Transcript What is Marketing?

Marketing: An Introduction
Third Canadian Edition
Armstrong, Kotler, Cunningham, Buchwitz
Chapter Thirteen
Direct and Interactive Marketing
With Duane Weaver
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Outline
• Define direct response marketing and discuss its benefits to
customers and companies.
• Identify and discuss the major forms of direct response
marketing.
• Identify the major forms of direct and interactive marketing, and
explain the intersection of direct response and online marketing.
• List and describe the various forms of online marketing, and
differentiate between online marketing and online advertising.
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in-class notes
Direct Response Marketing
• Communicates directly with customers
• Allows for customer response &
interaction
• Benefits both buyers and marketers
• Requires a database
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Direct Response Marketing
• Any marketing program that issues a communication to
an audience, and requests a measurable response in
return.
• Direct response marketing could be viewed as
• As an channel of direct distribution—as marketing
channels that contain no intermediaries.
• As a promotional tool - direct marketing as one
element of the promotion mix.
• Direct response marketing has undergone a dramatic
transformation with rapid advances in database
technologies and new marketing media such as the
internet.
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Direct Response Marketing
Benefits to Buyers
Benefits to Marketers
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• Direct customer
relationships
• Personalized
communication
• Customize products
• Lower costs, efficient ,
speedy alternative
• Make immediate and
timely adjustments
• Access to customers
Convenient
Private
Access to variety
No physical boundaries
Empowers customers
Interactive and
immediate
• Greater measure of
control
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Direct Mail
Catalogues
Telemarketing
Forms of Direct
Marketing
Direct Response
Television
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Kiosk
Marketing
Direct Mail
• Involves sending an offer, announcement,
reminder or other item to a person at a
particular address.
• Suited for one to one communication.
• Permits high target-market selectivity.
• Personal and flexible.
• Easy to measure results.
• Desired response is elicited through call to
action.
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Catalogues
• Is a printed, bound piece of at least of eight
pages selling multiple products and offering a
direct ordering mechanism.
• Some marketers use this as a sole method of
direct marketing while others use these in
conjunction with a web site.
• Today catalogues are also available online.
• Printed catalogues are still popular and works
as a good supplement .
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Telemarketing
• Divided into two types
– Inbound telemarketing
A division of customer service, the department that answers
customers’ questions when they call in.
– Outbound telemarketing
The department of marketers who place outgoing calls, usually
to existing customers, to try to persuade them to upgrade their
services.
• There is a resentment from customers towards
outbound telemarketing.
• Do not call lists limits outbound calls.
• Marketers still could use customer service calls to
persuade to subscribe to new services.
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Direct-Response Television
• Television spots that persuasively
describe a product and give customers a
toll-free number for ordering.
• Uses formats such as
– Infomercials – longer advertising programs.
– The Shopping Channel – channels devoted
to facilitate buying goods.
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Kiosk Marketing
• Computerized kiosks are used to deliver
information, allow customers to interact with
products, and even take orders.
• Kiosk such as self service to in store ordering
options would allow customers to order
merchandise not carried in the store.
Can you think of an example of a Kiosk you
have used recently?
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Digital Interactive Marketing
• These are new media which uses digital
medium to support direct interactive marketing.
• Some new alternative terms used include, new
media marketing, interactive marketing,
Internet marketing, e-marketing, electronic
marketing, digital marketing, and online
marketing.
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in-class notes
Forms of Digital Interactive Marketing
• Digital signage – type of advertising that can
deliver targeted advertising to consumers based
on demographics and by interacting with their
personal electronic devisers.
• Mobile marketing – use of various mobile
technologies to communicate to a given target
audience.
• Podcasting – audio and video programs that can
be downloaded to personal electronic devises and
viewed at the consumer’s convenience.
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Forms of Digital Interactive Marketing
• Online marketing is a very general term for any
kind of marketing program, marketing communications,
or sales, that can be conducted online.
• Forms of online marketing include
– Websites
– E-commerce
– Online advertising
– Search engine marketing
– Email marketing
– Blogs & social networks
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in-class notes
Website as a Marketing Tool
• The 7Cs of website design are: context, content,
community, customization, communication, connection,
and commerce
• Websites act as marketing tools by
– Providing product information and investor
information
– Providing customer service (and self-service)
– Moving the customer closer to the sale
– Distributing coupons and special offers
– Allowing customers to register
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Website as a Marketing Tool
7 Cs of Effective Website Design
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Context: layout and design elements.
Content: text, pictures, sound and video.
Community: user-to-user communication.
Customization: personalizing for each user.
Communication: two-way communication.
Connection: links to other relevant sites.
Commerce: commercial transactions.
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Forms of Online Advertising
• Banner ads - Graphic online ads that may be placed
anywhere on the publisher’s webpage.
• Sponsorships A form of Internet advertising in which
the advertising message is placed permanently, for an
agreed-upon period of time, on the Web publisher’s
site.
• Interstitial A large, animated online advertisement that
pops up onto the screen for several seconds.
• Micro site A small website consisting of a few pages of
detailed information about the marketer’s goods or
services.
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Search Engine Marketing and
Advertising
• Could be used to advertise content along
with the search results indicated.
• Marketers could also use a search
engines to list their web sites so that they
appear when the users search for an
item with similar criteria.
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in-class notes
Email Marketing
• Not spam!
• Reputable marketers send email only to
customers who request it
• Viral marketing
• Permission marketing
• Opt-in vs. opt-out
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E-mail Marketing
• Marketers would need to avoid Spam in their e-mail
marketing campaigns. This could be done with the use
of permission marketing tools.
• Permission marketing - Email messages sent by
marketers with the permission of the recipient.
• E-mails could be effectively used for viral marketing
campaigns.
• Viral marketing - The Internet version of word-ofmouth marketing. An e-mail is created that is so
infectious, the recipient may want to pass it to all their
friends. Friends are likely to open it since it comes from
another friend.
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Rules for E-mail Marketing
• Send email only by permission.
• Clearly identify the sender.
• Remind the recipient why they’re receiving the
message.
• Provide an easy way to unsubscribe.
• The default is always opt-in, never opt-out.
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Blogging and Social Networks
• Blog - Blog is a abbreviation for a web log. It is a
website that consists of regular date-stamped
compositions written by an individual or a group of
individuals and published online for the public to read.
• Widgets, also known as “gadgets,” are tiny computer
programs that allow anyone to incorporate
professional-looking content into Web pages.
• Social Networks could be web sites such as Face
book, MySpace where individuals could interact and
maintain social relationships. Today marketers are
increasingly looking at the possibilities of using these
medium for marketing.
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