Online Marketing

Copyright 1999 Prentice Hall

17-1

Chapter 17

Direct and OnlineMarketing

PRINCIPLES OF MARKETINGEighth Edition

Philip Kotler and Gary Armstrong

http://6f715ns710wdm2395kfhqm74xf.hop.clickbank.net/




17-2Benefits of Direct Marketing

Benefits of Direct Marketing to Customers

Benefits of Direct Marketing to Companies

Direct Marketing Consists of Direct Communications with Carefully Targeted Individual Consumers to

Obtain an Immediate Response.

Fun, Convenient & Hassle-Free

Saves Time

Larger Merchandise Selection

Comparison Shopping

Mailing Lists for Almost Any Market

Customized Offers

Ongoing Relationships with Customers

Timed to Achieve Higher Readership & Response

Order Products for Themselves or Others Privacy


17-3Trends Leading to the Growth of Direct Marketing

Increasing Number of MarketNiches 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


17-4

Identifying Prospects

Deciding Which Customers Should Receive a Particular Offer

Deepening Customer Loyalty

Reactivating Customer Purchases

Customer Databases and Direct Marketing

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


17-5Forms of Direct Marketing Communication

CatalogMarketing

KioskMarketing

OnlineMarketing

Direct-MailMarketing

Direct-ResponseTV Marketing

Telemarketing

Face-to-Face Selling





17-6Online Marketing and ElectronicCommerce

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

• Two types of Online Marketing Channels: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 The explosion of Internet usage has created a new world of world of electronic commerceelectronic commerce, a term that refers to , a term that refers to the buying and selling process supported by the buying and selling process supported by electronic means.electronic means.


17-7The Benefits of Online Marketing

Convenient

Private

Abundance of Information

Interactive

Immediate

Consumers CompaniesConsumer Relationship

Building

Reduces Costs

Increases Efficiency

Provides Flexibility

Global Medium


17-8

Online Marketing Channels

Creating an Electronic StorefrontBuy Space on a Commercial Online Service

Open It’s Own Web Page

Placing Advertisements OnlinePlace Ads in Special Sections of Online Services

Place Ads in Certain Internet NewsgroupsBuy Online Ads That Pop Up While Consumers are Surfing

Participating in Forums, Newsgroups & Web CommunitiesForums: Discussion Groups on Commercial Online Services

Newsgroups: Internet Version of ForumsWeb 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 PC’s


17-9Challenges of Direct Marketing

Limited Consumer Exposure and Buying

Skewed User Demographics and Psychographics

Chaos and Clutter

Ethical Concerns

Security


17-10Integrated Direct 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.


17-11Public Policy and Ethical Issues inDirect Marketing

Irritation to

Consumers

Unfairness,Deception,

orFraud

Invasionof

Privacy


17-12


