Page 558 -
P. 558

|CHAPTER 17 Direct, Online, Social Media, and Mobile Marketing 557

                   Many companies have responded to consumer privacy and security concerns with ac-
             tions of their own. Still others are taking an industry-wide approach. For example, TRUSTe, a
             nonprofit self-regulatory organization, works with many large corporate sponsors, including
             Microsoft, Yahoo!, AT&T, Facebook, Disney, and Apple, to audit privacy and security mea-
             sures and help consumers navigate the Internet safely. According to the company’s Web site,
             “TRUSTe believes that an environment of mutual trust and openness will help make and keep
             the Internet a free, comfortable, and richly diverse community for everyone.” To reassure con-
             sumers, the company lends its TRUSTe privacy seal to Web sites, mobile apps, e-mail market-
             ing, and other online and social media channels that meet its privacy and security standards.60

                   The direct marketing industry as a whole is also addressing public policy issues. For
             example, in an effort to build consumer confidence in shopping direct, the Direct Marketing
             Association—the largest association for businesses practicing direct, database, and interac-
             tive marketing, including nearly half of the Fortune 100 companies—launched a “Privacy
             Promise to American Consumers.” The Privacy Promise requires that all DMA members
             adhere to a carefully developed set of consumer privacy rules. Members must agree to
             notify customers when any personal information is rented, sold, or exchanged with others.
             They must also honor consumer requests to opt out of receiving further solicitations or hav-
             ing their contact information transferred to other marketers. Finally, they must abide by the
             DMA’s Preference Service by removing the names of consumers who do not wish to receive
             mail, phone, or e-mail offers.61

                   Direct marketers know that, if left untended, such direct marketing abuses will lead
             to increasingly negative consumer attitudes, lower response and engagement rates, and
             calls for more restrictive state and federal legislation. Most direct marketers want the same
             things that consumers want: honest and well-designed marketing offers targeted only to-
             ward consumers who will appreciate and respond to them. Direct marketing is just too
             expensive to waste on consumers who don’t want it.

17 Reviewing the Concepts

OBJECTIVES REVIEW AND KEY TERMS

Objectives Review                                                       digital technologies—from smartphones, tablets, and other digital
                                                                        devices to the spate of online social and mobile media—direct
This chapter is the last of four chapters covering the final market-    marketing has undergone a dramatic transformation.
ing mix element—promotion. The previous chapters dealt with
advertising, public relations, personal selling, and sales promo-           For buyers, direct and digital marketing are convenient, easy
tion. This one investigates the burgeoning field of direct and digital  to use, and private. They give buyers anywhere, anytime ac-
marketing, including online, social media, and mobile marketing.        cess to an almost unlimited assortment of products and buying
                                                                        information. Direct marketing is also immediate and interactive,
OBJECTIVE 1  Define direct and digital marketing and                    allowing buyers to create exactly the configuration of informa-
             discuss their rapid growth and benefits                    tion, products, or services they desire and then order them on
             to customers and companies. (pp 534–536)                   the spot. Finally, for consumers who want it, digital marketing
                                                                        through online, mobile, and social media provides a sense of
Direct and digital marketing involve engaging directly with care-       brand engagement and community—a place to share brand
fully targeted individual consumers and customer communities            information and experiences with other brand fans. For sell-
to both obtain an immediate response and build lasting cus-             ers, direct and digital marketing are powerful tools for build-
tomer relationships. Companies use direct marketing to tailor           ing customer engagement and close, personalized, interactive
their offers and content to the needs and interests of narrowly         customer relationships. They also offer greater flexibility, letting
defined segments or individual buyers to build direct customer          marketers make ongoing adjustments to prices and programs,
engagement, brand community, and sales. Today, spurred by the           or make immediate, timely, and personal announcements
surge in Internet usage and buying, and by rapid advances in            and offers.
   553   554   555   556   557   558   559   560   561   562   563