Copyright © 2012 Pearson Canada Inc.14 - 1 Direct and Online Marketing Chapter 14

Copyright © 2012 Pearson Canada Inc.14 - 1

Direct and Online Marketing

Chapter 14


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


Direct Marketing

– Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships


New Direct Marketing Model


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


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


Customer Databases and Direct Marketing


Forms of Direct Marketing


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”


Catalogue Marketing

• Catalog marketing:– Direct marketing through print, video, or digital

catalogs distributed by mail, in stores or online


Catalogue Marketing


Telephone Marketing

– 17% of all direct marketing sales– Used in both consumer and B2B markets– Outbound VS Inbound– Do-not-call legislation (DNCL)


Direct-response Marketing


Kiosk Marketing



New digital Marketing


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


Online Marketing


Online Marketing


Online Marketing

• Corporate websites:

• Marketing websites:


Online Marketing

• The seven Cs of effective website design:– Context– Content– Community– Customization– Communication– Connection– Commerce

• Constant change encourages repeat visits


Online Marketing

• Placing ads and promotions online:– Online advertising is a major medium to build

brands and attract visitors to sites


Online Marketing

• OfficeMax’s ElfYourself.com viral website:


Social Network Marketing


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


Challenges of Direct and Online Marketing

• Internet fraud and phishing

• Online security

• Difficult to restrict access by vulnerable or unauthorized groups

• Invasion of privacy


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


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?


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?


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?

Documents

Copyright © 2012 Pearson Canada Inc.14 - 1 Direct and Online Marketing Chapter 14