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Slides for week 1

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Slides for week 1

  1. 1. Chapter Thirteen Communicating Customer Value: Direct Marketing
  2. 2. Direct Marketing <ul><li>Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. </li></ul><ul><ul><li>One-on-one communication in which offers are tailored to needs of narrowly defined segments. </li></ul></ul><ul><ul><li>Usually seeks a direct, immediate, and measurable consumer response. </li></ul></ul>
  3. 3. The New Direct-Marketing Model <ul><li>Some firms use direct marketing as a supplemental medium. </li></ul><ul><li>For many companies, direct marketing constitutes a new and complete model for doing business. </li></ul><ul><li>Some firms employ the direct model as their only approach. </li></ul><ul><li>Some see this as the new marketing model of this millennium. </li></ul>
  4. 4. Benefits of Direct Marketing <ul><li>Benefits to Buyers: </li></ul><ul><ul><li>Convenient. </li></ul></ul><ul><ul><li>Easy to use. </li></ul></ul><ul><ul><li>Private. </li></ul></ul><ul><ul><li>Ready access to products and information. </li></ul></ul><ul><ul><li>Immediate and interactive. </li></ul></ul>
  5. 5. Benefits of Direct Marketing <ul><li>Benefits to Sellers: </li></ul><ul><ul><li>Powerful tool for building customer relationships. </li></ul></ul><ul><ul><li>Can target small groups or individuals. </li></ul></ul><ul><ul><li>Can tailor offers to individual needs. </li></ul></ul><ul><ul><li>Can be timed to reach prospects at just the right moment. </li></ul></ul><ul><ul><li>Gives access to buyers they could not reach through other channels. </li></ul></ul><ul><ul><li>Offers a low-cost, efficient way to reach markets. </li></ul></ul>
  6. 6. Customer Databases <ul><li>An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data. </li></ul>
  7. 7. Direct Marketing Forms <ul><li>Telephone marketing </li></ul><ul><li>Direct-mail marketing </li></ul><ul><li>Catalog marketing </li></ul><ul><li>Direct-response TV marketing </li></ul><ul><li>Kiosk marketing </li></ul><ul><li>Online marketing </li></ul>
  8. 8. Telemarketing <ul><li>Used in both consumer and B2B markets. </li></ul><ul><li>Can be outbound or inbound calls. </li></ul><ul><li>Do-Not-Call legislation has impacted the telemarketing industry. </li></ul>
  9. 9. Direct-Mail Marketing <ul><li>Involves sending an offer, reminder, announcement, or other item to a person at a particular address. </li></ul><ul><li>Permits high target-market selectivity. </li></ul><ul><li>An be personalized, and is flexible. </li></ul><ul><li>Higher CPM yields better prospects than mass media. </li></ul><ul><li>Easy to measure results. </li></ul>
  10. 10. Catalog Marketing <ul><li>With the Internet, more and more catalogs are going digital. </li></ul><ul><li>Print catalogs still the primary medium. </li></ul><ul><li>Expected sales in 2008 = $175 billion. </li></ul><ul><li>Web catalogs have specific advantages and disadvantages when compared to printed catalogs. </li></ul>
  11. 11. Direct Response TV Marketing <ul><li>Direct-response advertising: </li></ul><ul><ul><li>TV spots that are 60 or 120 seconds long. </li></ul></ul><ul><li>Infomercials: </li></ul><ul><ul><li>A 30 minute or longer advertising program for a single product. </li></ul></ul><ul><li>Home shopping channels: </li></ul><ul><ul><li>Entire cable channels dedicated to selling multiple brands, items, and services. </li></ul></ul>
  12. 12. Kiosk Marketing <ul><li>Information and ordering machines generally found in stores, airports, and other locations. </li></ul><ul><ul><li>Example: In-store Kodak kiosks allow customers to transfer pictures from digital storage devices, edit them, and produce high-quality color prints. </li></ul></ul>
  13. 13. Integrated Direct Marketing <ul><li>Involves carefully coordinated multiple-media, multiple-stage campaigns. </li></ul><ul><ul><li>Marketers try to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs. </li></ul></ul><ul><ul><li>Example: Integrating a paid ad with response channel (Web or phone), direct mail, outbound telemarketing, face-to-face sales call, continuing communication. </li></ul></ul>
  14. 14. Public Policy and Ethical Issues in Direct Marketing <ul><li>Irritating to consumers </li></ul><ul><li>Taking unfair advantage of impulsive or less sophisticated buyers </li></ul><ul><li>Targeting TV-addicted shoppers </li></ul><ul><li>Deception, fraud </li></ul><ul><li>Invasion of privacy </li></ul>

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