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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
CHAPTER 14
DIRECT, ONLINE, SOCIAL MEDIA, AND MOBILE MARKETING
PREVIEWING THE CONCEPTS – CHAPTER OBJECTIVES
1. Define direct and digital marketing and discuss their rapid growth and benefits to
customers and companies.
2. Identify and discuss the major forms of direct and digital marketing.
3. Explain how companies have responded to the Internet and the digital age with various
online marketing strategies.
4. Discuss how companies use social media and mobile marketing to engage consumers and
create brand community.
5. Identify and discuss the traditional direct marketing forms and overview public policy
and ethical issues presented by direct marketing.
JUST THE BASICS
CHAPTER OVERVIEW
This chapter looks at direct marketing and its fastest-growing form, digital marketing—online,
social media, and mobile marketing.
In many ways direct and online marketing constitute an overall marketing approach—a blend of
communication and distribution channels all rolled into one.
ANNOTATED CHAPTER NOTES/OUTLINE
FIRST STOP
Amazon.com: The Poster Child for Direct and Digital Marketing
When you think of shopping online, chances are good that you think first of Amazon.
From the start, Amazon has grown explosively. Its annual sales have rocketed from a modest
$150 million in 1997 to $89 billion today.
At Amazon, every decision is made with an eye toward improving the Amazon.com customer
experience.
Amazon wants to deliver a special online experience to every customer. Most Amazon.com
regulars feel a surprisingly strong relationship with the company, especially given the almost
complete lack of actual human interaction.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
More than just a place to buy things, Amazon.com has become a kind of online community in
which customers can browse for products, research purchase alternatives, share opinions and
reviews with other visitors, and chat online with authors and experts. In this way, Amazon does
much more than just sell goods online. It engages customers and creates direct, personalized
customer relationships and satisfying online experiences.
Thus, Amazon has become the poster child for direct and digital marketing.
DIRECT AND DIGITAL MARKETING
Direct and digital marketing consist of direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting customer relationships.
Direct marketers communicate directly with customers, often on a one-to-one, interactive basis.
Use Key Term Direct and Digital Marketing here.
The New Direct-Marketing Model
Most companies still use direct marketing as a supplementary channel or medium.
For a growing number of companies, direct and digital marketing constitute a complete model
for doing business.
Firms employing this new direct model use it as the only approach.
Rapid Growth of Direct and Digital Marketing
Direct and digital marketing have become the fastest-growing forms of marketing.
Direct-marketing-driven sales now account for about 12 percent of the total US economy.
Total digital advertising spending—including online display and search advertising, social
media, mobile, video, email, and other—now accounts for the second-largest share of media
spending, behind only television, which it’s expected to overtake by 2018.
Use Marketing at Work 14.1 here.
Benefits of Direct and Digital Marketing to Buyers and Sellers
For buyers, direct marketing is convenient, easy, and private.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
Advantages:
Gives buyers ready access to a wealth of products
Gives buyers access to a wealth of comparative information about companies, products,
and competitors
Is interactive and immediate
Gives consumers a greater measure of control
Benefits of Direct and Digital Marketing to Sellers
Can target small groups or individual consumers
Low-cost, efficient, speedy alternative for reaching their markets
Can offer greater flexibility
Gives sellers access to buyers that they could not reach through other channels
Use Chapter Objective 1 here.
Use Discussion Question 14-1 here.
FORMS OF DIRECT AND DIGITAL MARKETING
Use Figure 14.1 here.
Use Chapter Objective 2 here.
The major forms of direct and digital marketing are as follows:
1. Face-to-face selling
2. Direct-mail marketing
3. Catalog marketing
4. Telemarketing
5. Direct-response TV marketing
6. Kiosk marketing
7. Online marketing (Figure 14.1)
Use Linking the Concepts here.
DIGITAL AND SOCIAL MEDIA MARKETING
Digital and social media marketing is the fastest-growing form of direct marketing.
Marketing, the Internet, and the Digital Age
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
Use Chapter Objective 3 here.
Use Key Terms Digital and Social Media Marketing and Multichannel Marketing here.
Use Online, Social Media, and Mobile Marketing here.
Much of the world’s business today is carried out over digital networks that connect
people and companies.
Digital usage and impact continues to grow steadily. Internet household penetration in the
United States is approximately 87 percent.
The average U.S. Internet user spends almost six hours a day using digital media, primarily via
mobile devices.
Worldwide, 40 percent of the people now have Internet access.
More than half of all U.S. households now regularly shop online.
Omni-channel retailing companies market both through traditional stores and through digital
means. These companies are having more online success than their online-only competitors.
Online Marketing
Online marketing refers to marketing via the Internet using company Web sites, online
advertising and promotions, email marketing, online video, and blogs.
Use Key Term Omni-Channel Retailing here.
Web Sites and Banded Web Communities
Use Key Terms Branded Community Web Site and Marketing Web Site here.
Use Discussion Question 14-2 here.
Marketing Web sites engage consumers in an interaction that will move them closer to a
direct purchase or other marketing outcome.
Branded community Web sites don’t try to sell anything at all. Their primary purpose is to
present brand content that engages consumers and creates customer-brand community.
Online Advertising
As customers spend more time online, companies are shifting more of their marketing dollars to
online advertising.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
The largest from of online advertising is search-related ads (or contextual advertising). This
form of online advertising involves text-based ads and links that appear alongside search engine
results.
This is the largest form of online advertising, accounting for almost half of all online advertising
spending last year.
E-mail Marketing
E-mail marketing is an important and growing digital marketing tool. By one estimate, 91
percent of all U.S. consumers use email every day.
During the latest holiday season, 90 percent of marketers said that their holiday campaigns
included email marketing.
Marketers get a return of $42 for every $1 they spend on e-mail.
The dark side of the growing use of e-mail marketing is the explosion of spam.
Use Key Terms Online Advertising, E-Mail Marketing, Spam, and Viral Marketing here.
Use Discussion Question 14-3 here.
Online Videos
Viral marketing is the digital version of word-of-mouth. Viral marketing involves videos, ads, or
other marketing content that is so infectious that customers seek it out or pass it along to their
friends.
Blogs and Other Online Forums
Brands conduct online marketing through various digital forums that appeal to specific
special-interest groups.
Blogs (Web logs) are online journals where people and companies post their thoughts and other
content.
Most marketers are now tapping into the blogosphere as a medium for reaching their customer
communities.
Use Key Terms Blogs and Social Media here.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
Social Media Marketing
Using Social Media
Marketers can engage in social media in two ways:
1. They can participate in existing social media.
2. They can set up their own social media.
Using existing social media seems the easiest, so most brands have set up shop on a host of
social media sites (such as Facebook, Twitter, and Pinterest).
Some of the major social networks are huge. Nearly 1.4 billion people access Facebook every
month, nearly 4.4 times the population of the United States.
Social Media Marketing Advantages and Challenges
Using social media presents both advantages and challenges.
On the plus side:
Social media are targeted and personal.
Social media are interactive.
Social media are immediate and timely.
Social media can be very cost effective.
Social media are engaging and have social sharing capabilities.
On the negative side:
Most companies are still experimenting with how to use them and results are hard to
measure.
Social networks are largely user controlled.
Integrated Social Media Marketing
Most large companies are now designing full-scale social media efforts that blend with and
support other elements of a brand’s marketing strategy and tactics.
Use Discussion Question 14-4 here.
Mobile Marketing
Mobile marketing features marketing messages and promotions delivered to on-the-go
consumers through their mobile devices.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
The widespread adoption of mobile devices and the surge in mobile Web traffic have made
mobile marketing a must for most brands.
Use Key Term Mobile Marketing here.
Use Chapter Objective 4 here.
Use Marketing at Work 14.2 here.
Use Critical Thinking Exercise 14-9 here.
Use Linking the Concepts here.
TRADITIONAL DIRECT MARKETING FORMS
Personal selling was covered in detail in Chapter 13.
Direct-mail marketing involves sending an offer, announcement, reminder, or other item to a
person at a particular address.
Use Discussion Question 14-5 here.
Use Key Term Direct Mail Marketing here.
Direct mail (including both catalog and non-catalog mail) accounts for 29 percent of all U.S.
direct marketing sales.
Direct mail characteristics:
Well suited to direct, one-to-one communication
Permits high target-market selectivity
Can be personalized
Is flexible
Allows easy measurement of results
Costs more than mass media per thousand people reached, but people reached are much
better prospects
Some analysts predict a decline in the use of direct marketing as new forms of delivery have
become popular, such as e-mail and mobile marketing.
Catalog Marketing
Use Key Term Catalog Marketing here.
Catalog used to be defined as a printed, bound piece of at least eight pages, selling multiple
products, and offering a direct ordering mechanism.
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Chapter 14 Direct, Online, Social Media, and Mobile Marketing
With the Internet, more and more catalogs are going digital. A variety of online-only catalogers
have emerged, and most print catalogers have added Web-based catalogs and smartphone catalog
shopping apps.
Advantages of digital catalogs:
Eliminate production, printing, and mailing costs
Allow real-time merchandising
Printed catalogs are still thriving.
Advantages of printed catalogs:
One of the best ways to convince consumers to use the online versions
Create emotional connections with customers
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