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Chapter 14

COMM 131 Chapter Notes - Chapter 14: Dbt Online Inc., Direct Market, Infomercial

Course Code
COMM 131
Ethan Pancer

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Chapter 14: Direct and Online Marketing
The New Direct Marketing Model
Direct marketing consists of connecting directly with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting relationships
o Target marketing offers and communications to the needs of narrowly defined
segments or even individual buyers
Rapid advances in database technologies and new media direct marketing has changed
o It is a direct distribution channel as well as an element of the promotional mix
o Most companies use direct marketing as a supplementary channel or medium
With the development of online marketing some companies only use direct marketing
Growth and Benefits of Direct Marketing
Benefits to Buyers
Direct marketing is easy, convenient, and private
o Can browse/buy from the comfort of their own homes any time of day
Gives consumer and business buyers more control they decide which catalogues they
will browse and which websites they’ll visit
Gives buying immediate access to virtually unlimited products and info
o Can get product from all around the world without going in-store
Direct marketing is interactive and immediate buyers can interact with sellers by phone
or online, create exactly the configuration of info, p/s they want, then order right there
Benefits to Sellers
Direct marketing is a powerful tool for building customer relationships
Can use database marketing to target small groups to promote personalized offers
o Two way communication means firms can learn about customer needs and tailor
p/s to specific customers tastes & customers can ask questions
Direct marketing is a low cost, efficient, speedy alternative for reaching markets
o Also lower costs, improved efficiencies in channel and logistics functions
Offers great flexibility to firms can change site quickly after an offering is changed,
adjust prices, make immediate and personal announcements and offers
Also gives sellers access to buyers that they could not reach through other channels
Customer Databases and Direct Marketing
A customer database is an organized collection of comprehensive data about individual
customers including geographic, demographic, psychographic, and behavioural data
o Can be a good relationship building tool learn about customers
For B2B, might contain info like past p/s bought, past volumes/prices, key contacts, etc.
Use databases to locate good potential customers and generate sales leads, can learn
about customers in detail then fine tune market offerings and communications
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