Chapter 17: Direct, Online, Social Media, and Mobile Marketing

Deception

"heat merchants" who design mailers and write copy designed to mislead consumers.

Benefits of Direct and Digital Marketing to Buyers and Sellers

-Convenience -Ready access to many products -Access to comparative information about companies, products, and competitors -Interactive and immediate -For buyers, direct and digital marketing are convenient, easy, and private. They give buyers anywhere, anytime access to an almost unlimited assortment of goods and a wealth of product and buying information. -Digital marketing through online, mobile, and social media provides a sense of brand engagement and community—a place to share brand information and experiences with other brand fans.

Benefits of web-based catalogs

-Lower cost than printed catalogues -Unlimited amount of merchandise -Real-time merchandising -Interactive content -Promotional features

Omni-channel retailing

-Omni-channel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping— it creates a single shopping experience. -Traditional retailers have a major opportunity here. Online giants aren't the only ones benefiting from the demand for e-commerce.

Benefits of Telemarketing

-Purchasing convenience -Increased product service and information

Challenges of web-based catalogues

-Require marketing -Difficulties in attracting new customers

Social Media Marketing Advantages:

-Targeted and personal -Interactive -Immediate and timely -Real-time marketing -Cost effective -Engagement and social sharing capabilities

Benefits of Direct and Digital Marketing—Sellers

-Tool to build customer relationships -Low-cost, efficient, fast alternative to reach markets -Flexible -Access to buyers not reachable through other channels -Direct and digital marketing lets marketers make ongoing adjustments to prices and programs, or create immediate, timely, and personal engagement and offers. Especially in today's digital environment, direct marketing provides opportunities for real-time marketing that links brands to important moments and trending events in customers' lives. It is a powerful tool for moving customers through the buying process and for building customer engagement, community, and personalized relationships.

Social Media Marketing Challenges:

-User controlled -Brands need to earn the right to be there -Even a seemingly harmless social media campaign can backfire -Because consumers have so much control over social media content, even the seemingly most harmless social media campaign can backfire. With social media, "you're going into the consumer's backyard. This is their place," warns one social marketer. Earn Right to Be There:Rather than intruding, marketers must become a valued part of the online experience by developing a steady flow of engaging content

Paper Catalogs

-create emotional connections; turning actual catalog pages engages consumers in a way that digital images can't. -drive online and mobile sales

digital and social media marketing

-online marketing (websites, online advertising, email, online videos, blogs) -social media marketing -mobile marketing

•Children's Online Privacy Protection Act (COPPA)

-requires online operators targeting children to post privacy policies on their sites, in 1998, and extended it in 2013. -notify parents about any information they're gathering and obtain parental consent before collecting personal information from children under age 13. -With the subsequent advent of online social networks, mobile phones, and other new technologies, privacy groups are now urging the U.S. Senate to extend COPPA to include both the new technologies and teenagers.

•General Data Protection Regulation (GDPR)

-strict requirements for collecting and protecting personal information about people who live in the European Union and gives European consumers more control over what is collected and how it is used. In addition, the FTC is taking a more active role in policing online privacy.

Forms of Direct and Digital Marketing

1. digital and social media marketing 2. traditional direct marketing. -both build direct customer engagement and community

Direct-response television marketing (DRTV) definition + More

Direct marketing via television that persuasively describes a product and give customers a toll-free number or an online site for ordering --DRTV ads are often associated with somewhat loud or questionable pitches for cleaners, stain removers, kitchen gadgets, and nifty ways to stay in shape without working very hard at it. -a number of large companies—from P&G, AT&T, and GEICO—have begun using infomercials to sell their wares, refer customers to retailers, recruit members, or attract buyers to their online, mobile and social media sites. -less expensive than other forms of promotion and is easier to track results.

The New Direct Marketing Model

For many companies today, direct and digital marketing constitute a complete model for doing business. The new direct marketing model: Online travel agency Priceline.com sells its services exclusively through online, mobile, and social media channels. Along with other online competitors, Priceline.com has pretty much driven traditional offline travel agencies into extinction. Spurred by the surge in internet usage and buying, and by rapid advances in digital technologies direct marketing has undergone a dramatic transformation. In previous chapters we have discussed direct marketing as direct distribution—as marketing channels that contain no intermediaries. We also included direct and digital marketing elements of the promotion mix—as an approach for engaging consumers directly and creating brand community. In actuality, direct marketing is both of these things and much more. Most companies still use direct marketing as a supplementary channel or medium, but for many companies today, direct and digital marketing are more than just supplementary channels or advertising media— they constitute a complete model for doing business. Firms employing this direct model use it as the only approach. Companies such as Facebook, Amazon, Google, eBay, Netflix, GEICO, and Priceline.com have successfully built their entire approach to the marketplace around direct and digital marketing. -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.

Websites

For most companies, the first step in conducting online marketing is to create a website. Websites vary greatly in purpose and content. Some websites are primarily marketing websites, while branded community websites don't try to sell anything at all.

Using Social Media

Marketers can use existing social media or they can set up their own. Using existing social media seems the easiest. Thus, most brands have set up shop on a host of social media sites with links to each brand's Facebook, Google+, Twitter, YouTube, Flickr, Instagram, or other social media pages.

Online Marketing

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

Challenges of Telemarketing

Unsolicited outbound telephone marketing Do-Not-Call Registry

Telemarketing (Definition)

using the telephone to sell directly to customers

Marketing Websites

a website that engages consumers to move them closer to a direct purchase or other marketing outcome

Brand Community Websites

a website that presents brand content that engages consumers and creates customer community around a brand

Online advertising

advertising that appears while consumers are browsing online, including display ads and search-related ads

Irritation

annoying and offending customers.

Phishing

common form of internet fraud type of identity theft that uses deceptive emails and fraudulent online sites to fool users into divulging their personal data.

Consumer privacy

concerns that marketers may have too much information and use it to take unfair advantage.

Viral Marketing

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(definition) -customers find and pass along the message or promotion, viral marketing can be very inexpensive. And when video or other information comes from a friend, the recipient is much more likely to view or read it.

Catalogue marketing

direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online -More and more catalogs have gone digital, a variety of online-only catalogers have emerged, and most print catalogers have added web-based catalogs and smartphone catalog shopping apps.

Direct and digital marketing

engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships (definition) -Companies use direct marketing to tailor their offers and content to the needs and interests of narrowly defined segments or individual buyers. In this way, they build customer engagement, brand community, and sales.

Traditional Direct Marketing

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

Kiosk Marketing

in-store kiosk helps customers find and buy the products they want on the spot. -Sales associates can also use the kiosk as a sales tool. As consumers become more and more comfortable with digital and touch-screen technologies, many companies are placing information and ordering machines—called kiosks—in stores, airports, hotels, college campuses, and other locations. Kiosks are everywhere these days, from self-service hotel and airline check-in devices, to unmanned product and information kiosks in malls, to in-store ordering devices that let you order merchandise not carried in the store. Many modern "smart kiosks" are now wireless-enabled. And some machines can even use facial recognition software that lets them guess gender and age and make product recommendations based on that data.

Fraud

includes identity theft and financial scams. -phishing -online and digital security

Unfairness

includes taking unfair advantage of impulsive or less-sophisticated buyers. -access by vulnerable or unauthorized groups.

Social Media

independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content

access by vulnerable or unauthorized groups.

marketers of adult-oriented materials and sites have found it difficult to restrict access by minors. Although Facebook, Twitter, Instagram, and other social networks allow no children under age 13 to have profiles, all have significant numbers of underage users

Mobile marketing (Definition) + More

marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices -For consumers, a smartphone or tablet can be a handy shopping companion. As a result, mobile advertising spending is surging. -engages customers anywhere, anytime during the buying and relationship building processes. The widespread adoption of mobile devices and the surge in mobile web traffic have made mobile marketing a must for most brands. -Some mobile apps are brand-specific - they help consumers navigate the brand's products, services, special offers, and community. Mobile marketing lets brands personalize promotions and weave them into relevant everyday customer experiences.

Direct-mail marketing (Definition + More)

marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address -•Personalized •Easy-to-measure results •Costs more than mass media •Provides better results than mass media -well suited to direct, one-to-one communication. -permits high target-market selectivity, can be personalized, is flexible, and allows the easy measurement of results.

Blogs

online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics

Online video

posting digital video content on brand websites or social media sites such as YouTube, Facebook, and others. -some videos are made for the web and social media. Such videos range from "how-to" instructional videos and public relations (PR) pieces to brand promotions and brand-related entertainment. Other videos are ads that a company makes primarily for TV and other media but posts online before or after an advertising campaign to extend their reach and impact.

Outbound Telephone Marketing

sells directly to consumers and businesses.

Email marketing

sending highly targeted, highly personalized, relationship-building marketing messages via email(definition) -50 percent of consumers prefer to engage with brands via email versus direct mail, phone, text, or social media. -76 percent of consumers agree that retail brands send relevant emails that accurately reflect their shopping preferences, locations, or purchase histories. -important business-to-business tool—86 percent of business professionals prefer to use email when communicating for business purposes, and email rates as the third most influential source of information for B-to-B audiences. -email is now an on-the-go medium—55 percent of all emails are now opened on mobile devices -given its low costs and targetability, email can yield a very high return on investment.

online and digital security.

snoopers will eavesdrop on their online transactions, picking up personal information or intercepting credit and debit card numbers.

Spam

unsolicited, unwanted commercial email messages

Inbound telephone marketing

uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs.

Direct Response Television DRTV Marketing includes

•60 to 120 second advertisements that describe products or give customers a toll-free number or website for ordering •30-minute infomercials such as home shopping channels

Public Policy Issues in Direct and Digital Marketing

•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. •Consumer privacy involves concerns that marketers may have too much information and use it to take unfair advantage.