DIRECT MARKETING / ONLINE MARKETING

Piyoosh Bajoria

Mass Marketing and Direct Marketing

Most Mass Marketing Involves One-Way Communications Aimed At Consumers. Direct Marketing Involves Two-Way Interactions With Customers..
Piyoosh Bajoria

What is Direct Marketing?

Direct Marketing is an interactive system of marketing which uses one or more advertising media to effect a measured response and/or transaction at any location.
Piyoosh Bajoria

Why Growth in Direct Marketing

Market Demassification Effort of Traditional Shopping Continuous Access Next-day Delivery Specialty Items Increase in Computer Power
Piyoosh Bajoria

Benefits of Direct Marketing

To Customers
Fun, Convenient & Hassle-Free
Saves Time Larger Merchandise Selection Comparison Shopping Order Products for Themselves or Others

To Companies
Mailing Lists for Almost Any Market
Customized Offers Ongoing Relationships with Customers Timed to Achieve Higher Readership & Response Alternative Media/Message Testing Privacy Measurable Response
Piyoosh Bajoria

Trends Leading to the Growth of Direct Marketing

Increasing Number of Market Niches with Distinct Preferences Higher Costs of Driving, Traffic and Parking Congestion

Consumers Lack of Time

Convenience of Ordering From Direct Marketers Growth of Customer Databases
Piyoosh Bajoria

Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects Including: Geographic, Demographic, Psychographic, and Behavioral Data. How Companies Use Their Databases
Identifying Prospects
Deciding Which Customers Should Receive a Particular Offer Deepening Customer Loyalty Reactivating Customer Purchases
Piyoosh Bajoria

Forms of Direct Marketing

Face-to-Face Selling Online Marketing Kiosk Marketing Direct-Response Catalog TV MarketingPiyoosh Bajoria Telemarketing

Direct Mail

Direct Response Advertising

Involves the use of any of several media (e.g., direct mail, TV, magazines, Web) to transmit messages to encourage buyers to purchase directly from the advertiser. Characteristics of direct response advertising:
Makes a definite offer. Contains all information necessary to make a decision. Contains a response device (e.g., coupon, phone number, Web site) to facilitate action.
Piyoosh Bajoria

Evaluating Direct Response Advertising Copy

Caples Principles
Get attention Hold attention Create desire Make it believable Prove its a bargain Make it easy to buy Give a reason to buy now
Piyoosh Bajoria

Benefits and Growth of Direct Marketing

Buyers Benefits
Convenient

Sellers Benefits
Consumer Relationship Building

Easy & Private

Product Access & Selection Abundance of Information Interactive & Immediate

Reduces Costs
Increases Speed & Efficiency Provides Flexibility Global Medium
Piyoosh Bajoria

Mass Marketing Vs. Oneto-One Marketing

Mass Marketing
Average Consumer Customer Anonymity Standard Product Mass Production Mass Distribution Mass Advertising Mass Promotion One-Way Message Economies of Scale Share of Mind All Customers Customer Attraction

Individual Customer Customer Profile Customized Market Offering Customized Production Individualized Distribution Individualized Message Individualized Incentives Two-Way Messages Economies of Scope Share of Customer Profitable Customers
Piyoosh Bajoria Customer

One-to-One Marketing

Retention

Customer Databases
Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects Including:
Geographic, Demographic, Psychographic, and Behavioral Data.

Piyoosh Bajoria

Database Marketing,
Database Marketing: a process by
which companies collect information on consumers, analyze it to predict who will buy, and then develop tailored marketing messages to those consumers.
The product Into the database maw Digesting the data An ideal consumer (the high volume user) Using the knowledge (coupons, new products, ads) Sharing the data with retailers Piyoosh Bajoria Refining the database

How it Works

Telemarketing
Outbound telemarketing Inbound telemarketing (telemedia)
Toll free nos.

Piyoosh Bajoria

FTC Telemarketing Sales Rule

Bans deceptive and abusive sales practices (e.g., multiple harassing calls) Prohibits credit card laundering Prohibits calls before 8 a.m., after 9 p.m. Requires seller identification (i.e., identify themselves, their business, goods/services selling)

NO POLICY FRAMED IN INDIA

Piyoosh Bajoria

Factors Influencing the Use of Telemarketing

Face-to-face contact how essential is it? Geographical concentration of customers. Economic considerations (potential, order size). Customer decision criteria. Number/type of purchase decision makers. The nature of the purchase. The status of the major decision maker. Specific selling tasks to be performed.
Piyoosh Bajoria

Online Marketing and Electronic Commerce

Online Marketing is conducted through interactive online computer systems, which link consumers with sellers electronically.

Piyoosh Bajoria

Online Marketing and Electronic Commerce

Two types of Online Marketing Channels: Commercial Online Services offer online information and marketing services to subscribers who pay a monthly fee. (Dialogue)
Piyoosh Bajoria

Online Marketing and Electronic Commerce

Two types of Online Marketing Channels: The Internet (the Net) is the vast global and public web of computer networks.
Piyoosh Bajoria

Online Marketing and Electronic Commerce

The explosion of Internet usage has created a new world of electronic commerce, a term that refers to the buying and selling process supported by electronic means.
Piyoosh Bajoria

The Benefits of Online Marketing

Consumers
Convenient Private Abundance of Information Interactive

Companies
Consumer Relationship Building Reduces Costs Increases Efficiency Provides Flexibility Global Medium
Piyoosh Bajoria

Immediate

Online Marketing Channels

Creating an Electronic Storefront
Buy Space on a Commercial Online Service Open Its Own Web Page

Placing Advertisements 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 Piyoosh Bajoria & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PCs

Creating Online Marketing

Create an Electronic Online Presence
Buy Space on a Commercial Online Service Company Can Open Its Own Corporate or Marketing Web Page

What is the focus of Web pages for companies like Butterball?

Are they more for selling, or for information? What information could a site like this provide? Cooking help Recipes Cooking Safety

Place Ads in to Build Internet Brands or Attract Visitors to Web Site Buy Online Ads That Pop Up While Consumers are Surfing, Banners Content Sponsorships

Place Advertisements Online

Piyoosh Bajoria

Creating Online Marketing

Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PCs
Piyoosh Bajoria

Participate in Forums, Newsgroups & Web Communities

Use E-Mail and Webcasting

Challenges of Direct Marketing

Limited Consumer Exposure and Buying Skewed User Demographics and Psychographics

Chaos and Clutter Security Ethical Concerns

Piyoosh Bajoria

An Integrated DirectMarketing Campaign

Paid ad with a response channel
Direct Mail Outbound Telemarketing

Face-to-face sales call

Piyoosh Bajoria

Continuing Communication

Public Policy and Ethical Issues in Direct Marketing

Irritation to Consumers DMA? Unfairness, Deception, or Fraud

Invasion of Privacy and Online Profiling

Piyoosh Bajoria