Marketing Management

1
Marketing Management

• Exam 4
• Lecture 1
• Dr. David Andrus

2
Presentation Themes

• Direct Marketing
• Direct Mail
• Catalogue Marketing
• Telemarketing
• Kiosk Marketing
• Interactive Marketing

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DIRECT MARKETING

• Direct marketing - consumer-direct (CD) channels
  to reach and deliver products to customers
  without using marketing middlemen.
• These channels include
• Direct mail.
• Catalogs.
• Telemarketing.
• Interactive TV.
• Kiosks.
• Web sites.
• Mobile devices.

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Direct Marketing Benefits Customers

• Home shopping can be fun, convenient, and
  hassle-free.
• Saves time.
• Introduces consumers to a larger selection of
  merchandise.
• Ease of comparative shopping.
• Can order goods for themselves and others.
• Business customers can learn about available
  products and services.

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Direct Marketing Benefits Sellers

• Direct marketers can buy a mailing list.
• Customize and personalize messages.
• Build a relationship with each customer.
• Timed to reach prospects.
• Higher readership because it is sent to more
  interested prospects.
• Permits the testing of alternative media and
  messages in a cost-effective approach.
• Direct marketers can measure responses to decide
  which one is most profitable.

6
Direct Mail

• Direct-mail marketing involves sending an offer,
  announcement, reminder, or other item to a
  person.
• Direct marketing is popular because it
• Permits target market selectivity.
• Can be personalized.
• Is flexible.
• Allows for early testing and response
  measurement.

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Objectives

• Goal is to receive an order from prospects.
• Campaigns success is judged by the response
  rate.
• Order-response rate of 2 percent is good.
• Direct mail can
• Produce prospect leads.
• Strengthen customer relationships.
• Inform and educating customers.
• Remind customers of offers.
• Reinforce recent customer purchase decisions.

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Target Markets and Prospects

• Identify prospects most able, willing, and ready
  to buy.
• Apply R-F-M formula (recency, frequency, monetary
  amount) for rating customers.
• Select customers according to
• How much time since their last purchase.
• How many times they have purchased.
• How much they spent since becoming a customer.
• Also based on age, gender, income, education, and
  previous mail-order purchases.

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Obtain Specific Names

• The companys best prospects are customers who
  have bought its products in the past.
• The direct marketer can also buy lists of names
  from list brokers.

10
Testing Elements

• Advantage is to test different elements such as
  product features, copy platform, mailer type,
  envelope, prices, or mailing lists.
• Response rates understate a campaigns long-term
  impact.
• Some companies are measuring direct marketings
  impact on
• Awareness.
• Intention to buy.
• Word of mouth.

11
Catalog Marketing

• Full-line merchandise catalogs, specialty
  consumer catalogs, and business catalogs.
• 71 percent of Americans shop from home using
  catalogs, by phone, mail, or the Internet.
• Success of a catalog business depends on ability
  to manage
• Customer lists.
• Control inventory.
• Offer quality merchandise so returns are low.
• Project a distinctive image.

12
Telemarketing

• Call centers to attract prospects, sell to
  existing customers, takes orders and answer
  questions.
• Telemarketing helps companies increase revenue,
  reduce selling costs, and improve customer
  satisfaction.
• Companies use calls centers for
• Inbound telemarketing.
• Outbound telemarketing.

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Four Types of Telemarketing

• Telesales.
• Telecoverage.
• Teleprospecting.
• Customer service and technical support.

14
Television

• Television is used by direct marketers in several
  ways
• Direct-response advertising.
• At-home shopping channels.
• Videotext and interactive TV.

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Kiosk Marketing

• Small structure that houses a selling or
  information unit.
• The name describes
• Newsstands.
• Refreshment stands.
• Free-standing carts.
• Computer-linked vending machines.
• Customer-order-placing machines.

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INTERACTIVE MARKETING

• Internet provides marketers and consumers greater
  interaction and individualization.
• Companies dialogue with much larger groups.
• Exchange process is increasingly
  customer-initiated and customer-controlled.
• Customers define the rules of engagement.
• Define what information they need.
• What offering they are interested in.
• What prices they are willing to pay.

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Benefits of Interactive Marketing

• Highly accountable and its effects can be easily
  traced.
• Offers the advantage of contextual placements.
• Light consumers of other media can be reached.
• The Web is especially effective at reaching
  people during the day.
• Young, high income, high education consumers
  online media consumption exceeds that of TV.

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Designing An Attractive Web Site

• Design a site that is attractive on first viewing
  and interesting enough to encourage repeat
  visits.
• Effective Web sites feature seven design elements
  called the 7Cs
• Context.
• Content.
• Community.
• Customization.
• Communication.
• Connection.
• Commerce.

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Ease of Use

• Visitors will judge a sites performance on its
  ease of use and physical attractiveness.
• Ease of use breaks into three attributes
• The Web site downloads quickly.
• The first page is easy to understand.
• Easy to navigate to other pages that open quickly.

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Physical Attractiveness

• The individual pages are clean looking and not
  overly crammed with content.
• The typefaces and font sizes are very readable.
• The site makes good use of color and sound.

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Returning to a Site

• Deep information with links to related sites.
• Changing news of interest.
• Changing free offers to visitors.
• Contests and sweepstakes.
• Humor and jokes.
• Games

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Placing Ads and Promotion Online

• Banner ads -small rectangular boxes containing
  text and a picture.
• Companies pay to place banner ads on Web sites.
• Sponsorships are best placed in well-targeted
  sites where they offer information.
• Microsite - limited area on the Web managed and
  paid for by an external advertiser/company.
• Interstitials are advertisements that pop up
  between changes on a Web site.
• Hottest growth area has been search-related ads.

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E-Marketing Guidelines

• Give the customer a reason to respond.
• Personalize the content of your e-mails.
• Offer something the customer could not get via
  direct mail.
• Make it easy for customers to unsubscribe.