectiveness

Slide 14-4

  • The McGraw-Hill Companies, Inc., 1998


Disadvantages of direct marketing
Disadvantages of Direct Marketing

  • Direct mail is expensive.

    • May cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial

  • Mail lists can be plagued with bad addresses.

  • Mail delivery dates can be unpredictable

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-5


Web objectives
Web Objectives

  • Disseminating (Circulating) information

  • Creating awareness

  • Gathering research information

  • Creating an image

  • Stimulating trial

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-7


Advantages of the internet
Advantages of the Internet

  • Target marketing

  • Message tailoring

  • Interactive capabilities

  • Information access

  • Sales potential

  • Creativity

  • Market potential

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-9


Disadvantages of the internet
Disadvantages of the Internet

  • Measurement problems

  • Audience characteristics

  • Clutter

  • Potential for deception (Deceiving)

  • Costs

  • Limited production quality

Irwin/McGraw-Hill

  • The McGraw-Hill Companies, Inc., 1998

Slide 14-10


E mail
E-Mail

  • Bulk e-mail is known as “spam”

    • However, e-mail is an increasingly popular tool for marketers.

  • Advantages

    • Cheap

    • Good response rates


Direct response advertising
Direct Response Advertising

  • Multiple media can be deployed to generate an immediate, measurable response.

  • Most common media used are direct mail and telemarketing.

  • However all conventional media can be used.


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