Chapter 10: DIRECT MARKETING and E-COMMERCE

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Presentation transcript:

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

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

Facilitators Available for the e-Commerce Effort 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