Marketing Management, Millenium Edition - epiheirimatikotita.gr

330 CHAPTER 17 MANAGING DIRECT AND ON-LINE MARKETING➤➤measures and new code-breaking measures. To allay users’ fears, Lending Tree(www.lendingtree.com)—a site that helps consumers shop for mortgages, creditcards, and other financial services—displays seals of approval from Verisign andother firms that monitor site security.Ethical concerns: As noted earlier, consumers who buy from direct marketers worryabout companies making unauthorized use of their personal data, such as selling itto others. Threats of government intervention have spurred an increasing numberof Web marketers to post privacy policies. Travelocity (www.travelocity.com), a onestop-shoppingsite for travel and vacation-related purchases, is one of many sites thatreassure visitors by displaying a seal of approval from the Better Business Bureau orother organizations and sites that examine Web privacy policies.Consumer backlash. Just as the Web has shifted power to consumers by giving themmore product information, it has given them a more potent, effective means ofexpressing disgruntlement or even outrage. Rogue Web pages such as “Down withSnapple,” often launched by irate consumers or former employees, can be seen bymillions. They may contain valid information, but they can also spread unfoundedrumors. Some companies shrug off these pages, but others are concerned enoughto hire firms to monitor activity at these sites. 32EXECUTIVE SUMMARYDirect marketing is an interactive marketing system that uses one or more advertisingmedia to effect a measurable response or transaction at any location. Direct marketingis now widely used in consumer markets, business-to-business markets, and markets forcharitable contributions. Many companies have begun practicing integrated marketingcommunications, also called integrated direct marketing (IDM), using a multimediaapproach to advertising that is generally more effective than single-media programs.One of the most valuable direct-marketing tools is the customer database, anorganized collection of comprehensive data about individual prospects or customers.Companies use their databases to identify prospects, decide which customers shouldreceive an offer, deepen customer loyalty, and reactivate customer purchases.Direct marketers and their customers usually enjoy mutually rewarding relationships.However, marketers must avoid campaigns that irritate consumers, are perceivedas unfair, are deceptive or fraudulent, or invade customers’ privacy.Today, direct marketers can use a wide variety of channels to reach prospects andcustomers: sales calls; direct-mail marketing (sending an offer, announcement,reminder, or other item to a person at a particular address); catalog marketing; telemarketing;offers made by radio, magazine, and newspaper, direct-response televisionadvertising; home shopping channels; kiosks; and on-line channels.Electronic commerce describes a wide variety of electronic platforms.Commercial on-line services offer on-line information and marketing services to paidsubscribers; the Internet is an international web of computer networks that makesinstantaneous and decentralized global communication possible. Companies can goon-line by buying space on an on-line service; by selling through another site; by openingtheir own Web sites; by placing ads on-line; by participating in forums, newsgroups,bulletin boards, and Web communities; and by using e-mail to targeted audiences.Direct e-mailers that want to avoid being perceived as a spammer can usepermission-based marketing, requesting the customer’s permission before sendingany e-mail offers. On-line marketing is leading to disintermediation of certain middlemen,even as infomediaries are starting to establish themselves as new on-line intermediaries.