1. Chapter 21 Managing Direct and Online Marketing Marketing Management
Tenth Edition
Philip Kotler

2. Objectives Growth & Benefits of Direct Marketing
Customer Databases & Direct Marketing
Major Channels for Direct Marketing
Marketing in the 21st Century: Electronic Commerce
Public & Ethical Issues in Direct Marketing

3. Why Growth in Direct Marketing
Market “Demassification”
Effort of “Traditional Shopping”
Continuous Access
Next-day Delivery
Specialty Items
Increase in Computer Power

4. Benefits of Direct Marketing
Fun, Convenient & Hassle-Free
Mailing Lists for Almost Any Market
To Customers
To Companies
Saves Time
Customized Offers
Larger Merchandise Selection
Ongoing Relationships with Customers
Comparison Shopping
Timed to Achieve Higher Readership & Response
Order Products for Themselves or Others
Alternative Media/Message Testing
Privacy
Measurable Response

5. Uses for Databases 1. Identify Prospects 2. Match Customers & Offers
3. Deepen Customer Loyalty
4. Reactivate Customers

6. Direct Marketing Channels
Face-to-Face
Selling
Online
Marketing
Direct-Mail
Marketing
Kiosk
Marketing
Catalog
Marketing
Direct-Response
TV Marketing
Telemarketing

7. Lifetime Value Cost of Campaign: $10,000 100 new members @ $70 $7,000
1st year “cost” $3,000
2d Year
80 $ $5,600
Two year “gain” $2,600
3d Year…
4th Year...

8. “Information Rich” Buyers
Objective Information
Initiation of Information Requests
Design Desired Offerings
Employ “Agents” or Solicit Bids
Find Specialized Third-party Sellers

9. Benefits of Online Marketing
Consumers
Companies
Convenience
Information
Fewer Hassles
Quick Adjustments to Market Conditions
Lower Costs
Relationship Building
Audience Sizing

10. Online Marketing Channels
Electronic Presence
Corporate Website
Marketing Website
Advertising Online
Place Ads in Special Sections of Online Services
Place Ads in Certain Internet Newsgroups
Buy Online Ads That Pop Up While Consumers are Surfing
Online Marketing Channels
Participating in Forums, Newsgroups & Web Communities
Forums: Discussion Groups on Commercial Online Services
Newsgroups: Internet Version of Forums
Web Communities: Sites Where Members Exchange Views Online
Using and Webcasting
Customers Send Questions, Suggestions & Complaints Via
Webcasting: Automatic Downloading of Information to PC’s

11. Challenges of Online Marketers
Limited Consumer Exposure & Buying
Skewed User Demographics & Psychographics
Chaos & Clutter
Security

12. Public & Ethical Issues in Direct Marketing
Irritation
Unfairness
Deception & Fraud
Invasion of Privacy

13. Review Growth & Benefits of Direct Marketing
Customer Databases & Direct Marketing
Major Channels for Direct Marketing
Marketing in the 21st Century: Electronic Commerce
Public & Ethical Issues in Direct Marketing