13-1

© 2010 Pearson Education Canada13-1

Marketing: An Introduction Third Canadian Edition

Armstrong, Kotler, Cunningham, Buchwitz

Chapter Thirteen

Direct and Interactive Marketing

With Duane Weaver

13-2

© 2010 Pearson Education Canada

Outline• Define direct response marketing and discuss its benefits to

customers and companies.• Identify and discuss the major forms of direct response

marketing.• Identify the major forms of direct and interactive marketing, and

explain the intersection of direct response and online marketing.• List and describe the various forms of online marketing, and

differentiate between online marketing and online advertising.

13-3

© 2010 Pearson Education Canada

Direct Response Marketing• Communicates directly with customers

• Allows for customer response & interaction

• Benefits both buyers and marketers

• Requires a database

in-class notes

13-4

© 2010 Pearson Education Canada

Direct Response Marketing• Any marketing program that issues a communication to

an audience, and requests a measurable response in return.

• Direct response marketing could be viewed as• As an channel of direct distribution—as marketing

channels that contain no intermediaries. • As a promotional tool - direct marketing as one

element of the promotion mix.• Direct response marketing has undergone a dramatic

transformation with rapid advances in database technologies and new marketing media such as the internet.

13-4

13-5

© 2010 Pearson Education Canada

Direct Response Marketing

Benefits to Buyers• Convenient• Private• Access to variety• No physical boundaries• Empowers customers• Interactive and

immediate• Greater measure of

control

Benefits to Marketers• Direct customer

relationships• Personalized

communication• Customize products • Lower costs, efficient ,

speedy alternative• Make immediate and

timely adjustments• Access to customers

12-5

13-6

© 2010 Pearson Education Canada12-6

Forms of Direct Marketing

Direct Mail

Catalogues Telemarketing

Direct Response Television

Kiosk Marketing

13-7

© 2010 Pearson Education Canada

Direct Mail • Involves sending an offer, announcement,

reminder or other item to a person at a particular address.

• Suited for one to one communication.• Permits high target-market selectivity.• Personal and flexible.• Easy to measure results.• Desired response is elicited through call to

action.

12-7

13-8

© 2010 Pearson Education Canada

Catalogues

• Is a printed, bound piece of at least of eight pages selling multiple products and offering a direct ordering mechanism.

• Some marketers use this as a sole method of direct marketing while others use these in conjunction with a web site.

• Today catalogues are also available online.• Printed catalogues are still popular and works

as a good supplement .

12-8

13-9

© 2010 Pearson Education Canada

Telemarketing • Divided into two types

– Inbound telemarketingA division of customer service, the department that answers customers’ questions when they call in.

– Outbound telemarketingThe department of marketers who place outgoing calls, usually to existing customers, to try to persuade them to upgrade their services.

• There is a resentment from customers towards outbound telemarketing.

• Do not call lists limits outbound calls.• Marketers still could use customer service calls to

persuade to subscribe to new services.

12-9

13-10

© 2010 Pearson Education Canada

Direct-Response Television

• Television spots that persuasively describe a product and give customers a toll-free number for ordering.

• Uses formats such as – Infomercials – longer advertising programs.– The Shopping Channel – channels devoted

to facilitate buying goods.

12-10

13-11

© 2010 Pearson Education Canada

Kiosk Marketing

• Computerized kiosks are used to deliver information, allow customers to interact with products, and even take orders.

• Kiosk such as self service to in store ordering options would allow customers to order merchandise not carried in the store.

Can you think of an example of a Kiosk you have used recently?

12-11

13-12

© 2010 Pearson Education Canada

Digital Interactive Marketing

• These are new media which uses digital medium to support direct interactive marketing.

• Some new alternative terms used include, new media marketing, interactive marketing, Internet marketing, e-marketing, electronic marketing, digital marketing, and online marketing.

12-12

13-13

© 2010 Pearson Education Canada

Forms of Digital Interactive Marketing

• Digital signage – type of advertising that can deliver targeted advertising to consumers based on demographics and by interacting with their personal electronic devisers.

• Mobile marketing – use of various mobile technologies to communicate to a given target audience.

• Podcasting – audio and video programs that can be downloaded to personal electronic devises and viewed at the consumer’s convenience.

12-13

in-class notes

13-14

© 2010 Pearson Education Canada

Forms of Digital Interactive Marketing• Online marketing is a very general term for any

kind of marketing program, marketing communications, or sales, that can be conducted online.

• Forms of online marketing include– Websites– E-commerce– Online advertising– Search engine marketing– Email marketing– Blogs & social networks

12-14

13-15

© 2010 Pearson Education Canada

Website as a Marketing Tool

• The 7Cs of website design are: context, content, community, customization, communication, connection, and commerce

• Websites act as marketing tools by– Providing product information and investor

information– Providing customer service (and self-service)– Moving the customer closer to the sale– Distributing coupons and special offers– Allowing customers to register

12-15

in-class notes

13-16

© 2010 Pearson Education Canada

7 Cs of Effective Website Design • Context: layout and design elements.• Content: text, pictures, sound and video.• Community: user-to-user communication.• Customization: personalizing for each user.• Communication: two-way communication.• Connection: links to other relevant sites.• Commerce: commercial transactions.

12-16

Website as a Marketing Tool

13-17

© 2010 Pearson Education Canada

Forms of Online Advertising • Banner ads - Graphic online ads that may be placed

anywhere on the publisher’s webpage.• Sponsorships A form of Internet advertising in which

the advertising message is placed permanently, for an agreed-upon period of time, on the Web publisher’s site.

• Interstitial A large, animated online advertisement that pops up onto the screen for several seconds.

• Micro site A small website consisting of a few pages of detailed information about the marketer’s goods or services.

12-17

13-18

© 2010 Pearson Education Canada

Search Engine Marketing and Advertising

• Could be used to advertise content along with the search results indicated.

• Marketers could also use a search engines to list their web sites so that they appear when the users search for an item with similar criteria.

12-18

13-19

© 2010 Pearson Education Canada

Email Marketing• Not spam!

• Reputable marketers send email only to customers who request it

• Viral marketing

• Permission marketing

• Opt-in vs. opt-out

in-class notes

13-20

© 2010 Pearson Education Canada

E-mail Marketing • Marketers would need to avoid Spam in their e-mail

marketing campaigns. This could be done with the use of permission marketing tools.

• Permission marketing - Email messages sent by marketers with the permission of the recipient.

• E-mails could be effectively used for viral marketing campaigns.

• Viral marketing - The Internet version of word-of-mouth marketing. An e-mail is created that is so infectious, the recipient may want to pass it to all their friends. Friends are likely to open it since it comes from another friend.

12-20

13-21

© 2010 Pearson Education Canada

Rules for E-mail Marketing

• Send email only by permission.• Clearly identify the sender.• Remind the recipient why they’re receiving the

message.• Provide an easy way to unsubscribe.• The default is always opt-in, never opt-out.

12-21

13-22

© 2010 Pearson Education Canada

Blogging and Social Networks• Blog - Blog is a abbreviation for a web log. It is a

website that consists of regular date-stamped compositions written by an individual or a group of individuals and published online for the public to read.

• Widgets, also known as “gadgets,” are tiny computer programs that allow anyone to incorporate professional-looking content into Web pages.

• Social Networks could be web sites such as Face book, MySpace where individuals could interact and maintain social relationships. Today marketers are increasingly looking at the possibilities of using these medium for marketing.

12-22