Transcript DIRECT MARKETING and e

Chapter 10:
DIRECT MARKETING
and
E-COMMERCE
10.1
Relationship Between Direct Marketing
and e-Commerce
DIRECT MARKETING: Defined
E-COMMERCE: Defined
RELATIONSHIP BETWEEN DIRECT MARKETING AND
e-COMMERCE

The Mode of the Transaction: Traditional Media Versus
New Media
 All e-Commerce is Direct Marketing, But Not all Direct
Marketing is e-Commerce
10.2
Direct Marketing
ROLE OF DIRECT MARKETING IN PROMOTION AND IMC

Closing the Sale

Identifying Prospects

Engaging the Customer
10..3
Direct Marketing (con’t)
THE POPULARITY AND GROWTH OF DIRECT MARKETING
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Consumers’ Desire for Convenience
Attitudes Toward Credit
Changes in Technology
Measurability in Direct Marketing
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Cost per Inquiry (CPI)
Cost per Order (CPO)
Database Marketing
10.4
Direct Market Merchants
Have Flourished Due to
Technology and Consumers’
Desire for Convenience
10.5
Database Marketing

Mailing Lists
 Internal Mailing Lists
 External Mailing Lists
 List Enhancement
 Marketing Database Applications
 RFM Analysis
 Frequency Marketing Programs
 Cross Selling
10.6
Direct Marketing Databases
Allow Very Specific
Targeting of Promotions
10.7
Database Marketing (con’t)
MEDIA APPLICATIONS IN DIRECT MARKETING
 Direct Mail
 Selectivity
 Flexibility
 Consumer Preference
 Telemarketing
 Catalogs
 Infomercials
 Direct Marketing in Other Media
 Bind-in Insert Card
 Toll Free Numbers in Traditional Media
10.8
Catalogs Are An
Important Medium in the
Direct Marketing Process
10.9
e-Commerce

Popularity Basis Same as Direct Marketing
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Convenience
Acceptance of Credit
Changes in Technology and Measurability of Results
Business-to-Consumer and Business-to-Business
e-Commerce: B2B is most powerful
10.10
Like Direct Marketing,Tthe
Popularity of e-Commerce
is Due to the Convenience it
Offers Consumers
10.11
Model of the Stages of e-Commerce
Identify Customers
Attract Customers
Communicate
Personalize and Customize
Exchange
Payment, Fulfillment & Follow-up
Profiling
e-Commerce (con’t)
SETTING UP & MANAGING e-COMMERCE
OPERATION – A MODEL OF e-COMMERCE
 Identify Customers
 Attract Customers
 Communicate
 Personalize and Customize
10.13
There are Many
Facilitators Available
for the e-Commerce
Effort
10.14
e-Commerce (con’t)
SETTING UP & MANAGING e-COMMERCE
OPERATION – A MODEL OF e-COMMERCE (con’t)
Exchange
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Platforms
Payment,
Fulfillment and Follow-up
Profiling
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Sites Visited, Purchases Made, Info Gathered
Site Learns about Consumers when Visited
Data Mining Captures all Consumer Data/Analyzes
Behavior
10.15
Coordinating Direct Marketing,
e-Commerce, and IMC

Tremendous Challenge

Organizations Need to Seek Synergy
 Coordination is Needed for Internal and
External Specialists
 Firms are Turning to a Marcom Manager
to Facilitate Coordination
10.16