Chapter 17 Direct and Online Marketing: The New Marketing Model
Mass Marketing and Direct Marketing Most Mass Marketing Involves One-Way Communications Aimed At Consumers. Direct Marketing Involves Two-Way Interactions With Customers.
What is Direct Marketing? Direct Marketing Consists of Direct Connections With Carefully Targeted Individual Consumers to Both Obtain an Immediate Response and Cultivate Lasting Customer Relationships.
Benefits and Growth of Direct Marketing Convenient Easy & Private Product Access & Selection Abundance of Information Interactive & Immediate Buyers Benefits Sellers Benefits Consumer Relationship Building Reduces Costs Increases Speed & Efficiency Provides Flexibility Global Medium
The Growth of Direct Marketing Demassification – Focus is Toward Minimarkets Higher Costs of Driving, Traffic and Parking Congestion Consumers Lack of Time Convenience of Ordering From Direct Marketers Growth of Customer Databases
Direct Marketing Channels Catalog Kiosk Online Direct-Mail TV Marketing Telemarketing Face-to-Face
Online Marketing <ul><li>Online Marketing is conducted through interactive online computer systems, which link consumers with sellers electronically. </li></ul><ul><li>Two types of online marketing channels: </li></ul><ul><ul><li>Commercial Online Services offer information and marketing services to subscribers who pay a monthly fee. (i.e. American Online) </li></ul></ul><ul><ul><li>The Internet (the Net) is the vast global and public web of computer networks. </li></ul></ul>
The Internet Internet Selling Reduces the Need for Paper Catalogs That are Expensive to Produce and Send Direct Marketing is the Model for E-Commerce Interactive Gathering Information Advantages Include: One-to-One Marketing
Who is the Online Customer? <ul><li>They tend to be younger, more affluent, better educated, and more male than the general population; female usage almost equals males. </li></ul><ul><li>Other characteristic of net users: </li></ul><ul><ul><li>Half are 40 years or older, </li></ul></ul><ul><ul><li>Differ psychographically, in approaches to buying and responses to marketing. </li></ul></ul>
Promise and Challenge of Online Marketing Limited Consumer Exposure and Buying Skewed User Demographics and Psychographics Chaos and Clutter Ethical Concerns Security
Public Policy and Ethical Issues in Direct Marketing Irritation to Consumers Unfairness, Deception, or Fraud Invasion of Privacy