Direct and Online Marketing: Building Direct Customer Relationships

MARKETING AN INTRODUCTION

Armstrong/Kotler14

Copyright © 2011 Pearson Education

Global Edition

Direct and Online Marketing:Building Direct Customer Relationships

14

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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

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Direct Marketing

Direct marketing consists of connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

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Benefits of Direct Marketing

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Customer Databases and Direct Marketing

A customer database is an organizedcollection 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).

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Forms of Direct Marketing

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Direct-Mail Marketing

Direct mail is the sending an offer, announcement, reminder, or other item to a personat a particular physical or virtualaddress.

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Discussion Question

What types of marketers and/or products tend to use direct mail to reach consumers? Why?

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Catalog Marketing

Catalog marketing is the use of print, video, ordigital catalogsthat are mailed to select customers,made available in stores or presentedonline.

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Telephone Marketing

Telephone marketing

accounts for more that 19 percent of direct marketing-

driven sales

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Direct-Response Television Marketing (DRTV)

• Takes one of two major forms:

- Direct response television advertising.

- Interactive TV (iTV) advertising.

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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.

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Digital Direct Marketing Technologies

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Discussion Question

As a consumer, how do you feel about telephone marketing? Mobile marketing?

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Online Marketing

Online marketing is the fastest growing form of

direct marketing

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Online Marketing Domains

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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.

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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.

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Consumer-to-Consumer (C2C)

• The online exchange information and goods between final customers.

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Consumer-to-Business (C2B)

Consumer-to-business (C2B) are online

initiate purchases, sometimes even driving

transaction terms.

exchanges in which

consumers search out sellers,

learn about their offers, and

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Setting up an Online Marketing Presence

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Forms of Online Advertising and Promotion

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Creating or Participating in Online Social Networks

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Discussion Question

When using a social network such as Facebook, what do you perceive as good marketing?

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Public Policy Issues in Direct Marketing

• Irritation, unfairness, deception, and fraud

• Invasion of privacy• A need for action

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Direct and Online Marketing: Building Direct Customer Relationships

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