Chapter 15

Question 1

Direct and Digital Marketing

• • Benefits to buyers:
• Benefits to sellers:

Answer 1

• Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
• A marketing channel without intermediaries
• Benefits to buyers: convenient, private, easy, lots of buying information, access to products
• Benefits to sellers: low-cost, efficient, speedy alternative for reaching their market,flexibility

Question 2

Forms of Digital and Direct Marketing

• I.
  

Answer 2

Forms of Digital and Direct Marketing

• I. Digital and Social Media Marketing
  
  • uses digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage customers anywhere, any time via their digital devices
  • Multichannel marketing: marketing both through stores and other traditional offline channels and through digital, online, social media, and mobile channels
• Online marketing: marketing via the internet using company websites, online ads and promotions, email, online video, and blogs.
• Marketing websites: a site that interacts with consumers to move them closer to a direct purchase or other marketing outcome.
• Branded community: a site that present brand content that engages consumers and creates customer community around a brand (don’t try to sell anything at all)
• Online advertising: advertising that appears while consumers are browsing online,
• Email marketing: sending highly targeted, highly personalized, relationship-building marketing messages via email
• Online videos include social media sites such as YouTube, Facebook and others
• Viral marketing: digital version of WOM. marketers often have little
  control over where their viral messages end up
• Blogs: online journals where people and companies post their thoughts and other
  content, usually related to narrowly defined topics.

Question 3

Social Media Marketing

• • Advantages:
• Disadvantages:

Answer 3

Social Media Marketing

• Use existing social media: Facebook, Twitter, Youtube, Instagram, Google+ etc.
• Advantages: (1) targeted and personal (2) interactive (3) immediate and timely (4)
  cost effective (5) engagement and social sharing capabilities
• Disadvantages: (1) still experimental - difficult to measure results (2) largely user
  controlled - campaigns can backfire
• Integrate social media marketing! Starbucks has 51 Facebook accounts, 22 Instagram accounts,

Question 4

Mobile Marketing

Answer 4

Mobile Marketing

• marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices
• Aims to stimulate immediate buying, make shopping easier, enrich the brand experience
• Caution! must be used responsibly or risk angering already ad-weary consumers

Question 5

II. Traditional Direct Marketing

*

Answer 5

II. Traditional Direct Marketing

• Face-to-face/personal selling
• Direct-mail marketing: marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address.
• Catalogue Marketing: direct marketing through print, video, or digital catalogues that are mailed to select customers, made available in stores, or presented online
• Telemarketing: using the telephone to sell directly to customers
• Direct-Response Television Marketing (DRTV): direct marketing via television, including direct-response television advertising (infomercials, home shopping channels) and interactive television (iTV) advertising.
• Kiosk Marketing: automated machines found in various locations

Answer 6

Public Policy Issues in Direct and Digital Marketing

• Irritation, unfairness, deception, fraud
• Invasion of privacy

In response to these concerns, the Canadian government passed the Personal Information Protection and Electronic Documents Act (PIPEDA), which has 4 principles:

• Consumer knowledge and consent: consumers must know that information about them is being gathered and they must provide consent before firms can collect, use, or disclose consumers’ personal info
• Limitations: firms can only collect and use information appropriate to the transaction being undertaken. For example, if a firm needs to mail you something, it can ask for you home
  address, but it may not request additional information unrelated to this task
• Accuracy: firms must be sure that the information they gather is recorded accurately. Firms must appoint a privacy officer to be responsible for this task
• Right to access: individuals have the right to know what information is being held about them. They can also demand that error in there personal information be corrected, and they may request that their personal information be withdrawn form a firm’s database