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Direct and online marketing

Direct and online marketing

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Direct and online marketing

  1. 1. Submitted to: Submitted by: Prof. Smriti Sood Gaurav Kaul Mohit Goyal Nikhila Kharb Navrose Kaur Direct and Online marketing
  2. 2. Contents  Introduction to Marketing  Direct Marketing  Forms of Direct Marketing  Online Marketing  Mobile Marketing  Public policy issues in Marketing
  3. 3. Marketing  Marketing, as we all know, is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. ( AMA )  CREATING VALUE: It deals with the product or service that you want to market. How you want the product to be differentiated, what you want it to be perceived like and how you want to price it.  COMMUNICATING VALUE: How you want to tell your customer about your product or service. This is the part where how we ‘perceive’ marketing comes into the picture.  DELIVERING VALUE: How you actually want to deliver
  4. 4. ‘Communicating value’  There are broadly two ways in which value is ‘communicated’ to prospective customers by a company interested in selling its product or service: 1. Personal Marketing: As the name suggests, personal marketing means reaching out to potential customers personally, via targeted advertising, so as to maximize the probability of the message reaching the intended audience. ( E.g.: Direct Marketing) 2. General Marketing: This type of marketing aims to reach out to as many people as possible via various means so as to maximize the amount of people that may get interested in buying the product.
  5. 5. What is Direct Marketing ?  Direct marketing is a form of advertising which allows businesses to communicate directly to customers (thereby eliminating middlemen) through a variety of media including text messaging, email, websites, online adverts, database marketing and targeted television, newspaper and magazine advertisements as well as outdoor advertising and face to face marketing.
  6. 6. Past and Present of Direct marketing  Direct marketing began in the 19th century with Montgomery Ward’s mail-order catalogues.  The Direct Marketing Association (DMA) was established in 1917 as a trade organization that provided research, education and support for developing direct marketing.  Direct mail campaigns expanded greatly after the creation of bulk mail rates in 1928.  In 1967, Lester Wunderman (also considered as the father of contemporary direct marketing) identified, named, and defined the term "direct marketing".
  7. 7. Past and Present of Direct marketing  Direct marketing is the fastest growing form of marketing.  The DMA estimates that every dollar spent on direct marketing yields a return on investment of $11.73 - compared with an estimated $5.23 for indirect advertising such as newspaper or magazine ads.  The Direct Marketing Association (DMA) reported in 2015 that more than half of all advertising expenditures went toward direct advertising. To the tune of around $513 Billion (Source: www.stastica.com)
  8. 8. How is Direct Marketing done? 1. Since direct marketing is specific and targeted, it begins with data. Marketers examine the categories of customers that the product would be most suited to and who maybe interested in the products and then make or procure lists for contacting them. 2. This data can be procured through various sources, both public and commercial. For example, the number of people who signed up to receive notifications for a particular offer or the number of people between the ages of 18 and 25 in a particular area. 3. The marketer then uses various channels like mails, e-mails, telephone calls, face to face interaction or a combination of these to reach out to that identified
  9. 9. How is Direct Marketing done? 4. Then comes a call to action. It is basically an instruction to the audience to give an immediate response to the advertisement just witnessed by them by urging them to “call now” or visit your nearest store today”. 5. Next comes measuring and tracking responses. After potential customers have performed their ‘call to action’, there needs to be a mechanism to track their responses in order to build on this data for future action. 6. Finally, the responses tracked above could be used to gauge how successful the campaign has been and if any changes need to be made in order to reach out
  10. 10. Benefits of Direct Marketing BENEFITS TO BUYERS  Convenient.  Ready access to many products.  Access to comparative information about companies, products, and competitors.  Interactive and immediate.
  11. 11. Benefits of Direct Marketing BENEFITS TO SELLERS  Tool to build customer relationships.  Low-cost, efficient, fast alternative to reach markets.  Flexible and changes can be made quickly.  Access to buyers not reachable through other channels.
  12. 12. Avoidable Mistakes Now, not all is hunky dory in the word of direct marketing. The seemingly golden and benefit laden world of direct marketing has its grey areas…. And there are a few things that we need to avoid in order to really reap the benefit of this style of marketing. I. BAD DATA : Bad data means inaccurate data. And bad data also means bad targeting, bad targeting means bad strategizing. Bad strategizing means bad planning and bad execution. And Too much bad never makes it good.  II. NO CALL TO ACTION : One of the most important aspects of direct marketing is its quality of coaxing consumers into giving a response/reacting to the advertisements
  13. 13. Avoidable Mistakes III. BAD DESIGN : The design of an advertisement is critical to sustaining the interest of the prospective customer as well as being the foundation towards making the product or the offer more realistic looking and relevant to the customer. He will react positively to the advertisement only if he is first convinced by the overall design of the ad. IV. IRRELEVANT OFFER : The offer needs to be practical, relevant and appealing to target audience. With the amount of intelligent and carefully targeted advertising in today’s world, it is important to always make a reasonable and relevant offer to your customer.
  14. 14. Forms of Direct Marketing Personal selling direct marketing Direct-mail direct marketing Catalog direct marketing Telephone marketing Direct-response television marketing Kiosk marketing Digital direct marketing Online marketing
  15. 15. Personal Selling Direct Marketing Personal selling, as the name implies, is one technique where the seller seeks to develop relationships with customers and makes use of communication and negotiation skills to close the sale of a product or service that is complex and cannot sell on its own off the shelves in a market place.  Prospecting  Identify and qualify potential customers (called prospects)  Pre-approach  Learn as much as possible about prospects before making sales calls  Approach  Meet potential customer for first time  Presentation
  16. 16. Personal Selling Process  Handling Objections  Seek out, clarify, and overcome customer objections to buying  Turn objections into reasons for buying  Closing—Ask for an order  Difficult if lack confidence or feel guilty asking  Follow-up  After the sale effort to ensure customer satisfaction and repeat business Selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships
  17. 17. Example of Personal Selling Mary Kay Cosmetics, unlike most other consumer product companies, relies primarily on personal selling which takes place in independent interactions or at Mary Kay parties where sellers and buyers meet. Mary Kay products are not available in retail stores.
  18. 18. Direct-mail marketing Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address  involves mailing of letters, ads, samples, foldouts… sent to potential customers on mailing lists.  The mailing lists are developed from customer lists or obtained from mailing-list houses.  It permits high target market selectivity, can be personalized, is flexible and allows easy measurement of results.  It costs more than TV or magazine advertising per person.
  19. 19. Direct Mail Strategies Solo Direct Mail Individually prepared offers sent directly to prospects Co-operative Direct Mail Special offers from non-competing products in one envelope
  20. 20. Direct Mail as an Advertising Medium  Research indicates 84% of people will open a direct mail piece if their name is on it  77% are likely to read direct mail if addressed to them.  Advantages include: Audience selectivity, High reach, Geographic flexibility, Creative flexibility, Distribution of Incentives  Disadvantages include: Image and life span, Potential delivery delays, High cost per exposure
  21. 21. Example of Direct-mail marketing Direct marketing is often used as a tool to promote food products, with chocolate manufacturers Nestle also getting in on the act. They sent out a mailer that was made to look like the card left by postmen when they’re unable to deliver a parcel. Instead of saying that a package couldn’t be delivered, however, the mailer claimed that the package (KitKat chunky) was unable to be posted as it was ‘too chunky for your letterbox’. The lucky recipients were able to exchange their card at
  22. 22. Example of Direct-mail marketing Designed as a direct mail campaign to raise awareness about the amount of energy that we waste when we leave our lights on overnight, The Earth Hour Candle Box was a triumph of direct mail. As the candle was pulled out of the box, its design allowed it to simulate lights being switched off. The uniquely packaged Earth Hour Candle Box
  23. 23. Catalog direct marketing  Catalog marketing is a sales technique used by businesses to group many items together in a printed piece or an online store, hoping to sell at least one item to the recipient. Consumers buy directly from the catalog sender by phone, return envelope or online using information in the catalog.  Products from various companies or vendors may be combined into a single catalogue to provide a one shop point for customer looking out for a particular type of product.  The catalogues are generally in printed form but can also be distributed in the form of CDs.  To avoid printing and distribution costs, the catalogues are being increasingly made available online.
  24. 24. Catalog direct marketing  Catalog direct marketing involves printed and Web- based catalogs Benefits of Web-based catalogs • Lower cost than printed catalogs • Unlimited amount of merchandise • Real-time merchandising • Interactive content • Promotional features Challenges of Web- based catalogs • Require marketing • Difficulties in attracting new customers
  25. 25. Example of Catalog direct marketing •Avon is a good example of a company successfully leveraging this channel to sell its range of cosmetics. Avon Campaign 24, 2016 has been recently launched which contains variety of products. •Futurebazaar.com, a subsidiary of Pantaloon Retail, provides e-catalogs on its Website with lists, photographs and prices of thousands of products along
  26. 26. Telephone direct marketing Telephone direct marketing involves using the telephone to sell directly to consumers and business customers  Outbound telephone marketing sells directly to consumers and businesses  Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs  Provides purchasing convenience and increased product or service information.  However, too much use it can annoy customers.  It is also a major fund-raising tool for nonprofit organizations.
  27. 27. Inbound/Outbound Telemarketing  Inbound – the reception of calls by the order desk, customer inquiry, and direct –response calls often generated through the use of toll-free 1-800 or 1- 888 numbers  Outbound – calls that a company makes to customers to develop new accounts, generate sales leads, and even close a sale. Call Centre Outbound Inbound
  28. 28. Consumer’s Right to Privacy  In 2005, the federal government passed “do-not- call” legislation to further protect unwanted phone calls. Below are more details on the CMA’s privacy code.
  29. 29. Telemarketing  Telemarketing is cost efficient. It is much less expensive than personal selling and mass advertising.  Proper training and preparation of representatives is crucial.  The message delivered is as important as the medium itself.  Scripting plays a significant role in the success of a telemarketing campaign. Here are some basic tips for the telemarketer:  Focus on the relationship  Adjust the script approach for your audience  Empathize with the receivers  Establish rapport and gain attention quickly
  30. 30. Examples of Telephone direct marketing  There are large number of call centers for both inbound and outbound telemarketing. Wipro BPO Solutions and Daksh by IBM are two such major players in this sector.  ICICI, HDFC, Reliance have their own call centers to attend to customers to queries.  Bank and credit card companies.  Offers for “instant loans”.  Cosmetic company L’Oreal India has toll free number on which it offers expert advice about looking good.
  31. 31. Direct-response television Direct-response television (DRTV) marketing involves advertisements that describe products or give customers a toll-free number or Web site to purchase. There are three forms of direct response television: 1. 60-second or shorter commercials 2. Infomercials 3. Direct home shopping  In each case, the use of toll-free telephone numbers, websites, and credit cards makes the
  32. 32. Types of DRTV advertising  Short-form  Vary in length from 15-120 seconds  Long-form  Commonly referred to as infomercials  May last 30-60 minutes  Include characters and follow a script
  33. 33. Direct-Response Television  Direct response commercials are classified based on the intent of the ad. “Buy now”or “Limited time offer.” Immediate action is the goal. Establish leads, drives retail traffics, create awareness, and build image (longer term strategy). Traditional/Sales Corporate or Brand
  34. 34. Examples of DRTV DRTV as sales channel Example:  The Dirt Devil Broom Vacuum Cleaner was only available on TV for three months before retail launch. Mass merchant retailers often have "as seen on TV" sections in their stores. DRTV as advertising for brand marketers and retailers Example:  P&G, Toyota, Philips Consumer Electronics, DuPont (Teflon), Hamilton-Beach, Space Bag, Rubbermaid  DRTV has also become a commonly used advertising medium for insurance companies, mortgage companies, cell phone providers, credit card companies, and a host of other services.
  35. 35. Kiosk marketing  A Kiosk is a small stand-alone unit that performs a specific function, generally without management intervention and are generally intended to provide information to those that use it.  Kiosks are generally small, and are designed to help the consumer find information and they can be strategically placed anywhere. Main functions include:  Kiosks are designed to deliver information to the consumer in the absence of a human.  They can sometimes provide information or services to more than one individual at a time.
  36. 36. Benefit of Kiosk  Kiosks in any environment increase public awareness and save labor overhead  Printing-on-demand option for information kiosks saves preprinted forms costs  Targeted loyalty offers or special promotions improve customer service as well as increase sales  Self-service kiosks reduce costs by lowering employee headcount  Reduced costs for basic service levels
  37. 37. Digital direct marketing  Due to new digital technologies, direct marketers today can reach customers anywhere, anytime, about almost anything. New digital tools include; E-mail Mobile phone marketing Podcasts and Vodcasts Interactive TV
  38. 38. Mobile phone marketing Mobile phone marketing Mobile marketing is marketing on or with a mobile device, such as a smart phone. It is defined as "any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device" :  SMS Marketing(Dominos, Pizza Hut)  Ring-tone giveaways  Mobile games  Ad-supported content
  39. 39. Digital direct marketing Podcasts and vodcast involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or iPod and listening to them at the consumer’s convenience. Eg. New York Times Podcasts Yoga Journal - Podcasts Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences.
  40. 40. MARKETERS MUST GO WHERE THE CUSTOMERS ARE, AND INCREASINGLY THAT’S ONLINE
  41. 41. Online Marketing  New technologies have encouraged companies to move from mass communication to more targeted, two way communications  Result: Marketing communications occur as a personal dialogue between the company and its consumers  A COMPANY, THEREFORE, MUST ASK: How should we reach our customers?  How should our customers reach us?  How should our customers reach each other?
  42. 42. PAID, OWNED, EARNED MEDIA
  43. 43. ONLINE MARKETING COMMUNICATION OPTIONS 1. WEBSITES 2. SEARCH ADS 3. DISPLAY ADS 4. E-MAIL
  44. 44. WEBSITES Companies must design websites that embody or express their purpose, history, products and vision and that are attractive on first viewing and interesting enough to encourage repeat visits Fig: 7 C’s of designing an effective Web Site Source: Phillip Kotler and Kevin Lane Keller, Marketing CONTEXT: LAYOUT AND DESIGN CONTENT: TEXT, PICTURE, SOUND, VIDEO ON SITE COMMUNITY: HOW IT ENABLES USER TO USER COMMUNICATION CUSTOMISATION: ABILITY TO TAILOR ITSELF TO DIFFERENT USERS COMMUNICATION:ENABLES TWO-WAY COMMUNICATION? CONNECTION: DEGREE THAT THE SITE IS LINKED TO OTHER SITES COMMERCE: CAPAILITY TO ENABLE COMMERCIAL TRANSACTIONS
  45. 45. WHAT DO CUSTOMERS WANT? CUSTOMERS will judge a website’s performance based on: EASE OF USE  The site downloads quickly  The first page is easy to understand  It is easy to navigate to other pages that open quickly PHYSICAL ATTRACTIVENESS  Individual pages are clean and not crammed with content  Typefaces and font sizes are very readable  The site makes good use of color J.D. Power found that consumers who were “delighted” with an automotive manufacturer’s website were more likely to test drive one of its vehicles as a result
  46. 46. MICROSITES Individual Web pages or clusters of pages that function as supplements to a primary site. Unlike regular websites, microsites tend to be rather simplistic and easier to navigate. It helps brands achieve a number of things:  To highlight a specific campaign To tell a short story  Particularly relevant for companies selling low- interest products Example: Insurance companies Create a microsite on used-car sites that offers advice for buyers on used cars and a good insurance deal at the same time They say the bestthings often come in small packages
  47. 47. SEARCH ADS Marketers bid in a continuous auction on search items that serve as a proxy for the consumer’s product or consumption interest  The cost per click depends on how highly the link is ranked on the page and the popularity of the keyword  Increased popularity of paid search has increased competition among bidders  It has raised search ad prices  Choosing best keywords, bidding on them strategically and monitoring their effectiveness is imperative
  48. 48. SEARCH ENGINE OPTIMIZATION Activities designed to improve the likelihood that a link for a brand is as high as possible in the rank of order of all non paid links when consumers search for relevant items GUIDELINES FOR SEO AND PAID SEARCH:  Broader search terms (iPod vs Apple iPod classic 160GB)  Search terms spotlighted on the website so search engines can easily locate them  Bid on a keyword according to its likely return on revenue  Collect data to track the effects of paid search
  49. 49. AdWords: The advertisements that show up on the top of Google search result pages.
  50. 50. AdSense: Allows publishers(bloggers) to tap into Google’s immense advertising network so that other advertisers can run ads on their website. Once a blogger signs up, Google places a simple code on their
  51. 51. THIS IS PPC MARKETING Pay-per-click marketing is a way of using search engine advertising to generate clicks to your website, rather than “earning” those clicks organically.
  52. 52. DISPLAY ADS Small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant websites.  The larger the audience the higher the cost  Display ads hold great promise compared to popular search ads given that they are:  More attention-getting  Better targeted  More closely tracked
  53. 53. INTERSTITIALS Advertisements, often with video or animation, that pop up between page changes with a website or across websites Example: Ads for Johnson and Johnson’s Tylenol headache reliever would pop up on broker’s websites whenever the stock market fell by 100 points or more. BUT Consumers find such pop up ads intrusive and distracting, and therefore many use softwares to block them
  54. 54. Coverfox wanted a fun way to remind people to renew their insurance.  Working with Google and agency BBH India, the firm tracked down people who had visited Coverfox, but didn't end up renewing their insurance  Since no-one reads boring email reminders, the firm decided to take over the things they actually pay attention to  They used unskippable videos that intercepted YouTube for several days, and continued to show up until the target renewed his insurance  The brand succeeded because they created entertaining and timely reminders that were hard to miss
  55. 55. Source: http://www.digitaltrainingacademy.com/casestudies/2016/09/case_study_coverfoxcom_targets_forgetful_drivers_with_interactive_c ampaign.php
  56. 56. E-MAIL E-mails allow marketers to inform and communicate with customers at a fraction of the cost of a d-mail campaign. HOW TO MAXIMISE THE MARKETING VALUE OF E-MAILS  Give the customer a reason to respond  Personalise the content of your e-mails  Offer something a customer can’t get via a direct mail  Make it easy for a customer to opt in as well as unsubscribe  Combine email with other communications such as social media
  57. 57.  RESEARCH: To increase the effectiveness of emails, some researchers employed ‘heat-mapping’ that tracked eye movements with cameras to measure what people read on their screen  RESULT: Clickable graphic icons and buttons that linked to more details of a marketing offer increased click through rates by 60 percent over links that used just an internet address VS
  58. 58. BEAUTY BREEDS SUCCESS FOR WOMEN  Indian retailer Flipkart sent mass email claiming 'beauty breeds success' for women The tone of the text, implying women can only be successful if they are beautiful, provoked outrage on Twitter.
  59. 59. ADVANTAGES  Greater audience potential  Offer or send tailored information that engage customers  Better tracking  How many UV’s click on a page or ad  How long they spend with it  What do they do on it  Where do they go afterward  Contextual placement  Buy ads on sites related to your offerings  Place ads based on keywords typed on search engines (reach people when they have actually started the buying process)
  60. 60. DISADVANTAGES  Consumers can effectively screen out most messages and emails  Marketers may think their ads are more effective than they really are if BOGUS clicks are generated by software-powered websites  Advertisers also lose some control over their online messages, which can be hacked or vandalized But the pros can clearly outweigh the cons, and the internet is attracting marketers of allkinds
  61. 61. MOBILE MARKETING
  62. 62. MOBILE MARKETING Mobile marketing is marketing on or with a mobile device, such as a smart phone or a tablet. Mobile marketing can provide customers with time and location sensitive, personalized information that promotes goods, services and ideas .In a more theoretical manner, it can be defined as "any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device"
  63. 63. MOBILE MARKETING How Does Mobile Marketing Work? Mobile marketing consists of ads that appear on mobile smartphones, tablets, or other mobile devices. Mobile marketing ad formats, customization, and styles can vary, as many social media platforms, websites, and mobile apps offer their own unique and tailored Why You Need a Mobile Marketing Strategy? A business needs a mobile marketing strategy for the same reason that we need a computer and wi-fi access . According to recent reports, 40% of users’ internet time is spent on mobile devices, which means simply ignoring the rise
  64. 64. INTERESTING STATISTICS Some other interesting mobile marketing statistics:  80% of mobile device time in spent on apps, with game apps eating up the largest percent of app time  People browse 70% more web pages on mobile devices than desktops.  Mobile searches have increased 200% per year over the past years  Mobile ad spending was over $18 billion worldwide in 2013.
  65. 65. TYPES OF MOBILE MARKETING STRATEGIES  App-based marketing: This is mobile advertising involving mobile apps. Since 80% of mobile time is spent engaged with apps, services like Google AdMob help advertisers create mobile ads that appear within third-party mobile apps. Facebook also allows advertisers to create ads that are integrated into Facebook’s mobile app. Facebook’s mobile Promoted Post ads integrate so seamlessly with Facebook’s news feed that users often don’t realize they’re looking at ads.
  66. 66.  In-game mobile marketing: In-game mobile marketing refers to mobile ads that appear within mobile games, like in the example below. In- game ads can appear as banner pop-ups, full- page image ads or even video ads that appear between loading screens.
  67. 67.  QR codes: QR codes are scanned by users, who are then taken to a specific webpage that the QR code is attached to. QR codes are often aligned with mobile gamification and have an element of mystery to them, since users who scan them don’t always know exactly which rabbit hole they’re jumping down.  Location-based marketing: Location-based mobile ads are ads that appear on mobile devices based upon a user’s location relative to a specific area or business. For example, some advertisers may only want their mobile ads to appear when users are within a 1-mile radius of their business.
  68. 68.  Mobile search ads: These are basic Google search ads built for mobile, often featuring extra add-on extensions like click-to-call or maps.  Mobile image ads: Image-based ads designed to appear on mobile devices.  SMS: SMS marketing involves capturing a user’s phone number and sending them text offers. This is considered somewhat passé.
  69. 69. MOBILE MARKETING PRACTISES  Be Clear and Concise: Mobile devices have small screens, which means words should be used sparingly. Cluttered and crowded ads will just drive users to scroll past. When it comes to mobile, it’s best to keep things simple.  Optimize for Local: 1 in 3 mobile searches have local intent. Users often use mobile devices to complement their immediate worldly interactions – where is the nearest gas station? Is there a nearby coffee shop that has wi-fi?
  70. 70.  Consider Your Audience: The type of audience influences the kind of mobile ads used. If they gamers?,then try taking advantage of in-game ads. If they are young and tech-savvy, Mobile Facebook Promoted Posts might be more likely to get their attention.  Experiment with Different Strategies: There’s a lot of room for experimentation when it comes to mobile marketing.  Benchmark Your Results: Experimenting is great, but there’s no point in trying new techniques if you’re not tracking your results to see what works and what doesn’t.
  71. 71. CASE: How Colgate reached 700,000 people with just $8,000 mobile spend Colgate wanted to increase toothpaste penetration in rural India by educating consumers about oral hygiene and the benefits of using toothpaste regularly vs. traditional, natural products that were only being used sporadically. The brand chose to reach out to these consumers at the Maha Kumbh Mela, a large spiritual gathering for Hindi pilgrims, using mobile and location-based technologies. This case study looks at how the brand managed successful mobile marketing on a budget.
  72. 72. STRATEGY AND EXECUTION  With a limited budget of $8,000, Colgate had to be extremely strategic in determining how it would reach the Maha Kumbh Mela pilgrims. Since most of the pilgrims are from areas with low literary rates, it was decided that voice-based communications via a mobile phone would be most effective in driving consumers to the Colgate booth at the gathering.
  73. 73.  Using location-based targeting, Colgate created a virtual circle around the pilgrimage site by tagging three nearby cellular towers. When pilgrims entered this circle, their phones were identified and they received a call from Amin Sayani, a legendary Indian radio personality, telling them to visit the Colgate booth for free samples, a chance to win prizes, and entertainment.  In the past, location-based targeting had only been used in India in metropolitan areas and primarily focused on text messaging or banner ads, making Colgate’s campaign the first of its kind in India.
  74. 74. RESULTS The purpose of this campaign was not to directly affect Colgate’s bottom line. Rather, the goal was to open up a new method for reaching consumers that Colgate had not had contact with previously using mobile marketing on a budget. During Maha Kumbh Mela, foot traffic to the Colgate booth increased by over 300 percent vs. the pre- promotion period, attracting over 700,000 visitors.
  75. 75. PUBLIC POLICY ISSUES IN DIRECT MARKETING UNFAIRNESS CUSTOMER IRRITATION DECPTION AND FRAUD SECURITY ISSUES INVASION OF PRIVACY
  76. 76.  IRRITATION: It irritation includes annoying and offending customers. Many people find the increasing number of hard- sell, direct-marketing solicitations by phone, television, and e-mail to be a nuisance.  UNFAIRNESS: It includes taking unfair advantage of impulsive or less-sophisticated buyers Television shopping channels and infomercial— extended-length, direct-response commercials that appear to be television shows demonstrating or discussing a product—may be the worst culprits. They feature smooth-talking hosts, elaborate demonstrations, claims of drastic or short-time price reductions, and easy purchasing to capture buyers who have low sales resistance.
  77. 77.  DECEPTION AND FRAUD: It includes “heat merchants” who design mailers and write copy designed to mislead consumers Some direct marketers exaggerate claims about products and performance, some political fundraisers use questionable gimmicks such as envelopes that resemble official documents, and some nonprofit organizations pretend to conduct surveys when they are actually trying to identify donors.
  78. 78.  INVASION OF PRIVACY: The concern is that marketers may know too much about consumers and use this information to take unfair advantage. This includes sale of databases containing personal information about the consumers.
  79. 79.  EXAMPLE: American Express, long regarded as a leader on privacy issues, does not sell information on specific customer transactions. However, AmEx found itself the target of consumer outrage when it announced a deal to make data on 175 million Americans available to any merchant who accepts AmEx cards. The uproar prompted AmEx to kill the plan. America Online, also targeted by privacy advocates, wound up junking a plan to sell subscribers‘ telephone numbers.
  80. 80. A NEED FOR ACTION  CAN SPAM: The CAN-SPAM Act, a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violations.  California Online Privacy Protection Act (OPPA): This law requires operators of commercial web sites or online services that collect personal information on California consumers through a web site to conspicuously post a privacy policy on the site and to comply with its policy.
  81. 81.  Children’s Online Privacy Protection Act (COPPA): The Act (COPPA) gives parents control over what information websites can collect from their kids. The COPPA rule — with new provisions in effect on July 1, 2013 — puts additional protections in place and streamlines other procedures that companies covered by the rule need to follow.  TRUSTe: TRUSTe powers privacy compliance and risk management with comprehensive technology, consulting and certification solutions. Companies worldwide rely on TRUSTe to demonstrate compliance, minimize risk, and build trust.
  82. 82. Sources  Kotler, P.; Bowen, J. and Makens, J. (1999). Marketing for Hospitality and Tourism (2nd ed.). Prentice Hall: New Jersey.  Kotler, P.; Bowen, J. and Makens, J. (2010). Marketing for Hospitality and Tourism (5th ed.). Prentice Hall: New Jersey.  Kotler, P. and Armstrong, G. (2010) Principles of Marketing (13th ed.). Prentice Hall: New Jersey.  www.stastica.com  www.marketing.org

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