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

Blogs

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.

Digital and Social Media Marketing

Online marketing (web sites, online advertising, e-mail, online videos, blogs) Social media marketing Mobile marketing

TRUSTe

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.

Online advertising

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)

Public Policy Issues in Direct and Digital Marketing

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.

Benefits of Direct and Digital Marketing to Buyers

Convenient, easy, and private Easy buyer-seller interaction Quick access to products and relevant information Brand engagement and community

Direct-Response Television (DRTV) marketing

Direct marketing via television, including direct-response television advertising or infomercials and interactive television or Interactive TV (iTV) advertising.

Government Actions to protect consumers

Do-not-call, Do-not-mail, Do-not-track lists Can Spam legislation

Direct and Digital Marketing

Engaging directly with targeted individual consumers and customer communities to obtain an immediate response and build lasting customer relationships.

National Do Not Call Registry

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.

Traditional Direct Marketing Tools

Face-to-face selling, direct-mail marketing, catalog marketing, telemarketing, direct-response television marketing, and kiosk marketing.

Growth of Direct and Digital Marketing

Fastest-growing form of marketing. Direct marketing is becoming more Internet-based and claiming a surging share of marketing spending and sales.

Mobile marketing

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.

Congressional Legislation actions

Giving more control to consumers over use of online information

Consumer Privacy

Huge fear of invasion of privacy. Consumers benefit from database marketing and information but it can leave consumers open to abuse.

Social media

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.

Marketing Web sites

Interact with consumers to move them closer to a direct purchase or other marketing outcome

Deception and Fraud

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

Irritation

Loud, long, and insistent TV commercials Junk mail and spam

Benefits of Direct and Digital Marketing to Sellers

Low-cost, efficient, and speedy Build close, personalized, interactive, one-to-one customer relationships Offer greater flexibility

Online Marketing

Marketing via the Internet using company web sites, online ads and promotions, e-mail, online video, and blogs

Children's Online Privacy Protection Act (COPPA)

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.

Federal Trade Commission (FTC)

Policing online privacy

Branded Community Web sites

Present brand content that engages consumers and creates customer community around a brand. (ex. ESPN)

Catalog Marketing

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)

Kiosk Marketing

Product or service information and ordering machines placed by companies. Modern smart _____ are now wireless-enabled and some even use facial recognition software.

Marketers Actions to Protect Consumers

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.

Telemarketing

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.

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 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.

E-mail marketing

Sending highly targeted, highly personalized, relationship-building marketing messages via e-mail. Can be the ultimate direct marketing medium.

Social Media Marketing Challenges

Still being experimented on how to use effectively Difficult to measure results Largely user controlled

Unfairness

Taking unfair advantage of impulsive or less-sophisticated buyers.

Social Media Marketing Advantages

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.

Largest shares of Media Marketing Spending

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.

Spam

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.

Direct and Social Media Marketing

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.

Why companies use direct marketing

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.

Multichannel Marketing

Using both traditional and digital marketing channels

Viral marketing

Videos, ads, and other marketing content that consumers seek out or pass along to friends.