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Chapter 21:Chapter 21:Managing Direct & On-Line MarketingManaging Direct & On-Line Marketing

OtterbeinOtterbeinCollegeCollege

Winter 2000Winter 2000

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ObjectiveObjective

ss

• Growth & Benefits of Direct MarketingGrowth & Benefits of Direct Marketing

• Custoer Databases & Direct MarketingCustoer Databases & Direct Marketing

• Major Channels for Direct MarketingMajor Channels for Direct Marketing• Marketing in the 2!st Centur"# $%CoerceMarketing in the 2!st Centur"# $%Coerce

• ublic & $thical 'ssues in Direct Marketingublic & $thical 'ssues in Direct Marketing

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Wh" Growth in Direct MarketingWh" Growth in Direct Marketing

• Market (Deassification)Market (Deassification)

• $ffort of (*ra+itional ,ho--ing)$ffort of (*ra+itional ,ho--ing)

• Continuous .ccessContinuous .ccess• /et%+a" Deliver"/et%+a" Deliver"

• ,-ecialt" 'tes,-ecialt" 'tes

• 'ncrease in Co-uter ower 'ncrease in Co-uter ower 

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To Customers To Companies

Fun, Convenient &Hasse-Free

Fun, Convenient &Hasse-Free

!aves Time

!aves Time

Larger Merchan"ise!eection

Larger Merchan"ise!eection

Comparison !hopping

Comparison !hopping

Maiing Lists #or $most$n% Market

Maiing Lists #or $most$n% Market

Customie" O##ers

Customie" O##ers

Ongoing 'eationships(ith Customers

Ongoing 'eationships(ith Customers

Time" to $chieve Higher'ea"ership & 'esponse

Time" to $chieve Higher'ea"ership & 'esponse

Or"er )ro"ucts #orThemseves or Others

Or"er )ro"ucts #orThemseves or Others

$ternativeMe"ia*Message Testing

$ternativeMe"ia*Message Testing

Benefits of DirectBenefits of Direct

MarketingMarketing

)rivac%

)rivac%

Measura+e 'esponse

Measura+e 'esponse

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1ses for1ses for

DatabasesDatabases

1. Identify Prospects

2. Match Customers

& Oers3. Deepen Customer Loyalty

. !eacti"ate Customers

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Direct MarketingDirect Marketing

ChannelsChannels

CataogMarketing

CataogMarketing

ioskMarketing

ioskMarketing

OnineMarketing

Onine

MarketingDirect-MaiMarketing

Direct-Mai

Marketing

Direct-'esponse

T Marketing

Direct-'esponse

T Marketing

Teemarketing

Teemarketing

Face-to-Face!eing

Face-to-Face!eing

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ifetie 3alueifetie 3alue

Cost of Ca-aign#Cost of Ca-aign# 4!050004!05000

!00 new ebers 6 470!00 new ebers 6 470   475000475000

!st "ear (cost)!st "ear (cost)   485000485000

2d Year 2d Year 

90 renewals 6 47090 renewals 6 470   4:5;004:5;00

 *wo "ear (gain)*wo "ear (gain) .2,/00.2,/00

3d Year…3d Year…

4th Year...4th Year...

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(('nforation

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ConvenienceConvenience

n#ormationn#ormation

Fe(er HassesFe(er Hasses

ConsumersConsumers CompaniesCompanies

8uick $"ustments toMarket Con"itions

8uick $"ustments toMarket Con"itions

Lo(er CostsLo(er Costs

'eationship 7ui"ing'eationship 7ui"ing

$u"ience !iing$u"ience !iing

Benefits of OnlineBenefits of Online

MarketingMarketing

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Online Marketing ChannelsOnline Marketing Channels

4ectronic )resenceCor-orate WebsiteMarketing Website

4ectronic )resenceCor-orate WebsiteMarketing Website

$"vertising Oninelace .+s in ,-ecial ,ections of Online ,ervices

lace .+s in Certain 'nternet /ewsgrou-sBu" Online .+s *hat o- 1- While Consuers are ,urfing

$"vertising Oninelace .+s in ,-ecial ,ections of Online ,ervices

lace .+s in Certain 'nternet /ewsgrou-sBu" Online .+s *hat o- 1- While Consuers are ,urfing

Forums, 9e(sgroups & e+ Communities=orus# Discussion Grou-s on Coercial Online ,ervices

/ewsgrou-s# 'nternet 3ersion of =orusWeb Counities# ,ites Where Mebers $change 3iews Online

Forums, 9e(sgroups & e+ Communities=orus# Discussion Grou-s on Coercial Online ,ervices

/ewsgrou-s# 'nternet 3ersion of =orusWeb Counities# ,ites Where Mebers $change 3iews Online

;sing 4-Mai an" e+castingCustoers ,en+ >uestions5 ,uggestions & Co-laints 3ia $%Mail

Webcasting# .utoatic Downloa+ing of 'nforation to C?s

;sing 4-Mai an" e+castingCustoers ,en+ >uestions5 ,uggestions & Co-laints 3ia $%Mail

Webcasting# .utoatic Downloa+ing of 'nforation to C?s

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Challenges of OnlineChallenges of Online

MarketersMarketers

• iite+ Consuer $-osure & Bu"ingiite+ Consuer $-osure & Bu"ing

• ,kewe+ 1ser Deogra-hics &,kewe+ 1ser Deogra-hics &

s"chogra-hicss"chogra-hics

• Chaos & Clutter Chaos & Clutter 

• ,ecurit",ecurit"

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ublic & $thical 'ssues in Directublic & $thical 'ssues in Direct

MarketingMarketing

rritation

;n#airness

Deception & Frau"

nvasion o# )rivac%