1479337_634785222674440000

7/27/2019 1479337_634785222674440000

1/28

DIRECT MARKETING / ONLINE

MARKETING

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

2/28

Most Mass MarketingInvolves One-Way

CommunicationsAimed At Consumers.

Mass Marketing and

Direct Marketing

Direct MarketingInvolves Two-WayInteractions WithCustomers..

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

3/28

What is Direct

Marketing?

Direct Marketingis aninteractive system ofmarketingwhich uses one or more

advertising media to effect ameasured response and/ortransaction at any location.

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

4/28

Why Growth in Direct

Marketing Market Demassification

Effort of Traditional Shopping

Continuous Access

Next-day Delivery

Specialty Items Increase in Computer Power

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

5/28

To Customers To Companies

Fun, Convenient &Hassle-Free

Saves Time

Larger MerchandiseSelection

Comparison Shopping

Mailing Lists for AlmostAny Market

Customized Offers

Ongoing Relationshipswith Customers

Timed to Achieve HigherReadership & Response

Order Products forThemselves or Others

AlternativeMedia/Message Testing

Benefits of Direct

Marketing

Privacy

Measurable Response

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

6/28

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 OrderingFrom Direct Marketers

Growth of Customer Databases

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

7/28

Identifying Prospects

Deciding Which Customers Should

Receive a Particular Offer

Deepening Customer Loyalty

Reactivating Customer Purchases

Customer Databases are an Organized Collection ofComprehensive Data About Individual Customers or

Prospects Including: Geographic, Demographic,Psychographic, and Behavioral Data.

How Companies Use Their Databases

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

8/28

DirectMailKioskMarketing

OnlineMarketing

Telemarketing

Direct-Response

TV Marketing

Catalog

Face-to-FaceSelling

Forms of Direct Marketing

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

9/28

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 adecision.

Contains a response device (e.g., coupon,

phone number, Web site) to facilitate action.

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

10/28

Evaluating Direct

Response Advertising

CopyCaples 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

7/27/2019 1479337_634785222674440000

11/28

Convenient

Easy & Private

Product Access &Selection

Abundance ofInformation

Interactive &Immediate

Buyers Benefits Sellers Benefits

ConsumerRelationship Building

Reduces Costs

Increases Speed &Efficiency

Provides Flexibility

Global Medium

Benefits and Growth of

Direct Marketing

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

12/28

Average Consumer

Customer Anonymity

Standard ProductMass Production

Mass Distribution

Mass Advertising

Mass Promotion

One-Way Message

Economies of Scale

Share of Mind

All Customers

Customer Attraction

Mass MarketingIndividual Customer

Customer Profile

Customized Market OfferingCustomized Production

Individualized Distribution

Individualized Message

Individualized Incentives

Two-Way Messages

Economies of Scope

Share of Customer

Profitable Customers

Customer Retention

One-to-One Marketing

Mass Marketing Vs. One-

to-One Marketing

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

13/28

Customer Databases

Customer Databases are

an Organized Collection

of Comprehensive DataAbout Individual

Customers or Prospects

Including:

Geographic, Demographic,

Psychographic, and

Behavioral Data.Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

14/28

Database Marketing,

Database Marketing: a process bywhich companies collect informationonconsumers, analyze it topredict who will

buy, and then develop tailored marketingmessagesto those consumers.

How it Works 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

Refining the databasePiyoosh Bajoria

7/27/2019 1479337_634785222674440000

15/28

Telemarketing

Outbound telemarketing

Inbound telemarketing(telemedia)

Toll free nos.

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

16/28

FTC Telemarketing Sales Rule

Bans deceptive and abusive salespractices (e.g., multiple harassingcalls)

Prohibits credit card laundering Prohibits calls before 8 a.m., after

9 p.m.

Requires seller identification (i.e.,identify themselves, theirbusiness, goods/services selling)

NO POLICY FRAMED IN INDIAPiyoosh Bajoria

7/27/2019 1479337_634785222674440000

17/28

Factors Influencing the Use of

Telemarketing

Face-to-face contacthow essential is it?

Geographical concentration of customers.

Economic considerations (potential, ordersize).

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

7/27/2019 1479337_634785222674440000

18/28

Online Marketing and

Electronic CommerceOnline Marketing is conductedthrough interactive onlinecomputer systems, which linkconsumers with sellerselectronically.

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

19/28


Electronic CommerceTwo types of Online MarketingChannels:

Commercial Online Servicesoffer online information and

marketing services tosubscribers who pay amonthly fee. (Dialogue)

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

20/28


Electronic Commerce

Two types of Online Marketing

Channels:

The Internet (the Net) is thevast global and public web ofcomputer networks.

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

21/28


Electronic CommerceThe explosion of Internet

usage has created a new worldof electronic commerce, aterm that refers to the buyingand selling process supportedby electronic means.

Piyoosh Bajoria

Th B fit f O li

7/27/2019 1479337_634785222674440000

22/28

The Benefits of Online

Marketing

Convenient

Private

Abundance ofInformation

Interactive

Immediate

Consumers Companies

Consumer RelationshipBuilding

Reduces Costs

Increases Efficiency

Provides Flexibility

Global Medium

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

23/28

Online Marketing

ChannelsCreating an Electronic Storefront

Buy Space on a Commercial Online Service

Open Its Own Web Page

Placing Advertisements OnlinePlace 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 ServicesNewsgroups: Internet Version of Forums

Web Communities: Sites Where Members Exchange Views Online

Using E-Mail and WebcastingCustomers Send Questions, Suggestions & Complaints Via E-Mail

Webcasting: Automatic Downloading of Information to PCsPiyoosh Bajoria

7/27/2019 1479337_634785222674440000

24/28

Create an Electronic Online PresenceBuy Space on a Commercial Online

ServiceCompany Can Open Its Own Corporate

or Marketing Web Page

Place Advertisements OnlinePlace Ads in to Build Internet Brands or

Attract Visitors to Web Site

Buy Online Ads That Pop Up WhileConsumers are Surfing, BannersContent Sponsorships

Creating Online

Marketing

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

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

25/28

Participate in Forums, Newsgroups &Web Communities

Forums: Discussion Groups onCommercial Online Services

Newsgroups: Internet Version of ForumsWeb Communities: Sites WhereMembers Exchange Views Online

Use E-Mail and WebcastingCustomers Send Questions,

Suggestions & Complaints Via E-MailWebcasting: Automatic Downloading of

Information to PCs

Creating Online

Marketing

Piyoosh Bajoria

Ch ll f Di t

7/27/2019 1479337_634785222674440000

26/28

Challenges of Direct

Marketing

Limited Consumer Exposure and Buying

Skewed User Demographics and Psychographics

Chaos and Clutter

Ethical Concerns

Security

Piyoosh Bajoria

7/27/2019 1479337_634785222674440000

27/28

An Integrated Direct-

Marketing CampaignPaid ad with a

response channel

Direct Mail

OutboundTelemarketing

Face-to-facesales call

Continuing

CommunicationPiyoosh Bajoria

P bli P li d Ethi l

7/27/2019 1479337_634785222674440000

28/28

Irritation

toConsumersDMA?

Unfairness,

Deception,or

Fraud

Invasionof

Privacy andOnline Profiling

Public Policy and Ethical

Issues in Direct

Marketing

Piyoosh Bajoria

Documents

1479337_634785222674440000