Marketing – Chapter 14: Direct, Online, Social Media, and Mobile Marketing

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Direct and Digital Marketing
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Engaging directly with targeted individual consumers and customer communities to obtain an immediate response and build lasting customer relationships.
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Why companies use direct marketing
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To tailor their offers and content to the needs and interests of narrowly defined segments or individual buyers. This way, they build customer engagement, brand community, and sales.
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Growth of Direct and Digital Marketing
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Fastest-growing form of marketing. Direct marketing is becoming more Internet-based and claiming a surging share of marketing spending and sales.
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Largest shares of Media Marketing Spending
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Television advertising is #1. Total digital marketing spending (online display and search advertising, video, social media, mobile, e-mail, and other) have the second largest share of media spending.
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Benefits of Direct and Digital Marketing to Buyers
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Convenient, easy, and private Easy buyer-seller interaction Quick access to products and relevant information Brand engagement and community
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Benefits of Direct and Digital Marketing to Sellers
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Low-cost, efficient, and speedy Build close, personalized, interactive, one-to-one customer relationships Offer greater flexibility
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Traditional Direct Marketing Tools
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Face-to-face selling, direct-mail marketing, catalog marketing, telemarketing, direct-response television marketing, and kiosk marketing.
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Digital and Social Media Marketing
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Online marketing (web sites, online advertising, e-mail, online videos, blogs) Social media marketing Mobile marketing
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Direct and Social Media Marketing
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The fastest-growing form of direct marketing. Uses digital marketing tools and other digital platforms to directly engage consumers anywhere, anytime via their digital devices. Has changed customers’ notions of convenience, speed, price, product info, service, and brand interactions.
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Multichannel Marketing
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Using both traditional and digital marketing channels
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Online Marketing
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Marketing via the Internet using company web sites, online ads and promotions, e-mail, online video, and blogs
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Marketing Web sites
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Interact with consumers to move them closer to a direct purchase or other marketing outcome
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Branded Community Web sites
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Present brand content that engages consumers and creates customer community around a brand. (ex. ESPN)
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Online advertising
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Appears while consumers are browsing online Main forms are display ads and search related ads. Largest form of it search-related ads or contextual advertising (Where text-based ads and links appear alongside search engine results on sites such as Google, Yahoo, and Bing)
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E-mail marketing
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Sending highly targeted, highly personalized, relationship-building marketing messages via e-mail. Can be the ultimate direct marketing medium.
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Spam
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Unsolicited, unwanted commercial e-mail messages. Due to spam, most legitimate marketers now practice permission-based e-mail marketing, sending e-mail pitches only to customers who opt in.
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Viral marketing
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Videos, ads, and other marketing content that consumers seek out or pass along to friends.
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Blogs
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Online journals of narrowly defined topics where people and companies post their thoughts and other content. Offers a fresh, original, personal, and inexpensive way to enter into consumer online conversations (insights can improve marketing programs). But is limited by being a consumer-controlled medium.
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Social media
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Independent and commerical online communities where people congregate, socialize, and exchange views and information. Marketers engage in social media by using existing ones or creating their own.
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Social Media Marketing Advantages
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Targeted and personal Interactive Immediate and timely Cost effective Engagement and social sharing capabilities Large companies design efforts that are integrated with the brand’s marketing strategy and tactics. Firms that use it effectively create brand-related social sharing, engagement, and customer unity.
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Social Media Marketing Challenges
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Still being experimented on how to use effectively Difficult to measure results Largely user controlled
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Mobile marketing
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Features marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices. Used to engage customers anywhere, anytime, during the buying and relationship-building processes. Widespread adaption of mobile devices and surge in mobile Web traffic have made it a must.
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Direct Mail Marketing
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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 customers who want to receive it Costs more per thousand people reached than mass media such as TV or magazines, but the people it reaches are much better prospects.
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Catalog Marketing
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Print, video, or digital that are mailed to select customers, made available in stores, or presented online. Internet and digital marketing have changed this form of marketing: Eliminates printing and mailing cost, can offer an almost unlimited amount of merchandise, offer a broader assortment of presentation formats (including search and video), and allow real-time merchandising (products/features can be added or removed as needed and prices can be adjusted instant.y to match demand)
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Telemarketing
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Selling directly to customers and business customers using the telephone. Uses outbound telephones to sell directly to consumers and inbound toll-free numbers to receive orders from television and print ads, direct mail, or catalogs.
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National Do Not Call Registry
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Established in 2003 by U.S. lawmakers and managed by the Federal Trade Commission. Do-not-call legislation has helped marketeers to develop opt-in calling systems, in which they provide useful information and offer customers who have invited the company to contact them by phone or e-mail.
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Direct-Response Television (DRTV) marketing
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Direct marketing via television, including direct-response television advertising or infomercials and interactive television or Interactive TV (iTV) advertising.
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Kiosk Marketing
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Product or service information and ordering machines placed by companies. Modern smart _____ are now wireless-enabled and some even use facial recognition software.
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Public Policy Issues in Direct and Digital Marketing
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Bad reputation due to aggressive and shady tactics of some direct marketers. Abuses are irritation due to excessiveness, unfair practices, deception, and fraud. Also privacy concerns and Internet security issues.
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Irritation
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Loud, long, and insistent TV commercials Junk mail and spam
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Unfairness
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Taking unfair advantage of impulsive or less-sophisticated buyers.
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Deception and Fraud
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Investment scams or phony charity collections Internet fraud, identity theft and financial scams Phishing: identity theft that uses deceptive e-mails and fraudulent online sites to fool users into divulging their personal data. Online and digital security concerns Access by vulnerable or unauthorized groups
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Consumer Privacy
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Huge fear of invasion of privacy. Consumers benefit from database marketing and information but it can leave consumers open to abuse.
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Federal Trade Commission (FTC)
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Policing online privacy
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Congressional Legislation actions
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Giving more control to consumers over use of online information
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Government Actions to protect consumers
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Do-not-call, Do-not-mail, Do-not-track lists Can Spam legislation
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Marketers Actions to Protect Consumers
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Self-regulatory principles call for online marketers to provide transparency and choice to consumers if Web viewing data is collected or used for targeting Internet-based advertising. Advertising option icon (little i inside of a triangle) telling why they are seeing an ad and allowing them to opt out.
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Children’s Online Privacy Protection Act (COPPA)
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Passed in 2000 by Congress, requires online operators targeting children to post privacy policies on their sites. Also must notify parents about any information they’re gathering and obtain parental consent before collecting personal information from children under age 13.
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TRUSTe
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Nonprofit self-regulatory organization that works with many large corporate sponsors, including Microsoft, Yahoo, AT&T, Facebook, Disney, and Apple, to audit privacy and security measures and help consumers navigate the Internet safely.

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