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Chapter 14

Chapter 14. Direct Marketing and Marketing on the Internet. Irwin/McGraw-Hill. The McGraw-Hill Companies, Inc., 1998. Direct Marketing. Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location .

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Chapter 14

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  1. Chapter 14 Direct Marketing and Marketing on the Internet Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998

  2. Direct Marketing • Interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. • Common purposes of direct marketing: • Close the sale • Identify prospects for future contacts • Provide in-depth information • Seek information from consumers • Foster (enhance) brand loyalty

  3. Direct Marketing Today • More than just mail-order • Used by organizations throughout the world • Often is not integrated with other advertising efforts. • Four Principle Purposes • Close a sale with a customer • ID prospects and develop customer info. • Engage customers, seek their advice and • Generate brand loyalty

  4. What’s Driving Direct Marketing? • CONVENIENCE! for today’s dual income and single parent households. • More liberal attitudes toward using credit • Greater access to (Tax) toll-free calling • Computer technology to facilitate transactions • On-line shopping • Cost per inquiry (CPI) and cost per order (CPO) advantages of direct marketing

  5. The Growth of Direct Marketing • The catalog • Use of consumer credit cards • Direct-marketing syndicates (agencies) • The changing structure of the market worldwide • Technological advances • Various other factors Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-1

  6. Direct Mail Catalogs Broadcast media Infomercials The Internet Print media Telemarketing Electronic teleshopping Direct Response Media Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-2

  7. Database Marketing • Knowing who the best customers are as well as what and how often they buy • Mailing lists • Internal lists • External lists

  8. The Marketing Database • Includes data collected directly from individual customers • Marketing database applications • CRM analysis • Marketing programs • Cross-selling • Privacy concerns

  9. Advantages of Direct Marketing • Selective reach • Segmentation capabilities • Frequency • Flexibility • Timing • Personalization • Cost efficiencies • Ability to measure effectiveness Slide 14-4 • The McGraw-Hill Companies, Inc., 1998

  10. Disadvantages of Direct Marketing • Direct mail is expensive. • May cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial • Mail lists can be plagued with bad addresses. • Mail delivery dates can be unpredictable Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-5

  11. Web Objectives • Disseminating (Circulating) information • Creating awareness • Gathering research information • Creating an image • Stimulating trial Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-7

  12. Advantages of the Internet • Target marketing • Message tailoring • Interactive capabilities • Information access • Sales potential • Creativity • Market potential Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-9

  13. Disadvantages of the Internet • Measurement problems • Audience characteristics • Clutter • Potential for deception (Deceiving) • Costs • Limited production quality Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 14-10

  14. E-Mail • Bulk e-mail is known as “spam” • However, e-mail is an increasingly popular tool for marketers. • Advantages • Cheap • Good response rates

  15. Direct Response Advertising • Multiple media can be deployed to generate an immediate, measurable response. • Most common media used are direct mail and telemarketing. • However all conventional media can be used.

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