Learning Objectives Define direct and digital marketing and

Learning Objectives • • • Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Identify and discuss the major forms of direct and digital marketing. Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Copyright © 2015 Pearson Education, Inc. 14 - 2

Learning Objectives • • Discuss how companies use social media and mobile marketing to engage consumers and create brand community. Identify and discuss the traditional direct marketing forms and overview public policy and ethical issues presented by direct marketing. Copyright © 2015 Pearson Education, Inc. 14 - 3

First Stop: Facebook • Deep impact and influence on the lives of millions of users • Can become one of the world’s most powerful and profitable online marketers • Realized it must make its own marketing and moneymaking moves Copyright © 2015 Pearson Education, Inc. 14 - 4

Direct and Digital Marketing • Engaging directly with targeted individual consumers and customer communities to: • Obtain an immediate response • Build lasting customer relationships • Build customer engagement, brand community, and sales Copyright © 2015 Pearson Education, Inc. 14 - 5

New Direct-Marketing Model • Used as a supplementary channel or medium • Constitutes a

Rapid Growth of Direct and Digital Marketing • Fastest-growing form of marketing • Direct marketing becoming more Internetbased • Claims a surging share of marketing spending and sales • Online display and search advertising, video, social media, mobile, e-mail Copyright © 2015 Pearson Education, Inc. 14 - 7

Benefits of Direct and Digital Marketing to Buyers • Buyers • Sellers • Convenient, easy, and private • Easy buyer-seller interaction • Quick access to products and relevant information • Brand engagement and community • Low-cost, efficient, and speedy • Build close, personalized, interactive, one-toone customer relationships • Offer greater flexibility Copyright © 2015 Pearson Education, Inc. 14 - 8

Figure 14. 1 - Forms of Direct and Digital Marketing Copyright © 2015 Pearson

Marketing, the Internet, and the Digital Age • Digital and social media marketing: Using digital marketing tools to engage consumers anywhere, anytime via their digital devices • Changed customers’ notions of: • Convenience, speed, price, product information, service, and brand interactions • Multichannel marketing: Using both traditional and digital marketing channels Copyright © 2015 Pearson Education, Inc. 14 - 10

Online Marketing • Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs • Marketing Web sites: Interact with consumers to move them closer to a direct purchase or other marketing outcome • Branded community Web sites: Present brand content that engages consumers and creates customer community around a brand Copyright © 2015 Pearson Education, Inc. 14 - 11

Online Advertising and E-Mail Marketing • Online advertising: Appears while consumers are browsing online • E-mail marketing: Sending highly targeted, highly personalized, relationship-building marketing messages via e-mail • Spam: Unsolicited, unwanted commercial e-mail messages Copyright © 2015 Pearson Education, Inc. 14 - 12

Online Videos • Can engage millions of consumers • Viral marketing: Videos, ads, and other marketing content that customers seek out or pass along to friends Copyright © 2015 Pearson Education, Inc. 14 - 13

Blogs and Other Online Forums • Online journals of narrowly defined topics where people and companies post their thoughts and other content • Benefit - Offers a fresh, original, personal, and inexpensive way to enter into consumer online conversations • Limitation - Consumer-controlled medium Copyright © 2015 Pearson Education, Inc. 14 - 14

Social Media Marketing • Social media: Independent and commercial online communities where people congregate, socialize, and exchange views and information • Marketers engage in social media by: • Using the existing ones • Setting up their own Copyright © 2015 Pearson Education, Inc. 14 - 15

Social Media Marketing Advantages and Challenges Advantages • Targeted and personal • Interactive • Immediate and timely • Cost effective • Engagement and social sharing capabilities Challenges • Still being experimented • Difficult to measure results • Largely user controlled Copyright © 2015 Pearson Education, Inc. 14 - 16

Integrated Social Media Marketing • Large companies design social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics. • Firms that use social media effectively create brand-related social sharing, engagement, and customer community. Copyright © 2015 Pearson Education, Inc. 14 - 17

Mobile Marketing • Promotional content delivered to consumers through their mobile devices • Engage customers anywhere, anytime during the buying and relationshipbuilding processes Copyright © 2015 Pearson Education, Inc. 14 - 18

Direct Mail Marketing • Sending an offer, announcement, reminder, or other item directly to a person at a particular address • Tangible and creates emotional connection with customers • Effective component of a broader integrated marketing campaign • Direct and personalized • Sent to consumers who want to receive it Copyright © 2015 Pearson Education, Inc. 14 - 19

Catalog Marketing • Print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online • • Eliminates printing and mailing costs No space constraints Broader assortment of presentation formats Real-time merchandising capabilities Copyright © 2015 Pearson Education, Inc. 14 - 20

Telemarketing and Direct-Response Television (DRTV) Marketing • Telemarketing: Selling directly to customers using the telephone • Outbound and inbound telephone marketing • Rise of do-not-call legislation resulted in opt-in calling systems • Direct-response television (DRTV) marketing • Direct-response television advertising • Interactive TV (i. TV) advertising Copyright © 2015 Pearson Education, Inc. 14 - 21

Kiosk Marketing • Product or service information and ordering machines placed by companies •

Public Policy Issues in Direct and Digital Marketing Irritation, unfairness, deception, and fraud Consumer

Irritation, Unfairness, Deception, and Fraud Irritation • Loud, long, and insistent TV commercials • Junk mail and spam Unfairness • Taking unfair advantage of impulsive buyers Deception and fraud • • • Investment scams or phony collections for charity Internet fraud Phishing Online and digital security Access by vulnerable or unauthorized groups Copyright © 2015 Pearson Education, Inc. 14 - 24

Consumer Privacy • Fear of invasion of privacy • Ready availability of information leaves

Need for Action • Government actions • Do-not-call, Do-not-mail, Do-not-track lists • Can Spam legislation • Congressional legislation – Give more control to consumers over use of online information • Federal Trade Commission (FTC) - Policing online privacy Copyright © 2015 Pearson Education, Inc. 14 - 26

Need for Action • Marketers’ actions • Self-regulatory principles • Advertising option icon • Privacy rights of children • Companies’ actions • Own security measures • Industry-wide measures Copyright © 2015 Pearson Education, Inc. 14 - 27

Learning Objectives • • • Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Identify and discuss the major forms of direct and digital marketing. Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Copyright © 2015 Pearson Education, Inc. 14 - 28

Learning Objectives • • Discuss how companies use social media and mobile marketing to engage consumers and create brand community. Identify and discuss the traditional direct marketing forms and overview public policy and ethical issues presented by direct marketing. Copyright © 2015 Pearson Education, Inc. 14 - 29

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