1. When It Comes to Marketing,
Think Like An Investor
Retaining customers is mission critical for profitability.
Aijaz Shahid
aijazshahid@gmail.com
fb: directmarketing1
03315575501

2. Chapter-4
DM and Technology

3. DIRECT MARKETING “A
TECHNOLOGY
INTENSIVE BUSINESS”
We live in a world where 66% of online adults are connected to one
or more social media platforms; that’s over 10.4 million users on
Pinterest, over 200 million active Twitter accounts, over 850 million
users on Facebook, over 135 millions users on LinkedIn, and over
90 million users on Google
According to the DMA, commercial email marketing is bringing in a
much higher return for every dollar spent than every other marketing
channel. In 2011, email marketing brought in $40.56 for every dollar
spent on it throughout the year. Social networking’s return was
$12.71 in 2011. This number is expected to increase, with a
projected return of $12.90 in 2012.

4. Interactive TV
For a long while TV advertisers have longed for the ability to monitor
and interact with their TV audience, and now they can .
The majority of us now have cable, SKY or similar digital TV and
with this comes the ability to interact with our TVs, programs and watch or
re-watch what we want when we want, even pause live TV
We all have seen the TV programmes telling us to push the red or
blue buttons, most of us have tried it, most of us have gone into our digital
TV options to buy films to watch, find a programme we have missed or
even search the internet and send emails or play games. For the consumer
this interactive TV has entered our lives without us even really realizing it.
Source:
Wikipedia/google

5. Interactive TV (ITV or iTV) is an approach to television advertising
and programming that creates the opportunity for viewers to
communicate with advertisers and programming executives by
responding to a call to action.
Examples:
» The new interactive channel will allow TVG Network viewers to
access the latest racing news, race information, odds and
results on horse races televised live by TVG. In certain markets
where legally available, users will be able to bet on horse races
using their remote control.
» The interactive television application enables Dish Network
viewers to access graphically rich headlines and stories, vote in
polls and review on-air schedules while viewing the CNN
channel.

6. Infomercials
An infomercial is commonly referred to as a long form commercial. An
infomercial is an excellent medium for selling certain types of products such as:
» Highly Demonstrable
» Priced at $39.95 or above
» Products that require a longer format, in order to thoroughly educate the
consumer about the product's features and benefits.
» Products that appeal to consumers' emotions through the use of testimonials.
ő There are typically 3-4 segments in an infomercial.
ő These segments usually include product demonstrations outlining the product's
features and benefits, testimonials, and for some health and beauty and fitness
type products, before and after photos.
ő Each segment is followed by a call-to-action (CTA). The CTA is the key selling
portion of the infomercial and is usually 2-3 minutes in length.
ő The CTA includes a recap of the product features and benefits, the offer and the
price, plus the 800 number and website address.

7. ő Typically a successful infomercial campaign runs for six to twelve months
and then the product is often taken to retail.
ő Retailers are very interested in stocking successful infomercial products
because they know that consumers will be seeking out the product at
retail.
The products frequently marketed through infomercials may
include:
 Cleaning products,
 Food preparation devices,
 Dietary supplements,
 Alternative health aids,
 Real estate investment strategies,
 Beauty supplies/baldness remedies/weight loss products,
Personal fitness devices/home exercise machines
Source:
infomercialdrtv.com

8. Home Shopping
Channels
Home shopping commonly refers to the electronic retailing/home shopping
channels industry, which includes such billion dollar television-based and e-
commerce companies as Liquidation Channel, HSN, QVC, Jewelry
Television, eBay, ShopNBC, Buy.com, and Amazon.com.
Home shopping allows consumers to shop for goods from the privacy of their
own home, as opposed to traditional shopping, which requires one to visit
stores and shopping malls.
There are three main types of home shopping: mail or telephone ordering
from catalog; telephone ordering in response to advertisements in print
and electronic media (such as journals, TV and radio); and online
shopping.
The home shopping/electronic retailing industry was created in 1977, when small
market talk radio show host Bob Circosta was asked to sell avocado-green-colored
can openers live on the air by station owner Bud Paxson, when an advertiser traded
112 units of product instead of paying his advertising bill. Source: Wikipedia

9. World’s Famous
Home Shopping
Channels
USA Australia
– America's Store – Expo Channel
– Home Shopping Network – TVSN
– QVC
– Shop at Home Network Canada
– ShopNBC – Shopping TVA
– The Jewelry Channel – ShopTV Canada
– America's Auction Network – The Shopping Channel
United Kingdom India
– bid tv – HomeShop 18
– Create and Craft
– Ideal World Other countries
– price-drop tv – TV SHOP
– QVC UK – European Home Shopping
– JML Direct TV – La Tienda en Casa
– Screenshop

10. Online Services
The Internet is an important direct marketing tool because of its
ease of use, low advertising costs and ability to reach a worldwide
market.
Θ Email remains the primary vehicle for delivering personalized marketing
messages directly to individuals and businesses.
Θ Social Media Outlets , such as Facebook and Twitter, complement
email marketing because it drives marketing relationships with potential
customers. Social media can connect a business with new fans and
followers who then can be converted into customers using a direct email
marketing campaign
Θ Online Chat - Online chat mechanisms provide a forum where
customers can come together and share their experiences with each
other and you. This interactive tool allows you direct access to customer
opinions where you can gauge trends and determine their views on the
industry.
Source: Wikipedia

11. Θ Search Engine Marketing: 49% of US spending on Internet ads goes
to search, in which advertisers pay for prominent placement among
listings in search engines whenever a potential customer enters a
relevant search term, allowing ads to be delivered to customers based
upon their already-indicated search criteria This paid placement industry
generates more than $10 billion dollars for search companies.
Marketers also use search engine optimization to drive traffic to their
sites.
Θ Display Ads are interactive ads that appear on the Web next to content
on Web pages or Web services. Formats include static banners, pop
ups, videos, and floating units. Customers can click on the ad to
respond directly to the message or to find more detailed information.
According to research by eMarketer, expenditures on online display ads
rose 24.5% between 2010 and 2011.
Source: Wikipedia

12. Θ PURL, or personal websites, are micro sites used to capture
direct mail or email campaign responses. Each PURL is
customized with text, images, voice or animated technology with
information and incentives specifically targeted for each person’s
needs or interests.
» Pages Personalized to the visitors by using their name and
other relevant information.
» Make sure the offer stands out and is above the fold -
Weather it is to take a survey, fill out a contest entry,
download a white paper, schedule a free consultation, etc...
» The number of pages should be limit. If you have more than
one page, your microsite should be no more than 5 pages.
» Keep a strong, consistent design theme - The main headline,
offer, and overall look should match the promotional piece
that drove them to the PURL.
PURL Video

13. » Only ask for information you need and will use. - The less
information you ask from the visitor, the better.
» Remove anything that is not necessary. Only show parts of
the site that is pertinent and encourages the visitor to take
action
What many businesses have encountered using PURL technology:
 55-60% response rates
 $122 ROI per $1 spent on marketing
 Hundreds of new leads from one marketing campaign
Source: Wikipedia

14. QR Marketing , also called barcode marketing, is a type of marketing of
products and services on any mobile device like cell phones and tablets. A
2010 report by the Pew Internet and American Life Project says that 55
percent of American adults connect to the Internet wirelessly from laptops or
mobile devices. QR marketing is one way companies are trying to reach this
segment of the population.
How QR Codes Work:
QR codes, or quick response codes, are two-dimensional bar codes that
hold a dozen to a hundred times more information than a regular bar code
that holds up to 20 digits, according to the creators of the QR codes, Denso
Wave Incorporated. Mobile device users can use their QR code reader
software to scan the code, which gives them information about a company
or contains some marketing information or a product discount. Once a user
scans the code, he can immediately take advantage of whatever information
is held in the code. For example, users can immediately apply coupon
discounts to their purchases.
Source: Wikipedia

15. Online Shopping
Online shopping is a form of electronic commerce whereby
consumers directly buy goods or services from a seller over
the Internet without an intermediary service. An online shop, eshop,
e-store, Internet shop, webshop, webstore, online store, or virtual
store evokes the physical analogy of buying products or services at
a bricks-and-mortar
retailer or shopping centre
The process is called business-to-consumer (B2C) online shopping.
When a business buys from another business it is called business-
to-business (B2B) online shopping
Source: Wikipedia

16. The Consumer
Needs
ő Prestige
 People gain esteem by being knowledgeable about and using the
technology
ő Convenience
 Everything is available at consumers fingertips; they do not have
to leave the living room to shop.
ő Instant Gratification
 Formation is available when the user wants it, rather than at
specified time
ő Novelty and Excitement
 Consumers become part of the online community

17. ő Efficiency
 Consumers can engage in one stop shopping
ő Ease of Use
 All users have to do is just press the buttons
ő Timelessness
 Consumers have the advantage of “real time” information, for
example, buying stocks

18. The Internet
The internet in simple terms is a network of the interlinked computer
networking worldwide, which is accessible to the general public. These
interconnected computers work by transmitting data through a special
type of packet switching which is known as the IP or the internet
protocol.
 It is a network of networks that consists of millions of private, public,
academic, business, and government networks, of local to global
scope, that are linked by a broad array of electronic, wireless and
optical networking technologies.
 The Internet has enabled or accelerated new forms of human
interactions through instant messaging, Internet forums, and social
networking. Online shopping has boomed both for major retail outlets
and small artisans and traders. Business-to-business and financial
services on the Internet affect supply chains across entire industries.
 There is a very significant difference between the internet & WWW.
The internet and World Wide Web are both the networks yet; the
internet is the network of the several different computers which are
connected through the linkage of the accessories like the copper
wires, the fiber optics and even the latest wireless connections.

19.  However, the World Wide Web consists of the interlinked collection of
the information and documents which are taken as the resource by the
general public. These are then linked by the website URLs and the
hyperlinks. Therefore World Wide Web is one of the services offered by
the whole complicated and huge network of the internet.
 The Internet has no centralized governance in either technological
implementation or policies for access and usage; each constituent
network sets its own standards.
 Only the overreaching definitions of the two principal name spaces in the
Internet, the Internet Protocol address space and the Domain Name
System, are directed by a maintainer organization, the Internet
Corporation for Assigned Names and Numbers (ICANN).
 The technical underpinning and standardization of the core protocols
(IPv4 and IPv6) is an activity of the Internet Engineering Task Force
(IETF), a non-profit organization of loosely affiliated international
participants that anyone may associate with by contributing technical
expertise.
Source:
Wikipedia/Webopedia

20. The Internet
Demographics
According to Internet World Stats, as of December 31, 2011 there
was an estimated 2,267,233,742 Internet users worldwide. This
represents 32.7% of the world's population.
 More than 100 countries are linked into exchanges of data, news and
opinions.
 As of 2011, more than 2.1 billion people — nearly a third of Earth's
population — use the services of the Internet
 In Asia: 922,329,554 (or 23.8% of the population in the region and
44.0% of the total online population); up by 706.9% compared to
2000
 In Pakistan 29,128,970 Internet users are recorded as of Dec.31,
2011, 15.5% penetration.
 5,887,400 Facebook users on Dec 31/11, 3.1% penetration
Source:
Wikipedia/Webopedia

21. Direct Marketing
on the Internet
 Direct Marketeers must gain an understanding of medium’s attributes and of
the segments.
 The Internet offers a great way to reach customers economically and
effectively
 The goal of Internet direct mail is the same as traditional direct mail
marketing - to generate leads and orders.
 Shorter is better. If some prospects require more information, provide a link
to your website where they can get it.
 FROM and SUBJECT are very important. People are very concerned about
computer viruses and are quick to delete an e-mail.
 Your first paragraph or two should be a summary of your whole e-mail.
 Include multiple response options for your prospects, but ALWAYS
remember to have a web-based response form. Many users prefer to keep
the entire transaction on-line

22.  Use viral marketing. Encourage your e-mail recipient to forward your
offer/message to others who may be interested.
 On-line users prefer free trials or bill-me-later offers to money-back
guarantees. While online transactions are increasing every day, many people
are still wary about sending their credit card information over the Internet.
They would much rather just send their shipping information, try the product
for a while, and then choose their payment option when the time comes.
 ALWAYS include an opt-out statement! The only thing more powerful than
good will towards your company is ill will. Don't make any customer feel like
they have been spammed. Include an un-subscribe or remove statement at
the end of your e-mail. Be sure to remove them from any future mailings.
 The opt-out statement should read something like this: "We at XYZ Company
respect your online privacy. If you received this message in error or simply
do not wish to receive further e-mails from us, please reply to this e-mail with
REMOVE in the subject line."
Source: deer-library.com

23. Surviving the
Technological
Revolution
• Direct Marketer need to expand their customer base on a regional
and global basis
• To survive in an era of rapid change, companies need to respond
quickly to events by strategically using information about markets,
customers, and prospects.
• Medium and small size companies will need to grow smarter
• Survival will become difficult and the need for developing strategic
partnerships will become crucial.
• In an environment exploding with new communications choices,
direct marketeers continue to use all forms of media to directly
contact and elicit responses from their target markets.

24. Thank You