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Chapter 21:Chapter 21:Managing Direct & On-Line MarketingManaging Direct & On-Line Marketing
OtterbeinOtterbeinCollegeCollege
Winter 2000Winter 2000
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ObjectiveObjective
ss
• Growth & Benefits of Direct MarketingGrowth & Benefits of Direct Marketing
• Custoer Databases & Direct MarketingCustoer Databases & Direct Marketing
• Major Channels for Direct MarketingMajor Channels for Direct Marketing• Marketing in the 2!st Centur"# $%CoerceMarketing in the 2!st Centur"# $%Coerce
• ublic & $thical 'ssues in Direct Marketingublic & $thical 'ssues in Direct Marketing
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Wh" Growth in Direct MarketingWh" Growth in Direct Marketing
• Market (Deassification)Market (Deassification)
• $ffort of (*ra+itional ,ho--ing)$ffort of (*ra+itional ,ho--ing)
• Continuous .ccessContinuous .ccess• /et%+a" Deliver"/et%+a" Deliver"
• ,-ecialt" 'tes,-ecialt" 'tes
• 'ncrease in Co-uter ower 'ncrease in Co-uter ower
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To Customers To Companies
Fun, Convenient &Hasse-Free
Fun, Convenient &Hasse-Free
!aves Time
!aves Time
Larger Merchan"ise!eection
Larger Merchan"ise!eection
Comparison !hopping
Comparison !hopping
Maiing Lists #or $most$n% Market
Maiing Lists #or $most$n% Market
Customie" O##ers
Customie" O##ers
Ongoing 'eationships(ith Customers
Ongoing 'eationships(ith Customers
Time" to $chieve Higher'ea"ership & 'esponse
Time" to $chieve Higher'ea"ership & 'esponse
Or"er )ro"ucts #orThemseves or Others
Or"er )ro"ucts #orThemseves or Others
$ternativeMe"ia*Message Testing
$ternativeMe"ia*Message Testing
Benefits of DirectBenefits of Direct
MarketingMarketing
)rivac%
)rivac%
Measura+e 'esponse
Measura+e 'esponse
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1ses for1ses for
DatabasesDatabases
1. Identify Prospects
2. Match Customers
& Oers3. Deepen Customer Loyalty
. !eacti"ate Customers
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Direct MarketingDirect Marketing
ChannelsChannels
CataogMarketing
CataogMarketing
ioskMarketing
ioskMarketing
OnineMarketing
Onine
MarketingDirect-MaiMarketing
Direct-Mai
Marketing
Direct-'esponse
T Marketing
Direct-'esponse
T Marketing
Teemarketing
Teemarketing
Face-to-Face!eing
Face-to-Face!eing
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ifetie 3alueifetie 3alue
Cost of Ca-aign#Cost of Ca-aign# 4!050004!05000
!00 new ebers 6 470!00 new ebers 6 470 475000475000
!st "ear (cost)!st "ear (cost) 485000485000
2d Year 2d Year
90 renewals 6 47090 renewals 6 470 4:5;004:5;00
*wo "ear (gain)*wo "ear (gain) .2,/00.2,/00
3d Year…3d Year…
4th Year...4th Year...
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(('nforation
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ConvenienceConvenience
n#ormationn#ormation
Fe(er HassesFe(er Hasses
ConsumersConsumers CompaniesCompanies
8uick $"ustments toMarket Con"itions
8uick $"ustments toMarket Con"itions
Lo(er CostsLo(er Costs
'eationship 7ui"ing'eationship 7ui"ing
$u"ience !iing$u"ience !iing
Benefits of OnlineBenefits of Online
MarketingMarketing
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Online Marketing ChannelsOnline Marketing Channels
4ectronic )resenceCor-orate WebsiteMarketing Website
4ectronic )resenceCor-orate WebsiteMarketing Website
$"vertising Oninelace .+s in ,-ecial ,ections of Online ,ervices
lace .+s in Certain 'nternet /ewsgrou-sBu" Online .+s *hat o- 1- While Consuers are ,urfing
$"vertising Oninelace .+s in ,-ecial ,ections of Online ,ervices
lace .+s in Certain 'nternet /ewsgrou-sBu" Online .+s *hat o- 1- While Consuers are ,urfing
Forums, 9e(sgroups & e+ Communities=orus# Discussion Grou-s on Coercial Online ,ervices
/ewsgrou-s# 'nternet 3ersion of =orusWeb Counities# ,ites Where Mebers $change 3iews Online
Forums, 9e(sgroups & e+ Communities=orus# Discussion Grou-s on Coercial Online ,ervices
/ewsgrou-s# 'nternet 3ersion of =orusWeb Counities# ,ites Where Mebers $change 3iews Online
;sing 4-Mai an" e+castingCustoers ,en+ >uestions5 ,uggestions & Co-laints 3ia $%Mail
Webcasting# .utoatic Downloa+ing of 'nforation to C?s
;sing 4-Mai an" e+castingCustoers ,en+ >uestions5 ,uggestions & Co-laints 3ia $%Mail
Webcasting# .utoatic Downloa+ing of 'nforation to C?s
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Challenges of OnlineChallenges of Online
MarketersMarketers
• iite+ Consuer $-osure & Bu"ingiite+ Consuer $-osure & Bu"ing
• ,kewe+ 1ser Deogra-hics &,kewe+ 1ser Deogra-hics &
s"chogra-hicss"chogra-hics
• Chaos & Clutter Chaos & Clutter
• ,ecurit",ecurit"
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ublic & $thical 'ssues in Directublic & $thical 'ssues in Direct
MarketingMarketing
rritation
;n#airness
Deception & Frau"
nvasion o# )rivac%