Permission Marketing Hüseyin AKTAŞ Marketing Management 2010 Project

Introduction to Permission Marketing  Introduction “Turning strangers into friends, and friends into customer.” Used in marketing in general and e-marketing specifically. Consumers provide marketers with the permission to send them certain types of promotional messages  History Permission marketing is a term coined by Seth Godin. Dates back to late 1990s.

What is it?  Permission Marketing Permission marketing envisions every customer shaping the targeting behavior of marketers. Consumers empower a marketer to send them promotional messages in certain interest categories. The marketer then matches anticipated, personal, and relevant advertising messages with the interests of consumers. It is mostly used by online marketers, notably marketers and search marketers, as well as certain direct marketers who send a catalog in response to a request

Insights Offered by Permission Marketing  Product co-creation and consumer control: Co-creation : Permission marketing envisions marketers and consumers as partners in creating a marketing mix. Consumer control: A key element of permission marketing is consumer control. A firm cannot send a message to a consumer without their permission.

Business Models

Business Models ( continued )  Model 1 (Advertiser – Customer) Model 1 can best be characterized as direct relationship maintenance. For example consumers can sign on for sales alerts from X company. Very little additional information is asked for and hence, there is no sophisticated targeting being conducted here. This is seen as an additional service offered to customers to maintain a strong relationship. Hence, this is characterized by low permission intensity, direct contact with advertiser and minimal targeting.

Business Models ( continued )  Model 2 (Portal – Consumer) Can be described as a permission partnership. Here, the consumer provides a portal or media site with the permission to send him or her promotional offers. This is commonly used to increase traffic to websites. Hence, here we have low to medium permission intensity, contact through an intermediary and low targeting.

Business Models ( continued )

 Model 3 (Ad-market) Can be described as an ad market. A consumer provides an infomediary (Hagel & Singer, 1999) with detailed information about his or her preferences and interests. The infomediary then uses this information to identify advertisers. The ads supplied by these advertisers are then carefully targeted to be consistent with the consumer’s tastes.

Business Models ( continued )  Model 4 (Permission Pool) Can be described as a permission pool. Different consumers provide different firms with the permission to send them promotional offers. These firms pool the information provided by the consumer and then promotional messages are sent out targeting this larger pool. Examples of this practice include yesmail.com.

ing  ing: Best tool for PM Provides Interactivity—means two-way, rather than one-way communication. Rapidity—means that a message can travel swiftly from marketer to consumer, providing quick feedback. Reach— provides good reach since a large proportion of the population has an address.

ing ( continued ) Figure : Media Buyers’ Perception of Most Responsive Marketing Method

Types of Permission Opt-Out: Refers to the situation where a marketer sends an unsolicited and then provides individuals an option of not receiving future messages. Opt-In: requires the consumer to tell the corporation explicitly that it has permission to send messages. Double or Confirmed Opt-In: When building lists marketers must send a confirmation to all individuals who have opted in to ensure that the consumer is indeed interested.

Measuring Consumer Interest Opt-out rate: The proportion of the database that has opted out of your program. Virtual opt-out rate: The proportion of the database that has not responded to any offer you have sent out during a six-month period. Zero communication rate: The proportion of the database that has not communicated with you in any way over the last six months. Profile updation rate: The proportion of the database that has updated its profile in the last six months.

Permission Marketing Tools: Examples

Conclusion Permission marketing is a form of marketing that is quite useful to advertisers. This method is one of several developed by marketers to eliminate the disadvantages of marketing. A company does not want to be placed into a permission marketing system that abuses its consumers. Avoid to SPAM rules and laws.

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