Principles of Marketing Lecture 15 Chapter 17 Direct

Principles of Marketing Lecture 15 Chapter 17: Direct, Online, Social Media, and Mobile Marketing Chapter 20 Sustainable Marketing: Responsibility & Ethics Copyright © 2016 Pearson Education, Inc. 17 -1

Direct, Online, Social Media, and Mobile Marketing Copyright © 2016 Pearson Education, Inc. 17 -2

Direct, Online, Social Media, and Mobile Marketing Learning Objective 1 • Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. • Direct and Digital Marketing • The New Direct Marketing Model • Rapid Growth of Direct and Digital Marketing • Benefits of Direct and Digital Marketing to Buyers and Sellers Copyright © 2016 Pearson Education, Inc. 17 -5

Direct and Digital Marketing Direct and digital marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Copyright © 2016 Pearson Education, Inc. 17 -6

Direct and Digital Marketing Summary Efficient and effective targetting But the internet for many provides SPEED but not DIRECTION Example often works on repeat / habitual purchase = not applicable to all products, every customer, every market. Can be ANNOYING!! Really ANNOYING Copyright © 2016 Pearson Education, Inc. 17 -6

Direct and Digital Marketing The New Direct Marketing Model For many companies today, direct and digital marketing constitute a complete model for doing business. Most have a hybrid. . Copyright © 2016 Pearson Education, Inc. 17 -7

Direct and Digital Marketing Rapid Growth of Direct and Digital Marketing Direct and digital marketing have become the fastest-growing form of marketing. Direct marketing continues to become more Internet-based, and digital direct marketing is claiming a surging share of marketing spending and sales. Copyright © 2016 Pearson Education, Inc. 17 -8

Direct and Digital Marketing Benefits of Direct and Digital Marketing to Buyers • Convenience • Ready access to many products • Access to comparative information about companies, products, and competitors • Interactive and immediate Copyright © 2016 Pearson Education, Inc. 17 -9

Direct and Digital Marketing Benefits of Direct and Digital Marketing to Sellers • Tool to build customer relationships • Low-cost, efficient, fast alternative to reach markets • Flexible • Access to buyers not reachable through other channels Copyright © 2016 Pearson Education, Inc. 17 -10

Direct, Online, Social Media, and Mobile Marketing Learning Objective 2 • Identify and discuss the major forms of direct and digital marketing. Forms of Direct and Digital Marketing Copyright © 2016 Pearson Education, Inc. 17 -12

Forms of Direct and Digital Marketing Copyright © 2016 Pearson Education, Inc. 17 -13

Direct, Online, Social Media, and Mobile Marketing Learning Objective 3 • Explain how companies have responded to the Internet and the digital age with various online marketing strategies. • Marketing, the Internet, and the Digital Age • Digital and Social Media Marketing • Online Marketing Copyright © 2016 Pearson Education, Inc. 17 -15

Digital and Social Media Marketing, the Internet, and the Digital Age Multichannel marketing involves marketing both through stores and other traditional offline channels and through digital, online, social media, and mobile channels. Copyright © 2016 Pearson Education, Inc. 17 -16

Digital and Social Media Marketing Online marketing is marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs. Marketing Web sites engage 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 © 2016 Pearson Education, Inc. 17 -17

Digital and Social Media Marketing Online advertising is advertising that appears while consumers are browsing online and includes display ads, search-related ads, online classifieds, and other forms. E-mail marketing involves sending highly targeted, highly personalized, relationship-building marketing messages via email. Spam is unsolicited, unwanted commercial e-mail messages. Copyright © 2016 Pearson Education, Inc. 17 -18

Digital and Social Media Marketing Online Marketing Viral marketing is the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends. Online video marketing involves posting digital video content on brand Web sites or social media sites such as You. Tube, Facebook, and Weibo Copyright © 2016 Pearson Education, Inc. 17 -19

Digital and Social Media Marketing Online Marketing Blogs are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics. Many bloggers are opinion/trend setters Social media are independent and commercial online communities where people congregate, socialize, and exchange views and information. Copyright © 2016 Pearson Education, Inc. 17 -20

Direct, Online, Social Media, and Mobile Marketing Learning Objective 4 • Discuss how companies use social media and mobile marketing to engage consumers and create brand community. • Social Media Marketing • Mobile Marketing Copyright © 2016 Pearson Education, Inc. 17 -22

Social Media Marketing • Using Social Media • Advantages and Challenges • Integrated Social Media Marketing Copyright © 2016 Pearson Education, Inc. 17 -23

Mobile Marketing Mobile marketing delivers messages, promotions, and other content to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices. 17 -24

Traditional Direct Marketing Forms Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address. • Personalized • Easy-to-measure results • Costs more than mass media • Provides better results than mass media Copyright © 2016 Pearson Education, Inc. 17 -27

Traditional Direct Marketing Forms Catalog direct marketing involves printed and Web-based catalogs. Benefits of Web-based catalogs Challenges of Web-based catalogs • Lower cost than printed catalogs • Unlimited amount of merchandise • Real-time merchandising • Interactive content • Promotional features • Require marketing • Difficulties in attracting new customers Copyright © 2016 Pearson Education, Inc. 17 -28

Traditional Direct Marketing Forms Telemarketing involves using the telephone to sell directly to consumers and business customers. • Outbound telephone marketing sells directly to consumers and businesses. • Inbound telephone marketing uses tollfree numbers to receive orders from television and print ads, direct mail, and catalogs. Copyright © 2016 Pearson Education, Inc. 17 -29

Traditional Direct Marketing Forms Direct-response television marketing includes the following: • 60 to 120 second advertisements that describe products or give customers a tollfree number or website for ordering • 30 -minute infomercials such as home shopping channels Copyright © 2016 Pearson Education, Inc. 17 -30

Traditional Direct Marketing Forms Kiosk Marketing Copyright © 2016 Pearson Education, Inc. 17 -31

Public Policy Issues in Direct and Digital Marketing Irritation, Unfairness, Deception, and Fraud • Irritation includes annoying and offending customers. • Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers. • Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers. • Fraud includes identity theft and financial scams. Copyright © 2016 Pearson Education, Inc. 17 -32

Public Policy Issues in Direct and Digital Marketing Consumer Privacy • The concern is that marketers may know too much about consumers and use this information to take unfair advantage. Copyright © 2016 Pearson Education, Inc. 17 -33

Public Policy Issues in Direct and Digital Marketing A Need for Action • Ad. Choices • Can Spam • Children’s Online Privacy Protection Act (COPPA) • TRUSTe Copyright © 2016 Pearson Education, Inc. 17 -34

Social / Ethical Aspects of Marketing

Ethics • Moral principles and values which guide thinking, decision making and action.

Ethical Concerns • Misleading or false advertising • Targeting to children and teenagers • Targeting Economically Disadvantaged People • Shocking, tasteless or indecent material • High pressure sales techniques • Intrusion on personal privacy (telesales) • Payment of bribes to win business • Reward schemes for selling • Hospitality to clients • Vulnerable clients

Is it Justifiable? • To target poorer segments with cigarettes and alcohol • Use of stereotypes in advertising • Women, families, ethnic minorities. • Is branding fraudulent

Basic Consumer Rights • The right to safety • The right to be informed • The right to choose • The right to be heard

Ethical Decision-Making Models • Smith’s Three Questions • Consumer capability • Is the target market vulnerable in ways that limit consumer decision making? • Information • Are consumer expectations at purchase likely to be realised? Do consumers have sufficient information to judge? • Choice • Can consumers go elsewhere? Would they incur substantial costs or inconvenience in transferring their loyalty? (Smith, 1995)

Ethical Decision Making Models �The golden rule �Act in a way that you would expect others to act towards you �The professional ethic �take only actions which would be viewed as proper by a panel of your profession. �The TV test �would I feel comfortable explaining this action to the general public on the TV?

Regulatory Aspects • Voluntary Codes of Practise • Statutory Laws • Honest, Legal and Decent • Protect vulnerable groups – children

Social Responsibility • Focuses on the responsibilities of the organisation towards the general public – not only its customers and other connected stakeholders.

Environmental Issues • Not encouraging abuse of the environment. – waste, excess behaviour • Triple bottom line • People • Planet • Profit • Corporate Social Responsibility

Corporate Respnsibility Three driving forces • • Increased awareness of how production and consumption of resources affect the environment and the organisation is part of the cycle Recognition and acceptance that organisations need to cooperate and collaborate with other orgs. in order to have a strategic advantage Consumers are having increasing influence in terms of their rights and views of business

Corporate Responsibility Three concepts • • Profit responsibility • • Stakeholder responsibility • • Maximise profits while sticking to the rules Meeting obligations to those who can affect the achievement of the organisation’s objectives Societal responsibility • Making a positive impact on society

Corporate Responsibility • The TRIPLE BOTTOM LINE • PROFIT • PEOPLE • PLANET