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Chapter 17- slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Seventeen
Direct and Online Marketing:
Building Direct Customer
Relationships
Chapter 17- slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Direct and Online Marketing: Building
Direct Customer Relationships
• The New Direct-Marketing Model
• 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
Topic Outline
Chapter 17- slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The New Direct-Marketing Model
Direct marketing is:
• A marketing channel without
intermediaries
• An element of the promotion mix
• Fastest-growing form of marketing
Chapter 17- slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Growth and Benefits of Direct
Marketing
• Convenience
• Ready access to many products
• Access to comparative information
about companies, products, and
competitors
• Interactive and immediate
Benefits to Buyers
Chapter 17- slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Growth and Benefits of Direct
Marketing
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to
reach markets
• Flexible
• Access to buyers not reachable through
other channels
Benefits to Sellers
Chapter 17- slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Customer Databases and Direct
Marketing
• Customer database is an organized
collection of comprehensive data about
individual customers or prospects,
including geographic, demographic,
psychographic, and behavioral data
Customer Database
Chapter 17- slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Chapter 17- slide 8
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Direct-mail marketing involves an offer,
announcement, reminder, or other item
to a person at a particular address
• Personalized
• Easy-to-measure results
• Costs more than mass media
• Provides better results than mass
media
Chapter 17- slide 9
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Catalog direct marketing involves printed
and Web-based catalogs
Chapter 17- slide 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Telephone direct marketing involves
using the telephone to sell directly to
consumers and business customers
• Outbound telephone marketing sells
directly to consumers and businesses
• Inbound telephone marketing uses toll-
free numbers to receive orders from
television and print ads, direct mail, and
catalogs
Chapter 17- slide 11
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Direct-response television (DRTV)
marketing involves 60- to 120-second
advertisements that describe products
or give customers a toll-free number or
Web site to purchase and 30-minute
infomercials such as home shopping
channels
• Less expensive than other forms of
promotion and easier to track results
Direct-response television
Chapter 17- slide 12
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
• Kiosk marketing
• Digital direct marketing technologies
– Mobile phone marketing
– Podcasts
– Vodcasts
– Interactive TV
Chapter 17- slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Mobile phone marketing includes:
• Ring-tone giveaways
• Mobile games
• Ad-supported content
• Contests and sweepstakes
Chapter 17- slide 14
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Forms of Direct Marketing
Podcasts and vodcast involve the
downloading of audio and video files via
the Internet to a handheld device such as a
PDA or iPod and listening to them at the
consumer’s convenience
Interactive TV (ITV) lets viewers interact
with television programming and
advertising using their remote controls and
provides marketers with an interactive and
involving means to reach targeted
audiences
Chapter 17- slide 15
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Internet is a vast public web of computer
networks that connects users of all
types around the world to each other
and to a large information repository
Marketing and the Internet
Chapter 17- slide 16
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Online Marketing Domains
Chapter 17- slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Business to consumer (B2C) involves
selling goods and services online to
final consumers
Business to business (B2B) involves
selling goods and services, providing
information online to businesses, and
building customer relationships
Online Marketing Domains
Chapter 17- slide 18
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Consumer to consumer (C2C) occurs
on the Web between interested parties
over a wide range of products and
subjects
Blogs
– Offer fresh, original, and inexpensive ways
to reach fragmented audiences
– Difficult to control
Online Marketing Domains
Chapter 17- slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Consumer to business (C2B) involves
consumers communicating with
companies to send suggestions and
questions via company Web sites
Online Marketing Domains
Chapter 17- slide 20
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Types of sites
– Corporate Web site
– Marketing Web site
Setting Up an Online Marketing Presence
Chapter 17- slide 21
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Corporate Web site is designed to build
customer goodwill and to supplement
other channels, rather than to sell the
company’s products directly to:
• Provide information
• Create excitement
• Build relationships
Setting Up an Online Marketing Presence
Chapter 17- slide 22
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Marketing Web site is designed to
engage consumers in interaction that
will move them closer to a direct
purchase or other marketing outcome
Setting Up an Online Marketing Presence
Chapter 17- slide 23
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• To attract visitors, companies must:
– Promote an offline promotion and online
links
– Create value and excitement
– Constantly update the site
– Make the site useful
Designing Effective Web Sites
Chapter 17- slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Designing Effective Web Sites
The Seven C’s
Chapter 17- slide 25
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Forms of online advertising
– Display ads
– Search-related ads
– Online classifieds
Placing Ads and Promotions Online
Chapter 17- slide 26
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Banners are banner-shaped ads found on
a Web site
• Interstitials are ads that appear between
screen changes
• Pop-ups are ads that suddenly appear in a
new window in front of the window being
viewed
• Rich media ads incorporate animation,
video, sound, and interactivity
Placing Ads and Promotions Online
Chapter 17- slide 27
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Search-related ads are ads in which
text-based ads and links appear
alongside search engine results on
sites such as Google and Yahoo! and
are effective in linking consumers to
other forms of online promotion
Placing Ads and Promotions Online
Chapter 17- slide 28
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Other forms of online promotion
include:
Placing Ads and Promotions Online
Chapter 17- slide 29
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
Content sponsorships provide companies with
name exposure through the sponsorship of
special content such as news or financial
information
Alliances and affiliate programs are
relationships where online companies promote
each other
Viral marketing is the Internet version of word-
of-mouth marketing and involves the creation of
a Web site, e-mail message, or other marketing
event that customers pass along to friends
Placing Ads and Promotions Online
Chapter 17- slide 30
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Social Networks (Web communities)
allow members to congregate online
and exchange views on issues of
common interest
• iVillage.com
• Facebook
Creating or Participating in Social
Networks (Web Communities)
Chapter 17- slide 31
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Marketers are developing enriched
messages that include animation,
interactivity, and personal messages
with streaming audio and video to
compete with the cluttered e-mail
environment
Using E-mail
Chapter 17- slide 32
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Spam is unsolicited, unwanted
commercial e-mail messages
• Permission-based marketing allows
users to opt in or opt out of e-mail
marketing
Using E-mail
Chapter 17- slide 33
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Online Marketing
• Online marketing will remain an important
approach in the marketing mix to:
– Build customer relationships
– Improve sales
– Communicate company and product
information
– Deliver products and services more effectively
and efficiently
The Promise and Challenges of Online
Marketing
Chapter 17- slide 34
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Public Policy Issues in Direct
Marketing
• Customer irritation, unfairness,
deception, and fraud
• Privacy
• Security
Chapter 17- slide 35
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Public Policy Issues in Direct
Marketing
• Irritation includes annoying and offending
customers
• Unfairness includes taking unfair
advantage of impulsive or less-
sophisticated buyers
• Deception includes “heat merchants” who
design mailers and write copy designed to
mislead consumers
• Internet fraud includes identity theft and
financial scams
Irritation, Unfairness, Deception, and Fraud
Chapter 17- slide 36
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Public Policy Issues in Direct
Marketing
• The concern is that marketers may
know too much about consumers and
use this information to take unfair
advantage
• Sale of databases
• Microsoft
Invasion of Privacy
Chapter 17- slide 37
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Public Policy Issues in Direct
Marketing
• Can Spam
• California Online Privacy Protection Act
(OPPA)
• Children’s Online Privacy Protection Act
(COPPA)
• TRUSTe
A Need for Action

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Direct and Online Marketing Chapter Summary

  • 1. Chapter 17- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seventeen Direct and Online Marketing: Building Direct Customer Relationships
  • 2. Chapter 17- slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Direct and Online Marketing: Building Direct Customer Relationships • The New Direct-Marketing Model • 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 Topic Outline
  • 3. Chapter 17- slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The New Direct-Marketing Model Direct marketing is: • A marketing channel without intermediaries • An element of the promotion mix • Fastest-growing form of marketing
  • 4. Chapter 17- slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Growth and Benefits of Direct Marketing • Convenience • Ready access to many products • Access to comparative information about companies, products, and competitors • Interactive and immediate Benefits to Buyers
  • 5. Chapter 17- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Growth and Benefits of Direct Marketing • Tool to build customer relationships • Low-cost, efficient, fast alternative to reach markets • Flexible • Access to buyers not reachable through other channels Benefits to Sellers
  • 6. Chapter 17- slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Customer Databases and Direct Marketing • Customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data Customer Database
  • 7. Chapter 17- slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing
  • 8. Chapter 17- slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address • Personalized • Easy-to-measure results • Costs more than mass media • Provides better results than mass media
  • 9. Chapter 17- slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Catalog direct marketing involves printed and Web-based catalogs
  • 10. Chapter 17- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Telephone direct marketing involves using the telephone to sell directly to consumers and business customers • Outbound telephone marketing sells directly to consumers and businesses • Inbound telephone marketing uses toll- free numbers to receive orders from television and print ads, direct mail, and catalogs
  • 11. Chapter 17- slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Direct-response television (DRTV) marketing involves 60- to 120-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home shopping channels • Less expensive than other forms of promotion and easier to track results Direct-response television
  • 12. Chapter 17- slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing • Kiosk marketing • Digital direct marketing technologies – Mobile phone marketing – Podcasts – Vodcasts – Interactive TV
  • 13. Chapter 17- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Mobile phone marketing includes: • Ring-tone giveaways • Mobile games • Ad-supported content • Contests and sweepstakes
  • 14. Chapter 17- slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Forms of Direct Marketing Podcasts and vodcast involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences
  • 15. Chapter 17- slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Internet is a vast public web of computer networks that connects users of all types around the world to each other and to a large information repository Marketing and the Internet
  • 16. Chapter 17- slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Online Marketing Domains
  • 17. Chapter 17- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Business to consumer (B2C) involves selling goods and services online to final consumers Business to business (B2B) involves selling goods and services, providing information online to businesses, and building customer relationships Online Marketing Domains
  • 18. Chapter 17- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Consumer to consumer (C2C) occurs on the Web between interested parties over a wide range of products and subjects Blogs – Offer fresh, original, and inexpensive ways to reach fragmented audiences – Difficult to control Online Marketing Domains
  • 19. Chapter 17- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Consumer to business (C2B) involves consumers communicating with companies to send suggestions and questions via company Web sites Online Marketing Domains
  • 20. Chapter 17- slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Types of sites – Corporate Web site – Marketing Web site Setting Up an Online Marketing Presence
  • 21. Chapter 17- slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Corporate Web site is designed to build customer goodwill and to supplement other channels, rather than to sell the company’s products directly to: • Provide information • Create excitement • Build relationships Setting Up an Online Marketing Presence
  • 22. Chapter 17- slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Marketing Web site is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome Setting Up an Online Marketing Presence
  • 23. Chapter 17- slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • To attract visitors, companies must: – Promote an offline promotion and online links – Create value and excitement – Constantly update the site – Make the site useful Designing Effective Web Sites
  • 24. Chapter 17- slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Designing Effective Web Sites The Seven C’s
  • 25. Chapter 17- slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Forms of online advertising – Display ads – Search-related ads – Online classifieds Placing Ads and Promotions Online
  • 26. Chapter 17- slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Banners are banner-shaped ads found on a Web site • Interstitials are ads that appear between screen changes • Pop-ups are ads that suddenly appear in a new window in front of the window being viewed • Rich media ads incorporate animation, video, sound, and interactivity Placing Ads and Promotions Online
  • 27. Chapter 17- slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Search-related ads are ads in which text-based ads and links appear alongside search engine results on sites such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion Placing Ads and Promotions Online
  • 28. Chapter 17- slide 28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Other forms of online promotion include: Placing Ads and Promotions Online
  • 29. Chapter 17- slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information Alliances and affiliate programs are relationships where online companies promote each other Viral marketing is the Internet version of word- of-mouth marketing and involves the creation of a Web site, e-mail message, or other marketing event that customers pass along to friends Placing Ads and Promotions Online
  • 30. Chapter 17- slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Social Networks (Web communities) allow members to congregate online and exchange views on issues of common interest • iVillage.com • Facebook Creating or Participating in Social Networks (Web Communities)
  • 31. Chapter 17- slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Marketers are developing enriched messages that include animation, interactivity, and personal messages with streaming audio and video to compete with the cluttered e-mail environment Using E-mail
  • 32. Chapter 17- slide 32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Spam is unsolicited, unwanted commercial e-mail messages • Permission-based marketing allows users to opt in or opt out of e-mail marketing Using E-mail
  • 33. Chapter 17- slide 33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing • Online marketing will remain an important approach in the marketing mix to: – Build customer relationships – Improve sales – Communicate company and product information – Deliver products and services more effectively and efficiently The Promise and Challenges of Online Marketing
  • 34. Chapter 17- slide 34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Policy Issues in Direct Marketing • Customer irritation, unfairness, deception, and fraud • Privacy • Security
  • 35. Chapter 17- slide 35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Policy Issues in Direct Marketing • Irritation includes annoying and offending customers • Unfairness includes taking unfair advantage of impulsive or less- sophisticated buyers • Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers • Internet fraud includes identity theft and financial scams Irritation, Unfairness, Deception, and Fraud
  • 36. Chapter 17- slide 36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Policy Issues in Direct Marketing • The concern is that marketers may know too much about consumers and use this information to take unfair advantage • Sale of databases • Microsoft Invasion of Privacy
  • 37. Chapter 17- slide 37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Policy Issues in Direct Marketing • Can Spam • California Online Privacy Protection Act (OPPA) • Children’s Online Privacy Protection Act (COPPA) • TRUSTe A Need for Action