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    By- Prof. Snehal Chincholkar

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    What is Direct Marketing ?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.

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    What can be sold via direct marketing ?What can be sold via direct marketing ?

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    y The term direct marketingis believed to have been first used in

    1967 in a speech by LesterWunderman, who pioneered direct

    marketing techniques with brands such as American Express and

    Columbia Records.

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    Reasons for the growth in directReasons for the growth in direct

    marketingmarketing

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    Objectives of direct marketingObjectives of direct marketing

    Direct ordering.

    Providing information.

    Visit generation.

    Trial generation.

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    Techniques of Direct MarketingTechniques of Direct Marketing

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    Tele MarketingTele 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 duringthe call.

    The two major categories of telemarketing areBusiness-to-business

    Business-to-consumer.

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    SubcategoriesSubcategories

    y Lead Generation, the gathering of information

    y Sales, using persuasion to sell a product or service

    y Outbound, proactive marketing in which prospective and

    preexisting customers are contacted directly

    y Inbound, reactive reception of incoming orders and requests for

    information. Demand is generally created by advertising,

    publicity, or the efforts of outside salespeople.

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    Applications of telemarketingApplications 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.

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    Direct mailDirect 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 involvebulk mail.

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    Junk mail includes-

    Advertising circulars,

    Catalogs.

    Free trial CDs.

    Unsolicited merchandising invitations.

    That may be of two types-Individual Mail

    Catalogs

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    DRTVDRTV

    y Direct marketing on TV (commonly referred to as DRTV) has

    two basic forms:

    y Long form (usually half-hour or hour-long segments that

    explain a product in detail and are commonly referred to asinfomercials)

    y 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).

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    Direct sellingDirect sellingy 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 indirectmeans such as Tupperware

    parties.

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    Door to Door LeafletDoor to Door Leaflet

    MarketingMarketingy Leaflet Distribution services are used extensively by the fast foodindustries, 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 ofhome occupants.

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    Voicemail MarketingVoicemail 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 .

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    Direct Response printDirect Response print MdiaMdia

    y Magazines

    y Newspapers

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    Mail Order Marketing or Mail orderMail Order Marketing or Mail order

    businessbusiness

    y The entire process takes place by mail from buyer up to

    the seller.

    y Ex-Anjali textile ,Surat Diamonds , Mothercare India.

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    A Comparison ........A Comparison ........

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    New Direct MarketingApproachesNew Direct MarketingApproaches

    y Internet Direct Marketing

    y Videotex Direct Marketing

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    Integrated CampaignsIntegrated 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 campaignsstudied were employing integrated strategies. Of those, almost half

    (47%) launched with a direct mail campaign, typically followed by

    e-mail and then telemarketing.

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    Managing a direct marketingManaging a direct marketing

    campaigncampaign

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    Reasons for the growth ofDirectReasons for the growth ofDirect

    MarketingMarketing

    y Changing Life style

    y Gaps in retailing

    y Technologyy Consumer credit

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    Database MarketingDatabase Marketing

    Database Definition:

    A marketing database is a comprehensive collection of interrelateddata serving multiple applications, allowing timely and accurate on-demand retrieval of relevant data, and having a data management

    system independent of application.

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    DMAdvantages:DMAdvantages:

    y Lead grading

    y Customized targeting at the right time

    y New information & past results help formulate strategy

    y Information can drive new programs & fuel new revenue sources

    y Information can foster new services & generate repeat orders

    y Ongoing communication efforts can increase customer loyalty

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    Internet MarketingInternet Marketing

    y Internet marketing, also known as digital marketing, web marketing, online

    marketing, ore-marketing, is the marketing of products or services over the

    Internet.

    y Internet marketing ties together the creative and technical aspects of the Internet,

    including design, development, advertising, and sales. Internet marketing alsorefers 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.

    y 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 ofWeb 2.0 include social

    networking sites, blogs, wikis, video sharing sites, hosted services

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    Types Of Internet MarketingTypes Of Internet Marketing

    y Search Engine Optimization ( SEO)

    y Search Engine Marketing(SEM)

    y

    Digital Asset Optimizationy Viral Marketing

    y Email Marketing

    y Affiliated Marketing

    y Blog Marketing

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    Search Engine Optimization ( SEO)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.

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    Search Engine Marketing(SEMSearch Engine 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.

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    Digital Asset OptimizationDigital 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.

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    Viral MarketingViral Marketing

    Marketing phenomenon that facilitates and encourages people topass along a marketing message.

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    These are few types ofViral MarketingThese are few types ofViral 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.

    y

    Incentivized viral: A reward is offered for either passing a message alongor providing someone else's address. This can dramatically increase

    referrals. However, this is most effective when the offer requires another

    person to take action.

    y

    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.

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    Continue..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.

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    EE--mail Marketingmail 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

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    Blog MarketingBlog 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.

    y 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-

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    Affiliated MarketingAffiliated 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.

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    Social NetworkingSocial Networking

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    IndiaAnd Internet MarketingIndiaAnd Internet Marketing

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    Advantages of Internet MarketingAdvantages of Internet Marketing

    y Internet marketing is relatively inexpensive when

    compared to the ratio of cost against the reach of the

    target audience.

    y Wide range of audience.(Even global)

    y Measuring statistically is easy and inexpensive.

    y Can be customized.

    y Quick.

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    Challenges ..Challenges ..

    y Education/Awareness

    y Legal/regulatory problems

    1. E-documentation not yet legally admissible.

    2. Absence of taxation law

    y Infrastructural Problems

    1. Low density of telephone, Pcs and Internet

    2. Bandwidth Limitation

    3. Networking Limitation

    4. Infrastructure and bottlenecks at the delivery end

    y

    Commercial Problemsy Other problems-

    1. Confidence in system is low

    2. Problem of Hacking

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    ReferencesReferences

    y Direct marketing by Mukesh Chaudhary

    y Direct Marketing by William J. McDonald

    y Marketing Management by V S

    Ramaswamy

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    Thanks..