Direct and online marketing can be summarized in 3 sentences:
Direct marketing involves communicating with customers through personal channels like mail, email, phone calls and face-to-face interactions to maximize the probability of the intended audience receiving the message. It aims to create value for customers through product creation, communicating that value through personal channels of communication, and delivering value directly. The document then discusses various forms of direct marketing like direct mail, catalogs, telephone marketing, and digital methods like email, mobile, and online marketing.
2. Contents
Introduction to Marketing
Direct Marketing
Forms of Direct Marketing
Online Marketing
Mobile Marketing
Public policy issues in Marketing
3. Marketing
Marketing, as we all know, is the activity, set of
institutions and processes for creating, communicating,
delivering and exchanging offerings that have value for
customers, clients, partners and society at large. ( AMA )
CREATING VALUE: It deals with the product or service
that you want to market. How you want the product to be
differentiated, what you want it to be perceived like and
how you want to price it.
COMMUNICATING VALUE: How you want to tell your
customer about your product or service. This is the part
where how we ‘perceive’ marketing comes into the
picture.
DELIVERING VALUE: How you actually want to deliver
4. ‘Communicating value’
There are broadly two ways in which value is
‘communicated’ to prospective customers by a
company interested in selling its product or service:
1. Personal Marketing: As the name suggests,
personal marketing means reaching out to potential
customers personally, via targeted advertising, so as
to maximize the probability of the message reaching
the intended audience. ( E.g.: Direct Marketing)
2. General Marketing: This type of marketing aims to
reach out to as many people as possible via various
means so as to maximize the amount of people that
may get interested in buying the product.
5. What is Direct Marketing ?
Direct marketing is a form of advertising which allows
businesses to communicate directly to customers
(thereby eliminating middlemen) through a variety of
media including text messaging, email, websites, online
adverts, database marketing and targeted television,
newspaper and magazine advertisements as well as
outdoor advertising and face to face marketing.
6. Past and Present of Direct
marketing
Direct marketing began in the 19th century with
Montgomery Ward’s mail-order catalogues.
The Direct Marketing Association (DMA) was established
in 1917 as a trade organization that provided research,
education and support for developing direct marketing.
Direct mail campaigns expanded greatly after the
creation of bulk mail rates in 1928.
In 1967, Lester Wunderman (also considered as the
father of contemporary direct marketing) identified,
named, and defined the term "direct marketing".
7. Past and Present of Direct
marketing
Direct marketing is the fastest growing form of marketing.
The DMA estimates that every dollar spent on direct
marketing yields a return on investment of $11.73 -
compared with an estimated $5.23 for indirect advertising
such as newspaper or magazine ads.
The Direct Marketing Association (DMA) reported in 2015
that more than half of all advertising expenditures went
toward direct advertising. To the tune of around $513
Billion (Source: www.stastica.com)
8. How is Direct Marketing done?
1. Since direct marketing is specific and targeted, it
begins with data. Marketers examine the categories
of customers that the product would be most suited to
and who maybe interested in the products and then
make or procure lists for contacting them.
2. This data can be procured through various sources,
both public and commercial. For example, the number
of people who signed up to receive notifications for a
particular offer or the number of people between the
ages of 18 and 25 in a particular area.
3. The marketer then uses various channels like mails,
e-mails, telephone calls, face to face interaction or a
combination of these to reach out to that identified
9. How is Direct Marketing done?
4. Then comes a call to action. It is basically an
instruction to the audience to give an immediate
response to the advertisement just witnessed by them
by urging them to “call now” or visit your nearest store
today”.
5. Next comes measuring and tracking responses.
After potential customers have performed their ‘call to
action’, there needs to be a mechanism to track their
responses in order to build on this data for future
action.
6. Finally, the responses tracked above could be used to
gauge how successful the campaign has been and
if any changes need to be made in order to reach out
10. Benefits of Direct Marketing
BENEFITS TO BUYERS
Convenient.
Ready access to many products.
Access to comparative information about companies,
products, and competitors.
Interactive and immediate.
11. Benefits of Direct Marketing
BENEFITS TO SELLERS
Tool to build customer relationships.
Low-cost, efficient, fast alternative to reach markets.
Flexible and changes can be made quickly.
Access to buyers not reachable through other
channels.
12. Avoidable Mistakes
Now, not all is hunky dory in the word of direct marketing.
The seemingly golden and benefit laden world of direct
marketing has its grey areas…. And there are a few things
that we need to avoid in order to really reap the benefit of
this style of marketing.
I. BAD DATA : Bad data means inaccurate data. And bad
data also means bad targeting, bad targeting means
bad strategizing. Bad strategizing means bad planning
and bad execution. And Too much bad never makes it
good.
II. NO CALL TO ACTION : One of the most important aspects
of direct marketing is its quality of coaxing consumers
into giving a response/reacting to the advertisements
13. Avoidable Mistakes
III. BAD DESIGN : The design of an advertisement is critical
to sustaining the interest of the prospective customer as
well as being the foundation towards making the product
or the offer more realistic looking and relevant to the
customer. He will react positively to the advertisement
only if he is first convinced by the overall design of the
ad.
IV. IRRELEVANT OFFER : The offer needs to be practical,
relevant and appealing to target audience. With the
amount of intelligent and carefully targeted advertising in
today’s world, it is important to always make a
reasonable and relevant offer to your customer.
14. Forms of Direct Marketing
Personal selling direct marketing
Direct-mail direct marketing
Catalog direct marketing
Telephone marketing
Direct-response television marketing
Kiosk marketing
Digital direct marketing
Online marketing
15. Personal Selling Direct Marketing
Personal selling, as the name implies, is one
technique where the seller seeks to develop
relationships with customers and makes use of
communication and negotiation skills to close the
sale of a product or service that is complex and
cannot sell on its own off the shelves in a market
place.
Prospecting
Identify and qualify potential customers (called
prospects)
Pre-approach
Learn as much as possible about prospects before
making sales calls
Approach
Meet potential customer for first time
Presentation
16. Personal Selling Process
Handling Objections
Seek out, clarify, and overcome customer
objections to buying
Turn objections into reasons for buying
Closing—Ask for an order
Difficult if lack confidence or feel guilty asking
Follow-up
After the sale effort to ensure customer satisfaction
and repeat business
Selling process is transaction oriented; most
firms go beyond this and attempt to build
mutually profitable relationships
17. Example of Personal Selling
Mary Kay Cosmetics, unlike most other consumer product
companies, relies primarily on personal selling which takes place
in independent interactions or at Mary Kay parties where sellers
and buyers meet. Mary Kay products are not available in
retail stores.
18. Direct-mail marketing
Direct-mail marketing involves an offer,
announcement, reminder, or other item to a
person at a particular address
involves mailing of letters, ads, samples, foldouts…
sent to potential customers on mailing lists.
The mailing lists are developed from customer lists
or obtained from mailing-list houses.
It permits high target market selectivity, can be
personalized, is flexible and allows easy
measurement of results.
It costs more than TV or magazine advertising per
person.
19. Direct Mail Strategies
Solo
Direct Mail
Individually
prepared offers
sent directly to
prospects
Co-operative
Direct Mail
Special offers from
non-competing
products in one
envelope
20. Direct Mail as an Advertising Medium
Research indicates 84% of people will open a direct
mail piece if their name is on it
77% are likely to read direct mail if addressed to
them.
Advantages include: Audience selectivity, High
reach, Geographic flexibility, Creative flexibility,
Distribution of Incentives
Disadvantages include: Image and life span,
Potential delivery delays, High cost per exposure
21. Example of Direct-mail marketing
Direct marketing is often used as a
tool to promote food products, with
chocolate manufacturers Nestle
also getting in on the act. They sent
out a mailer that was made to look
like the card left by postmen when
they’re unable to deliver a parcel.
Instead of saying that a package
couldn’t be delivered, however, the
mailer claimed that the package
(KitKat chunky) was unable to be
posted as it was ‘too chunky for
your letterbox’. The lucky recipients
were able to exchange their card at
22. Example of Direct-mail marketing
Designed as a direct
mail campaign to raise
awareness about the
amount of energy that
we waste when we leave
our lights on overnight,
The Earth Hour Candle
Box was a triumph of
direct mail. As the candle
was pulled out of the
box, its design allowed it
to simulate lights being
switched off. The
uniquely packaged
Earth Hour Candle Box
23. Catalog direct marketing
Catalog marketing is a sales technique used by
businesses to group many items together in a printed
piece or an online store, hoping to sell at least one item
to the recipient. Consumers buy directly from the
catalog sender by phone, return envelope or online
using information in the catalog.
Products from various companies or vendors may be
combined into a single catalogue to provide a one shop
point for customer looking out for a particular type of
product.
The catalogues are generally in printed form but can
also be distributed in the form of CDs.
To avoid printing and distribution costs, the catalogues
are being increasingly made available online.
24. Catalog direct marketing
Catalog direct marketing involves printed and Web-
based catalogs
Benefits of Web-based
catalogs
• Lower cost than
printed catalogs
• Unlimited amount of
merchandise
• Real-time
merchandising
• Interactive content
• Promotional features
Challenges of Web-
based catalogs
• Require marketing
• Difficulties in
attracting new
customers
25. Example of Catalog direct marketing
•Avon is a good example of
a company successfully
leveraging this channel to
sell its range of cosmetics.
Avon Campaign 24, 2016
has been recently launched
which contains variety of
products.
•Futurebazaar.com, a
subsidiary of Pantaloon
Retail, provides e-catalogs
on its Website with lists,
photographs and prices of
thousands of products along
26. Telephone direct marketing
Telephone direct marketing involves using the
telephone to sell directly to consumers and
business customers
Outbound telephone marketing sells directly to
consumers and businesses
Inbound telephone marketing uses toll-free
numbers to receive orders from television and
print ads, direct mail, and catalogs
Provides purchasing convenience and increased
product or service information.
However, too much use it can annoy customers.
It is also a major fund-raising tool for nonprofit
organizations.
27. Inbound/Outbound Telemarketing
Inbound – the reception of calls by the order desk,
customer inquiry, and direct –response calls often
generated through the use of toll-free 1-800 or 1-
888 numbers
Outbound – calls that a company makes to
customers to develop new accounts, generate sales
leads, and even close a sale.
Call
Centre
Outbound
Inbound
28. Consumer’s Right to Privacy
In 2005, the federal government passed “do-not-
call” legislation to further protect unwanted phone
calls. Below are more details on the CMA’s
privacy code.
29. Telemarketing
Telemarketing is cost efficient. It is much less
expensive than personal selling and mass
advertising.
Proper training and preparation of representatives is
crucial.
The message delivered is as important as the
medium itself.
Scripting plays a significant role in the success of a
telemarketing campaign. Here are some basic tips
for the telemarketer:
Focus on the relationship
Adjust the script approach for your audience
Empathize with the receivers
Establish rapport and gain attention quickly
30. Examples of Telephone direct marketing
There are large number of call centers for both
inbound and outbound telemarketing. Wipro BPO
Solutions and Daksh by IBM are two such major
players in this sector.
ICICI, HDFC, Reliance have their own call
centers to attend to customers to queries.
Bank and credit card companies.
Offers for “instant loans”.
Cosmetic company L’Oreal India has toll free
number on which it offers expert advice about
looking good.
31. Direct-response television
Direct-response television (DRTV) marketing
involves advertisements that describe products or
give customers a toll-free number or Web site to
purchase.
There are three forms of direct response
television:
1. 60-second or shorter commercials
2. Infomercials
3. Direct home shopping
In each case, the use of toll-free telephone
numbers, websites, and credit cards makes the
32. Types of DRTV advertising
Short-form
Vary in length from 15-120 seconds
Long-form
Commonly referred to as infomercials
May last 30-60 minutes
Include characters and follow a script
33. Direct-Response Television
Direct response commercials are classified based on
the intent of the ad.
“Buy now”or “Limited time
offer.” Immediate action is
the goal.
Establish leads, drives retail
traffics, create awareness,
and build image (longer
term strategy).
Traditional/Sales
Corporate
or Brand
34. Examples of DRTV
DRTV as sales channel Example:
The Dirt Devil Broom Vacuum Cleaner was only
available on TV for three months before retail launch.
Mass merchant retailers often have "as seen on TV"
sections in their stores.
DRTV as advertising for brand marketers and
retailers Example:
P&G, Toyota, Philips Consumer Electronics, DuPont
(Teflon), Hamilton-Beach, Space Bag, Rubbermaid
DRTV has also become a commonly used advertising
medium for insurance companies, mortgage
companies, cell phone providers, credit card
companies, and a host of other services.
35. Kiosk marketing
A Kiosk is a small stand-alone unit that performs a
specific function, generally without management
intervention and are generally intended to provide
information to those that use it.
Kiosks are generally small, and are designed to help
the consumer find information and they can be
strategically placed anywhere.
Main functions include:
Kiosks are designed to deliver information to the
consumer in the absence of a human.
They can sometimes provide information or services
to more than one individual at a time.
36. Benefit of Kiosk
Kiosks in any environment
increase public awareness and
save labor overhead
Printing-on-demand option for
information kiosks saves
preprinted forms costs
Targeted loyalty offers or special
promotions improve customer
service as well as increase sales
Self-service kiosks reduce costs
by lowering employee headcount
Reduced costs for basic service
levels
37. Digital direct marketing
Due to new digital technologies, direct marketers
today can reach customers anywhere, anytime,
about almost anything. New digital tools include;
E-mail
Mobile phone marketing
Podcasts and Vodcasts
Interactive TV
38. Mobile phone marketing
Mobile phone marketing
Mobile marketing is marketing on or with a
mobile device, such as a smart phone. It is
defined as "any marketing activity conducted
through a ubiquitous network to which consumers
are constantly connected using a personal mobile
device" :
SMS Marketing(Dominos, Pizza Hut)
Ring-tone giveaways
Mobile games
Ad-supported content
39. Digital direct marketing
Podcasts and vodcast involve the
downloading of audio and video files via the
Internet to a handheld device such as a PDA
or iPod and listening to them at the
consumer’s convenience. Eg.
New York Times Podcasts
Yoga Journal - Podcasts
Interactive TV (ITV) lets viewers interact with
television programming and advertising using
their remote controls and provides marketers
with an interactive and involving means to
reach targeted audiences.
40. MARKETERS MUST GO WHERE THE CUSTOMERS ARE, AND
INCREASINGLY THAT’S ONLINE
41. Online Marketing
New technologies have encouraged companies
to move from mass communication to more
targeted, two way communications
Result: Marketing communications occur as a
personal dialogue between the company and its
consumers
A COMPANY, THEREFORE, MUST ASK: How should we reach our customers?
How should our customers reach us?
How should our customers reach each
other?
44. WEBSITES
Companies must design websites that embody or
express their purpose, history, products and vision
and that are attractive on first viewing and
interesting enough to encourage repeat visits
Fig: 7 C’s of
designing an
effective Web
Site
Source: Phillip Kotler and Kevin Lane Keller, Marketing
CONTEXT: LAYOUT AND DESIGN
CONTENT: TEXT, PICTURE, SOUND, VIDEO ON SITE
COMMUNITY: HOW IT ENABLES USER TO USER
COMMUNICATION
CUSTOMISATION: ABILITY TO TAILOR ITSELF TO
DIFFERENT USERS
COMMUNICATION:ENABLES TWO-WAY
COMMUNICATION?
CONNECTION: DEGREE THAT THE SITE IS LINKED TO
OTHER SITES
COMMERCE: CAPAILITY TO ENABLE COMMERCIAL
TRANSACTIONS
45. WHAT DO CUSTOMERS WANT?
CUSTOMERS will judge a website’s performance based
on:
EASE OF USE
The site downloads quickly
The first page is easy to understand
It is easy to navigate to other pages that open quickly
PHYSICAL ATTRACTIVENESS
Individual pages are clean and not crammed with content
Typefaces and font sizes are very readable
The site makes good use of color
J.D. Power found that consumers who were “delighted”
with an automotive manufacturer’s website were more
likely to test drive one of its vehicles as a result
46. MICROSITES
Individual Web pages or clusters of pages that function
as supplements to a primary site.
Unlike regular websites, microsites tend to be rather
simplistic and easier to navigate. It helps brands
achieve a number of things:
To highlight a specific campaign
To tell a short story
Particularly relevant for companies selling low-
interest products
Example: Insurance companies
Create a microsite on used-car sites that offers
advice for buyers on used cars and a good
insurance deal at the same time
They say the bestthings
often come in small
packages
47. SEARCH ADS
Marketers bid in a continuous auction on search
items that serve as a proxy for the consumer’s
product or consumption interest
The cost per click depends on how highly the link
is ranked on the page and the popularity of the
keyword
Increased popularity of paid search has increased
competition among bidders
It has raised search ad prices
Choosing best keywords, bidding on them
strategically and monitoring their effectiveness is
imperative
48. SEARCH ENGINE OPTIMIZATION
Activities designed to improve the likelihood that a
link for a brand is as high as possible in the rank of
order of all non paid links when consumers search
for relevant items
GUIDELINES FOR SEO AND PAID SEARCH:
Broader search terms (iPod vs Apple iPod classic
160GB)
Search terms spotlighted on the website so
search engines can easily locate them
Bid on a keyword according to its likely return on
revenue
Collect data to track the effects of paid search
50. AdSense:
Allows publishers(bloggers) to tap into Google’s immense
advertising network so that other advertisers can run ads on
their website.
Once a blogger signs up, Google places a simple code on their
51. THIS IS PPC MARKETING
Pay-per-click marketing is a way of using
search engine advertising to generate clicks to
your website, rather than “earning” those clicks
organically.
52. DISPLAY ADS
Small, rectangular boxes containing text and
perhaps a picture that companies pay to place on
relevant websites.
The larger the audience the higher the cost
Display ads hold great promise compared to
popular search ads given that they are:
More attention-getting
Better targeted
More closely tracked
53. INTERSTITIALS
Advertisements, often with video or animation, that pop
up between page changes with a website or across
websites
Example: Ads for Johnson and Johnson’s Tylenol
headache reliever would pop up on broker’s websites
whenever the stock market fell by 100 points or more.
BUT
Consumers find such pop up ads
intrusive and distracting, and
therefore many use softwares to
block them
54. Coverfox wanted a fun way to remind people to
renew their insurance.
Working with Google and agency BBH India, the
firm tracked down people who had visited Coverfox,
but didn't end up renewing their insurance
Since no-one reads boring email reminders, the firm
decided to take over the things they actually pay
attention to
They used unskippable videos that intercepted
YouTube for several days, and continued to show
up until the target renewed his insurance
The brand succeeded because they created
entertaining and timely reminders that were hard to
miss
56. E-MAIL
E-mails allow marketers to inform and communicate
with customers at a fraction of the cost of a d-mail
campaign.
HOW TO MAXIMISE THE MARKETING VALUE OF E-MAILS
Give the customer a reason to respond
Personalise the content of your e-mails
Offer something a customer can’t get via a direct
mail
Make it easy for a customer to opt in as well as
unsubscribe
Combine email with other communications such
as social media
57. RESEARCH: To increase the effectiveness of emails,
some researchers employed ‘heat-mapping’ that
tracked eye movements with cameras to measure
what people read on their screen
RESULT: Clickable graphic icons and buttons that
linked to more details of a marketing offer increased
click through rates by 60 percent over links that used
just an internet address
VS
58. BEAUTY BREEDS SUCCESS FOR
WOMEN
Indian retailer Flipkart sent mass email claiming
'beauty breeds success' for women
The tone of the text, implying women can
only be successful if they are beautiful,
provoked outrage on Twitter.
59. ADVANTAGES
Greater audience potential
Offer or send tailored information that engage
customers
Better tracking
How many UV’s click on a page or ad
How long they spend with it
What do they do on it
Where do they go afterward
Contextual placement
Buy ads on sites related to your offerings
Place ads based on keywords typed on search engines
(reach people when they have actually started the buying
process)
60. DISADVANTAGES
Consumers can effectively screen out most
messages and emails
Marketers may think their ads are more effective
than they really are if BOGUS clicks are
generated by software-powered websites
Advertisers also lose some control over their
online messages, which can be hacked or
vandalized
But the pros can clearly outweigh the cons, and the internet is
attracting marketers of allkinds
62. MOBILE MARKETING
Mobile marketing is marketing on or with a
mobile device, such as a smart phone or a
tablet. Mobile marketing can provide customers
with time and location sensitive, personalized
information that promotes goods, services and
ideas .In a more theoretical manner, it can be
defined as "any marketing activity conducted
through a ubiquitous network to which consumers
are constantly connected using a personal mobile
device"
63.
64. MOBILE MARKETING
How Does Mobile
Marketing Work?
Mobile marketing
consists of ads that
appear on mobile
smartphones, tablets, or
other mobile devices.
Mobile marketing ad
formats, customization,
and styles can vary, as
many social media
platforms, websites, and
mobile apps offer their
own unique and tailored
Why You Need a
Mobile Marketing
Strategy?
A business needs a
mobile marketing
strategy for the same
reason that we need a
computer and wi-fi
access . According to
recent reports, 40% of
users’ internet time is
spent on mobile
devices, which means
simply ignoring the rise
65. INTERESTING STATISTICS
Some other interesting mobile marketing
statistics:
80% of mobile device time in spent on apps, with
game apps eating up the largest percent of app
time
People browse 70% more web pages on mobile
devices than desktops.
Mobile searches have increased 200% per year
over the past years
Mobile ad spending was over $18 billion
worldwide in 2013.
66. TYPES OF MOBILE MARKETING
STRATEGIES
App-based marketing: This is mobile advertising
involving mobile apps. Since 80% of mobile time
is spent engaged with apps, services like Google
AdMob help advertisers create mobile ads that
appear within third-party mobile apps.
Facebook also allows advertisers to create ads
that are integrated into Facebook’s mobile app.
Facebook’s mobile Promoted Post ads integrate
so seamlessly with Facebook’s news feed that
users often don’t realize they’re looking at ads.
67. In-game mobile marketing: In-game mobile
marketing refers to mobile ads that appear within
mobile games, like in the example below. In-
game ads can appear as banner pop-ups, full-
page image ads or even video ads that appear
between loading screens.
68. QR codes: QR codes are scanned by users, who
are then taken to a specific webpage that the QR
code is attached to. QR codes are often aligned
with mobile gamification and have an element of
mystery to them, since users who scan them
don’t always know exactly which rabbit hole
they’re jumping down.
Location-based marketing: Location-based
mobile ads are ads that appear on mobile devices
based upon a user’s location relative to a specific
area or business. For example, some advertisers
may only want their mobile ads to appear when
users are within a 1-mile radius of their business.
69. Mobile search ads: These are basic Google
search ads built for mobile, often featuring extra
add-on extensions like click-to-call or maps.
Mobile image ads: Image-based ads designed
to appear on mobile devices.
SMS: SMS marketing involves capturing a user’s
phone number and sending them text offers. This
is considered somewhat passé.
70. MOBILE MARKETING
PRACTISES
Be Clear and Concise: Mobile devices have
small screens, which means words should be
used sparingly. Cluttered and crowded ads will
just drive users to scroll past. When it comes to
mobile, it’s best to keep things simple.
Optimize for Local: 1 in 3 mobile searches have
local intent. Users often use mobile devices to
complement their immediate worldly interactions
– where is the nearest gas station? Is there a
nearby coffee shop that has wi-fi?
71. Consider Your Audience: The type of audience
influences the kind of mobile ads used. If they
gamers?,then try taking advantage of in-game
ads. If they are young and tech-savvy, Mobile
Facebook Promoted Posts might be more likely to
get their attention.
Experiment with Different Strategies: There’s a
lot of room for experimentation when it comes to
mobile marketing.
Benchmark Your Results: Experimenting is
great, but there’s no point in trying new
techniques if you’re not tracking your results to
see what works and what doesn’t.
72. CASE: How Colgate reached
700,000 people with just $8,000
mobile spend
Colgate wanted to increase toothpaste
penetration in rural India by educating consumers
about oral hygiene and the benefits of using
toothpaste regularly vs. traditional, natural
products that were only being used sporadically.
The brand chose to reach out to these consumers
at the Maha Kumbh Mela, a large spiritual
gathering for Hindi pilgrims, using mobile and
location-based technologies. This case study
looks at how the brand managed successful
mobile marketing on a budget.
73. STRATEGY AND EXECUTION
With a limited budget of $8,000, Colgate had to
be extremely strategic in determining how it would
reach the Maha Kumbh Mela pilgrims. Since most
of the pilgrims are from areas with low literary
rates, it was decided that voice-based
communications via a mobile phone would be
most effective in driving consumers to the Colgate
booth at the gathering.
74. Using location-based targeting, Colgate created a
virtual circle around the pilgrimage site by tagging
three nearby cellular towers. When pilgrims entered
this circle, their phones were identified and they
received a call from Amin Sayani, a legendary Indian
radio personality, telling them to visit the Colgate
booth for free samples, a chance to win prizes, and
entertainment.
In the past, location-based targeting had only been
used in India in metropolitan areas and primarily
focused on text messaging or banner ads, making
Colgate’s campaign the first of its kind in India.
75. RESULTS
The purpose of this campaign was not to directly
affect Colgate’s bottom line. Rather, the goal was
to open up a new method for reaching consumers
that Colgate had not had contact with previously
using mobile marketing on a budget. During
Maha Kumbh Mela, foot traffic to the Colgate
booth increased by over 300 percent vs. the pre-
promotion period, attracting over 700,000 visitors.
76. PUBLIC POLICY ISSUES IN
DIRECT MARKETING
UNFAIRNESS
CUSTOMER
IRRITATION
DECPTION
AND FRAUD
SECURITY
ISSUES
INVASION OF
PRIVACY
77. IRRITATION: It irritation includes annoying and
offending customers.
Many people find the increasing number of hard-
sell, direct-marketing solicitations by phone,
television, and e-mail to be a nuisance.
UNFAIRNESS: It includes taking unfair
advantage of impulsive or less-sophisticated
buyers
Television shopping channels and infomercial—
extended-length, direct-response commercials
that appear to be television shows demonstrating
or discussing a product—may be the worst
culprits. They feature smooth-talking hosts,
elaborate demonstrations, claims of drastic or
short-time price reductions, and easy purchasing
to capture buyers who have low sales resistance.
78. DECEPTION AND FRAUD: It includes “heat
merchants” who design mailers and write copy
designed to mislead consumers
Some direct marketers exaggerate claims about
products and performance, some political fundraisers
use questionable gimmicks such as envelopes that
resemble official documents, and some nonprofit
organizations pretend to conduct surveys when they
are actually trying to identify donors.
79. INVASION OF PRIVACY: The concern is that
marketers may know too much about consumers
and use this information to take unfair advantage.
This includes sale of databases containing
personal information about the consumers.
80. EXAMPLE: American Express, long regarded as
a leader on privacy issues, does not sell
information on specific customer transactions.
However, AmEx found itself the target of
consumer outrage when it announced a deal to
make data on 175 million Americans available to
any merchant who accepts AmEx cards. The
uproar prompted AmEx to kill the plan. America
Online, also targeted by privacy advocates,
wound up junking a plan to sell subscribers‘
telephone numbers.
81. A NEED FOR ACTION
CAN SPAM: The CAN-SPAM Act, a law that sets
the rules for commercial email, establishes
requirements for commercial messages, gives
recipients the right to have you stop emailing
them, and spells out tough penalties for
violations.
California Online Privacy Protection Act (OPPA):
This law requires operators of commercial web
sites or online services that collect personal
information on California consumers through a
web site to conspicuously post a privacy policy on
the site and to comply with its policy.
82. Children’s Online Privacy Protection Act
(COPPA): The Act (COPPA) gives parents control
over what information websites can collect from
their kids. The COPPA rule — with new provisions
in effect on July 1, 2013 — puts additional
protections in place and streamlines other
procedures that companies covered by the rule
need to follow.
TRUSTe: TRUSTe powers privacy compliance
and risk management with comprehensive
technology, consulting and certification solutions.
Companies worldwide rely on TRUSTe to
demonstrate compliance, minimize risk, and
build trust.
83. Sources
Kotler, P.; Bowen, J. and Makens, J. (1999).
Marketing for Hospitality and Tourism (2nd ed.).
Prentice Hall: New Jersey.
Kotler, P.; Bowen, J. and Makens, J. (2010).
Marketing for Hospitality and Tourism (5th ed.).
Prentice Hall: New Jersey.
Kotler, P. and Armstrong, G. (2010) Principles of
Marketing (13th ed.). Prentice Hall: New Jersey.
www.stastica.com
www.marketing.org
Notas del editor
A mail order catalogue is a publication containing a list of general merchandise from a company. Companies who publish and operate mail order catalogues are referred to as cataloguers within the industry. Cataloguers buy or manufacture goods then market those goods to prospective customers.
PR and word-of-mouth benefits without directly paying for it
A LARGE PART OF OWNED MEDIA CONSISTS OF ONLINE MARKETING COMMUNICATIONS
J.D. Power and Associates is an American-based global marketing information services firm