DIRECT AND ONLINE MARKETING

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DIRECT AND ON-LINE MARKETING

• Dr. Metzner

EMGT451 2/2004
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BYPASSING CHANNELS

• High Per Customer Costs, Low Unit Density
• Two Channels, Communications and Delivery
• More Control, Focus Without Mixing
• Organizing for Small Orders
• Customer Risk Reduction
• Transaction Cost Control

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Channel Flows

• COMUNICATIONS
  DELIVERY

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COMMUNICATIONS CHANNEL

• Broadcast One-Way, Product Information TV,
  Catalog, Direct Mail, etc.
• Order Transmittal Two-Way, Telephone
• Computer-Aided Through Data-Base Management of
  Customers
• Telephone, Fax and E-Mail Solicitation
• Privacy Issues

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DELIVERY CHANNEL

• UPS, FEDEX, etc.
• US Postal Service
• Messenger Service
• Delivery (Fast Food)
• Internet for Data

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BUSINESS-TO-BUSINESS DIRECT MARKETING

• Salesperson Costs High (300/Call)
• Volume Uncertainty in Customers
• Direct, but Remote Customer Contact

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ACCOUNTS RANKED BY SALES

SALES
ACCOUNTS
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NEW TECHNOLOGIES

• EDI/EDT Electronic Data Interchange/Electronic
  Data Transfer
• Videoconferencing
• Kiosk Selling
• Virtual Store
• World-Wide Telephone Monitoring

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Engineering Management 451
Advanced Marketing Management
Next Lecture Sales Force Decisions