Direct and Internet Marketing
Content
By- Prof. Snehal Chincholkar
What is Direct Marketing ?
The New Direct Marketing is an information driven marketing process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.´ New Direct Marketing, 3rd Edition, by David Shepard Associates Direct marketers seek to generate a direct and measurable response to advertising. Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.
What can be sold via direct marketing ?
y
The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records.
Reasons for the growth in direct marketing
Objectives of direct marketing
Direct ordering. Providing information. Visit generation. Trial generation.
Techniques of Direct Marketing
Tele Marketing
Telemarketing is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.
The two major categories of telemarketing are Business-to-business Business-to-consumer.
Subcategories
y
Lead Generation, the gathering of information Sales, using persuasion to sell a product or service Outbound, proactive marketing in which prospective and preexisting customers are contacted directly Inbound, reactive reception of incoming orders and requests for information. Demand is generally created by advertising, publicity, or the efforts of outside salespeople.
y
y
y
Applications of telemarketing
Generate leads. Screen leads before follow up. Arrange opportunities for representatives. Direct sales. Encourage cross / up selling. Dealer support. Account servicing. Market research. Test marketing.
Direct mail
y
The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "admail" or "crap mail" and may involve bulk mail.
Junk mail includesAdvertising circulars, Catalogs. Free trial CDs. Unsolicited merchandising invitations. That may be of two typesIndividual Mail Catalogs
DRTV
y
Direct marketing on TV (commonly referred to as DRTV) has two basic forms: Long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) Short form which refers to typical 0:30 second or 0:60 second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website).
y
y
Direct selling
y
Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties.
Door to Door Leaflet Marketing
y
Leaflet Distribution services are used extensively by the fast food industries, and many other business focusing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area, and costs a fraction of the amount of a mail shot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants.
Voicemail Marketing
y
One more type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice.
Ex- Vodafone , Idea .
Direct Response print Mdia
Magazines y Newspapers
y
Mail Order Marketing or Mail order business
The entire process takes place by mail from buyer up to the seller. y Ex- Anjali textile ,Surat Diamonds , Mothercare India.
y
A Comparison ........
New Direct Marketing Approaches
y y
Internet Direct Marketing Videotex Direct Marketing
Integrated Campaigns
y
For many marketers, a comprehensive direct marketing campaign employs a mix of channels. It is not unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as online channels such as email, search marketing, social networking and video. In a report conducted by the Direct Marketing Association, it was found that 57% of the campaigns studied were employing integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically followed by e-mail and then telemarketing.
Managing a direct marketing campaign
Reasons for the growth of Direct Marketing
Changing Life style y Gaps in retailing y Technology y Consumer credit
y
Database Marketing
Database Definition: A marketing database is a comprehensive collection of interrelated data serving multiple applications, allowing timely and accurate ondemand retrieval of relevant data, and having a data management system independent of application.
DM Advantages:
y
Lead grading Customized targeting at the right time New information & past results help formulate strategy Information can drive new programs & fuel new revenue sources Information can foster new services & generate repeat orders Ongoing communication efforts can increase customer loyalty
y
y
y
y
y
Internet Marketing
y
Internet marketing, also known as digital marketing, web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet. Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, and Web 2.0 strategies. The term Web 2.0 is associated with web applications that facilitate participatory information sharing, interoperability, user-centered design,and collaboration on the World Wide Web. Examples of Web 2.0 include social networking sites, blogs, wikis, video sharing sites, hosted services
y
y
Types Of Internet Marketing
y y y y y y y
Search Engine Optimization ( SEO) Search Engine Marketing(SEM) Digital Asset Optimization Viral Marketing Email Marketing Affiliated Marketing Blog Marketing
Search Engine Optimization ( SEO)
y
Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" or un-paid ("organic" or "algorithmic") search results.
Search Engine Marketing(SEM) Marketing(SEM)
Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of paid placement, contextual advertising, and paid inclusion.
Digital Asset Optimization
y
Digital Asset Optimization is the new trend in the search engine optimization. Promoting your digital assets like videos, Images , Documents ,Presentations through digital media channel.
Viral Marketing
Marketing phenomenon that facilitates and encourages people to pass along a marketing message.
These are few types of Viral Marketing
y
Pass-along: A message which encourages the user to send the message to others. The crudest form of this is chain letters where a message at the bottom of the e-mail prompts the reader to forward the message. Incentivized viral: A reward is offered for either passing a message along or providing someone else's address. This can dramatically increase referrals. However, this is most effective when the offer requires another person to take action. Undercover: A viral message presented as a cool or unusual page, activity, or piece of news, without obvious incitements to link or pass along. In Undercover Marketing, it is not immediately apparent that anything is being marketed.
y
y
Continue«..
y
User-managed database: Users create and manage their own lists of contacts using a database provided by an online service provider. By inviting other members to participate in their community, users create a viral, self-propagating chain of contacts that naturally grows and encourages others to sign up as well.
E-mail Marketing
E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience
Blog Marketing
y
Blog marketing is the term used to describe internet marketing via web blogs. These blogs differ from corporate websites because they feature daily or weekly posts, often around a single topic. A blog (a contraction of the term "web log") is a type of website, usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Ex-
y
Affiliated Marketing
y
Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. It is an application of crowd sourcing.
Social Networking
India And Internet Marketing
Advantages of Internet Marketing
y
y y y y
Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Wide range of audience.(Even global) Measuring statistically is easy and inexpensive. Can be customized. Quick.
Challenges ««..
y y 1. 2. y 1. 2. 3. 4. y y 1. 2.
Education/Awareness Legal/regulatory problems E-documentation not yet legally admissible. Absence of taxation law Infrastructural Problems Low density of telephone, Pc¶s and Internet Bandwidth Limitation Networking Limitation Infrastructure and bottlenecks at the delivery end Commercial Problems Other problemsConfidence in system is low Problem of Hacking
References
Direct marketing by Mukesh Chaudhary y Direct Marketing by William J. McDonald y Marketing Management by V S Ramaswamy
y
Thanks««««..
What is Direct Marketing ?
The New Direct Marketing is an information driven marketing process, made possible by database technology, that enables marketers to develop, test, implement, measure, and appropriately modify customized marketing programs and strategies.´ New Direct Marketing, 3rd Edition, by David Shepard Associates Direct marketers seek to generate a direct and measurable response to advertising. Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.
What can be sold via direct marketing ?
y
The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records.
Reasons for the growth in direct marketing
Objectives of direct marketing
Direct ordering. Providing information. Visit generation. Trial generation.
Techniques of Direct Marketing
Tele Marketing
Telemarketing is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.
The two major categories of telemarketing are Business-to-business Business-to-consumer.
Subcategories
y
Lead Generation, the gathering of information Sales, using persuasion to sell a product or service Outbound, proactive marketing in which prospective and preexisting customers are contacted directly Inbound, reactive reception of incoming orders and requests for information. Demand is generally created by advertising, publicity, or the efforts of outside salespeople.
y
y
y
Applications of telemarketing
Generate leads. Screen leads before follow up. Arrange opportunities for representatives. Direct sales. Encourage cross / up selling. Dealer support. Account servicing. Market research. Test marketing.
Direct mail
y
The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "admail" or "crap mail" and may involve bulk mail.
Junk mail includesAdvertising circulars, Catalogs. Free trial CDs. Unsolicited merchandising invitations. That may be of two typesIndividual Mail Catalogs
DRTV
y
Direct marketing on TV (commonly referred to as DRTV) has two basic forms: Long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) Short form which refers to typical 0:30 second or 0:60 second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website).
y
y
Direct selling
y
Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties.
Door to Door Leaflet Marketing
y
Leaflet Distribution services are used extensively by the fast food industries, and many other business focusing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area, and costs a fraction of the amount of a mail shot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants.
Voicemail Marketing
y
One more type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice.
Ex- Vodafone , Idea .
Direct Response print Mdia
Magazines y Newspapers
y
Mail Order Marketing or Mail order business
The entire process takes place by mail from buyer up to the seller. y Ex- Anjali textile ,Surat Diamonds , Mothercare India.
y
A Comparison ........
New Direct Marketing Approaches
y y
Internet Direct Marketing Videotex Direct Marketing
Integrated Campaigns
y
For many marketers, a comprehensive direct marketing campaign employs a mix of channels. It is not unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as online channels such as email, search marketing, social networking and video. In a report conducted by the Direct Marketing Association, it was found that 57% of the campaigns studied were employing integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically followed by e-mail and then telemarketing.
Managing a direct marketing campaign
Reasons for the growth of Direct Marketing
Changing Life style y Gaps in retailing y Technology y Consumer credit
y
Database Marketing
Database Definition: A marketing database is a comprehensive collection of interrelated data serving multiple applications, allowing timely and accurate ondemand retrieval of relevant data, and having a data management system independent of application.
DM Advantages:
y
Lead grading Customized targeting at the right time New information & past results help formulate strategy Information can drive new programs & fuel new revenue sources Information can foster new services & generate repeat orders Ongoing communication efforts can increase customer loyalty
y
y
y
y
y
Internet Marketing
y
Internet marketing, also known as digital marketing, web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet. Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, and Web 2.0 strategies. The term Web 2.0 is associated with web applications that facilitate participatory information sharing, interoperability, user-centered design,and collaboration on the World Wide Web. Examples of Web 2.0 include social networking sites, blogs, wikis, video sharing sites, hosted services
y
y
Types Of Internet Marketing
y y y y y y y
Search Engine Optimization ( SEO) Search Engine Marketing(SEM) Digital Asset Optimization Viral Marketing Email Marketing Affiliated Marketing Blog Marketing
Search Engine Optimization ( SEO)
y
Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" or un-paid ("organic" or "algorithmic") search results.
Search Engine Marketing(SEM) Marketing(SEM)
Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of paid placement, contextual advertising, and paid inclusion.
Digital Asset Optimization
y
Digital Asset Optimization is the new trend in the search engine optimization. Promoting your digital assets like videos, Images , Documents ,Presentations through digital media channel.
Viral Marketing
Marketing phenomenon that facilitates and encourages people to pass along a marketing message.
These are few types of Viral Marketing
y
Pass-along: A message which encourages the user to send the message to others. The crudest form of this is chain letters where a message at the bottom of the e-mail prompts the reader to forward the message. Incentivized viral: A reward is offered for either passing a message along or providing someone else's address. This can dramatically increase referrals. However, this is most effective when the offer requires another person to take action. Undercover: A viral message presented as a cool or unusual page, activity, or piece of news, without obvious incitements to link or pass along. In Undercover Marketing, it is not immediately apparent that anything is being marketed.
y
y
Continue«..
y
User-managed database: Users create and manage their own lists of contacts using a database provided by an online service provider. By inviting other members to participate in their community, users create a viral, self-propagating chain of contacts that naturally grows and encourages others to sign up as well.
E-mail Marketing
E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience
Blog Marketing
y
Blog marketing is the term used to describe internet marketing via web blogs. These blogs differ from corporate websites because they feature daily or weekly posts, often around a single topic. A blog (a contraction of the term "web log") is a type of website, usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Ex-
y
Affiliated Marketing
y
Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. It is an application of crowd sourcing.
Social Networking
India And Internet Marketing
Advantages of Internet Marketing
y
y y y y
Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Wide range of audience.(Even global) Measuring statistically is easy and inexpensive. Can be customized. Quick.
Challenges ««..
y y 1. 2. y 1. 2. 3. 4. y y 1. 2.
Education/Awareness Legal/regulatory problems E-documentation not yet legally admissible. Absence of taxation law Infrastructural Problems Low density of telephone, Pc¶s and Internet Bandwidth Limitation Networking Limitation Infrastructure and bottlenecks at the delivery end Commercial Problems Other problemsConfidence in system is low Problem of Hacking
References
Direct marketing by Mukesh Chaudhary y Direct Marketing by William J. McDonald y Marketing Management by V S Ramaswamy
y
Thanks««««..
