04/10/23 1

Marketing Marketing ManagementManagement

Exam 4Exam 4

Lecture 1Lecture 1

Dr. David AndrusDr. David Andrus

04/10/23 2

Presentation Themes

Direct Marketing Direct Mail Catalogue Marketing Telemarketing Kiosk Marketing Interactive Marketing

04/10/23 3

DIRECT MARKETING

Direct marketing - consumer-direct (CD) channels to reach and deliver products to customers without using marketing middlemen.

These channels include: Direct mail. Catalogs. Telemarketing. Interactive TV. Kiosks. Web sites. Mobile devices.

04/10/23 4

Direct Marketing Benefits Customers

Home shopping can be fun, convenient, and hassle-free.

Saves time. Introduces consumers to a larger

selection of merchandise. Ease of comparative shopping. Can order goods for themselves and

others. Business customers can learn about

available products and services.

04/10/23 5

Direct Marketing Benefits Sellers

Direct marketers can buy a mailing list. Customize and personalize messages. Build a relationship with each customer. Timed to reach prospects. Higher readership because it is sent to

more interested prospects. Permits the testing of alternative media

and messages in a cost-effective approach.

Direct marketers can measure responses to decide which one is most profitable.

04/10/23 6

Direct Mail Direct-mail marketing involves sending

an offer, announcement, reminder, or other item to a person.

Direct marketing is popular because it: Permits target market selectivity. Can be personalized. Is flexible. Allows for early testing and response

measurement.

04/10/23 7

Objectives

Goal is to receive an order from prospects. Campaign’s success is judged by the

response rate. Order-response rate of 2 percent is good. Direct mail can :

Produce prospect leads. Strengthen customer relationships. Inform and educating customers. Remind customers of offers. Reinforce recent customer purchase

decisions.

04/10/23 8

Target Markets and Prospects

Identify prospects most able, willing, and ready to buy.

Apply R-F-M formula (recency, frequency, monetary amount) for rating customers.

Select customers according to: How much time since their last purchase. How many times they have purchased. How much they spent since becoming a

customer. Also based on age, gender, income, education,

and previous mail-order purchases.

04/10/23 9

Obtain Specific Names

The company’s best prospects are customers who have bought its products in the past.

The direct marketer can also buy lists of names from list brokers.

04/10/23 10

Testing Elements

Advantage is to test different elements such as product features, copy platform, mailer type, envelope, prices, or mailing lists.

Response rates understate a campaign’s long-term impact.

Some companies are measuring direct marketing’s impact on: Awareness. Intention to buy. Word of mouth.

04/10/23 11

Catalog Marketing

Full-line merchandise catalogs, specialty consumer catalogs, and business catalogs.

71 percent of Americans shop from home using catalogs, by phone, mail, or the Internet.

Success of a catalog business depends on ability to manage: Customer lists. Control inventory. Offer quality merchandise so returns are low. Project a distinctive image.

04/10/23 12

Telemarketing

Call centers to attract prospects, sell to existing customers, takes orders and answer questions.

Telemarketing helps companies increase revenue, reduce selling costs, and improve customer satisfaction.

Companies use calls centers for: Inbound telemarketing. Outbound telemarketing.

04/10/23 13

Four Types of Telemarketing

Telesales. Telecoverage. Teleprospecting. Customer service and

technical support.

04/10/23 14

Television

Television is used by direct marketers in several ways: Direct-response advertising. At-home shopping channels. Videotext and interactive TV.

04/10/23 15

Kiosk Marketing

Small structure that houses a selling or information unit.

The name describes: Newsstands. Refreshment stands. Free-standing carts. Computer-linked vending

machines. “Customer-order-placing

machines.”

04/10/23 16

INTERACTIVE MARKETING

Internet provides marketers and consumers greater interaction and individualization.

Companies dialogue with much larger groups. Exchange process is increasingly customer-

initiated and customer-controlled. Customers define the rules of engagement. Define what information they need. What offering they are interested in. What prices they are willing to pay.

04/10/23 17

Benefits of Interactive Marketing

Highly accountable and its effects can be easily traced.

Offers the advantage of “contextual placements.”

Light consumers of other media can be reached.

The Web is especially effective at reaching people during the day.

Young, high income, high education consumer’s online media consumption exceeds that of TV.

04/10/23 18

Designing An Attractive Web Site

Design a site that is attractive on first viewing and interesting enough to encourage repeat visits.

Effective Web sites feature seven design elements called the 7Cs:

Context. Content. Community. Customization. Communication. Connection. Commerce.

04/10/23 19

Ease of Use Visitors will judge a site’s

performance on its ease of use and physical attractiveness.

Ease of use breaks into three attributes: The Web site downloads quickly. The first page is easy to

understand. Easy to navigate to other pages

that open quickly.

04/10/23 20

Physical Attractiveness

The individual pages are clean looking and not overly crammed with content.

The typefaces and font sizes are very readable.

The site makes good use of color and sound.

04/10/23 21

Returning to a Site

Deep information with links to related sites.

Changing news of interest. Changing free offers to

visitors. Contests and sweepstakes. Humor and jokes. Games

04/10/23 22

Placing Ads and Promotion Online

Banner ads -small rectangular boxes containing text and a picture.

Companies pay to place banner ads on Web sites.

Sponsorships are best placed in well-targeted sites where they offer information.

Microsite - limited area on the Web managed and paid for by an external advertiser/company.

Interstitials are advertisements that pop up between changes on a Web site.

Hottest growth area has been search-related ads.

04/10/23 23

E-Marketing Guidelines

Give the customer a reason to respond.

Personalize the content of your e-mails.

Offer something the customer could not get via direct mail.

Make it easy for customers to “unsubscribe.”