Post on 23-Dec-2015
Copyright © 2012 Pearson Canada Inc.14 - 1
Direct and Online Marketing
Chapter 14
Copyright © 2012 Pearson Canada Inc.14 - 2
1. Direct marketing and its benefits
2. Database in direct marketing
3. Major forms of direct marketing
4. Internet and other new technologies with online marketing strategies
5. Online marketing to profitably deliver more value to customers
Previewing the Concepts
Copyright © 2012 Pearson Canada Inc.14 - 3
Direct Marketing
– Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Copyright © 2012 Pearson Canada Inc.14 - 4
New Direct Marketing Model
Copyright © 2012 Pearson Canada Inc.14 - 5
Benefits of Direct Marketing
• Benefits to buyers:– Convenient, easy to use and private– Provides greater control– Ready access to products– Ready access to wealth of comparative
information– Can reach consumers in remote locations – Immediate and interactive
Copyright © 2012 Pearson Canada Inc.14 - 6
Benefits of Direct Marketing
• Benefits to sellers:– Builds customer relationships– Provides a low-cost, speedy way to reach
markets, including business markets– Offers lower costs, improved efficiencies, and
speedier handling of channel/logistics functions– Offers greater flexibility– Gives access to buyers that could not be
reached through other channels
Copyright © 2012 Pearson Canada Inc.14 - 7
Customer Databases and Direct Marketing
Copyright © 2012 Pearson Canada Inc.14 - 8
Forms of Direct Marketing
Copyright © 2012 Pearson Canada Inc.14 - 9
Direct-mail Marketing
– Sending an offer, announcement, reminder to a person at a physical or virtual address
– Largest direct marketing medium (34%)– One-to-one communication– Use of traditional forms may decline– Combination with other media– Often perceived as “junk mail”
Copyright © 2012 Pearson Canada Inc.14 - 10
Catalogue Marketing
• Catalog marketing:– Direct marketing through print, video, or digital
catalogs distributed by mail, in stores or online
Copyright © 2012 Pearson Canada Inc.14 - 11
Catalogue Marketing
Copyright © 2012 Pearson Canada Inc.14 - 12
Telephone Marketing
– 17% of all direct marketing sales– Used in both consumer and B2B markets– Outbound VS Inbound– Do-not-call legislation (DNCL)
Copyright © 2012 Pearson Canada Inc.14 - 13
Direct-response Marketing
Copyright © 2012 Pearson Canada Inc.14 - 14
Kiosk Marketing
Copyright © 2012 Pearson Canada Inc.14 - 15
Copyright © 2012 Pearson Canada Inc.14 - 16
New digital Marketing
Copyright © 2012 Pearson Canada Inc.14 - 17
Online Marketing
• Online marketing:– Efforts to market products,
and services and build
customer relationships
• Marketing and the Internet:– 80% household penetration rate – Online marketing efforts are expanding– Click-and-mortar companies are having more
online success than click-only companies
Copyright © 2012 Pearson Canada Inc.14 - 18
Online Marketing
Copyright © 2012 Pearson Canada Inc.14 - 19
Online Marketing
Copyright © 2012 Pearson Canada Inc.14 - 20
Online Marketing
• Corporate websites:
• Marketing websites:
Copyright © 2012 Pearson Canada Inc.14 - 21
Online Marketing
• The seven Cs of effective website design:– Context– Content– Community– Customization– Communication– Connection– Commerce
• Constant change encourages repeat visits
Copyright © 2012 Pearson Canada Inc.14 - 22
Online Marketing
• Placing ads and promotions online:– Online advertising is a major medium to build
brands and attract visitors to sites
Copyright © 2012 Pearson Canada Inc.14 - 23
Online Marketing
• OfficeMax’s ElfYourself.com viral website:
Copyright © 2012 Pearson Canada Inc.14 - 24
Social Network Marketing
Copyright © 2012 Pearson Canada Inc.14 - 25
Email Marketing
– Cost-efficient, lowest cost– Used to welcome new customers, qualify
leads, announce events, cross-sell and upsell, promote new products and build customer relationships
– Permission-based e-mail marketing is key
Copyright © 2012 Pearson Canada Inc.14 - 26
Challenges of Direct and Online Marketing
• Internet fraud and phishing
• Online security
• Difficult to restrict access by vulnerable or unauthorized groups
• Invasion of privacy
Copyright © 2012 Pearson Canada Inc.14 - 27
1. Direct marketing and its benefits
2. Database in direct marketing
3. Major forms of direct marketing
4. Internet and other new technologies with online marketing strategies
5. Online marketing to profitably deliver more value to customers
Previewing the Concepts
Copyright © 2012 Pearson Canada Inc.14 - 28
Chapter 14 Case
• 1. Conduct a brief analysis of the marketing environment and the forces shaping the development of StubHub?
• 2. Discuss StubHub’s business model. What general benefits doe sit afford buyers and sellers? Which benefits are most important in terms of creating value for buyers and sellers?
Copyright © 2012 Pearson Canada Inc.14 - 29
Chapter 14 Case
• 3. Discuss StubHub as new intermediary. What effects has this type of intermediary had on the ticket industry?
• 4. Apply the text’s e-marketing domains framework to StubHub’s business model. How has each domain played a role in the company’s success?
Copyright © 2012 Pearson Canada Inc.14 - 30
Chapter 14 Case
• 5. What recommendations can you make for improving StubHub’s future growth and success?
• 6. What are the legal or ethical issues, if any, for ticket-reselling websites?