2 Flashcards
Direct Marketing
Includes web, social, tv, magazine… any medium.
The most measurable.
Big demand from clients, huge potential for growth, excellent pay.
Direct Mail Benefits
Clients put in most money here. Measurable ROI, Ability to retain customers, reaches the right audience.
Direct Marketing Definition
A database-driven process of directly communicating with target customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels.
Marketing directly from manufacturer or wholesaler to the consumer. (no intermediary/retailer)
Four key areas to direct marketing
catalog, direct mail, telemarketing, and direct-response advertising
Three key elements needed for direct marketing
offer, response mechanism, and measurability
One-to-one communication
Direct Marketing
LTV
Lifetime Value - keep customers beyond the first sale
CRM
Customer Relationship Management - Don’t just keep the customer, make the most of the relationship from beginning to end
acquisition and retention
Getting new customers then keeping them
Advantages of Direct Marketing
Purchase not restricted to location, marketer controls product until delivery, easier to evaluate its effectiveness, flexibility in form and timing, personalization, talk to people not at them, focuses on sales, relevant customer info
Disadvantages of Direct Marketing
Market to people online giving up secret information ex: baby story, leak gifts to receivers etc.
Consumers reluctant to purchase (can’t touch the product or try it on)
Credit card numbers unsafe online.
Annoyances associated with Direct Marketing.
Unable to reach everyone in marketplace.
Merge and a purge
clear/transition database due to transient audiences, people that die etc.
Offer
Give the customer something - motivate them to act, incentives, free trial, samples, discounts etc.
Response mechanism
Give the customer a war to respond immediately
Measurability
Test what worked and what didn’t.
What is the response rate? - generally low (2%)
What characteristics are most successful?
Which offers do people like the most?
Direct Mail Formats
Self-Mailer (no envelope, lower response rate but costs less) Direct Mail package (in an envelope) Dimensional Mailer (box or tube etc.)
Advantages of Direct Mail
Tells a story, engages attention, personalization, builds feedback, reaches the unreachable.
Disadvantages of Direct Mail
Expensive (printing and postage), negative perception, mailing list, response rate, vulnerability
Catalogs
multiple page, direct mail publication, shows a variety of merchandise
Past behavior is
the best predictor of future behavior
watch what people do not what they say
Telemarketing two categories
inbound- someone calls the telemarketer
outbound- cold call from the telemarketer
direct response advertising
Has an offer, has response methods and is measurable. Can be tv, radio, print etc.
5 major success
1 don't let creativity get in the way 2 sell benefits not features 3 make an offer 4 urgency, give timeline 5 appeal to core values/universal motivators
Direct mail components
outer envelope (the most important part) letter brochure lift note business reply envelope or card application (depending on client)
Out of home advertising
Out of home provides an alternative that can’t be turned off or thrown away in the clutter. No room for featured benefits, has negative image (environmentally), hard to measure effectiveness, not all markets are large enough to offer out of home.
Keep it short, simple, creative, focus on one idea.
Interactive
web sites, online ads, emails, cds
big bucks in search engine optimization (measurability)
two way communication - getting closer to the real conversation
Intranet and Extranets
Intranet - internal communication system that connect employees
Extranets - communications system that connect a company and its employees to key external stakeholders
Branding
Found a need and made a promise to consumers.
A brand is a collection of perceptions in the mind of the consumer.
Slogans
theme line, tag line, memorable, appear near the logo or as a sign off not as a headline.
Neologism
Making up a new word/name
Alternative Media
unconventional, surprising, memorable
encounter - effect - impression
Concerned with the impact
Very Creative
Word of mouth
most persuasive advertising there is
Buzz, Viral, guerilla
DM mission
To motivate the target audience to take a specific action
AIDA
attention, interest, desire, and action
Six Common Direct Marketing Communication Tools
Direct mail with coupon, 800#, URL Print ad with coupon, 800#, URL TV commercial with 800#, URL Radio spot with 800#, URL Web site with e-mail, 800#, and e-commerce capabilities Online ad with click-through
branding
A set of assets (or liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service
neologism
invented words
TV commercial formats
Problem/Solution Demonstration Slice-of-Life Testimonial/Endorsement Presenters Vignette Jingle
characteristics of good TV spots
A major selling feature or benefit
A selling proposition that is relevant to the intended audience
A strong opening to capture attention (first 3 seconds)
An appropriate presentation (problem/solution, demonstration, spokesperson, etc.)
Opportunities to showcase the product (it should be the star; show it often and end with it)
A good fit between the audio and visual
A way to involve the viewer with the product
TV development steps
scripts, storyboards
scripts, storyboards
Has unique 2-column manuscript format manuscript format
Each cell/frame represents a major scene in the script
databases
Store consumer characteristics and response/transaction patterns
Enable direct marketing efforts to be highly targeted
80/20 rules
80% of repeat business comes from 20% of your customers
For direct marketers, that means know your customer well and keep making offers
response mechanisms
Give the customer a way to respond immediately
tools of direct marketing
catalog, direct mail, telemarketing, and direct-response advertising
measurability
Statistically analyze what worked and what didn’t
lifetime value
Keep customers beyond the first sale
direct mail letters
A print advertising message for a product or service delivered by mail
DRTV
Direct response television
sales promotion
The use of any incentiveby a manufacturer to induce the trade(wholesalers and retailers) and/or consumersto buy a brand and to encourage the sales forceto aggressively sell it.
push vs. pull
Pull: Efforts designed to create demand in the end user or consumer. Can include advertising and promotions such as coupons.
Push: Efforts that “push” the product through the channels so they are available to consumers. These communications are targeted to the sales force and the retailers.
promotion objectives
Short term sales boost Introduce new product Encourage trial Retain current customers Get repeat/frequent/multiple purchases Build brand equity/awareness/support other media Pre-empt competitive activity Increase purchase cost/size
promotion strategies
Trial Loading Continuity Usage Image
promotion tactics
Sampling Coupons Bonus Packs Premiums Continuity Programs Rebates Contests/Sweepstakes/Games Cause-related Tie-ins
point-of-purchase
Communication materials in the store or at the point of sale (Displays, Cart ads, Floor decals, Freezer clings, Shelf talkers)
out-of-home advertising
Short, reminder advertising
Includes outdoor, transit, mobile, and more
advantages of out-of-home
Influences customers when they are out and likely to make a purchase decision TV/Radio/Print are very cluttered build awareness quickly powerful presence reach specific audiences or audiences near specific locations lower in cost flexible timing seen by a lot of people
how to write for outdoor
Keep it short (7 words) Use simple words Use common, easy-to-read fonts Use visuals and make them large Show product visually Use emotion and humor Focus on one idea Don’t be subtle Be creative
branding
The process of creating special meaning (brand image) for your product
brand names
The success of the name is critical to the success of the product
Helps product stand out
Must be appealing, memorable, easy to pronounce
slogans
Theme line, tagline
trade characters
Illustrative devices to add memorability or personality to the brand
domain names
The place where customers can find you on the web (URL, web address)
interactive
Regardless of the agency or company you work for, you will most likely have to do some interactive writing
Internet advertising
Provide brand reminder message Deliver informational or persuasive message Drive traffic Interactive brand experience New home for “TV commercials”
advantages/disadvantages of Internet
Relatively inexpensive, Can also deliver business, Advertisers can customize and personalize messages, Can provide sales leads or actual sales
Inability of experts to consistently produce effective ads and to measure their effectiveness, Clutter may even be worse than in other media
shape vs. mirror
does advertising shape society or merely mirror societal trends?
disadvantages of out of home
No room for features/benefits
Locations may not be available
May reach people who aren’t interested
Has a negative image (environmentally)
Hard to measure effectiveness• Weather can affect readability
Not all markets are large enough to offer outdoor
