Chapter 13 Internet and Direct-Response Advertising

1. Chapter 13 Internet and Direct-Response Advertising

2. Pros of Internet Advertising • Relatively inexpensive, quick, and easily available • Interactive audio and video • Flexibility

3. Cons of Internet Advertising • Consumers still hesitate when it comes to purchasing online • Audience fragmentation due to vast number of sites

4. Pros of Direct Response • Potential to reach any prospect on a geographical, product usage, or demographic basis • Measurable medium with opportunities for sales-related response • Personalization and relationship-building possible

5. Cons of Direct Response • High cost per contact • Updating lists can be challenging • Privacy issues are an increasing concern

6. Customer Relationship Marketing (CRM) Customer relationship marketing is a management concept that organizes a business according to the needs of the consumer.

7. Importance of the Internet for CRM • More effective cross-selling and upselling • Higher customer retention and loyalty • Higher customer profitability • Higher response to marketing campaigns • More effective investment of resources

8. Privacy-Related Vocabulary Terms Spam Opt-in Opt-out

9. Guidelines for Email Marketing_1 • Use an honest subject line. • Include a valid return email address as well as a physical address. • Clearly identify the subject and the sender at the beginning of the email. • Provide a clear and conspicuous email option for consumers to remove themselves from the list.

10. Guidelines for Email Marketing_2 • Ensure that electronic name-removal features are prompt and reliable. • Offer options for removal of consumers from commercial email lists. • Do not acquire email addresses through automated systems without consent of consumer. • Do not provide lists to a third party. • Provide a link to the privacy policy.

11. Elements of Good Online Privacy Policies Disclosure of what information is collected Opt-out option Consumer access to their personal information Security standards for information use and access

12. Complementary Media Magazine ads can drive traffic to websites.

13. Advertising Uses of the Internet As a source of direct sales As a source of advertising-supported communications As a source of marketing and promotion information As builders of consumer engagement

14. Objectives of Direct Response Direct orders Lead generation Traffic generation

15. Advantages of Direct Response • Direct response is targeted communication • Direct response is measurable • The message is personal

16. DRTV Combines Direct Response and Television • Shows product in use and provides opportunities for product demonstrations • Creates excitement for a product • Offers immediate results • Lower production costs • Spots not time sensitive • Complements retail sales • Offers ability to test product benefits

17. Catalogs Catalogs combine direct response and online sites.

18. Factors Affecting the Move from Prospect to Buyer for Catalog Sales • The right product • Exciting creative execution • Reach a targeted group of prospects • Fulfillment and customer service • Database management

19. List brokers List compilers List managers Service bureaus Lettershops Response lists Organizations Involved in Direct-Mail Advertising

20. Direct Marketing Association

21. Other Direct-Mail Techniques Package inserts Cooperative mailings Ride- alongs Ticket jackets Statement stuffers