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Direct-Response Marketing

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					 Kleppner’s
 Advertising
 Procedure

Dr. H. Ronald
    Moser
Cumberland
 University
Chapter 13
Digital and
Direct-Response Advertising



Kleppner’s
Advertising
Procedure, 18e

Lane * King * Reichart
Learning Objectives – 1

• List the pros and cons of digital media for
  advertisers.
• Describe the development of direct-
  response advertising.
• Identify five advantages of customer
  relationship marketing.
• Identify five primary types of advertising in
  digital media.
Learning Objectives – 2

• Describe four ways marketers can use
  commercial web sites.
• List the pros and cons of direct-response
  marketing.
• Identify three objectives of direct-response
  marketing.
• Discuss three important features of direct
  response.
Learning Objectives – 3

• Explain the concept of database
  marketing.
• Identify four types of direct-response
  marketing.
• Describe the opportunities and challenges
  of direct mail.
Pros of Digital Media

• Virtually every advertiser is using techniques
    learned from direct response as a key ingredient of
    marketing strategies.
•   List below are some pros and cons of Digital
    Media:
•   Relatively inexpensive, quick, targeted,
    measurable, and easily available
    interactive medium.
•   Combination of interactive audio and video
    capabilities.
•   Among the most flexible media with an ability to
    change messages immediately in reaction to
    market and competitive conditions.
Cons of Digital Media

• Many early failures.
• Consumers still reluctant to use internet for
  purchasing.
• Oversaturation of web sites make clutter
  and fragmentation major problems.
• Security regarding information provides.
 Direct Contract with Consumers

• There is nothing new about the concept of selling
  directly to consumers. Benjamin Franklin sold
  scientific books by mail in the 1740s, and more than
  100 years ago, Montgomery Ward had a thriving mail-
  order business through its catalog (see Exhibit 13.1).
• For the last 25 years, marketers have moved toward
  more personal relationships with customers, moving
  from marketing to broad demographic
  categories to the next phase of focusing
  on more narrowly defined Niche Marketing.
• At the same time technology was changing marketing,
  the competitive environment was reducing distinctions
  among brands.
Direct Contract with Consumers – Customer
Relationship Marketing

• Customer Relationship Marketing (CRM) –
  Is a management concept that organizes a
  business according to the needs of the
  consumer.
• Applying the CRM concept, a company
  using sophisticated software
  and the Internet could achieve
  higher customer loyalty and
  retention (see Exhibit 13.2).
EXHIBIT 13.2. Direct Contract with Consumers
– Customer Relationship Marketing



  • EXHIBIT 13.2.
  Zippo and Rolling
    Stone are Co-
 Marketing to Create
   Social Space for
 Music Enthusiasts.
Advertising and Digital Media

 • Though out this course we have offered examples of ways in
              which the Internet and other forms of digital
               media have dramatically changed the way
                 marketers and the media do business.
• In this section, we will discuss the primary types of advertising
                opportunities on the Internet and mobile
             devices, including a look at ways it is being
          used by firms to promote products an d services.
• Above all else, interactive technology has provided businesses
              with the capability of one-to-one marketing.
   • It is estimated that in 2009 almost 74 percent of the U.S.
  population—or more than 227 million citizens—use the Internet.
 • As you can see in Exhibit 13.3. the list of the largest Internet
      advertisers includes a range of marketers from financial
   institutions such as Bank of America. Exhibit 13.4. contains a
      list of the top agencies specializing in digital marketing.
Exhibit 13.3. Top 10 Display Advertisers –
Advertising and Digital Media
 • Following list of the largest Internet advertisers includes a
          range of marketers from financial institutions:
Advertising and Digital Media – Types of
Advertising in Digital Media
 • Following is a list of major forms of advertising in
        digital media and their proportion of 2010
                      expenditures:
•   Search.
•   Online Display.
•   E-Mail Marketing.
•   Social Media Marketing.
•   Mobile Marketing.
Advertising and Digital Media – Major Types
of Digital Media
 • Following is a list of major forms of advertising in digital
       media and their proportion of 2010 expenditures:
Advertising and Digital Media – Types of
Advertising in Digital Media – Search
 • Following is a list of major forms of advertising in
       digital media and their proportion of 2010
                     expenditures:
• Search – Search, or keyword advertising,
  dominates all forms of digital advertising,
  and revenues are expected to double by 2015.
• According to Advertising Age, in 2008, the top
  digital advertising agency was Digitas (see Exhibit
  13.4).
• Marketers, from global brands to local mon-and-
  pop businesses, can bid through
  auction systems on words or phrases
  related to their offering.
Exhibit 13.4. Top Digital Agencies –
Advertising and Digital Media
• Following contains a list of the top agencies specializing in
                       digital marketing :
Advertising and Digital Media – Types of
Advertising in Digital Media – Online Display
 • Following is a list of major forms of advertising in
       digital media and their proportion of 2010
                     expenditures:
• Online Display – The second-largest type
  of digital advertising is online display.
• Banners and buttons represent the vast majority of
  these ads, but many other formats also exist such
  as skyscrapers, full banners, and microbars.
• These ads can be static, animated, or contain
  video, but most contain the direct-response
  features of a link to the advertiser (see Exhibit
  13.5. and 13.6. in your text book).
Advertising and Digital Media – Types of
Advertising in Digital Media – E-Mail Marketing
• Following is a list of major forms of advertising in digital media
             and their proportion of 2010 expenditures:
• E-Mail Marketing– E-mail remains an effective
  means of cultivating and maintaining
  relationships with prospects and customers.
• With 2010 spending on e-mail marketing at $1.4
  billon, it is an established means of online
  marketing, with newfound resurgence
  during the recent economic downturn.
• Marketers are moving from mass e-mailing to much
  more targeted and personable approaches:
  “Enhancing e-mail lists with demographic data can
  improve performance.”
Advertising and Digital Media – Types of
Advertising in Digital Media – E-Mail Marketing
• In addition to enhancing performance, marketers are facing a
         number of concerns about how and under what
  circumstances they can contact a person online. The debates
       have created a new vocabulary for online marketers:
• Spam – Refers to unsolicited and usually unwanted
  online advertisements or promotional messages.
• Opt-in – Is a form of permission marketing in which
  online customers are sent messages
  only after they have established a             Home
  relationship with a company.                   Office


• Opt-out – Is a mechanism by which customers can
  notify online promoters that they do not want to
  receive spam.
Advertising and Digital Media – Self-Regulatory
Guidelines for E-mail Marketing – 1

• Use an honest subject line.
• Include a valid return e-mail address
  as well as a physical address for
  those who wish to contact the company.
• Clearly identify the subject and the sender
  at the beginning of the e-mail.
• Provide a clear and conspicuous e-mail
  option for consumers to remove
  themselves from the list.
Advertising and Digital Media – Self-
Regulatory Guidelines for E-mail Marketing – 2

• Ensure that electronic name-removal
  features are prompt and reliable.
• Offer options for removal of
  consumers from commercial
  e-mail lists for each brand or
  product featured.
• Don’t acquire e-mail address through
  automated systems (i.e., spiders and
  robots) without the consent of the
  consumer.
Advertising and Digital Media – Self-
Regulatory Guidelines for E-mail Marketing – 3

• Do not provide e-mail lists to unrelated third
  parties for their use.
• Provide the sender’s privacy policy
  in the body of the e-mail or via a link.
• Ethical e-mail marketers are advocating that
  they be allowed to send mass online
  messages with the proviso that
  consumers can then opt-out of
  future communication.
Advertising and Digital Media – Types of
Advertising in Digital Media – Social Media
• Social Media – Include blogs, social network sites,
  chat rooms, message boards, podcasts, and video
  and photo sharing sites (see Exhibit 13.7. in your
  text book).
   – Facebook and MySpace – Are the largest social
     networking sites.
   – LinkedIn and Twitter – Are other social media
     sites generating attention? Twitter was
     originally developed as a way for people to
     follow friends. However, marketers are using it
     to          create a following for their brands
     and to enhance customer service.
Advertising and Digital Media – Types of
Advertising in Digital Media – Mobile Marketing
• Mobile Marketing – Include blogs, social
  network sites, chat rooms, message
  boards, podcasts, and video and
  photo sharing sites (see Exhibit
  13.7. in your text book).
• While advertisers recognize the potential in
  Mobile Marketing, the number one
  drawback is consumers’ negative
  reaction to unwanted solicitations.
Digital as a Complement to Other Media
• For most media categories, including other direct-response
    media, digital advertising can stand alone but more often
    serves a complementary role in integrated campaigns.
•   Television seems to work well with online messages. The
    medium’s high credibility can build brand equity
    among large groups of prospects very quickly.
•   When NBC began an online-only series, Star Tomorrow, it was
    trying to creatively use the Internet and cross-media deals to
    attract advertisers.
•   According to some research, the major challenge
    for online promoters is to overcome the online
    user’s impatience.
•   Because the sheer number of online options can make users
    impatient, there is a heightened need for companies to pay
    even more attention to branding.
The Role of Digital Media and Marketing
  • From an advertising and marketing perspective,
    there are a number of uses for the Internet and
                 commercial web sites:
• A Source of Direct Sales.
• A Source of Advertising-Supported
  Communication.
• Source of Marketing and Promotion
  Information.
• Builders of Consumer Engagement.
The Role of Digital Media and Marketing
  • From an advertising and marketing perspective,
    there are a number of uses for the Internet and
                 commercial web sites:
• A Source of Direct Sales – Internet direct
  sales may be accomplished as stand-alone
  e-businesses, such as Amazon.com,
  or as an ancillary to an established
  business.
• A Source of Advertising-Supported
  Communication – Virtually every magazine,
  newspaper, and major broadcast
  outline has some Internet presence.
The Role of Digital Media and Marketing
  • From an advertising and marketing perspective,
     there are a number of uses for the internet and
                  commercial web sites:
 • Source of Marketing and Promotion Information –
   Thousands of businesses large and small
   have established web sites to provide
   product information, enhance stockholder
   relations, and report current company news.
 • Builders of Consumer Engagement – Increasingly,
   advertisers are finding ways to engage consumers
   when they visit the advertisers’ web sites in an
   attempt to help build connections and
   encourage consumers to regularly visit
   the site.
Digital Media and Marketing Research –
Some Generalizations
 • Internet marketing enjoys the benefit claimed by
     no other media that the ability to collect market
   research more quickly and inexpensively, even on
                 a global basis, than with
             conventional research methods.
 • These data are, of course, collected as part of the
     consumer search and transaction process (see
                      Exhibit 13.10).
 • The Internet allows marketers to reach samples of
      specific consumers to determine a number of
      product, marketing, or advertising responses.
• Instead on being confined to a few locales,
   a marketer can now sample globally.
Exhibit 13.10. Common Metrics for Success
in Search Marketing
• EXHIBIT 13.10. Many marketers use the Internet’s ability to
      measure performance. This table presents the most
     common metrics for measuring the success of search
                        marketing.
Digital Media and Marketing Research –
Elements of Online Privacy Policies
• In response to growing public concerns, the FTC
    has launched a number of inquiries about online
                 policies and practices.
    • The FTC advocates four elements for online
                    privacy policies:
•   Disclosure of what information is collected.
•   Choice for customers to opt-out.
•   Access by consumers to their
    personal information.
•   Security standards for information use and access.
•   Consumers are likely to feel more comfortable
    doing business with companies that have good
    consumer privacy policies.
Digital Branding, Audience, and Internet
Dayparts –Youth Audiences
• The Internet is instant, intrusive, and international, It is a medium with
   no boundaries, consequently, it presents a challenge to international
                                 advertisers.
 • Advantages for international companies that use the Internet globally
                           include the following:
        • Ease of receiving orders from consumers worldwide
                     without incurring extra expenses.
 • Ease of providing information about their products in other countries
                     without incurring extra expenses.
      • For academic institutions, save on materials and mailing
           costs because application materials can be put online.
 • Option to advertise on search engines like Google or Yahoo! or pay to
                        receive favorable placement.
             • Youth audiences spend more time using the
                     Internet than watching television.
• Research indicates that 13-to 24-year-olds spend more time online than
                            on traditional media.
Digital Branding, Audience, and Internet
Dayparts
• As with radio and television, there appear to be distinctive
     daypart usage patterns on the Internet. According to a
     study conducted by the Online Publishers Association
            there are five distinct Internet dayparts:
•   Early morning (Monday–Friday, 6 A.M.–8 A.M.).
•   Daytime (Monday–Friday, 8 A.M.–5 P.M.).
•   Evening (Monday–Friday, 5 P.M.–11 P.M.).
•   Late night (Monday–Friday, 11 P.M.–6 A.M.).
•   Weekends (Saturday–Sunday, all day).
•   To reach consumers under the age of 18,
    you might want to place your Internet
    advertising during evenings and
    weekends.
Forms of Direct Response

• Listed below are difference forms of direct
        responses to Internet advertising:
•   Television and direct-response marketing.
•   Television shopping networks.
•   Radio and direct response.
•   Magazines and direct response.
•   Catalogs.
                      SEE ROCK
                        CITY
Direct Response Pros and Cons – Pros of
Direct Response
• In this section we discuss some of the pros
    and cons of direct response marketing.
• Potential to reach any
  prospect on a geographical,
  product usage, or demographic
  basis.
• Measurable medium with opportunities for
  sales-related response.
• Personalization and
  relationship-building
  possible.
Direct Response Pros and Cons – Cons of
Direct Response
    • In this section we discuss some of the
        pros and cons of direct response
                   marketing.
•   High cost per contact.
•   Updating lists can be challenging.
•   Privacy issues are an increasing concern.
•   Difficulty in personalizing messages.
Direct-Response Marketing: An Overview –
Objectives of Direct Response
  • Most direct-response campaigns have at
     least one of the following objectives:

                Direct Orders

               Lead Generation

              Traffic Generation
Direct-Response Marketing: An Overview –
Objectives of Direct Response
   • Most direct-response campaigns have at least
            one of the following objectives:
• Direct Orders –
  Direct Order
  includes all direct
  -response
  advertising that is
  designed to
  solicit and close
  a sale.
Direct-Response Marketing: An Overview –
Objectives of Direct Response
   • Most direct-response campaigns have at least
              one of the following objectives:
• Lead Generation – Lead
  Generation includes all
  direct-response
  advertising that is
  designed to generate
  interest in a product and
  provide a prospective
  buyer with a means to
  request additional
  information about an
  item or to qualify as a
  sales lead for future
Direct-Response Marketing: An Overview –
Objectives of Direct Response
   • Most direct-response campaigns have at least
            one of the following objectives:
• Traffic Generation –
  Traffic Generation
  include all direct-
  response advertising
  conducted to
  motivate buyers to
  visit a business to
  make a purchase.
 Exhibit 13.12. – Features of Direct Response
• A properly executed direct-response campaign will
 reach a significantly higher percentage of prospects
  with much less waste circulation than advertising.


• EXHIBIT 13.12.
  Creative Executions
  Directed to Target
  Prospects Enhance
  Response Rates.
Direct-Response Marketing: An Overview –
Features of Direct Response
  • Regardless of the means of reaching
consumers with direct-response offers, there
 are a number of characteristics that these
       approaches have in common:
• Direct Response is
  Targeted Communication.
• Direct Response is
  Measurable.
• The Message of Direct
  Response is Personal.
Direct-Response Marketing: An Overview –
Features of Direct Response
  • Regardless of the means of reaching
consumers with direct-response offers, there
 are a number of characteristics that these
       approaches have in common:
• Direct Response is
  Targeted Communication –
  The copy or message can
  be tailored to the
  demographic,
  psychographic, and/or
  consumption profile of the
  audience.
Direct-Response Marketing: An Overview –
Features of Direct Response
• Regardless of the means of reaching consumers
 with direct-response offers, there are a number of
   characteristics that these approaches have in
                      common:
• Direct Response is
  Measurable – One of the
  disadvantages of most
  traditional advertising is that
  only the results can be
  estimated. However, in many
  forms of direct response the
  results scan be calculated to
  the penny.
Direct-Response Marketing: An Overview –
Features of Direct Response
• Regardless of the means of reaching consumers
 with direct-response offers, there are a number of
   characteristics that these approaches have in
                      common:
• The Message of Direct
  Response is Personal –
  Whether by mail, media, or
  computer, the direct-
  response markerter is able
  to identify consumers better
  than even and reach them
  with targeted, personalized
  messages.
 Database Marketing – Some Generalizations
• Advertising is usually used as one step in the process
  of building awareness and brand equity that could lead
      to a future sale, whereas direct response’s main
            purpose is to make the customer fully
                aware of a service or product.
 • The key to successful direct response is a thorough
                 knowledge of the customer.
    • This information includes not only consumers’
    demographic characteristics but also their purchase
            behavior, their interests, and lifestyle.
   • The primary consideration of database marketing
  involves using information to predict future purchases
  of the consumer and provide information that allows a
  company to maintain customer loyalty and profitability.
 The Direct-Response Industry – Some
 Generalizations
• The direct-response advertising industry has
  grown dramatically in the past 25 years, and
         the growth is likely to continue.
 • This growth was fueled in part by Internet
   advertising; however, there are many other
  forms of direct response including catalogs,
       inserts, coupons, direct television
            and radio, and direct mail.
   • Exhibit 13.13. lists the leading agencies
        specializing in direct marketing.
Exhibit 13.13. Top Direct Marketing Agencies

 • EXHIBIT 13.13. lists the top 10 Direct Marketing
                      Agencies:
The Direct-Response Industry – Television
and Direct-Response Marketing
   • The most used forms of DRTV are the
                  following:
    • 800-series numbers and/or Internet
                     ordering.
  • The traditional 30-second format with a
    tagline containing ordering information.
       • The 2- or 3-minute commercial.
• Program-length infomercials featuring well
     -known personalities, slick production,
      and blanket coverage during specific
                    dayparts.
The Direct-Response Industry – Television
and Direct-Response Marketing
   • The most used forms of DRTV are the
                   following:
• 800-series numbers and/or Internet
  ordering – Like all television advertising,
  direct response has the advantage of
  sight, sound, and motion, coupled with toll
  -free 800 numbers and/or Internet ordering
  capability to make it a        seamless
  sales process.
The Direct-Response Industry – Television
and Direct-Response Marketing
   • The most used forms of DRTV are the
                   following:
• The traditional 30-second format with a
  tagline containing ordering information –
  With DRTV being combined with Internet
  selling, the 30-second format is becoming
  increasingly popular, especially with well-
  known products and brands
                                 Titleist
  with established demand.
The Direct-Response Industry – Television
and Direct-Response Marketing
   • The most used forms of DRTV are the
                   following:
• The 2- or 3-minute commercial – The 2- or
  3-minute spot usually has problems
  gaining clearance during peak
  periods and, consequently, most often is
  scheduled in fringe-time programming
  such as during late-night movies.
• Program-length infomercials featuring well
  -known personalities, slick production,
  and blanket coverage during specific
  dayparts.
The Direct-Response Industry – Advantages
of DRTV for Advertising – 1
  • When it comes to DRTV, the following
       would be an inherent advantage:
• It shows the product in use and
  provides opportunities for product
  demonstrations in realistic
  circumstances.
• DRTV can create excitement for a product.
• DRTV offers immediate results.
The Direct-Response Industry – Advantages
of DRTV for Advertising – 2
  • When it comes to DRTV, the following
       would be an inherent advantage:
• Because most DRTV spots are not
  time sensitive, they can be scheduled     in
  fringe dayparts for significant discounts.
• DRTV complements retail sales.
• DRTV is a great technique for
  testing various product benefits
  and measuring sales response.
The Direct-Response Industry – Television Shopping
Networks, Radio, Magazine and Direct response and
Catalogs – Some Generalizations
  • QVC network is the natural, logical extension of
                  long-form infomercials.
   • The primary reasons why radio has not had a
       role in direct-response marketing to date is
             because of lack of visualization.
  • The major role of business magazines in direct-
         response marketing is to provide leads
       for personal salespeople or telemarketers.
      • As catalogers move into online options
    catalogers must deal effectively with a customer-
     controlled online environment and find ways to
      encourage prospects to visit their Web sites.
The Direct-Response Industry – Factors Affecting the
Move from Prospect to Buyer for Catalog Sales

 • The following are keys for catalog seller to
    successfully move a prospect into being a
                       buyer:
      • Have exciting creative executions.
        • Have a product or service that
              appeals to consumers.
  • Reach a targeted group of prospects with
            limited waste circulation.
• Have excellent fulfillment and customer
  service reputations.          Dell
                              Gateway
The Direct-Response Industry – Factors Affecting the
Move from Prospect to Buyer for Catalog Sales

  • Regardless of the channel(s) used by a catalog
 seller to reach prospects and customers, there are a
 number of keys to the successful process of moving
           a person from a prospect to buyer.

• The right product.
• Exciting creative execution.
• Reach a targeted group of
  prospects.
• Fulfillment and customer service.
• Database management.
The Direct-Response Industry – Factors Affecting the
Move from Prospect to Buyer for Catalog Sales

  • Regardless of the channel(s) used by a catalog
 seller to reach prospects and customers, there are a
 number of keys to the successful process of moving
           a person from a prospect to buyer.
• The right product – Quality, price, consumer
  benefits, and range of merchandise are all elements
  in successful selling.
• Exciting creative execution – Remember that the
  customer can’t try on clothes, handle camping
  gear, or sample a food item with catalogs. The sales
  story has to be conveyed in attention getting
  messages that grab the imagination of
  the reader (see Exhibit 13.16).
Exhibit 13.16. Direct Mail Can Encourage
Tourism – The Direct-Response Industry


• EXHIBIT 13.16.
Direct Mail Can Be
      Used to
    Encourage
 Tourism as Well
  as to Promote
   Products and
     Services.



                                           13-59
The Direct-Response Industry – Factors Affecting the
Move from Prospect to Buyer for Catalog Sales

  • Regardless of the channel(s) used by a catalog
 seller to reach prospects and customers, there are a
 number of keys to the successful process of moving
           a person from a prospect to buyer.
• Reach a targeted group of prospects – No
  element of direct selling is more
  important than the prospect list.
• Fulfillment and customer service – Nothing
  will kill a catalog company faster than
  reputation for faulty customer
  service.
The Direct-Response Industry – Factors Affecting the
Move from Prospect to Buyer for Catalog Sales

  • Regardless of the channel(s) used by a catalog
 seller to reach prospects and customers, there are a
 number of keys to the successful process of moving
           a person from a prospect to buyer.

• Database management – Catalogers must
  establish a means of database management
  that will allow product inventory
  management as well as a means
  of determining the quality of
  customers on a lifetime value
  basis.
Direct-Mail Advertising
     • The following is true of direct mail as an
                  advertising medium:
          • It represents 23 percent of U.S.
                advertising expenditures.
• Direct mail’s share of direct response advertising
    will decrease in the future due to rising costs.
   • The sheer volume of mail that households
           receive make it difficult to gain a The Moser’s
                 competitive advantage.
     • Despite recent competition from e-mail,
      telemarketing, and other direct-marketing
         options, direct mail remains a primary
                   advertising vehicle.
Direct-Mail Advertising – Organizations in
Direct-Mail Advertising
  • Listed below are a number of organizations that
      are involved in the direct-mail list process:

 • List Brokers.             • Service Bureaus.
 • List Compilers.           • Lettershops.
 • List Managers.            • Response Lists.
Direct-Mail Advertising – Organizations in
Direct-Mail Advertising
 • Listed below are a number of organizations that
      are involved in the direct-mail list process:
 • List Brokers – The primary functions of List
   Brokers include determining the availability of
   appropriate lists, negotiating
   with list owners on behalf of
   there clients, and offering
   general marketing advice.
 • List Compilers –The List Compilers is usually a
   broker who obtains a number of lists from
   published sources and combines them into a
   single list and then rents them to advertisers.
Direct-Mail Advertising – Organizations in
Direct-Mail Advertising
 • Listed below are a number of organizations that
      are involved in the direct-mail list process:
 • List Managers – The primary job of the list
   manager is to maximize income for the list owner
   by promoting the list to as many advertisers as
   possible.
 • Service Bureaus – To merge and
   purge lists in order to enhance
   their quality is the primary job of
   the Service Bureaus.
 • Lettershops – The lettershop is, in reality, a mailing
   house. Lettershops coordinate the mailing of
   millions of pieces of mail, from printing labels to
   keeping abreast of the latest postal regulations.
Direct-Mail Advertising – Organizations in
Direct-Mail Advertising
 • Listed below are a number of organizations that
      are involved in the direct-mail list process:
 • Response Lists – People on Response Lists are
   those who are prone to order by mail; therefore,
   these lists are more productive and the rental
   charges are higher than for compiled lists.
 • Response Lists are often obtained from previous
   customers of a company (see Exhibit 13.18).
Exhibit 13.18 Retailers Can Send Mail to
Existing Customers



• EXHIBIT 13.18.
  Retailers Can
 Send Direct-Mail
 Special Offers to
    Existing
   Customers.
Direct Marketing Association




                               13-68
Direct-Mail Advertising – Elements Tested in
Direct Mailings
    • Let’s look at some examples of the type of
    elements most commonly tested in direct mail:

        List Tests

        Offer Tests

       Format Tests

        Copy Tests

 Layout and Design Tests
Direct-Mail Advertising – Elements Tested in
Direct Mailings
 • Let’s look at some examples of the type of elements most
                commonly tested in direct mail:
             List Tests – Here we are looking at
             Demographic and Geographic segment.

            Offer Tests    – Here we are using the
              send-no-money offer. We use the Free-
                        Trial approach.
          Format Tests – Here we are using Single
                Mailing versus Series of mail outs.

          Copy Tests – Here we are talking about
                Letter length, use of Testimonial.

          Layout and Design Tests – Here we
            are talking about Photographs and Color
                    and Type of Size and Font.
Direct-Mail Advertising – Other Direct-Mail
Techniques


                        Package
                         Inserts

        Cooperative                 Ride-
         Mailings                  alongs


              Ticket         Statement
              Jackets         Stuffers
Direct-Mail Advertising – Other Direct-Mail
Techniques
               • A number of companies will allow the
                 insertion of sales messages when they
    Package        ship merchandise. These messages,
     Inserts        called bounce-back circulars, are
                 delivered to customers who are proven
                         direct-marketing users.

               • One form of package insert is the ride-
                       along, which is included in a
                     company’s own packages. Ride-
      Ride-           alongs have many of the same
     alongs       advantages of package inserts except
                   they are going to a company’s loyal
                  customers with whom a company has
                        a proven and recent sales
                               relationship.
Direct-Mail Advertising – Other Direct-Mail
Techniques
               • Few companies miss an opportunity to
                  include a message with your monthly
                 bill. The idea behind statement stuffers
                   is the same as ride-alongs, and they
                   have several advantages. First, they
   Statement        cost nothing to deliver because the
    Stuffers         mailing expense is being incurred
                 anyway. Second, they are at least seen,
                     because everyone eventually gets
                   around to opening their bills. Finally,
                 most recipients are credit qualified and
                   have already dealt with the company
                  before or they would not be getting a
                                 statement.
Direct-Mail Advertising – Other Direct-Mail
Techniques
                   • A popular form of ride-along is
                 promotions on airlines, bus line, or train
     Ticket       ticket jackets. Companies such as car
     Jackets        rental firms that ticket jacket are an
                   ideal way to reach their prime target
                                 audiences.

                 • With the cost of postage continuing to
                   increase, direct mailers often attempt to
                     share expense through cooperative
   Cooperative     mailing. A number of firms specialize in
    Mailings      joint mailing. These mailings may include
                  as many as 20 different advertising offers
                 in one envelope. Each advertiser provides
                 a coupon or other short message, and the
                     joint mailer handles the mailing and
                   divides the cost among the advertisers.
           The End!
 WHAT ABOUT THOSE REVIEW QUESTIONS?




THEY WILL BE THERE!

                   “S” DRIVE

				
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posted:8/24/2014
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