10.110.1

Chapter 10:Chapter 10:

DIRECT MARKETING DIRECT MARKETING

andand

E-COMMERCEE-COMMERCE

Relationship Between Direct Marketing Relationship Between Direct Marketing and e-Commerceand e-Commerce

DIRECT MARKETING:DIRECT MARKETING: Defined Defined E-COMMERCE:E-COMMERCE: Defined Defined

RELATIONSHIP BETWEEN DIRECT MARKETING AND e-RELATIONSHIP BETWEEN DIRECT MARKETING AND e-COMMERCECOMMERCE

The Mode of the Transaction: Traditional Media Versus The Mode of the Transaction: Traditional Media Versus New New MediaMedia All e-Commerce is Direct Marketing, But Not all Direct All e-Commerce is Direct Marketing, But Not all Direct Marketing is e-CommerceMarketing is e-Commerce

10.210.2

Direct MarketingDirect Marketing

ROLE OF DIRECT MARKETING IN PROMOTION AND IMCROLE OF DIRECT MARKETING IN PROMOTION AND IMC

Closing the SaleClosing the Sale

Identifying ProspectsIdentifying Prospects

Engaging the CustomerEngaging the Customer

10..310..3

Direct Marketing Direct Marketing (con’t)(con’t)

THE POPULARITY AND GROWTH OF DIRECT MARKETINGTHE POPULARITY AND GROWTH OF DIRECT MARKETING Consumers’ Desire for ConvenienceConsumers’ Desire for Convenience Attitudes Toward CreditAttitudes Toward Credit Changes in TechnologyChanges in Technology Measurability in Direct MarketingMeasurability in Direct Marketing

Cost per Inquiry (CPI)Cost per Inquiry (CPI) Cost per Order (CPO)Cost per Order (CPO) Database MarketingDatabase Marketing

10.410.4

Direct Market Merchants Direct Market Merchants Have Flourished Due to Have Flourished Due to Technology and Consumers’Technology and Consumers’Desire for ConvenienceDesire for Convenience

10.5

Database MarketingDatabase Marketing

Mailing ListsMailing Lists Internal Mailing ListsInternal Mailing Lists External Mailing ListsExternal Mailing Lists

List EnhancementList Enhancement Marketing Database ApplicationsMarketing Database Applications

RFM AnalysisRFM Analysis Frequency Marketing ProgramsFrequency Marketing Programs Cross SellingCross Selling

10.610.6

Direct Marketing DatabasesDirect Marketing DatabasesAllow Very SpecificAllow Very SpecificTargeting of PromotionsTargeting of Promotions

10.7

Database Marketing Database Marketing (con’t)(con’t)

MEDIA APPLICATIONS IN DIRECT MARKETINGMEDIA APPLICATIONS IN DIRECT MARKETING Direct MailDirect Mail

SelectivitySelectivity FlexibilityFlexibility Consumer PreferenceConsumer Preference

TelemarketingTelemarketing CatalogsCatalogs InfomercialsInfomercials Direct Marketing in Other MediaDirect Marketing in Other Media

Bind-in Insert CardBind-in Insert Card Toll Free Numbers in Traditional MediaToll Free Numbers in Traditional Media

10.810.8

Catalogs Are An Catalogs Are An Important Medium in the Important Medium in the Direct Marketing ProcessDirect Marketing Process

10.9

e-Commercee-Commerce

Popularity Basis Same as Direct MarketingPopularity Basis Same as Direct Marketing ConvenienceConvenience Acceptance of CreditAcceptance of Credit Changes in Technology and Measurability of ResultsChanges in Technology and Measurability of Results

Business-to-Consumer and Business-to-Business Business-to-Consumer and Business-to-Business e-Commerce: B2B is most powerfule-Commerce: B2B is most powerful

10.1010.10

Like Direct Marketing,TtheLike Direct Marketing,TthePopularity of e-CommercePopularity of e-Commerceis Due to the Convenience itis Due to the Convenience itOffers ConsumersOffers Consumers

10.11

Model of the Stages of e-CommerceModel of the Stages of e-Commerce

P ro filin g

P a ym en t, F u lfillm en t & F o llow -u p

E xc h a n ge

P erson a liz e a n d C u s tom iz e

C om m u n ic a te

A ttra c t C u s tom ers

Id en tify C u s tom ers

e-Commerce e-Commerce (con’t)(con’t)

SETTING UP & MANAGING e-COMMERCE SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCEOPERATION – A MODEL OF e-COMMERCE Identify CustomersIdentify Customers Attract CustomersAttract Customers CommunicateCommunicate Personalize and CustomizePersonalize and Customize

10.1310.13

There are Many There are Many Facilitators AvailableFacilitators Availablefor the e-Commerce for the e-Commerce EffortEffort

10.14

e-Commercee-Commerce (con’t)(con’t)

SETTING UP & MANAGING e-COMMERCE SETTING UP & MANAGING e-COMMERCE OPERATION – A MODEL OF e-COMMERCE (con’t)OPERATION – A MODEL OF e-COMMERCE (con’t)ExchangeExchange

PlatformsPlatforms

Payment, Fulfillment and Follow-upPayment, Fulfillment and Follow-upProfilingProfiling

Sites Visited, Purchases Made, Info GatheredSites Visited, Purchases Made, Info Gathered Site Learns about Consumers when VisitedSite Learns about Consumers when Visited Data Mining Captures all Consumer Data/Analyzes BehaviorData Mining Captures all Consumer Data/Analyzes Behavior

10.1510.15

Coordinating Direct Marketing, Coordinating Direct Marketing, e-Commerce, and IMCe-Commerce, and IMC

Tremendous ChallengeTremendous Challenge Organizations Need to Seek SynergyOrganizations Need to Seek Synergy Coordination is Needed for Internal and Coordination is Needed for Internal and

External SpecialistsExternal Specialists Firms are Turning to a Firms are Turning to a Marcom ManagerMarcom Manager to Facilitate Coordinationto Facilitate Coordination

10.16