Marketing Strategy: Key Concepts 9
Direct and Online Marketing
An interactive system that creates a measurable response (variable cost
versus fixed cost of marketing) and / or
transaction.
Goal to develop relationships with customers.
Rapid growth rate.
- catalog and direct mail sales growing about 7% annually (retail sales
@ 3%)
- internet growth rates (Cyberatlas is a great resource for
the number)
Growth due to innovations in:
- technology: databases (data mining and warehouses) / communication
systems
- toll-free telephone services
- payment systems (credit cards and smart cards)
Provides continuity, better timing, testability and
privacy. Can benefit both customers and business with highly targeted and
efficient exchanges.
Database marketing to support direct marketing. Companies can use their
databases to:
- identify prospects
- differentiate offers
- cross sell products
- build loyalty
- reactivate customer purchases
Issues with direct marketing include:
- annoyance
- deception and fraud
- privacy
Major direct marketing channels:
- Face-to-Face
- Direct Mail (inc. voice-mail and e-mail, bills, fax)
- Catalog Marketing (inc. CDs)
- Telemarketing (use of computers / cell phones (contextual
marketing)
- TV (direct response advertising / infomercials / shopping channels)
- Kiosks (and vending machines)
- Online (permission based
marketing)
Online marketing is the most recent evolution of direct marketing. This
can create channel
conflict.
E-Commerce Marketing
Direct Marketing Association
Add relevant websites
Relevant Knowledge @ Wharton Artivcles
Will
Consumers Be Willing to Pay for Their Formerly Free Lunch on the Internet?
The
Cell Phone as Marketing Tool: Will Consumers Answer the Call?
Clicking
With Customers: New Challenges in Online Conversion
Why
Job Searching is the Second Most Popular Activity on the Internet
Are
There Lessons to Be Learned from Internet Porn Sites?
New
Internet Pricing Models Bring Pain, and Fortune, to Retailers
Three
Marketing Lessons from the Love Bug
How
Companies Sponsor, Listen in and Learn From Chat Rooms
Is
Your Website Working Well for You? Check its e-Performance
How
to Keep Customers In Line for Your On-line Business
Hit
and Miss: Why High Traffic Streams Need not Lead to More Online Business
Stephen
King’s Novel Idea: Will It Change the Publishing Industry?
Christmas
E-tailers: Will It Be Ho-Ho or So-So?
A
Search for Google’s Success Turns Up Two Words: Trust and Technology
Link
to discussion
board
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