Chapter 10:

DIRECT MARKETING
and
E-COMMERCE

10.1
Relationship Between Direct Marketing
and e-Commerce
DIRECT MARKETING: Defined
E-COMMERCE: Defined

RELATIONSHIP BETWEEN DIRECT MARKETING AND

e-COMMERCE

 The Mode of the Transaction: Traditional Media Versus

New Media
 All e-Commerce is Direct Marketing, But Not all Direct
Marketing is e-Commerce

10.2
Direct Marketing

ROLE OF DIRECT MARKETING IN PROMOTION AND IMC

 Closing the Sale
 Identifying Prospects
 Engaging the Customer

10..3
Direct Marketing (con’t)
THE POPULARITY AND GROWTH OF DIRECT MARKETING
 Consumers’ Desire for Convenience
 Attitudes Toward Credit
 Changes in Technology
 Measurability in Direct Marketing
 Cost per Inquiry (CPI)
 Cost per Order (CPO)
 Database Marketing

10.4
Direct Market Merchants
Have Flourished Due to
Technology and Consumers’
Desire for Convenience

10.5
Database Marketing
 Mailing Lists
 Internal Mailing Lists
 External Mailing Lists
 List Enhancement
 Marketing Database Applications
 RFM Analysis
 Frequency Marketing Programs
 Cross Selling

10.6
Direct Marketing Databases
Allow Very Specific
Targeting of Promotions

10.7
Database Marketing (con’t)
MEDIA APPLICATIONS IN DIRECT MARKETING
 Direct Mail
 Selectivity
 Flexibility
 Consumer Preference
 Telemarketing
 Catalogs
 Infomercials
 Direct Marketing in Other Media
 Bind-in Insert Card
 Toll Free Numbers in Traditional Media

10.8
Catalogs Are An
Important Medium in the
Direct Marketing Process

10.9
e-Commerce
 Popularity Basis Same as Direct Marketing
 Convenience
 Acceptance of Credit
 Changes in Technology and Measurability of Results
 Business-to-Consumer and Business-to-Business
e-Commerce: B2B is most powerful

10.10
Like Direct Marketing,Tthe
Popularity of e-Commerce
is Due to the Convenience it
Offers Consumers

10.11
Model of the Stages of e-Commerce
Id e n tify C u s to m e rs

A ttra c t C u s to m e rs

C o m m u n ic a te

P e rs o n a liz e a n d C u s to m iz e

E xchange

P a y m e n t, F u lfillm e n t & F o llo w -u p

P ro filin g
e-Commerce (con’t)

SETTING UP & MANAGING e-COMMERCE

OPERATION – A MODEL OF e-COMMERCE
 Identify Customers
 Attract Customers
 Communicate
 Personalize and Customize

10.13
There are Many
Facilitators Available
for the e-Commerce
Effort

10.14
e-Commerce (con’t)
SETTING UP & MANAGING e-COMMERCE
OPERATION – A MODEL OF e-COMMERCE (con’t)
Exchange
 Platforms
Payment, Fulfillment and Follow-up
Profiling
 Sites Visited, Purchases Made, Info Gathered
 Site Learns about Consumers when Visited
 Data Mining Captures all Consumer Data/Analyzes
Behavior
10.15
Coordinating Direct Marketing,
e-Commerce, and IMC
 Tremendous Challenge
 Organizations Need to Seek Synergy
 Coordination is Needed for Internal and
External Specialists
 Firms are Turning to a Marcom Manager
to Facilitate Coordination

10.16