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Chapter 21,Managing Direct and Online Marketing,Marketing Management Tenth Edition Philip Kotler,Objectives,Growth & Benefits of Direct Marketing Customer Databases & Direct Marketing Major Channels for Direct Marketing Marketing in the 21st Century: Electronic Commerce Public & Ethical Issues in Direct Marketing,Why Growth in Direct Marketing,Market “Demassification” Effort of “Traditional Shopping” Continuous Access Next-day Delivery Specialty Items Increase in Computer Power,Fun, Convenient & Hassle-Free,Saves Time,Larger Merchandise Selection,Comparison Shopping,Mailing Lists for Almost Any Market,Customized Offers,Ongoing Relationships with Customers,Timed to Achieve Higher Readership & Response,Order Products for Themselves or Others,Alternative Media/Message Testing,Benefits of Direct Marketing,Privacy,Measurable Response,Uses for Databases,1. Identify Prospects,2. Match Customers & Offers,3. Deepen Customer Loyalty,4. Reactivate Customers,Direct Marketing Channels,Catalog Marketing,Kiosk Marketing,Online Marketing,Direct-Mail Marketing,Direct-Response TV Marketing,Telemarketing,Face-to-Face Selling,Lifetime Value,Cost of Campaign: $10,000 100 new members $70 $7,000 1st year “cost” $3,000 2d Year 80 renewals $70 $5,600 Two year “gain” $2,600 3d Year 4th Year.,Objective Information,Initiation of Information Requests,Design Desired Offerings,“Information Rich” Buyers,Employ “Agents” or Solicit Bids,Find Specialized Third-party Sellers,Consumers,Companies,Benefits of Online Marketing,Online Marketing Channels,Electronic Presence Corporate Website Marketing Website,Advertising Online Place Ads in Special Sections of Online Services Place Ads in Certain Internet Newsgroups Buy Online Ads That Pop Up While Consumers are Surfing,Participating in Forums, Newsgroups & Web Communities Forums: Discussion Groups on Commercial Online Services Newsgroups: Internet Version of Forums Web Communities: Sites Where Members Exchange Views Online,Using E-Mail and Webcasting Customers Send Questions, Suggestions & Complaints Via E-Mail Webcasting: Automatic Downloading of Information to PCs,Challenges of Online Marketers,Limited Consumer Exposure & Buying Skewed User Demographics & Psychographics Chaos & Clutter Security,Public & Ethical Issues in Direct Marketing,Irritation,Unfairness,Deception & Fraud,Invasion of Privacy,Review,Growth & Benefits of Direct Marketing Customer Databases & Direct Marketing Maj
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