Principles of Marketing
Seventeenth Edition
Chapter 17
Digital Marketing and
Sustainable Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Direct and Digital Marketing
Direct and digital marketing involve engaging directly with carefully targeted
individual consumers and customer communities to both obtain an immediate
response and build lasting customer relationships.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Direct and Digital Marketing
The New Direct Marketing Model
For many companies today, direct and digital
marketing constitute a complete model for
doing business.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Direct and Digital Marketing
Rapid Growth of Direct and Digital Marketing
Direct and digital marketing have become the fastest-growing form of
marketing.
Direct marketing continues to become more Internet-based, and digital
direct marketing is claiming a surging share of marketing spending and
sales.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Direct and Digital Marketing
Benefits of Direct and Digital Marketing—Buyers
• Convenience
• Ready access to many products
• Access to comparative information about companies, products, and
competitors
• Interactive and immediate
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Direct and Digital Marketing
Benefits of Direct and Digital Marketing—Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Forms of Direct and Digital Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Marketing, The Internet, and the Digital Age
Digital and social media marketing—Using digital marketing tools
such as websites, social media, mobile apps and ads, online video,
email, and blogs that engage consumers anywhere, anytime via their
digital devices.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Marketing, The Internet, and the Digital Age
Omni-channel retailing creates a seamless
cross-channel buying experience that integrates
in-store, online, and mobile shopping—creates
a single shopping experience.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Marketing, The Internet, and the Digital Age
Online Marketing
Online marketing is marketing via the Internet using company Web sites,
online ads and promotions, e-mail, online video, and blogs.
Marketing Web sites engage consumers to move them closer to a direct
purchase or other marketing outcome.
Branded community Web sites present brand content that engages
consumers and creates customer community around a brand.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Marketing, The Internet, and the Digital Age
Online Marketing
Online advertising is advertising that appears while consumers are
browsing online and includes display ads, search-related ads, online
classifieds, and other forms.
E-mail marketing involves sending highly targeted, highly personalized,
relationship-building marketing messages via e-mail.
Spam is unsolicited, unwanted commercial e-mail messages.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Marketing, The Internet, and the Digital Age
Online Marketing
Online video marketing involves posting digital video content on brand Web
sites or social media sites such as YouTube, Facebook, and others.
Viral marketing is the digital version of word-of-mouth marketing: videos,
ads, and other marketing content that is so infectious that customers will
seek it out or pass it along to friends.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Media and Mobile Marketing
Social Media Marketing
Advantages:
• Targeted and personal
• Interactive
• Immediate and timely
• Real-time marketing
• Cost effective
• Engagement and social sharing capabilities
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Media and Mobile Marketing
Mobile Marketing
Mobile marketing delivers messages, promotions,
and other content to on-the-go consumers through
mobile phones, smartphones, tablets, and other
mobile devices.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Traditional Direct Marketing Forms
Direct-mail marketing involves an offer, announcement, reminder, or
other item to a person at a particular address.
• Personalized
• Easy-to-measure results
• Costs more than mass media
• Provides better results than mass media
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Traditional Direct Marketing Forms
Catalog direct marketing involves printed and
Web-based catalogs.
Benefits of Web-based Challenges of Web-
catalogs based catalogs
• Lower cost than printed • Require marketing
catalogs • Difficulties in attracting
• Unlimited amount of new customers
merchandise
• Real-time merchandising
• Interactive content
• Promotional features
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Traditional Direct Marketing Forms
Telemarketing involves using the telephone to sell directly to
consumers and business customers.
• Outbound telephone marketing sells directly to consumers and
businesses.
• Inbound telephone marketing uses toll-free numbers to receive
orders from television and print ads, direct mail, and catalogs.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Sustainable Marketing
Sustainable marketing is socially and environmentally responsible marketing
that meets the present needs of consumers and businesses while also
preserving or enhancing the ability of future generations to meet their needs.
A sustainable company goes beyond caring for the needs of today’s
customers and has concern for tomorrow’s customers and the broader world.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Sustainable Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
High prices
Deceptive practices
High-pressure selling
Shoddy, harmful, or
unsafe products
Planned obsolescence
Poor service to
disadvantaged
consumers
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
High Prices:
Complaint: Response:
• Prices are too high due • Intermediaries are
to high costs of: important and offer
• distribution value.
• advertising and • Advertising informs
promotion buyers of availability and
• excessive mark-ups merits of a brand.
• Consumers don’t
understand the cost of
doing business.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
Deceptive practices: Deceptive practices:
Complaint: Companies use Response: Support legislation to
deceptive practices that lead protect consumers from deceptive
customers to believe they will get
more value than they actually do. practices Make lines clear—is it
These practices fall into three deception, alluring imagery, or
categories. puffery (exaggeration for effect)?
Products that are harmful
• Deceptive pricing
• Deceptive promotion Products that provide little benefit
• Deceptive packaging Products that are not made well
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
High pressure selling: Complaint: Response:
• Salespeople use high- • Most selling involves
pressure selling that building long-term
persuades people to relationships with
buy goods they had no valued customers.
intention of buying. High-pressure or
deceptive selling can
damage these
relationships.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
Shoddy, harmful, and unsafe products
Complaint: Response:
• Products have • Good marketers
poor quality, realize there is no
provide little value in marketing
benefit, and can shoddy, harmful,
be harmful. or unsafe
products.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Social Criticisms of Marketing
Planned obsolescence
Complaint: Response:
• Producers • Planned
cause their obsolescence
products to is really the
become result of a
obsolete. competitive
market.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Consumerism is the organized movement of citizens and government agencies
to improve the rights and power of buyers in relation to sellers.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Consumerism
Traditional buyers’ rights include:
• The right not to buy a product that is offered for sale
• The right to expect the product to be safe
• The right to expect the product to perform as claimed
Comparing these rights, many believe that the balance of power lies on the
seller’s side.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Consumerism
Advocates call for:
• The right to be well informed about important aspects of the product
• The right to be protected against questionable products and marketing
practices
• The right to influence products and marketing practices in ways that will
improve the “quality of life”
• The right to consume now in a way that will preserve the world for future
generations of consumers
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Environmentalism
Environmentalism is an organized movement of concerned citizens, businesses,
and government agencies to protect and improve people’s living environment.
Environmental sustainability involves earning profits while helping to save the
planet.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Environmentalism
Environmental sustainability includes:
Pollution prevention involves not just cleaning up waste but also eliminating
or minimizing waste before it is created.
Product stewardship involves minimizing the pollution from production and
all environmental impact throughout the full product life cycle.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Environmentalism
Environmental sustainability includes:
New clean technologies involve looking ahead and planning new technologies
for competitive advantage.
Sustainability vision is a guide to the future that shows the company that the
company’s products, processes, and policies must evolve and what is needed to
get there.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Consumer Actions to Promote Sustainable Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Business Actions Toward Sustainable Marketing
Sustainable Marketing Principles
Consumer- Customer-
Innovative
Oriented Value
Marketing
Marketing Marketing
Sense-of-
Societal
mission
Marketing
Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Business Actions Toward Sustainable Marketing
Sustainable Marketing Principles
Consumer-Oriented Marketing Consumer-Value Marketing
View marketing activities from the Invest in customer-value-building marketing
consumer's point of view Create value FOR customers
Deliver superior value
Innovative Marketing Sense-of-Mission Marketing
Company seeks real product and marketing Define mission in broad social terms rather
improvements than narrow product terms.
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.
Business Actions Toward Sustainable Marketing
Societal Marketing
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.