Chapter 13


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Chapter 13

  1. 1. Marketing: An Introduction Third Canadian Edition Armstrong, Kotler, Cunningham, Buchwitz Chapter Thirteen Direct and Interactive Marketing With Duane Weaver 13-
  2. 2. Outline <ul><li>Define direct response marketing and discuss its benefits to customers and companies. </li></ul><ul><li>Identify and discuss the major forms of direct response marketing. </li></ul><ul><li>Identify the major forms of direct and interactive marketing, and explain the intersection of direct response and online marketing. </li></ul><ul><li>List and describe the various forms of online marketing, and differentiate between online marketing and online advertising . </li></ul>
  3. 3. Direct Response Marketing <ul><li>Communicates directly with customers </li></ul><ul><li>Allows for customer response & interaction </li></ul><ul><li>Benefits both buyers and marketers </li></ul><ul><li>Requires a database </li></ul>in-class notes
  4. 4. Direct Response Marketing <ul><li>Any marketing program that issues a communication to an audience, and requests a measurable response in return. </li></ul><ul><li>Direct response marketing could be viewed as </li></ul><ul><ul><li>As an channel of direct distribution—as marketing channels that contain no intermediaries. </li></ul></ul><ul><ul><li>As a promotional tool - direct marketing as one element of the promotion mix. </li></ul></ul><ul><li>Direct response marketing has undergone a dramatic transformation with rapid advances in database technologies and new marketing media such as the internet. </li></ul>13-
  5. 5. Direct Response Marketing <ul><li>Benefits to Buyers </li></ul><ul><li>Convenient </li></ul><ul><li>Private </li></ul><ul><li>Access to variety </li></ul><ul><li>No physical boundaries </li></ul><ul><li>Empowers customers </li></ul><ul><li>Interactive and immediate </li></ul><ul><li>Greater measure of control </li></ul><ul><li>Benefits to Marketers </li></ul><ul><li>Direct customer relationships </li></ul><ul><li>Personalized communication </li></ul><ul><li>Customize products </li></ul><ul><li>Lower costs, efficient , speedy alternative </li></ul><ul><li>Make immediate and timely adjustments </li></ul><ul><li>Access to customers </li></ul>12-
  6. 6. 12- Forms of Direct Marketing Direct Mail Catalogues Telemarketing Direct Response Television Kiosk Marketing
  7. 7. Direct Mail <ul><li>Involves sending an offer, announcement, reminder or other item to a person at a particular address. </li></ul><ul><li>Suited for one to one communication. </li></ul><ul><li>Permits high target-market selectivity. </li></ul><ul><li>Personal and flexible. </li></ul><ul><li>Easy to measure results. </li></ul><ul><li>Desired response is elicited through call to action. </li></ul>12-
  8. 8. Catalogues <ul><li>Is a printed, bound piece of at least of eight pages selling multiple products and offering a direct ordering mechanism. </li></ul><ul><li>Some marketers use this as a sole method of direct marketing while others use these in conjunction with a web site. </li></ul><ul><li>Today catalogues are also available online. </li></ul><ul><li>Printed catalogues are still popular and works as a good supplement . </li></ul>12-
  9. 9. Telemarketing <ul><li>Divided into two types </li></ul><ul><ul><li>Inbound telemarketing A division of customer service, the department that answers customers’ questions when they call in. </li></ul></ul><ul><ul><li>Outbound telemarketing The department of marketers who place outgoing calls, usually to existing customers, to try to persuade them to upgrade their services. </li></ul></ul><ul><li>There is a resentment from customers towards outbound telemarketing. </li></ul><ul><li>Do not call lists limits outbound calls. </li></ul><ul><li>Marketers still could use customer service calls to persuade to subscribe to new services. </li></ul>12-
  10. 10. Direct-Response Television <ul><li>Television spots that persuasively describe a product and give customers a toll-free number for ordering. </li></ul><ul><li>Uses formats such as </li></ul><ul><ul><li>Infomercials – longer advertising programs. </li></ul></ul><ul><ul><li>The Shopping Channel – channels devoted to facilitate buying goods. </li></ul></ul>12-
  11. 11. Kiosk Marketing <ul><li>Computerized kiosks are used to deliver information, allow customers to interact with products, and even take orders. </li></ul><ul><li>Kiosk such as self service to in store ordering options would allow customers to order merchandise not carried in the store. </li></ul><ul><li>Can you think of an example of a Kiosk you have used recently? </li></ul>12-
  12. 12. Digital Interactive Marketing <ul><li>These are new media which uses digital medium to support direct interactive marketing. </li></ul><ul><li>Some new alternative terms used include, new media marketing, interactive marketing, Internet marketing, e-marketing, electronic marketing, digital marketing, and online marketing. </li></ul>12-
  13. 13. Forms of Digital Interactive Marketing <ul><li>Digital signage – type of advertising that can deliver targeted advertising to consumers based on demographics and by interacting with their personal electronic devisers. </li></ul><ul><li>Mobile marketing – use of various mobile technologies to communicate to a given target audience. </li></ul><ul><li>Podcasting – audio and video programs that can be downloaded to personal electronic devises and viewed at the consumer’s convenience. </li></ul>12- in-class notes
  14. 14. Forms of Digital Interactive Marketing <ul><li>Online marketing is a very general term for any kind of marketing program, marketing communications, or sales, that can be conducted online. </li></ul><ul><li>Forms of online marketing include </li></ul><ul><ul><li>Websites </li></ul></ul><ul><ul><li>E-commerce </li></ul></ul><ul><ul><li>Online advertising </li></ul></ul><ul><ul><li>Search engine marketing </li></ul></ul><ul><ul><li>Email marketing </li></ul></ul><ul><ul><li>Blogs & social networks </li></ul></ul>12-
  15. 15. Website as a Marketing Tool <ul><li>The 7Cs of website design are : context, content, community, customization, communication, connection, and commerce </li></ul><ul><li>Websites act as marketing tools by </li></ul><ul><ul><li>Providing product information and investor information </li></ul></ul><ul><ul><li>Providing customer service (and self-service) </li></ul></ul><ul><ul><li>Moving the customer closer to the sale </li></ul></ul><ul><ul><li>Distributing coupons and special offers </li></ul></ul><ul><ul><li>Allowing customers to register </li></ul></ul>12- in-class notes
  16. 16. 7 Cs of Effective Website Design <ul><li>Context : layout and design elements. </li></ul><ul><li>Content : text, pictures, sound and video. </li></ul><ul><li>Community : user-to-user communication. </li></ul><ul><li>Customization : personalizing for each user. </li></ul><ul><li>Communication : two-way communication. </li></ul><ul><li>Connection : links to other relevant sites. </li></ul><ul><li>Commerce : commercial transactions. </li></ul>12- Website as a Marketing Tool
  17. 17. Forms of Online Advertising <ul><li>Banner ads - Graphic online ads that may be placed anywhere on the publisher’s webpage. </li></ul><ul><li>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. </li></ul><ul><li>Interstitial A large, animated online advertisement that pops up onto the screen for several seconds. </li></ul><ul><li>Micro site A small website consisting of a few pages of detailed information about the marketer’s goods or services. </li></ul>12-
  18. 18. Search Engine Marketing and Advertising <ul><li>Could be used to advertise content along with the search results indicated. </li></ul><ul><li>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. </li></ul>12-
  19. 19. Email Marketing <ul><li>Not spam! </li></ul><ul><li>Reputable marketers send email only to customers who request it </li></ul><ul><li>Viral marketing </li></ul><ul><li>Permission marketing </li></ul><ul><li>Opt-in vs. opt-out </li></ul>in-class notes
  20. 20. E-mail Marketing <ul><li>Marketers would need to avoid Spam in their e-mail marketing campaigns. This could be done with the use of permission marketing tools. </li></ul><ul><li>Permission marketing - Email messages sent by marketers with the permission of the recipient. </li></ul><ul><li>E-mails could be effectively used for viral marketing campaigns. </li></ul><ul><li>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. </li></ul>12-
  21. 21. Rules for E-mail Marketing <ul><li>Send email only by permission. </li></ul><ul><li>Clearly identify the sender. </li></ul><ul><li>Remind the recipient why they’re receiving the message. </li></ul><ul><li>Provide an easy way to unsubscribe. </li></ul><ul><li>The default is always opt-in, never opt-out. </li></ul>12-
  22. 22. Blogging and Social Networks <ul><li>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. </li></ul><ul><li>Widgets , also known as “gadgets,” are tiny computer programs that allow anyone to incorporate professional-looking content into Web pages. </li></ul><ul><li>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. </li></ul>12-