Exam 4 Lecture 1


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Exam 4 Lecture 1

  1. 1. Marketing Management Exam 4 Lecture 1 Dr. David Andrus
  2. 2. Presentation Themes <ul><li>Direct Marketing </li></ul><ul><li>Direct Mail </li></ul><ul><li>Catalogue Marketing </li></ul><ul><li>Telemarketing </li></ul><ul><li>Kiosk Marketing </li></ul><ul><li>Interactive Marketing </li></ul>
  3. 3. DIRECT MARKETING <ul><li>Direct marketing - consumer-direct (CD) channels to reach and deliver products to customers without using marketing middlemen. </li></ul><ul><li>These channels include: </li></ul><ul><ul><li>Direct mail. </li></ul></ul><ul><ul><li>Catalogs. </li></ul></ul><ul><ul><li>Telemarketing. </li></ul></ul><ul><ul><li>Interactive TV. </li></ul></ul><ul><ul><li>Kiosks. </li></ul></ul><ul><ul><li>Web sites. </li></ul></ul><ul><ul><li>Mobile devices. </li></ul></ul>
  4. 4. Direct Marketing Benefits Customers <ul><ul><li>Home shopping can be fun, convenient, and hassle-free. </li></ul></ul><ul><ul><li>Saves time. </li></ul></ul><ul><ul><li>Introduces consumers to a larger selection of merchandise. </li></ul></ul><ul><ul><li>Ease of comparative shopping. </li></ul></ul><ul><ul><li>Can order goods for themselves and others. </li></ul></ul><ul><ul><li>Business customers can learn about available products and services. </li></ul></ul>
  5. 5. Direct Marketing Benefits Sellers <ul><li>Direct marketers can buy a mailing list. </li></ul><ul><li>Customize and personalize messages. </li></ul><ul><li>Build a relationship with each customer. </li></ul><ul><li>Timed to reach prospects. </li></ul><ul><li>Higher readership because it is sent to more interested prospects. </li></ul><ul><li>Permits the testing of alternative media and messages in a cost-effective approach. </li></ul><ul><li>Direct marketers can measure responses to decide which one is most profitable. </li></ul>
  6. 6. Direct Mail <ul><li>Direct-mail marketing involves sending an offer, announcement, reminder, or other item to a person. </li></ul><ul><li>Direct marketing is popular because it: </li></ul><ul><ul><li>Permits target market selectivity. </li></ul></ul><ul><ul><li>Can be personalized. </li></ul></ul><ul><ul><li>Is flexible. </li></ul></ul><ul><ul><li>Allows for early testing and response measurement. </li></ul></ul>
  7. 7. Objectives <ul><li>Goal is to receive an order from prospects. </li></ul><ul><li>Campaign’s success is judged by the response rate. </li></ul><ul><li>Order-response rate of 2 percent is good. </li></ul><ul><li>Direct mail can : </li></ul><ul><ul><li>Produce prospect leads. </li></ul></ul><ul><ul><li>Strengthen customer relationships. </li></ul></ul><ul><ul><li>Inform and educating customers. </li></ul></ul><ul><ul><li>Remind customers of offers. </li></ul></ul><ul><ul><li>Reinforce recent customer purchase decisions. </li></ul></ul>
  8. 8. Target Markets and Prospects <ul><li>Identify prospects most able, willing, and ready to buy. </li></ul><ul><li>Apply R-F-M formula (recency, frequency, monetary amount) for rating customers. </li></ul><ul><li>Select customers according to: </li></ul><ul><ul><li>How much time since their last purchase. </li></ul></ul><ul><ul><li>How many times they have purchased. </li></ul></ul><ul><ul><li>How much they spent since becoming a customer. </li></ul></ul><ul><ul><li>Also based on age, gender, income, education, and previous mail-order purchases. </li></ul></ul>
  9. 9. Obtain Specific Names <ul><li>The company’s best prospects are customers who have bought its products in the past. </li></ul><ul><li>The direct marketer can also buy lists of names from list brokers. </li></ul>
  10. 10. Testing Elements <ul><li>Advantage is to test different elements such as product features, copy platform, mailer type, envelope, prices, or mailing lists. </li></ul><ul><li>Response rates understate a campaign’s long-term impact. </li></ul><ul><li>Some companies are measuring direct marketing’s impact on: </li></ul><ul><ul><li>Awareness. </li></ul></ul><ul><ul><li>Intention to buy. </li></ul></ul><ul><ul><li>Word of mouth. </li></ul></ul>
  11. 11. Catalog Marketing <ul><li>Full-line merchandise catalogs, specialty consumer catalogs, and business catalogs. </li></ul><ul><li>71 percent of Americans shop from home using catalogs, by phone, mail, or the Internet. </li></ul><ul><li>Success of a catalog business depends on ability to manage: </li></ul><ul><ul><li>Customer lists. </li></ul></ul><ul><ul><li>Control inventory. </li></ul></ul><ul><ul><li>Offer quality merchandise so returns are low. </li></ul></ul><ul><ul><li>Project a distinctive image. </li></ul></ul>
  12. 12. Telemarketing <ul><li>Call centers to attract prospects, sell to existing customers, takes orders and answer questions. </li></ul><ul><li>Telemarketing helps companies increase revenue, reduce selling costs, and improve customer satisfaction. </li></ul><ul><li>Companies use calls centers for: </li></ul><ul><ul><li>Inbound telemarketing. </li></ul></ul><ul><ul><li>Outbound telemarketing. </li></ul></ul>
  13. 13. Four Types of Telemarketing <ul><li>Telesales. </li></ul><ul><li>Telecoverage. </li></ul><ul><li>Teleprospecting. </li></ul><ul><li>Customer service and technical support. </li></ul>
  14. 14. Television <ul><li>Television is used by direct marketers in several ways: </li></ul><ul><ul><li>Direct-response advertising. </li></ul></ul><ul><ul><li>At-home shopping channels. </li></ul></ul><ul><ul><li>Videotext and interactive TV. </li></ul></ul>
  15. 15. Kiosk Marketing <ul><li>Small structure that houses a selling or information unit. </li></ul><ul><li>The name describes: </li></ul><ul><ul><li>Newsstands. </li></ul></ul><ul><ul><li>Refreshment stands. </li></ul></ul><ul><ul><li>Free-standing carts. </li></ul></ul><ul><ul><li>Computer-linked vending machines. </li></ul></ul><ul><ul><li>“ Customer-order-placing machines.” </li></ul></ul>
  16. 16. INTERACTIVE MARKETING <ul><li>Internet provides marketers and consumers greater interaction and individualization. </li></ul><ul><li>Companies dialogue with much larger groups. </li></ul><ul><li>Exchange process is increasingly customer-initiated and customer-controlled. </li></ul><ul><ul><li>Customers define the rules of engagement. </li></ul></ul><ul><ul><li>Define what information they need. </li></ul></ul><ul><ul><li>What offering they are interested in. </li></ul></ul><ul><ul><li>What prices they are willing to pay. </li></ul></ul>
  17. 17. Benefits of Interactive Marketing <ul><li>Highly accountable and its effects can be easily traced. </li></ul><ul><li>Offers the advantage of “contextual placements.” </li></ul><ul><li>Light consumers of other media can be reached. </li></ul><ul><li>The Web is especially effective at reaching people during the day. </li></ul><ul><li>Young, high income, high education consumer’s online media consumption exceeds that of TV. </li></ul>
  18. 18. Designing An Attractive Web Site <ul><li>Design a site that is attractive on first viewing and interesting enough to encourage repeat visits. </li></ul><ul><li>Effective Web sites feature seven design elements called the 7Cs: </li></ul><ul><ul><li>Context. </li></ul></ul><ul><ul><li>Content. </li></ul></ul><ul><ul><li>Community. </li></ul></ul><ul><ul><li>Customization. </li></ul></ul><ul><ul><li>Communication. </li></ul></ul><ul><ul><li>Connection. </li></ul></ul><ul><ul><li>Commerce. </li></ul></ul>
  19. 19. Ease of Use <ul><ul><ul><li>Visitors will judge a site’s performance on its ease of use and physical attractiveness. </li></ul></ul></ul><ul><ul><ul><li>Ease of use breaks into three attributes: </li></ul></ul></ul><ul><ul><ul><ul><li>The Web site downloads quickly. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The first page is easy to understand. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Easy to navigate to other pages that open quickly. </li></ul></ul></ul></ul>
  20. 20. Physical Attractiveness <ul><li>The individual pages are clean looking and not overly crammed with content. </li></ul><ul><li>The typefaces and font sizes are very readable. </li></ul><ul><li>The site makes good use of color and sound. </li></ul>
  21. 21. Returning to a Site <ul><ul><li>Deep information with links to related sites. </li></ul></ul><ul><ul><li>Changing news of interest. </li></ul></ul><ul><ul><li>Changing free offers to visitors. </li></ul></ul><ul><ul><li>Contests and sweepstakes. </li></ul></ul><ul><ul><li>Humor and jokes. </li></ul></ul><ul><ul><li>Games </li></ul></ul>
  22. 22. Placing Ads and Promotion Online <ul><li>Banner ads -small rectangular boxes containing text and a picture. </li></ul><ul><li>Companies pay to place banner ads on Web sites. </li></ul><ul><li>Sponsorships are best placed in well-targeted sites where they offer information. </li></ul><ul><li>Microsite - limited area on the Web managed and paid for by an external advertiser/company. </li></ul><ul><li>Interstitials are advertisements that pop up between changes on a Web site. </li></ul><ul><li>Hottest growth area has been search-related ads. </li></ul>
  23. 23. E-Marketing Guidelines <ul><li>Give the customer a reason to respond. </li></ul><ul><li>Personalize the content of your e-mails. </li></ul><ul><li>Offer something the customer could not get via direct mail. </li></ul><ul><li>Make it easy for customers to “unsubscribe.” </li></ul>