Internet Strategies and Direct Marketing - Research Paper Example

Internet Strategies and Direct Marketing November 8, Table of Contents 0 Introduction…………………………………………………………………………..3 1.1 Statement of the Problem…………………………………………………….3 1.2 Significance of the Problem………………………………………………….4 1.3 Purpose……………………………………………………………………….4 1.4 Statement of Hypothesis……………………………………………………..4 1.5 Assumptions………………………………………………………………….5 1.6 Limitations…………………………………………………………………...5 1.7 Definition of Terms…………………………………………………………..5 2.0 Review of Related Literature………………………………………………………...6 3.0 Design of the Study…………………………………………………………………..9 3.1 Sources of Data………………………………………………………………9 3.2 Methods and Instruments of Gathering………………………………………9 4.0 Analysis of Data…………………………………………………………………….10 5.0 Summary and Conclusion…………………………………………………………..11 5.1 Major Findings……………………………………………………………...11 5.2 Recommendations for Further Research……………………………………13 Abstract Creating effective marketing campaign strategies can determine the success or failure that is incorporated into a website. A proponent that is associated with this is direct marketing campaigns, which creates an impact not only with basic advertising through search engines, but creates effective results through relationship building opportunities. However, problems with consumer attitudes, ethical considerations and ways to reach consumers for relationship building are a continuous complication with direct marketing. This research study examines different websites and the use of direct marketing as an integrated component of the website. It is found that user interfaces, direct marketing and contacts for relationship building are secondary to websites and are not considered as an option for those working in websites. For different companies that have an online presence, this implies the inability to create loyal consumers within the online marketplace. 1.0 Introduction The application of Internet marketing is one that requires several dimensions of reaching potential customers. When looking at the opportunities available for prospective customers, it can be seen that there are several components that make a difference in the success or failure of a specific company. One of the considerations to make is the use of direct marketing on the Internet and how it impacts a company, either positively or negatively. While websites are the main tool used for promotions, a marketing strategy should contain options for search engines as well as for direct marketing to reach to prospective clients. However, consumer attitudes, approaches to the marketing and the ability to get a positive response based on the interface of the website can all make a difference in how different consumers respond as well as how the Internet marketing strategy is able to grow or lead to negative results. 1.1 Statement of the Problem The application of marketing strategies is one of the most essential movements toward success on the Internet. This research paper will examine how different types of strategies make a difference in responses from potential consumers and interactions on the Internet. Most marketers who are building strategies on the Internet have noted that the way to get the highest responses is through direct marketing that links to websites and information. However, the culture and consumption that is on the Internet is known to resist direct marketing campaigns, specifically because of considerations with privacy, cross –cultural problems and negative influences that are through the campaign (Hermeking, 192, 2005). The examination will show how marketing strategies for direct marketing can lead to complications and resistance to consumer response while building ways in which direct marketing can work effectively for websites. 1.2 Significance of the Problem The problem with direct marketing and attitudes of consumers is one that can determine the effectiveness of Internet marketing and campaigns that are initiated online. Through a recent survey (Morimoto, 17, 2006), it was noted that there was an increase in direct marketing campaigns by 66% with various companies. It was also noted that over 50% of online websites use direct marketing campaigns as a specific strategy to get users for the Internet (Morimoto, 17, 2006). However, responses from consumers are slowly decreasing because of this frequency and expectations of responses. Examining ways in which direct marketing can be used more effectively in campaigns will provide Internet marketers and website owners with the ability to create more effective campaigns that reach consumers in an alternative manner while assisting with the increase in effectiveness for direct marketing campaigns. 1. 3 Purpose The purpose of this study is to show how Internet marketing campaigns related to direct marketing is affecting activities online. Furthermore, there will be a proponent that defines the significant problems with direct marketing as well as how marketing strategies can be redefined to incorporate better alternatives for advertising. 1.4 Statement of Hypothesis The direct marketing campaign initiatives can become more effective by reevaluating the activities that are done through various websites while incorporating different proponents to reach consumers for specific responses. Relationship building and higher levels of interaction for direct marketing can provide more conducive initiatives to direct marketing campaigns. 1.5 Assumptions When conducting this research experiment, it will be assumed that direct marketing campaigns are one of several initiatives being used by websites to reach consumers. It will also be assumed that the data to reach consumers and the campaigns are conducted in a specific way through the company to reach different individuals. While this aspect may change consumer responses, the data can’t be gathered toward how consumer direct campaigns are first initiated. 1.6 Limitations The research won’t be able to provide specific components that affect individual campaigns and direct responses. Instead, a survey will be conducted that provides insight into how different campaigns are initiated as well as what the responses are. The inability to examine one website companies and the different results from direct marketing campaigns will limit the results and the capabilities of getting diverse results. 1.7 Definition of Terms 1. Direct marketing campaign: An initiative in which individual consumers are contacted out of interest of gaining loyalty toward the company. 2. Customer relationship management (CRM). Internet tool used to create customer value by building relationships. Direct interaction and responses are used for this specific aspect. 3. Multichannel integration: Advertising campaign which initiates CRM, direct emails and responses that are used through several channels, specifically to reach consumers and directly interact with them (Payne, Frow, 167, 2005). 4. Marketing strategy: Initiative to develop a network of potential customers and to get defined results and sales from a website online. 2.0 Review of Related Literature Direct marketing campaigns are known as a crucial component of getting sales and results through Internet marketing strategies. The ability to network with potential customers outside of basic website building and search engine optimization provides stronger results and reaches new consumers. More important, there is the ability to redefine customer relationships which can’t be done through a basic website platform. Customer involvement that is required for website responses includes both high reach and high richness responses. The high reach is based on search engine optimization and integration of building links and networks through online marketing. The high richness is based on relationship building and direct marketing that can directly lead to responses and values from customers. For this to work effectively there is the need to create a collaborative network while managing the direct consumer responses that are within society (Sawhney, Verona, Prandelli, 4, 2005). The direct marketing campaigns that have been initiated include interactive marketing that comes from various markets and which involves 8% of the spending on marketing strategies. Permission emails and online incentives are the two most common forms of direct marketing. However, web advertising and sponsorship, the extranet and new media are also used as direct marketing campaigns that link to the websites. The direct marketing is now known to branch into several facets of reaching consumers, including email and SMS campaigns that are continuously initiated among those that are interested in products. It is also known that B2B and B2C campaigns widely differ because of the atmosphere created by both and the ability to create different amounts of expenditure on the direct marketing campaigns (Barwise, Farley, 67, 2005). Even though there are specific focuses on direct marketing campaigns, privacy and components of security are often questioned by users. One of the defined attitudes that have been created is based on websites gathering information without the request of users. If this occurs, such as through spam, then the consumer will lose interest in the potential website and will tend to re-examine the use of the website. Privacy managers have noted that user values are based on the ability for a corporation to create a higher level of respect toward the consumer while not using the data or information collected to threaten those that are using a website. If there is a sense of threat that the consumers note, such as through receiving direct responses that are not desired, then it can lead to a loss in sales and attitudes from consumers that may not be interested in using products that would have been considered without the direct email responses (Earp, Anton, Aiman – Smith, Stufflebeam, 227, 2005). The concept of customer value, ethics and the ability to use direct marketing then becomes problematic because of attitudes that continue to change based on the option of creating value and privacy. The effects of advertising are required to be monitored and re-directed, specifically to ensure that consumers can respond in a positive manner while having a sense of value about privacy and the information given. It is noted that when direct marketing is given, a reciprocal relationship needs to be developed. This is one which is first examined by consumers initiating the responses that are within websites. This is followed by effects that help with relationship building and the ability to build sustainable relationships through the marketing campaigns. Ethical marketing has become the main consideration of building advertising campaigns, specifically because of privacy, value created responses and the cultural and ethical implications of direct response with consumers. The main concern that is raised with those that are interested in direct marketing campaigns is how to keep the ethical value while working toward effective campaigns that balance indirect campaigns (Murphy et al, 17, 2007). The specific components that are currently used for direct marketing are based on a combination of lead generation systems with databases and personal interaction used for personal relationship building. The lead generation systems are designed to go through databases and find potential customers based on activity that is found through computer systems and integrated networks. However, this is one which is now questioned because of the personal interaction levels that issue privacy and ethical problems. B2B campaigns can use this strategy more effectively; however, B2C opportunities are limited because of the consumer attitudes. The relationship building for value is one that is currently used to create responses while using social media networks that segment consumers and lead to personal relationships among individuals. This creates a higher response to customer loyalty and creates a focus on customers with the different websites. However, the direct marketing campaigns are often not followed through and lead to a lack of responses from those that are on the sites, specifically if the initiative is to create loyal customers. The consumer attitudes often lead to one feeling as though the sales are overtaking the relationship, which creates a lack of responses on the Internet (Switzerland, 85, 2000). 3.0 Design of the Study The study will examine several components that relate to direct advertising. This will begin with examining different websites and the advertising and marketing structure used. There will be an examination of the search engine optimization campaigns that are found on the Internet, as well as interactions that are from direct marketing campaigns. These two types of evaluations will show whether the websites are integrating direct marketing campaigns into the website or whether there is a lack of the campaigns because of potential customer attitudes. This will determine the effectiveness of the marketing strategies and campaigns used for the various sites. 3.1 Sources of Data The data will be conducted from three different websites that are based on providing university courses with an invitation to go to a specific college. The data will go through an analysis of what is on the website, as well as whether direct advertising or relationship building is a part of the website. The layout, specific features and the ability to have a space to initiate relationship building will all be examined within the site. The data will be followed with an examination of whether direct marketing is a facet of the website and whether this creates a better outlook for the university site. 3. 2 Methods and Instruments of Gathering The methods of examination will be based on observation. After evaluating each of the websites, a rating will be given about the main features of the site as well as how this enhances the marketing capabilities, levels of trust and the privacy. Each will be scored on how they work in terms of the building of the website. There will then be an evaluation of whether relationship building and direct marketing campaigns can be used as a result of the website interface and whether this is being incorporated into the site. More important, the methods will determine if individual interaction can become a proponent of the main website. 4.0 Analysis of Data The data that was presented created three types of interfaces on the websites. This included multimedia features, content and user interfaces. Each of these was rated on a scale of 1-5 and was given subtotals over the effectiveness. The highest score was at 22 and the lowest at 19. The difference between the websites and the ratings was based on the quality of each of the three categories and how they interlinked to the other concepts that were associated with the website. The scores then determined the effectiveness of the site as well as the capability to work into direct marketing campaigns. Since direct marketing campaigns first require building levels of trust and privacy, the website relationship is essential in promoting and assisting with the Internet Marketing scheme. When looking at each of these sites, it could be seen that the user interface was the first to determine whether a direct marketing campaign could be initiated. Each of the sites had the user interface at the lowest score, with all rating at 1 *3. This shows that the direct marketing campaigns and the desire to build relationships through the websites are not considered essential. The content rated at a higher amount, with 3*5 or 3*4 on each of the sites. The multimedia was similar to this with 2*4 and 2*2 being the main rating. This shows that the proponents of search engine marketing that is required for different sites was the main feature while user interfaces and interactions for direct marketing were considered secondary. While the content and the multimedia interfaces were able to create a strong appeal to the website, all of the university sites lacked in the ability to begin direct marketing campaigns. There wasn’t a way to sign into a newsletter and the information requests had to be scanned through with different contact forms. While the information presented on each of the sites was easy to go through and allowed a student to gain insight into the university, there wasn’t a way to develop the relationships with students and to create a stronger appeal to those looking at various universities. For those interested in the university attendance, the relationship building can make a difference in whether a student attends a school. Creating a higher sense of loyalty, relationship building, trust and a connection with the main target market would then help to build a competitive edge for those interested in attending a university. 5.0 Summary and Conclusion The need to have direct marketing campaigns as a part of a specific strategy can help to alter the way in which one approaches Internet marketing and relationship building. When looking at different websites, it can be seen that relationship building and direct marketing is a secondary feature. While the information is presented with the newest forms of advertising, the ability to connect to those on the Internet is still secondary and is not providing a platform for interaction. More important, the way in which direct marketing is completed through websites is not offering higher capacities in creating and developing personal interactions. For many, this creates a lack of trust and loyalty that may make a difference in the final decisions of potential customers and their desire to invest in a specific company for products or services. 5. 1 Major Findings From this study, it can be seen that the ability to build direct campaigns and to create user interactions is secondary. The three websites examined all used the proponents of search engine marketing and appeal to create a platform that enhanced interest. However, there was the inability to create a stronger relationship with potential customers. User interfaces were considered secondary and all had low ratings within the system developed while content and multimedia were the main focus of the sites. More important, the ability to create a relationship with an online company was secondary and didn’t have any enhancement or appeal for those that were working on the sites to interact online. The findings indicate that, while direct marketing and relationship building can help to get more customers that remain loyal through the Internet, there is little to no focus on creating high – end user interaction. 5.2 Recommendations for Further Investigation To look further into direct marketing campaigns and initiatives for relationship building, more websites that are from diverse industries can be examined. There is also the ability to look at case studies of companies that have integrated direct marketing as an effective means of gathering responses from customers and building relationships online. Examining this in an alternative manner can provide new insights into the basis of Internet marketing and how direct marketing can complement the main marketing for search engine results. More important, looking at case studies and more websites can provide investigation into what tools and development measures can be incorporated to ensure that those who are interested in a specific product or service have the capability of easily interacting with others online and moving outside of the system for better interactions. References Barwise, Patrick, John Farley. (2005). “The State of Interactive Marketing in Seven Countries: Interactive Marketing Comes of Age.” Journal of Interactive Marketing (19), (3). Earp, JB, AI Anton, L Aiman – Smith, WH Stufflebeam. (2005). “Examining Internet Privacy Policies within the Context of User Privacy Values.” Engineering Management (52), (2). Hermeking, Marc. (2005). “Culture and Internet Consumption: Contributions from Cross – Cultural Marketing and Advertising Research.” Journal of Computer Mediated Communication (11), (1). Morimoto, M. (2006). “Consumers’ Attitudes Toward Unsolicited Commercial E-Mail And Postal Direct Mail Marketing Methods: Intrusiveness, Perceived Loss of Control, and Irritation.” Journal of Interactive Advertising. (1), (7). Murphy, Patrick, Gene Laczniak, Norman Bowie, Thomas Klein. (2007). Ethical Marketing. New Jersey: Prentice Hall. Payne, Adrian, Pennie Frow. (2005). “A Strategic Framework for Customer Relationship Management.” American Marketing Association (69), (4). Sawhney, Mohanbir, Gianmario Verona, Emanuela Prandelli. (2005). “Collaborating to Create: The Internet as a Platform for Customer Engagement in Productive Innovation.” Journal of Interactive Marketing (Fall). Switzerland, Lausanne. (2000). “The Internet: A New Era in Customer Service.” European Management Journal (18), (1). Read More