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COMM 131 (63)
Chapter 14

Chapter 14.docx

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Department
Commerce
Course
COMM 131
Professor
Ethan Pancer
Semester
Winter

Description
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 Forms of Direct Marketing Direct-Mail Marketing  This involves sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address  Use highly selective mailing lists and send out millions of mail pieces each year – letters, catalogues, ads, brochures, samples, etc.  by far the largest marketing medium  Well suited to direct, one-to-one communication and permits high target-market selectivity, it’s flexible, and allows easy measurement of results  It costs more than TV or magazines but reaches much better prospects for sales  May be resented as junk mail/spam if sent to the wrong people, must select ppl carefully Catalogue Marketing  This is direct marketing through print, video, or digital catalogues that are mailed to select customers, made available in stores, or presented online o Online things eliminate printing and mailing costs & offer unlimited merchandise and also allow for real time merchandising (add/remove products, adjust prices…) o Print catalogues are a good advertising tool to drive people to website – tangible Telephone Marketing  Involves using the telephone to sell directly to consumers and business customers  Use outbound telemarketing to sell directly to consumers and businesses  Use inbound toll-free numbers to receive orders from TV/print ads, mail, & catalogues  Properly designed and targeted telemarketing provides benefits, including purchasing convenience and increased p/s information  however the calls annoy consumers o Canadians can register with the National Do Not Call List – if marketers violate the rules they can be fined up to $15,000 Direct Response Television Marketing  A direct marketing via television (including infomercials) & home shoppi
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