Objectives ä Growth & Benefits of Direct Marketing ä Customer Databases & Direct Marketing ä Major Channels for Direct Marketing ä Marketing in the 21 st Century: Electronic Commerce ä Public & Ethical Issues in Direct Marketing © 2000 Prentice Hall
Why Growth in Direct Marketing ä Market “Demassification” ä Effort of “Traditional Shopping” ä Continuous Access ä Next-day Delivery ä Specialty Items ä Increase in Computer Power © 2000 Prentice Hall
Benefits of Direct Marketing To © 2000 Prentice Hall Fu n, Co Customers nve nie nt & Sav Lar Ha es ger ssl Mer Tim e. Ord cha Co e Fre er ndi mp e Pro se aris duc Sel on ts ecti Sh for on op The pin g ms elv es or Oth ers To Mai ling Companies List s for On Al Tim goi Cu mo ed ng sto st to Rel miz An Ac atio ed y hie nsh Off Mar ve Alt ips ers ket Hig ern wit ativ her h e Cu Re Me sto ade dia/ me rsh Me rs ip Pri Me ssa & vac asu ge Re y rab Tes spo le ting nse Re spo
Uses for Databases 1. Identify Prospects 2. Match Customers & Offers 3. Deepen Customer Loyalty 4. Reactivate Customers © 2000 Prentice Hall
Direct Marketing Channels Face-to-Face Selling Online Marketing Direct-Mail Marketing Kiosk Marketing Catalog Marketing Direct-Response TV Marketing © 2000 Prentice Hall Telemarketing
Lifetime Value Cost of Campaign: 100 new members @ $70 1 st year “cost” 2 d Year 80 renewals @ $70 Two year “gain” 3 d Year… 4 th Year. . . © 2000 Prentice Hall $10, 000 $7, 000 $3, 000 $5, 600 $2, 600
“Information Rich” Buyers Obj ecti ve Info rma tion © 2000 Prentice Hall Initi atio n of Info rma tion Req ues ts Des ign Des ired Offe ring s Em ploy “Ag ent s” or Soli cit Bid s Fin d Spe ciali zed Thir dpart
Qu Benefits of Online Marketing ick Consumers Co nv eni en Inf ce or ma Fe tio we n r Ha ssl es © 2000 Prentice Hall Ad jus tm Companies en ts to Ma Lo rk Re we et lat r Co io Co nd ns sts iti hi on Au p s di Bu en ild ce in Si g zin g
Online Marketing Channels Electronic Presence Corporate Website Marketing Website Advertising Online Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups Buy Online Ads That Pop Up While Consumers are Surfing Participating in Forums, Newsgroups & Web Communities Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online Using E-Mail and Webcasting Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PC’s © 2000 Prentice Hall
Challenges of Online Marketers ä Limited Consumer Exposure & Buying ä Skewed User Demographics & Psychographics ä Chaos & Clutter ä Security © 2000 Prentice Hall
Public & Ethical Issues in Direct Marketing Irritation Unfairness Deception & Fraud Invasion of Privacy © 2000 Prentice Hall
Review ä Growth & Benefits of Direct Marketing ä Customer Databases & Direct Marketing ä Major Channels for Direct Marketing ä Marketing in the 21 st Century: Electronic Commerce ä Public & Ethical Issues in Direct Marketing © 2000 Prentice Hall
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