One of the Benefits of Interactive Marketing Is That It Is Highly Accountable and Its Can Be Easily Traced

							            Marketing Management

                     Exam 4
                    Lecture 1
                Dr. David Andrus

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               Presentation Themes
           Direct Marketing
           Direct Mail
           Catalogue Marketing
           Telemarketing
           Kiosk Marketing
           Interactive Marketing


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            DIRECT MARKETING
    Direct marketing - consumer-direct (CD)
     channels to reach and deliver products to
     customers without using marketing middlemen.
    These channels include:
       Direct mail.

       Catalogs.

       Telemarketing.

       Interactive TV.

       Kiosks.

       Web sites.

       Mobile devices.
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     Direct Marketing Benefits Customers

               Home shopping can be fun, convenient,
                and hassle-free.
               Saves time.
               Introduces consumers to a larger
                selection of merchandise.
               Ease of comparative shopping.
               Can order goods for themselves and
                others.
               Business customers can learn about
                available products and services.
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     Direct Marketing Benefits Sellers
           Direct marketers can buy a mailing list.
           Customize and personalize messages.
           Build a relationship with each customer.
           Timed to reach prospects.
           Higher readership because it is sent to
            more interested prospects.
           Permits the testing of alternative media
            and messages in a cost-effective approach.
           Direct marketers can measure responses
            to decide which one is most profitable.
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                       Direct Mail
           Direct-mail marketing involves sending an
            offer, announcement, reminder, or other
            item to a person.
           Direct marketing is popular because it:
              Permits target market selectivity.

              Can be personalized.

              Is flexible.

              Allows for early testing and response

               measurement.


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                       Objectives
           Goal is to receive an order from prospects.
           Campaign’s success is judged by the response
            rate.
           Order-response rate of 2 percent is good.
           Direct mail can :
              Produce prospect leads.

              Strengthen customer relationships.

              Inform and educating customers.

              Remind customers of offers.

              Reinforce recent customer purchase

               decisions.
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     Target Markets and Prospects
    Identify prospects most able, willing, and ready to buy.
    Apply R-F-M formula (recency, frequency, monetary
     amount) for rating customers.
    Select customers according to:
       How much time since their last purchase.

       How many times they have purchased.

       How much they spent since becoming a customer.

       Also based on age, gender, income, education, and

        previous mail-order purchases.




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             Obtain Specific Names

           The company’s best prospects
            are customers who have
            bought its products in the
            past.
           The direct marketer can also
            buy lists of names from list
            brokers.

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               Testing Elements
       Advantage is to test different elements such as
        product features, copy platform, mailer type,
        envelope, prices, or mailing lists.
       Response rates understate a campaign’s long-
        term impact.
       Some companies are measuring direct
        marketing’s impact on:
          Awareness.

          Intention to buy.

          Word of mouth.



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             Catalog Marketing
    Full-line merchandise catalogs, specialty
     consumer catalogs, and business catalogs.
    71 percent of Americans shop from home using
     catalogs, by phone, mail, or the Internet.
    Success of a catalog business depends on
     ability to manage:
       Customer lists.

       Control inventory.

       Offer quality merchandise so returns are low.

       Project a distinctive image.


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                 Telemarketing
    Call centers to attract prospects, sell to existing
     customers, takes orders and answer questions.
    Telemarketing helps companies increase
     revenue, reduce selling costs, and improve
     customer satisfaction.
    Companies use calls centers for:
       Inbound telemarketing.

       Outbound telemarketing.




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        Four Types of Telemarketing
           Telesales.
           Telecoverage.
           Teleprospecting.
           Customer service and technical
            support.




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                     Television
           Television is used by direct
            marketers in several ways:
             Direct-response advertising.

             At-home shopping channels.

             Videotext and interactive TV.




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               Kiosk Marketing
       Small structure that houses a selling or
        information unit.
       The name describes:
          Newsstands.

          Refreshment stands.

          Free-standing carts.

          Computer-linked vending machines.

          “Customer-order-placing machines.”



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            INTERACTIVE MARKETING
    Internet provides marketers and consumers
     greater interaction and individualization.
    Companies dialogue with much larger groups.
    Exchange process is increasingly customer-
     initiated and customer-controlled.
       Customers define the rules of engagement.

       Define what information they need.

       What offering they are interested in.

       What prices they are willing to pay.




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     Benefits of Interactive Marketing
           Highly accountable and its effects can be
            easily traced.
           Offers the advantage of “contextual
            placements.”
           Light consumers of other media can be
            reached.
           The Web is especially effective at reaching
            people during the day.
           Young, high income, high education
            consumer’s online media consumption
            exceeds that of TV.

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      Designing An Attractive Web Site
            Design a site that is attractive on first viewing and
             interesting enough to encourage repeat visits.
            Effective Web sites feature seven design elements
             called the 7Cs:
               Context.
               Content.
               Community.
               Customization.
               Communication.
               Connection.
               Commerce.

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                       Ease of Use
               Visitors will judge a site’s
                performance on its ease of use and
                physical attractiveness.
               Ease of use breaks into three
                attributes:
                 The Web site downloads quickly.

                 The first page is easy to

                  understand.
                 Easy to navigate to other pages


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                  that open quickly.                 19
             Physical Attractiveness

           The individual pages are clean
            looking and not overly
            crammed with content.
           The typefaces and font sizes
            are very readable.
           The site makes good use of
            color and sound.
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                  Returning to a Site
               Deep information with links to
                related sites.
               Changing news of interest.
               Changing free offers to visitors.
               Contests and sweepstakes.
               Humor and jokes.
               Games

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            Placing Ads and Promotion Online

           Banner ads -small rectangular boxes containing text
            and a picture.
           Companies pay to place banner ads on Web sites.
           Sponsorships are best placed in well-targeted sites
            where they offer information.
           Microsite - limited area on the Web managed and
            paid for by an external advertiser/company.
           Interstitials are advertisements that pop up between
            changes on a Web site.
           Hottest growth area has been search-related ads.



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            E-Marketing Guidelines
           Give the customer a reason to
            respond.
           Personalize the content of your
            e-mails.
           Offer something the customer
            could not get via direct mail.
           Make it easy for customers to
            “unsubscribe.”
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