14 Direct and Online Marketing: Building Direct Customer Relationships
Chapter Outline • Growth and Benefits of Direct Marketing • Customer Databases and Direct Marketing • Forms of Direct Marketing • Online Marketing • Setting up an Online Marketing Presence • The Promise and Challenges of Online Marketing • Public Policy Issues in Direct Marketing
Direct Marketing • Direct marketing consists of connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Customer Databases and Direct Marketing • A customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic (address, region), demographic (age, income, family members, birthday), psychographic (activities, interests, opinions), and behavioral data (buying preferences).
Direct-Mail Marketing • Direct mail is the sending an offer, announcement, reminder, or other item to a person • at a • particular • physical • or virtual • address.
Discussion Question What types of marketers and/or products tend to use direct mail to reach consumers? Why?
Catalog Marketing • Catalog marketing is the use of print, video, or • digital catalogs • that are mailed to • select customers, • made available in • stores or presented • online.
Telephone Marketing Telephone marketing accounts for more that 19 percent of direct marketing-driven sales
Direct-Response Television Marketing (DRTV) • Takes one of two major forms: • - Direct response television advertising. • - Interactive TV (iTV) advertising.
Kiosk Marketing • Nowadays, kiosks are everywhere in self-service hotel and airline check-in devices to in-store ordering devices. • It can be used to combine touch screen and digital technologies.
Discussion Question As a consumer, how do you feel about telephone marketing? Mobile marketing?
Online Marketing Online marketing is the fastest growing form of direct marketing
Business-to-Consumer (B2C) • The popular press paid the most attention to business to consumer (B2C) online marketing which is businesses selling goods and services online to final consumers.
Business-to-Business (B2B) Business marketers use online marketing (websites, e-mail, online products catalogs, online trading networks, mobile apps, 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) • The online exchange information and goods between final customers.
Consumer-to-Business (C2B) Consumer-to-business (C2B) are online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms.
Discussion Question When using a social network such as Facebook, what do you perceive as good marketing?
Public Policy Issues in Direct Marketing • Irritation, unfairness, deception, and fraud • Invasion of privacy • A need for action