Marketing: An Introduction

Seventh Canadian Edition

Chapter 14
Direct, Online, Social
Media, and Mobile
Marketing

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Objectives Outline (1 of 2)
14.1 Define direct and digital marketing and discuss
their rapid growth and benefits to customers and
companies.
14.2 Identify and discuss the major forms of direct and
digital marketing.
14.3 Explain how companies have responded to the
Internet and the digital age with various online
marketing strategies.

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Objectives Outline (2 of 2)
14.4 Discuss how companies use social media and
mobile marketing to engage consumers and create
brand community.
14.5 Identify and discuss the traditional direct marketing
forms and overview public policy and ethical issues
presented by direct marketing.

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Coca-Cola’s Digital Marketing: Making the
Brand a Part of the Customer’s Story

Coca-Cola digital, mobile,

and social media
campaigns spark brand
conversations, build brand
community, and make the
brand a part of consumers’
lives.

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Objective Outline 14.1
• Define direct and digital marketing and discuss their
rapid growth and benefits to customers and
companies.

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Direct and Digital Marketing
• Engage directly with targeted individual consumers
and customer communities to obtain an immediate
response
• Build lasting customer relationships, engagement,
brand community, and sales

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New Direct Marketing Model (1 of 2)
• The Expedia Group’s Travelocity.com unit and the
famous Roaming Gnome make it easy for customers
to “Wander Wisely.”

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New Direct Marketing Model (2 of 2)
• Most companies still use direct marketing as a
supplementary channel or medium.
• For many companies today, direct and digital
marketing constitute a complete model for doing
business.

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Rapid Growth of Direct and Digital
Marketing
• Fastest-growing form of marketing
• Direct marketing becoming more Internet-based
• Direct marketing caims a surging share of marketing
spending and sales
– Includes online display and search advertising, video,
social media, mobile, email

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Benefits of Direct and Digital Marketing
to Buyers
• Buyers
– Convenient, easy, and private
– Easy buyer-seller interaction
– Quick access to products and relevant information
– Brand engagement and community
• Sellers
– Low-cost, efficient, and speedy
– Build close, personalized, interactive, one-to-one
customer relationships
– Greater flexibility

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Objective Outline 14.1 Summary
• Direct and digital marketing—engaging directly with
individual consumers and customer communities to
both obtain an immediate response and build lasting
customer relationships
• For buyers, direct and digital marketing are
convenient, easy, and private.
• For sellers, direct marketing often provides a low-cost,
efficient, speedy alternative for reaching their markets.

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Objective Outline 14.2
Identify and discuss the major forms of direct and digital
marketing.

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Figure 14.1
Forms of Direct and Digital Marketing

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Objective Outline 14.2 Summary
• The main forms of direct and digital marketing
– Traditional direct marketing tools
– New digital marketing tools

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Objective Outline 14.3
Explain how companies have responded to the Internet
and the digital age with various online marketing
strategies.

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Marketing, the Internet, and the Digital
Age
• Digital and social media marketing: Using digital
marketing tools to engage consumers anywhere,
anytime via their digital devices
• Digital age: Changing customers’ notions of
convenience, speed, price, product information,
service, and brand interactions
• Omni-channel retailing: Creating a seamless cross-
channel buying experience that integrates in-store,
online, and mobile shopping

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Online Marketing
• Marketing via the Internet using company Web sites,
online ads and promotions, email, online video, and
blogs
• Marketing Web sites: Engage consumers to move
them closer to a direct purchase or other marketing
outcome
• Branded community Web sites: Present brand
content that engages consumers and creates
customer-brand community

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Online Advertising and Email Marketing
• Online advertising: Appears while consumers are
browsing online
• Email marketing: Sending highly targeted, highly
personalized, relationship-building marketing
messages via email
– Spam: Unsolicited, unwanted commercial email
messages

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Online Videos
• Posting digital video content on brand Web sites or
social media
• Viral marketing: Videos, ads, and other marketing
content that customers seek out or pass along to
friends

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Blogs and Other Online Forums (1 of 2)
• Online journals of narrowly defined topics where
people and companies post their thoughts and other
content
– Benefits: A fresh, original, personal, and inexpensive
way to enter into consumer online conversations
– Limitations: Cluttered, difficult to control and largely a
consumer-controlled medium

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Blogs and Other Online Forums (2 of 2)
Google Android’s “Friends
Furever” video went viral in
a big way.

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Objective Outline 14.3 Summary
• New way to create customer value, engage
customers, and build customer relationships
• Online marketing takes several forms
– Web sites, online advertising and promotions, email
marketing, online video, and blogs

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Objective Outline 14.4
Discuss how companies use social media and mobile
marketing to engage consumers and create brand
community.

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Social Media Marketing (1 of 2)
• Social media: Independent and commercial online
communities where people congregate, to socialize
and share messages, opinions, pictures, videos, and
other content
• Marketers engage social media in two ways:
– Using the existing ones
– Setting up their own

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Social Media Marketing (2 of 2)
The JetBlue social media
team responds to every
single Twitter mention it
receives, with an impressive
average response time of 10
minutes.

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Social Media Marketing Advantages and
Challenges
Advantages Challenges
• Targeted and personal • Effective usage
uncertain
• Interactive
• Difficult to measure
• Immediate and timely
results
• Cost effective
• Largely user controlled
• Engagement and social
sharing capabilities

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Integrated Social Media Marketing
• Large companies design social media efforts that
blend with and support other elements of a brand’s
marketing strategy and tactics.
• Firms that use social media effectively create brand-
related social sharing, engagement, and customer
community.

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Mobile Marketing
• Promotional content delivered to consumers through
their mobile devices
• Engages customers anywhere, anytime during the
buying and relationship-building processes

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Objective Outline 14.4 Summary
• Social media—online places to congregate, socialize,
and exchange views and information
– Brands use existing or set up their own
• Social media advantages and challenges:
– Advantage—engagement and social sharing capabilities
– Challenge—consumers’ control over social media
content
• Mobile marketing—messages, promotions, and other
content delivered to consumers’ mobile devices

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Objective Outline 14.5
Identify and discuss the traditional direct marketing
forms and overview public policy and ethical issues
presented by direct marketing.

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Direct-Mail Marketing
• Sending an offer, announcement, reminder, or other
item directly to a person at a particular address
– Tangible and creates emotional connection with
customers
– Effective component of a broader integrated marketing
campaign
– Direct and personalized
– Sent to consumers who want to receive it

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Catalogue Marketing (1 of 2)
• Print, video, or digital catalogues that are mailed to
select customers, made available in stores, or
presented online
– Eliminates printing and mailing costs
– No space constraints
– Broader assortment of presentation formats
– Real-time merchandising capabilities
– Prices can be adjusted instantly

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Catalogue Marketing (2 of 2)
Even in the digital era, printed catalogues are still
thriving.

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Telemarketing and Direct-Response
Television (DRTV) Marketing
• Telemarketing: Selling directly to customers using
the telephone
– Outbound and inbound telephone marketing
– Rise of do-not-call legislation resulted in opt-in calling
systems
• Direct-response television (DRTV) marketing
– Direct-response television advertising
– Interactive TV (iTV) advertising

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Kiosk Marketing (1 of 2)
• Product or service information and ordering machines
placed by companies
• Smart kiosks
– Wireless-enabled
– Facial recognition

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Kiosk Marketing (2 of 2)
The in-store Home Depot Appliance Finder kiosk helps
customers find and buy the products they want on the spot.

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Public Policy Issues in Direct and
Digital Marketing
• Irritation, Unfairness, Deception, and Fraud
• Consumer Privacy
• A Need for Action

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Irritation, Unfairness, Deception, and
Fraud
Irritation
• Loud, long, and insistent TV commercials
• Junk mail and spam
Unfairness
• Taking unfair advantage of impulsive buyers
Deception and fraud
• Investment scams or phony collections for charity
• Internet fraud
• Phishing
• Online and digital security
• Access by vulnerable or unauthorized groups
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Consumer Privacy
• Fear of invasion of privacy
• Ready availability of information leaves consumers
open to abuse

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A Need for Action (1 of 2)
• Government actions
– Do-not-call, do-not-mail, do-not-track lists
– Can Spam legislation
– Legislation—Give more control to consumers over how
online information is used
– PIPEDA and ECPA

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A Need for Action (2 of 2)
• Marketers’ actions
– Self-regulatory principles
– Advertising option icon
– Privacy rights of children
• Companies’ actions
– Own security measures
– Industry-wide measures

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Objective Outline 14.5 Summary
• Traditional direct marketing tools are still heavily used.
• Aggressive and shady tactics of a few direct
marketers can bother or harm consumers.
– Irritation, unfairness, deception, and fraud
• Invasion of privacy and Internet security
• A need for action from government and industry

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