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  • 1. When It Comes to Marketing, Think Like An InvestorRetaining customers is mission critical for profitability. Aijaz Shahid aijazshahid@gmail.com fb: directmarketing1 03315575501
  • 2. Chapter-4DM and Technology
  • 3. DIRECT MARKETING “ATECHNOLOGYINTENSIVE BUSINESS”We live in a world where 66% of online adults are connected to oneor more social media platforms; that’s over 10.4 million users onPinterest, over 200 million active Twitter accounts, over 850 millionusers on Facebook, over 135 millions users on LinkedIn, and over90 million users on GoogleAccording to the DMA, commercial email marketing is bringing in amuch higher return for every dollar spent than every other marketingchannel. In 2011, email marketing brought in $40.56 for every dollarspent on it throughout the year. Social networking’s return was$12.71 in 2011. This number is expected to increase, with aprojected return of $12.90 in 2012.
  • 4. Interactive TV For a long while TV advertisers have longed for the ability to monitor and interact with their TV audience, and now they can . The majority of us now have cable, SKY or similar digital TV and with this comes the ability to interact with our TVs, programs and watch or re-watch what we want when we want, even pause live TV We all have seen the TV programmes telling us to push the red or blue buttons, most of us have tried it, most of us have gone into our digital TV options to buy films to watch, find a programme we have missed or even search the internet and send emails or play games. For the consumer this interactive TV has entered our lives without us even really realizing it. Source: Wikipedia/google
  • 5. Interactive TV (ITV or iTV) is an approach to television advertising and programming that creates the opportunity for viewers tocommunicate with advertisers and programming executives byresponding to a call to action. Examples: » The new interactive channel will allow TVG Network viewers to access the latest racing news, race information, odds and results on horse races televised live by TVG. In certain markets where legally available, users will be able to bet on horse races using their remote control. » The interactive television application enables Dish Network viewers to access graphically rich headlines and stories, vote in polls and review on-air schedules while viewing the CNN channel.
  • 6. Infomercials An infomercial is commonly referred to as a long form commercial. An infomercial is an excellent medium for selling certain types of products such as: » Highly Demonstrable » Priced at $39.95 or above » Products that require a longer format, in order to thoroughly educate the consumer about the products features and benefits. » Products that appeal to consumers emotions through the use of testimonials. ő There are typically 3-4 segments in an infomercial. ő These segments usually include product demonstrations outlining the products features and benefits, testimonials, and for some health and beauty and fitness type products, before and after photos. ő Each segment is followed by a call-to-action (CTA). The CTA is the key selling portion of the infomercial and is usually 2-3 minutes in length. ő The CTA includes a recap of the product features and benefits, the offer and the price, plus the 800 number and website address.
  • 7. ő Typically a successful infomercial campaign runs for six to twelve months and then the product is often taken to retail.ő Retailers are very interested in stocking successful infomercial products because they know that consumers will be seeking out the product at retail.The products frequently marketed through infomercials mayinclude:  Cleaning products,  Food preparation devices,  Dietary supplements,  Alternative health aids,  Real estate investment strategies,  Beauty supplies/baldness remedies/weight loss products, Personal fitness devices/home exercise machines Source: infomercialdrtv.com
  • 8. Home ShoppingChannels Home shopping commonly refers to the electronic retailing/home shopping channels industry, which includes such billion dollar television-based and e- commerce companies as Liquidation Channel, HSN, QVC, Jewelry Television, eBay, ShopNBC, Buy.com, and Amazon.com. Home shopping allows consumers to shop for goods from the privacy of their own home, as opposed to traditional shopping, which requires one to visit stores and shopping malls. There are three main types of home shopping: mail or telephone ordering from catalog; telephone ordering in response to advertisements in print and electronic media (such as journals, TV and radio); and online shopping. The home shopping/electronic retailing industry was created in 1977, when small market talk radio show host Bob Circosta was asked to sell avocado-green-colored can openers live on the air by station owner Bud Paxson, when an advertiser traded 112 units of product instead of paying his advertising bill. Source: Wikipedia
  • 9. World’s FamousHome ShoppingChannels USA Australia – Americas Store – Expo Channel – Home Shopping Network – TVSN – QVC – Shop at Home Network Canada – ShopNBC – Shopping TVA – The Jewelry Channel – ShopTV Canada – Americas Auction Network – The Shopping Channel United Kingdom India – bid tv – HomeShop 18 – Create and Craft – Ideal World Other countries – price-drop tv – TV SHOP – QVC UK – European Home Shopping – JML Direct TV – La Tienda en Casa – Screenshop
  • 10. Online Services The Internet is an important direct marketing tool because of its ease of use, low advertising costs and ability to reach a worldwide market. Θ Email remains the primary vehicle for delivering personalized marketing messages directly to individuals and businesses. Θ Social Media Outlets , such as Facebook and Twitter, complement email marketing because it drives marketing relationships with potential customers. Social media can connect a business with new fans and followers who then can be converted into customers using a direct email marketing campaign Θ Online Chat - Online chat mechanisms provide a forum where customers can come together and share their experiences with each other and you. This interactive tool allows you direct access to customer opinions where you can gauge trends and determine their views on the industry. Source: Wikipedia
  • 11. Θ Search Engine Marketing: 49% of US spending on Internet ads goes to search, in which advertisers pay for prominent placement among listings in search engines whenever a potential customer enters a relevant search term, allowing ads to be delivered to customers based upon their already-indicated search criteria This paid placement industry generates more than $10 billion dollars for search companies. Marketers also use search engine optimization to drive traffic to their sites.Θ Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services. Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to respond directly to the message or to find more detailed information. According to research by eMarketer, expenditures on online display ads rose 24.5% between 2010 and 2011. Source: Wikipedia
  • 12. Θ PURL, or personal websites, are micro sites used to capture direct mail or email campaign responses. Each PURL is customized with text, images, voice or animated technology with information and incentives specifically targeted for each person’s needs or interests. » Pages Personalized to the visitors by using their name and other relevant information. » Make sure the offer stands out and is above the fold - Weather it is to take a survey, fill out a contest entry, download a white paper, schedule a free consultation, etc... » The number of pages should be limit. If you have more than one page, your microsite should be no more than 5 pages. » Keep a strong, consistent design theme - The main headline, offer, and overall look should match the promotional piece that drove them to the PURL. PURL Video
  • 13. » Only ask for information you need and will use. - The less information you ask from the visitor, the better. » Remove anything that is not necessary. Only show parts of the site that is pertinent and encourages the visitor to take actionWhat many businesses have encountered using PURL technology:  55-60% response rates  $122 ROI per $1 spent on marketing  Hundreds of new leads from one marketing campaign Source: Wikipedia
  • 14. QR Marketing , also called barcode marketing, is a type of marketing ofproducts and services on any mobile device like cell phones and tablets. A2010 report by the Pew Internet and American Life Project says that 55percent of American adults connect to the Internet wirelessly from laptops ormobile devices. QR marketing is one way companies are trying to reach thissegment of the population.How QR Codes Work:QR codes, or quick response codes, are two-dimensional bar codes thathold a dozen to a hundred times more information than a regular bar codethat holds up to 20 digits, according to the creators of the QR codes, DensoWave Incorporated. Mobile device users can use their QR code readersoftware to scan the code, which gives them information about a companyor contains some marketing information or a product discount. Once a userscans the code, he can immediately take advantage of whatever informationis held in the code. For example, users can immediately apply coupondiscounts to their purchases. Source: Wikipedia
  • 15. Online Shopping Online shopping is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business- to-business (B2B) online shopping Source: Wikipedia
  • 16. The ConsumerNeeds ő Prestige  People gain esteem by being knowledgeable about and using the technology ő Convenience  Everything is available at consumers fingertips; they do not have to leave the living room to shop. ő Instant Gratification  Formation is available when the user wants it, rather than at specified time ő Novelty and Excitement  Consumers become part of the online community
  • 17. ő Efficiency  Consumers can engage in one stop shoppingő Ease of Use  All users have to do is just press the buttonső Timelessness  Consumers have the advantage of “real time” information, for example, buying stocks
  • 18. The Internet The internet in simple terms is a network of the interlinked computer networking worldwide, which is accessible to the general public. These interconnected computers work by transmitting data through a special type of packet switching which is known as the IP or the internet protocol.  It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless and optical networking technologies.  The Internet has enabled or accelerated new forms of human interactions through instant messaging, Internet forums, and social networking. Online shopping has boomed both for major retail outlets and small artisans and traders. Business-to-business and financial services on the Internet affect supply chains across entire industries.  There is a very significant difference between the internet & WWW. The internet and World Wide Web are both the networks yet; the internet is the network of the several different computers which are connected through the linkage of the accessories like the copper wires, the fiber optics and even the latest wireless connections.
  • 19.  However, the World Wide Web consists of the interlinked collection of the information and documents which are taken as the resource by the general public. These are then linked by the website URLs and the hyperlinks. Therefore World Wide Web is one of the services offered by the whole complicated and huge network of the internet. The Internet has no centralized governance in either technological implementation or policies for access and usage; each constituent network sets its own standards. Only the overreaching definitions of the two principal name spaces in the Internet, the Internet Protocol address space and the Domain Name System, are directed by a maintainer organization, the Internet Corporation for Assigned Names and Numbers (ICANN). The technical underpinning and standardization of the core protocols (IPv4 and IPv6) is an activity of the Internet Engineering Task Force (IETF), a non-profit organization of loosely affiliated international participants that anyone may associate with by contributing technical expertise. Source: Wikipedia/Webopedia
  • 20. The InternetDemographics According to Internet World Stats, as of December 31, 2011 there was an estimated 2,267,233,742 Internet users worldwide. This represents 32.7% of the worlds population.  More than 100 countries are linked into exchanges of data, news and opinions.  As of 2011, more than 2.1 billion people — nearly a third of Earths population — use the services of the Internet  In Asia: 922,329,554 (or 23.8% of the population in the region and 44.0% of the total online population); up by 706.9% compared to 2000  In Pakistan 29,128,970 Internet users are recorded as of Dec.31, 2011, 15.5% penetration.  5,887,400 Facebook users on Dec 31/11, 3.1% penetration Source: Wikipedia/Webopedia
  • 21. Direct Marketingon the Internet  Direct Marketeers must gain an understanding of medium’s attributes and of the segments.  The Internet offers a great way to reach customers economically and effectively  The goal of Internet direct mail is the same as traditional direct mail marketing - to generate leads and orders.  Shorter is better. If some prospects require more information, provide a link to your website where they can get it.  FROM and SUBJECT are very important. People are very concerned about computer viruses and are quick to delete an e-mail.  Your first paragraph or two should be a summary of your whole e-mail.  Include multiple response options for your prospects, but ALWAYS remember to have a web-based response form. Many users prefer to keep the entire transaction on-line
  • 22.  Use viral marketing. Encourage your e-mail recipient to forward your offer/message to others who may be interested. On-line users prefer free trials or bill-me-later offers to money-back guarantees. While online transactions are increasing every day, many people are still wary about sending their credit card information over the Internet. They would much rather just send their shipping information, try the product for a while, and then choose their payment option when the time comes. ALWAYS include an opt-out statement! The only thing more powerful than good will towards your company is ill will. Dont make any customer feel like they have been spammed. Include an un-subscribe or remove statement at the end of your e-mail. Be sure to remove them from any future mailings. The opt-out statement should read something like this: "We at XYZ Company respect your online privacy. If you received this message in error or simply do not wish to receive further e-mails from us, please reply to this e-mail with REMOVE in the subject line." Source: deer-library.com
  • 23. Surviving theTechnologicalRevolution • Direct Marketer need to expand their customer base on a regional and global basis • To survive in an era of rapid change, companies need to respond quickly to events by strategically using information about markets, customers, and prospects. • Medium and small size companies will need to grow smarter • Survival will become difficult and the need for developing strategic partnerships will become crucial. • In an environment exploding with new communications choices, direct marketeers continue to use all forms of media to directly contact and elicit responses from their target markets.
  • 24. Thank You