Telemarketing
Use Key Term Telemarketing here.
Use Marketing by the Numbers here.
Telemarketing involves using the telephone to sell directly to consumers and business
customers.
U.S. marketers spent an estimated $43 billion on telemarketing last year, almost as much as on
direct mail.
Outbound telephone marketing is used to sell directly to consumers and businesses.
Inbound toll-free numbers are used to receive orders from television and print ads, direct mail,
or catalogs.
Do-not-call legislation (National Do-Not-Call Registry) has hurt the telemarketing industry but
not all that much.
Do-not-call appears to be helping most direct marketers more than it’s hurting them.
Shifting call-center activity from making cold calls to managing existing customer
relationships
Development of “opt-in” calling systems
Direct-Response Television Marketing
Use Key Term Direct-Response Television Marketing here.
Use Critical Thinking Exercise 14-7 here.
Direct-response television marketing takes one of two major forms.
Direct-response television advertising (DRTV) involves television spots that describe a product
and give customers a toll-free number or Web site for ordering.
Infomercials are 30-minute or longer advertising programs.
A recent form of direct-response television marketing is interactive TV (iTV) marketing.
Kiosk Marketing
Kiosks are information and ordering machines that are similar to old-fashioned vending
machines.
Use Discussion Question 14-6 here.
PUBLIC POLICY ISSUES IN DIRECT AND DIGITAL MARKETING
Irritation, Unfairness, Deception, and Fraud
Internet fraud, including identity theft and financial scams, has become a serious problem.
Phishing is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool
users into divulging personal data.
Online and digital security issues continue to grow.
Consumers fear that unscrupulous snoopers will eavesdrop on their online transactions, picking
up personal information or intercepting credit and debit card numbers.
Access by vulnerable or unauthorized groups is another area of concern.
For example, marketers of adult-oriented materials have found it difficult to restrict access by
minors.
Consumer Privacy
Invasion of privacy is perhaps the toughest public policy issue now confronting the
direct-marketing industry.
Most online marketers have become skilled at collecting and analyzing detailed consumer
information.
A Need for Action
Such issues call for strong actions by marketers to curb privacy abuses before legislators step in
to do it for them.
TRUSTe, a nonprofit self-regulatory organization, works with many large corporate sponsors to
audit companies’ privacy and security measures and help consumers navigate the Web safely.
Use Chapter Objective 5 here.
Use Discussion Question 14-5 here.
Use Critical Thinking Exercise 14-8 here.
Use Marketing Ethics here
Video Case: Nutrisystem
You’ve probably heard of Nutrisystem, a company that produced $800 million in revenues last
year by selling weight-loss products. What started as a small effort based on an e-commerce
marketing plan has evolved into a multipronged marketing campaign that not only has expanded
the business but also provides substantial return-on-investment potential.
The key to Nutrisystem’s efforts is its direct-to-consumer platform. Using various advertising
outlets, from magazines to television, Nutrisystem’s promotions all have one thing in common—
they let customers make direct contact with the company. Inserting a unique URL or 800 number
in every ad also lets Nutrisystem track the success of each and every effort.
After viewing the video featuring Nutrisystem, answer the following questions:
14-15. In what different ways does Nutrisystem engage in direct marketing?
14-16. What advantages does Nutrisystem’s marketing campaign have over selling
through intermediary channels?
14-17. In addition to its direct-to-consumer distribution and promotional efforts, what is
essential to the success of Nutrisystem?
Company Cases
14 Alibaba/10 Apple Pay/11 Sears
See Appendix 1 for cases appropriate for this chapter.
Case 14, Alibaba: The World’s Largest E-Tailer Is Not Amazon. Selling more than Amazon
and EBay combined, Alibaba’s rapid growth may keep it out in front for good.
Case 10, Apple Pay: Taking Mobile Payments Mainstream. Apple may succeed where
Google, Paypal, Visa, and others have failed in making mobile payments the go-to way to pay.
Case 11, Sears: Why Should You Shop There? Formerly the leading retailer, Sears struggles
for survival by trying everything, including building an ecommerce presence.
MyMarketingLab
If assigned by your instructor, complete these writing sections from your Assignments in the
MyLab.
14-18. Compare and contrast a marketing Web site and a branded community Web site.
(AACSB: Communication)
14-19. Review the FTC’s guidelines on disclosure in online, social media, and mobile
advertisements at www.ftc.gov/os/2013/03/130312dotcomdisclosures.pdf. Will the
FTC’s requirements regarding ads and endorsements make Twitter less effective as an
advertising medium?
GREAT IDEAS
Barriers to Effective Learning
1. The students will have grown up with the Internet, so there are few concepts in this
chapter that will be totally new to them. However, the vocabulary and terminology could
be new to them, so you will want to go through all the Key Terms carefully.
2. While students are intimately familiar with social media, its use as a powerful marketing
tool may be lost on them. The discussion of Marketing, the Internet, and the Digital Age
is important to help familiarize them.
3. Many students will have their own Web or social media sites, either for personal use or
through their college activities. They will understand the nuances of web design, but may
not understand some of the key concepts of attracting and retaining customers through
effective design decisions. Discussing Web and social media sites that they enjoy using,
as well as those they think are poorly designed, will help with these concepts.
Student Projects
1. Look at the different types of online advertising. Describe each. Which form of
advertising do you believe would be the most effective for you? Why? How often do you
click on one of these ads?
2. You are the owner of a small, local, hometown gourmet meats store. What, if any,
advantage do you see in setting up an online presence? In what ways could this possibly
help your business? Or could it?
3. How does your college/university use direct, online, social media, and mobile marketing
to attract quality prospective students? Are they doing a good job? What suggestions
would you make to them to improve their efforts?
4. Find an example of a company that appears to be doing an absolutely terrible job of
connecting with customers via the Internet. Make recommendations to improve their
presence and visibility
5. What do you believe to be the future of traditional catalog marketing? Find examples of
companies that have discontinued their printed catalog in favor of a fully online version.
Has this been successful for them?
Small Group Assignments
Form students into groups of three to five. Each group should read the opening vignette to the
chapter on Amazon.com. Each group should answer the following questions:
1. How has Amazon.com become so successful with consumers?
2. What are the advantages of Amazon.com’s business model? What are the disadvantages?
3. What is Amazon.com’s biggest challenge?
4. What’s next for Amazon.com?
Each group should share its findings with the class.
Individual Assignments
Go onto to Dell’s Website (www.dell.com) and that of major competitor Apple
(www.apple.com). “Build” your ideal laptop on each. Compare the competitors on product
offerings, price, and Website ease of navigation, appeal, and use. Who wins? Why?
Think-Pair-Share
Consider the following questions, formulate answers, pair with the student on your right, share
your thoughts with one another, and respond to questions from the instructor.
1. How would you define direct marketing?
2. What are the benefits of direct marketing to customers? To companies?
3. What are the major forms of direct marketing?
4. What are some of the significant ethical issues raised by the use of direct marketing?
5. How are companies using online, social media, and/or mobile marketing to deliver
greater value to consumers?
Classroom Exercise/Homework Assignment
The University of Phoenix’s “online campus” was established in 1989, well before the advent of
and widespread use of the World Wide Web. Since then, the University of Phoenix has exploded,
and more and more adults are earning their Bachelor’s, Master’s, and even Doctoral degrees
online.
Because this model has proven so successful, traditional universities have added online options
to their degree programs. Sometimes courses are only “Web enhanced,” meaning that the
students still gather in a traditional classroom, but some work takes place on the Internet. Many
colleges and universities, however, are moving at least some of their courses completely online.
This allows them to reach many non-traditional students, and students who simply cannot
relocate to the city in which their campus is located.
1. How has the University of Phoenix Online affected the college experience? Be specific.
2. What are the benefits of obtaining a degree online? What are the disadvantages, if any?
3. Analyze where the University of Phoenix Online advertises. Are they reaching their target
audience?
4. Visit their Web site at www.phoenix.edu. Is it an effective Web site? Defend your answer.
Classroom Management Strategies
As was noted previously, students today have grown up with the Internet and e-commerce. This
chapter should not be difficult for them, although stressing the Key Terms will be important for
them to be able to have intelligent business discussions about the uses of the Internet.
1. Spend 5 minutes each on the first two sections regarding the forces shaping the digital
age and the strategies for responding. Figure 14.1, showing the forces that underlie the
digital age, will be of great assistance in getting this topic across.
2. Forms of Direct and Digital Marketing make up about half of this chapter. Plan to spend
about 30 minutes on this section. Again, although this material may well be familiar to
students, they have not considered it from a business-building perspective and may not
know all of the Key Terms. The Marketing at Work vignette will be useful here.
3. The final section, on Traditional Direct Marketing Forms, can be covered in 20 minutes.
PROFESSORS ON THE GO
Direct, Online, Social Media, and Mobile Marketing
Key Concepts
Benefits of direct and digital marketing
Forms of direct and digital marketing
Integrated direct and digital marketing
Public policy and ethical issues in direct and digital marketing
Write a description of the most irritating, unfair, deceptive, or fraudulent experience
you’ve had with a direct or digital marketing company.
Write a position paper on privacy and security issues in direct and digital marketing.
Where are the industry’s strengths and weaknesses? What would you recommend to
solve problems facing the industry?
What are the benefits to buyers of direct and digital marketing?
What are the benefits to sellers of direct and digital marketing?
Key Concepts
Digital and social media marketing
The online social presence
The promise and the problems of direct and digital marketing
The Internet now influences 50 percent of total retail sales (in-store and online). As a
small local retailer, how can you use the Internet to boost your visibility and sales?
What is an online social community? How can marketers use this to their advantage?
As marketing director of a small urban sportswear company, you have been given the
assignment to spread the word to 18–25-year-old social media users that your
company has some great products. Outline a plan for doing so. What social
communities might you choose? How would you use viral marketing to aid your
effort?
What are the basic direct and digital marketing security fears of consumers? Are these
fears justified?