KOTCHA17.ppt 74KB Sep 15 2006 07:07:56 PM

17-1
17-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 17
17
Direct and Online
Marketing

 Copyright 1999 Prentice Hall

Benefits
Benefits of
of Direct
Direct Marketing
Marketing

17-2
17-2

Direct Marketing Consists of Direct Communications
with Carefully Targeted Individual Consumers to
Obtain an Immediate Response.
Benefits of Direct
Marketing to Customers

Benefits of Direct
Marketing to Companies

Fun,
Fun, Convenient
Convenient&&
Hassle-Free
Hassle-Free

Mailing
MailingLists

Listsfor
forAlmost
Almost
Any
Market
Any Market

Saves
SavesTime
Time

Customized
CustomizedOffers
Offers

Larger
LargerMerchandise
Merchandise
Selection
Selection

Ongoing
OngoingRelationships
Relationships
with
Customers
with Customers
Timed
Timedto
toAchieve
AchieveHigher
Higher
Readership
&
Response
Readership & Response

Comparison
ComparisonShopping
Shopping

Order
OrderProducts
Productsfor
for
Themselves
or
Others
Themselves or Others

 Copyright 1999 Prentice Hall

Privacy
Privacy

Trends
Trends Leading
Leading to
to the
the Growth
Growth of

of
Direct
Direct Marketing
Marketing

17-3
17-3

Increasing
Increasing Number
Number of
of Market
Market
Niches
Niches with
with Distinct
Distinct Preferences
Preferences
Higher
Higher Costs

Costs of
of Driving,
Driving, Traffic
Traffic
and
and Parking
Parking Congestion
Congestion
Consumers
Consumers Lack
Lack of
of Time
Time
Convenience
Convenience of
of Ordering
Ordering
From
From Direct
Direct Marketers

Marketers
Growth
Growth of
of Customer
Customer Databases
Databases
 Copyright 1999 Prentice Hall

Customer
Customer Databases
Databases and
and Direct
Direct Marketing
Marketing
Customer
CustomerDatabases
Databasesare
arean
anOrganized
OrganizedCollection

Collectionof
of
Comprehensive
ComprehensiveData
DataAbout
About Individual
IndividualCustomers
Customersor
or
Prospects
ProspectsIncluding:
Including:Geographic,
Geographic, Demographic,
Demographic,
Psychographic,
Psychographic, and
andBehavioral
Behavioral Data.
Data.
How Companies Use Their Databases

Identifying
IdentifyingProspects
Prospects
Deciding
DecidingWhich
WhichCustomers
CustomersShould
Should
Receive
ReceiveaaParticular
ParticularOffer
Offer
Deepening
DeepeningCustomer
CustomerLoyalty
Loyalty
Reactivating
ReactivatingCustomer
CustomerPurchases
Purchases

 Copyright 1999 Prentice Hall

17-4
17-4

Forms
Forms of
of Direct
Direct Marketing
Marketing
Communication
Communication

17-5
17-5

Face-to-Face
Face-to-Face
Selling

Selling
Online
Online
Marketing
Marketing

Direct-Mail
Direct-Mail
Marketing
Marketing

Kiosk
Kiosk
Marketing
Marketing

Catalog
Catalog
Marketing
Marketing

Direct-Response
Direct-Response
TV
TVMarketing
Marketing

 Copyright 1999 Prentice Hall

Telemarketing
Telemarketing

Online
Online Marketing
Marketing and
and Electronic
Electronic
Commerce
Commerce

17-6
17-6

• Online Marketing is conducted through interactive
online computer systems, which link consumers
with sellers electronically.
• Two types of Online Marketing Channels:
– Commercial Online Services offer online information and
marketing services to subscribers who pay a monthly
fee. (i.e. AOL, CompuServe & Prodigy)
– The Internet (the Net) is the vast global and public web of
computer networks.

• 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.
 Copyright 1999 Prentice Hall

The
The Benefits
Benefits of
of Online
Online Marketing
Marketing
Consumers
Consumers

Companies
Companies

Convenient
Convenient

Consumer
ConsumerRelationship
Relationship
Building
Building

Private
Private

Reduces
ReducesCosts
Costs

Abundance
Abundanceof
of
Information
Information

Increases
IncreasesEfficiency
Efficiency

Interactive
Interactive

Provides
ProvidesFlexibility
Flexibility

Immediate
Immediate

Global
GlobalMedium
Medium

 Copyright 1999 Prentice Hall

17-7
17-7

Online
Online Marketing
Marketing Channels
Channels

17-8
17-8

Creating
Creating an
an Electronic
Electronic Storefront
Storefront

Buy
BuySpace
Spaceon
on aaCommercial
CommercialOnline
OnlineService
Service
Open
Open It’s
It’sOwn
Own Web
Web Page
Page

Placing
Placing Advertisements
Advertisements Online
Online

Place
PlaceAds
Adsin
in Special
SpecialSections
Sectionsof
of Online
OnlineServices
Services
Place
PlaceAds
Adsin
inCertain
Certain Internet
Internet Newsgroups
Newsgroups
Buy
BuyOnline
OnlineAds
AdsThat
That Pop
Pop Up
Up While
WhileConsumers
Consumersare
areSurfing
Surfing

Participating
Participating in
in Forums,
Forums, Newsgroups
Newsgroups &
& Web
Web Communities
Communities
Forums:
Forums: Discussion
Discussion Groups
Groupson
on Commercial
CommercialOnline
OnlineServices
Services
Newsgroups:
Newsgroups: Internet
InternetVersion
Version of
of Forums
Forums
Web
WebCommunities:
Communities: Sites
SitesWhere
WhereMembers
MembersExchange
ExchangeViews
ViewsOnline
Online

Using
Using E-Mail
E-Mail and
and Webcasting
Webcasting

Customers
CustomersSend
SendQuestions,
Questions,Suggestions
Suggestions&& Complaints
ComplaintsVia
ViaE-Mail
E-Mail
Webcasting:
Webcasting:Automatic
AutomaticDownloading
Downloadingof
ofInformation
Information to
to PC’s
PC’s
 Copyright 1999 Prentice Hall

Challenges
Challenges of
of Direct
Direct Marketing
Marketing

Limited
Limited Consumer
Consumer Exposure
Exposure and
and Buying
Buying
Skewed
Skewed User
User Demographics
Demographics and
and Psychographics
Psychographics
Chaos
Chaos and
and Clutter
Clutter
Security
Security
Ethical
Ethical Concerns
Concerns

 Copyright 1999 Prentice Hall

17-9
17-9

Integrated
Integrated Direct
Direct Marketing
Marketing
• Direct marketing campaigns that use
multiple vehicles and multiple
stages to improve response rates
and profits.
• Marketers seek to improve response
rates and profits by adding media
and stages that contribute more to
additional sales than to additional
costs.
 Copyright 1999 Prentice Hall

17-10
17-10

Public
Public Policy
Policy and
and Ethical
Ethical Issues
Issues in
in
Direct
Direct Marketing
Marketing
Irritation
Irritation
to
to
Consumers
Consumers

Invasion
Invasion
of
of
Privacy
Privacy
 Copyright 1999 Prentice Hall

Unfairness,
Unfairness,
Deception,
Deception,
or
or
Fraud
Fraud

17-11
17-11