Marketing 220 term paper

Phillips3717

mkt_220-week_7_lecture_materials.pdf

Home >Business & Finance homework help >Marketing homework help >Marketing 220 term paper

Direct and On-line Marketing

Week 7 Notes MKT 220

Charter Oak State College Principles of Marketing Kevin W. Fitzgerald, 2012

Notes based on Marketing, an Introduction by Gary Armstrong & Philip Kotler

Introduction

Week 7 Notes MKT 220

Mass marketers have typically tried to reach millions of buyers with a single product and a standard message communicated via the mass media. Consequently, most mass-marketing communications were one-way communications directed at consumers rater than two-way communications with consumers.

Today, many companies are turning to direct marketing in an effort to reach carefully targeted customers more efficiently and to build stronger, more personal, one-to-one relationships with them.

On-line marketing involves online channels and electronic commerce and is usually conducted through interactive online computer systems, which electronically link consumers with sellers.

This Week’s Objectives…

Week 7 Notes MKT 220

At the end of this week you should be able to:

1. Discuss the benefits of Direct Marketing to customers and companies and the trends fueling rapid growth.

2. Define a customer database and outline the ways companies use databases in direct marketing.

3. Identify the major forms of direct marketing.

4. Compare the two types of online marketing channels and explain the effects on the internet and electronic commerce.

5. Discuss the public policy and ethical issues facing direct marketers.

What is Direct Marketing?

Week 7 Notes MKT 220

“Direct Marketing is direct communications with carefully targeted individual consumers to obtain an immediate response.”

-Gary Armstrong & Philip Kotler

Mass Marketing vs. One-to-one

Week 7 Notes MKT 220

Mass Marketing

•Average Customer

•Customer Anonymity

•Standard Product

•Mass Production

•Mass Distribution

•Mass Advertising

•Mass Promotion

•One-way Message

•Economics of Scale

•Share of Market

•All Customers

•Customer Satisfaction

One-to-one Marketing

•Individual Customers

•Customer Profile

•Customized Market Offering

•Customized Production

•Individual Message

•Individualized Incentives

•Two-way Messages

•Economies of Scope

•Share of Customers

•Profitable Customers

• Customer Retention

Benefits of Direct Marketing

Week 7 Notes MKT 220

Seller Benefits

Mailing lists are available

Targeted campaigns

Relationship marketing

Precise, timed campaigns

Easy testing of media and messages

Privacy, not easy for competition to see

Consumer Benefits

Shopping becomes convenient and “fun”

Saves time

Larger selection

Comparative shopping is easier

Easier to learn about products

What is a Customer Database?

Week 7 Notes MKT 220

“A Customer Database is an organized collection of comprehensive data about individual consumers or prospects, including geographic, demographic, psychographic and behavioral data.”

-Gary Armstrong & Philip Kotler

Purpose of Database Marketing

Week 7 Notes MKT 220

Identifying prospects

Deciding which customer should receive a particular offer

Deepening customer loyalty

Reactivating customer purchases

Forms of Direct Marketing

Week 7 Notes MKT 220

Customers and

Prospects

Face-to- face selling

Direct-mail Marketing

Catalog Marketing

On-line Marketing

Kiosk Marketing

Telemarketing

Direct- response Television Marketing

Conducting Online Marketing

Week 7 Notes MKT 220

Electronic Presence (website)

•Corporate Website

•Marketing Website

Advertising On-line

Forums, Newsgroups, Bulletin Boards, Web Communities

E-Mailing and Webcasting

Online Marketing Benefits

Week 7 Notes MKT 220

Online Benefits to Consumers

•Convenience

•Information

•Fewer Hassles

Online Benefits to Marketers

•Quick Adjustments to Market Conditions

•Lower Costs

•Relationship building

•Audience Size

Challenges of Online Marketing

Week 7 Notes MKT 220

Limited Consumer Exposure & Buying

Skewed User demographics and psychographics

Chaos & Clutter

Security

Ethical Concerns

Integrated Direct Mail Campaign

Week 7 Notes MKT 220

Paid ad with a response channel

Direct Mail

Outbound marketing

Continuing Communications

Face-to-face sales call

Example: Direct Mail Campaign

Week 7 Notes MKT 220

Direct Marketing can be used to mail a customer promotional literature. This is called a Direct Mail Campaign.

Repetition and creativity can be used to stand out in a customers mind. This type of campaign is usually more effective than an one-time mailing because it stands out in their mind.

Key Terms

Week 7 Notes MKT 220

•Catalog Marketing

•Commercial On-line Services

•Corporate Web Site

•Customer Database

•Direct Marketing

•Direct-mail Marketing

•Direct-response Television Marketing

•Electronic Commerce

•Integrated Direct Marketing

•Internet

•Marketing Web Site

•On-line Ads

•On-line Marketing

•Telemarketing

•Webcasting

•World Wide Web

The Global Marketplace

Week 7 Notes MKT 220

Charter Oak State College Principles of Marketing Kevin W. Fitzgerald, 2012

Notes based on Marketing, an Introduction by Gary Armstrong & Philip Kotler

Introduction

Week 7 Notes MKT 220

Companies today can no longer afford to pay attention only to their domestic market, regardless of its size. Many industries are global industries, and firms that operate globally achieve lower costs and higher brand awareness. At the same time, global marketing is risky because of variable exchange rates, unstable governments, protectionist tariffs and trade barriers, and several other factors. Given the potential gains and risks of international marketing, companies need a systematic way to make their international marketing decisions.

This Week’s Objectives…

Week 7 Notes MKT 220

At the end of this week you should be able to:

1. Discuss how the international trade system and the economic, political, legal, and cultural environments affect a company’s international marketing decisions.

2. Describe three key approaches to entering international markets.

3. Explain how companies adapt their marketing mix for international markets.

4. Identify the three major forms of international marketing organizations.

Major International Marketing Decisions

Week 7 Notes MKT 220

Looking at the global marketing

environment

Deciding whether to go international

Deciding which markets to enter

Deciding on the global marketing program

Deciding how to enter the market

Deciding on the global marketing organization

Example: International Marketing

Week 7 Notes MKT 220

The Disney Company

The Walt Disney Company has marketing their theme parks all over the World.

Disney Land

Walt Disney World

EuroDisney

Tokyo Disney

Hong Kong Disney

International Environments

Week 7 Notes MKT 220

Economic Environment

•Subsistence economies

•Raw material exporting economies

•Industrializing economies

•Industrial economies

Political-Legal Environment

Cultural Environment

Indicators of Market Potential

Week 7 Notes MKT 220

Demographic Characteristics

•Size of population

•Rate of population growth

•Degree of urbanization

•Population density

•Age structure and composition of the population

Geographic characteristics

•Physical size of a country

•Topographical characteristics

•Climate conditions

Economic Factors

•GNP per capita

•Income distribution

•Rate of growth of GPN

•Ratio of investment to GNP

Technological Factors

•Level of technological skill

•Existing production technology

•Existing consumption technology

•Education levels

Sociocultural Factors

•Dominant values

•Lifestyle patterns

•Ethnic groups

•Linguistic fragmentation

National Goals and Plans

•Industry priorities

•Infrastructure investment plans

Week 7 Notes MKT 220

Market-entry Strategy

Amount of commitment, risk, control and profit potential

Exporting

Indirect

Direct

Join Venturing

Licensing

Contract manufacturing

Management contracting

Joint ownership

Direct Investment

Assembly facilities

Manufacturing facilities

Example: Language Blunders

Week 7 Notes MKT 220

The language barrier has always created problems for marketers.

Coca-Cola – “Coke adds life” translated into Japanese read “Coke brings your ancestors back from the dead.”

Ford – Their Fiera truck meant “ugly old woman” in Spanish

Chevy – Their Nova truck meant “it doesn’t go” in Spanish.

KFC – “Finger lickin’ good” translated into Chinese read “eat your fingers off”.

Five International Product and Promotional Strategies

Week 7 Notes MKT 220

Product adaptation

Communication adaptation

Straight extension

Dual adaptation

D o n

o t c

h a n

g e

p r o

m o t io

Adapt product

Do not change product

A d

a p

P r o

m o t io

Product

P r o

m o

t io

Product Invention

Develop new product

Whole-channel Concept for International Marketing

Week 7 Notes MKT 220

Seller

Seller’s international marketing

headquarters

Channels between nations

Final buyers

Channels within foreign

nations

Fitzgerald Fun Fact

Week 7 Notes MKT 220

International Domain Names

The Internet is international and has no boundaries. Each Country has

their own domain name category (in addition to the universal .com

domain) so they can market regionally, as well as internationally.

.us United States

.au Australia

.ca Canada

.de Germany

.fi Finland

.fr France

.jp Japan

.sw Sweden

.uk United Kingdom

(and many more…)

Key Terms

Week 7 Notes MKT 220

•Adapted Marketing Mix

•Communication Adaptation

•Contract Manufacturing

•Countertrade

•Direct Investment

•Economic Community

•Embargo

•Exchange Controls

•Exporting

•Global Firm

•Joint Ownershop

•Joint Venturing

•Licensing

•Management Contracting

•Nontariff Trade Barriers

•Product Adaptation Product Invention

•Quota

•Standardized Marketing Mix

•Straight Product Extension

•Tariff

•Whole-channel View

Relevant Websites

Week 7 Notes MKT 220

CIA World Factbook http://www.odci.gov/cia/publications/factbook/index.html

Research-it http://www.itools.com/research-it

Universal Currency Converter http://www.xe.net/cuu

International Marketing http://www.knowthis.com/internl/intrnatl.htm

International Federation of Advertising Agencies (IFAA) http://www.ifaa.com

Institute of Canadian Advertisers (ICA) http://www.ica-ad.com

International Advertising Association (IAA) http://www.iaaglobal.org

European Commission for Advertising/Consumer Law http://europa.eu.int/en/comm/spc.html

http://www.odci.gov/cia/publications/factbook/index.html

http://www.itools.com/research-it

http://www.xe.net/cuu

http://www.knowthis.com/internl/intrnatl.htm

http://www.ifaa.com/

http://www.ica-ad.com/

http://www.iaaglobal.org/

http://europa.eu.int/en/comm/spc.html