Management and Organizational Studies 2320A/B Chapter Notes - Chapter 17: Direct Response Television, National Do Not Call Registry, Direct Marketing

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Published on 21 Apr 2013
School
Western University
Department
Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
Chapter 17 Textbook Summary
Direct and Online Marketing
Direct marketing: consists of connecting directly with carefully targeted
individual consumers to both obtain an immediate response and cultivate
lasting customer relationships
o Communicate directly with customers, often on a one to one
interactive basis
The New Direct Marketing Model
o Direct marketing has undergone a dramatic transformation
o For many companies today, first marketing is more than just a
supplementary channel or advertising medium
o For these companies, direct marketing especially in its most recent
transformation, online marketing constitutes a complete model for
doing business
o Firms employing this new direct model use it as the only approach
Growth and Benefits of Direct Marketing
o Direct marketing has become the fastest growing form of marketing
o More web-oriented, and Internet marketing is claiming a fast-growing
share of direct-marketing spending and sales
o Direct marketing brings many benefits to both buyers and sellers
Benefits to Buyers
o Convenient, easy, private
o Never close their doors, and customers don’t have to battle traffic, find
parking spaces, and trek through stores to find products
o Gives buyers ready access to a wealth of products
o Gives buyers access to a wealth of comparative information about
companies, products, and competitors
o More information in more useful forms than even the most helpful
retail salesperson
o Direct marketing is interactive and immediate buyers can interact
with sellers website to create exactly the configuration of information,
products, or services they desire and then order them on the spot
o Greater measure of control
Benefits to Sellers
o Direct marketing is a powerful tool for building customer
relationships
o Target small groups or individual consumers and promote their offers
through personalized communications
o Interact with customers
o Offers sellers a low-cost, efficient, speedy alternative for reaching
their markets
o Grown rapidly in business-to-business marketing
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o Online direct marketing results in lower costs, improved efficiencies,
and speedier handling of channel and logistics functions, such as
order processing, inventory handling, and delivery
o Direct marketing gives sellers across to buyers that they could not
reach through other channels
o Smaller firms can mail catalogues to customers outside their local
markets
Customer Databases and Direct Marketing
o Customer database: an organized collection of comprehensive data
about individual customers of prospects, including geographic,
demographic, psychographic, and behavioural data
o Gives companies a 360 degree view of its customers an dhow they
behave
o The customer database might contain a customer’s demographics,
psychographics, and buying behaviour
o In business-to-business marketing, the customer profile might contain
the products and services the customer has bought, past volume and
prices, key contacts, competing suppliers, status of current contacts,
estimated customer spending for the next few years, and assessments
of competitive strengths and weaknesses in selling and servicing the
account
o Use databases to locate good potential customers and to generate
sales leads
o Mine their databases to learn about customers in detail, and then fine
tune their market offerings and communications to the special
preferences and behaviours of target segments or individuals
o Can be an important tool for building stronger long-term customer
relationships
o Database marketing requires a special investment
o Must invest in computer hardware, database software, analytical
programs, communication links, and skilled personnel
o Must be user friendly and available to various marketing groups
Forms of Direct Marketing
o Direct-Mail Marketing
Sending an offer, announcement, reminder, or other item to a
person at a particular physical or virtual address
Well suited to direct, one-to-one communication
High target market selectivity, can be personalized, and allows
easy measurement of results
o Catalogue Marketing
Direct marketing through print, video, or digital catalogues
that are mailed to select customers, made available in stores,
or presented online
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Document Summary

Direct marketing: consists of connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships: communicate directly with customers, often on a one to one interactive basis. Forms of direct marketing: direct-mail marketing. Sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address. High target market selectivity, can be personalized, and allows easy measurement of results: catalogue marketing. Direct marketing through print, video, or digital catalogues that are mailed to select customers, made available in stores, or presented online. Despite the advantages of web-based catalogues, as our overstuffed mailbox may suggest, printed catalogues are still thriving. One of the best ways to drive online sales. Paper catalogues can also create emotional connections with customers that web-based sales spaces simply can"t. Catalogue marketing printed and online has grown explosively during the past 25 years: telephone marketing. Using the telephone to sell directly to customers.

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