Direct Marketing

Chapter 10: DIRECT MARKETING and E-COMMERCE

10.1

Relationship Between Direct Marketing and e-Commerce DIRECT MARKETING: Defined E-COMMERCE: Defined RELATIONSHIP BETWEEN DIRECT MARKETING AND e-COMMERCE  

The Mode of the Transaction: Traditional Media Versus New Media All e-Commerce is Direct Marketing, But Not all Direct Marketing is e-Commerce 10.2

Direct Marketing ROLE OF DIRECT MARKETING IN PROMOTION AND IMC 

Closing the Sale



Identifying Prospects



Engaging the Customer

10..3

Direct Marketing (con’t) THE POPULARITY AND GROWTH OF DIRECT MARKETING

Consumers’ Desire for Convenience  Attitudes Toward Credit  Changes in Technology  Measurability in Direct Marketing 

  

Cost per Inquiry (CPI) Cost per Order (CPO) Database Marketing 10.4

Direct Market Merchants Have Flourished Due to Technology and Consumers’ Desire for Convenience

10.5

Database Marketing 

 

Mailing Lists  Internal Mailing Lists  External Mailing Lists List Enhancement Marketing Database Applications  RFM Analysis  Frequency Marketing Programs  Cross Selling 10.6

Direct Marketing Databases Allow Very Specific Targeting of Promotions

10.7

Database Marketing (con’t) MEDIA APPLICATIONS IN DIRECT MARKETING  Direct Mail  Selectivity  Flexibility  Consumer Preference  Telemarketing  Catalogs  Infomercials  Direct Marketing in Other Media  Bind-in Insert Card  Toll Free Numbers in Traditional Media 10.8

Catalogs Are An Important Medium in the Direct Marketing Process

10.9

e-Commerce 

Popularity Basis Same as Direct Marketing   



Convenience Acceptance of Credit Changes in Technology and Measurability of Results

Business-to-Consumer and Business-to-Business e-Commerce: B2B is most powerful

10.10

Like Direct Marketing,Tthe Popularity of e-Commerce is Due to the Convenience it Offers Consumers

10.11

Model of the Stages of e-Commerce Id e n tify C u s to m e rs A ttra c t C u s to m e rs C o m m u n ic a te P e rs o n a liz e a n d C u s to m iz e E xchange P a y m e n t, F u lfillm e n t & F o llo w -u p P ro filin g

e-Commerce (con’t) SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCE  Identify Customers  Attract Customers  Communicate  Personalize and Customize

10.13

There are Many Facilitators Available for the e-Commerce Effort

10.14

e-Commerce (con’t) SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCE (con’t) Exchange 

Platforms

Payment, Fulfillment and Follow-up Profiling   

Sites Visited, Purchases Made, Info Gathered Site Learns about Consumers when Visited Data Mining Captures all Consumer Data/Analyzes Behavior 10.15

Coordinating Direct Marketing, e-Commerce, and IMC  Tremendous Challenge  Organizations Need to Seek Synergy  Coordination is Needed for Internal and

External Specialists  Firms are Turning to a Marcom Manager to Facilitate Coordination 10.16