Direct Mail Strategies

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Mobile as a Direct Marketing Channel

In simple terms, direct marketing relies on the availability of our target market to receive and understand our marketing message directly, so mobile marketing falls neatly into this category of marketing. When compared to other types of direct marketing, the mobile phone offers a greatly expanded opportunity for our target market to receive our direct marketing messages. It has drastically changed our perception of availability, and this has changed how we market our products and services. Mobile marketing enables us to tap into the true essence of direct marketing as never before. Direct marketing with mobile devices offers a lot of advantages over other types of direct marketing. It is particularly useful because it has these characteristics Instructions telling potential customers to interact with your brand become more powerful when people can act on them immediately and because most people keep their mobile phone with them at all times, mobile calls to action are more compelling...

Direct Marketing That Is Personal

Mobile marketing is really the most personal direct marketing channel out there because of the variety of communication options it opens for us to reach a specific consumer with a specific message. It leverages the power of standard direct-marketing techniques and makes the message consumable and immediately actionable with one device.

Direct Marketing That Is Persistent

Before everyone had cellphones, most direct marketing was tied to specific locations. Direct marketers reached people at addresses or phone numbers that a group of people usually shared. A marketer's ability to communicate with people largely depended on people actually being at specific places. Marketers were forced to anticipate where people were, at whatever time they wanted to reach them. If people moved, went on vacation, or were just out and about, they were unavailable to receive our marketing messages.

Direct Marketing Methods

Direct magazine's 2002 analysis shows 19 methods to persuade or sell your prospects and customers through direct marketing. Though not all are in this chapter, they all are covered in this book. Do not confuse selling by direct mail with some simple, magical profit generator called Starting a Direct Mail Business. Selling by mail has all the risks, expenses, and probably all the costs of any other way of selling. Direct mail (noncatalog)

What You Need To Know About Direct Marketing

Although it cannot take the place of your attorney, the Business Checklist for Direct Marketers (see Figure 5.1) is an excellent place to begin. The brief, pamphlet-form Checklist is described as written for mail, telephone, fax, and computer order merchandisers to give them an overview of rules or statutes that the Federal Trade Commission enforces. Note that each of the 50 states has its own laws and rules, which this pamphlet does not cover Produced by DMA, the Direct Marketing Association, in cooperation with the Federal Trade Commission, the pamphlet is available without charge from DMA at 1120 Avenue of the Americas, New York, NY 10036-6700, or by calling (212) 768-7277.

Writing the Direct Mail Letter

The writing itself is often the easiest part. Where most of us go wrong is that we try so hard to make our letters sound businesslike and professional, that they seem forced and no longer believable. So if you're not yet a direct mail pro, don't write to the person who will actually get the letter. Rather, write to a friend, real or imaginary, who knows just a little bit less about the subject than your real audience. The friendship will provide the warmth in tone. The little bit less will keep you from leaving out anything important. Often we're so afraid of insulting our recipients' intelligence that we leave out those obvious facts that show we know what we're talking about

Notes On The Direct Mail Creative Checklist

The budget for direct mail creative stops with design ( 10) plus internal and outside charges for 11 to 14. How the total project is budgeted and what must be approved before creative design may begin are decided here. Note that 15 and 16 are for approvals only. DIRECT MAIL CREATIVE CHECKLIST Figure 5.14 The direct mail creative checklist.

Mail Order Direct Marketing And Database Direct Marketing

Database direct marketing involves exactly the same things. Its only difference is in the way it sells directly rather than through others. For example, a mailing that urges you to buy by mail and makes it practical to do so is a basic part of mail-order direct marketing. Exactly the same mailing that urges you to make the purchase in a retail outlet is mail advertising. Quite a bit more than nomenclature is involved in this difference.

Going postal direct mail

Initially, the suggestion that consultants advertise via direct mail might not seem like a great use of money, especially if you're mailing to a large list of unknown prospective clients. Most people don't like to receive junk mail, and response rates for direct mail are usually low. Consultants have differing opinions on the value of direct mailings some use it, but others don't. The guerrilla does use direct mail, but only under the right circumstances. For example, when the government issued new patient privacy regulations for health care providers, consultants used direct mail to inform clients of the upcoming changes and offered to help. Recipients read those mailings because the content was relevant, timely, and valuable. When public companies had to comply with the Sarbanes-Oxley rules for financial reporting, many consultants used direct mail to offer assistance with compliance programs. In both instances, clients had immediate needs that direct mail addressed. In response to...

Combining Direct Marketing with Personal Selling Telemarketing

And direct selling are two methods of personal selling (others will be discussed in Chapter 18). Nonprofit organizations like charities often use telemarketing to solicit funds. As you will see, for-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads. Direct-mail pieces are often used to invite prospective customers to visit auto showrooms to test-drive new cars the salesperson then assumes responsibility for the selling effort. The GM and BMW examples cited earlier in this text demonstrate effective use of this approach.

Advantages and Disadvantages of Direct Marketing

Many of the advantages of direct marketing have already been presented. A review of these and some additions follow 1. Selective reach. Direct marketing lets the advertiser reach a large number of people and reduces or eliminates waste coverage. Intensive coverage may be obtained through broadcast advertising or through the mail. While not everyone drives on highways where there are billboards or pays attention to TV commercials, virtually everyone receives mail. A good list allows for minimal waste, as only those consumers with the highest potential are targeted. For example, a political candidate can direct 4. Flexibility. Direct marketing can take on a variety of creative forms. For example, the Discovery Network sent 17-inch TV sets to media buyers through the mail. The only message accompanying the TV sets was one on the cord that said Plug me in and another on a videotape that read Play me. Upon doing so, the recipient was greeted with a seven-minute promotional video....

Direct marketing and personal selling

Direct marketing is an approach to marketing that involves the company knowing precisely who its customers are, understanding that not everybody is a customer, communicating in relevant ways with customers and prospects, enhancing and refining the relevance of the communications and doing all of the above through a database. Successful direct marketing can be accomplished with any and all combinations of media and distribution channels. Direct marketing is not, therefore, a medium, nor is it a channel, nor is it a methodology it is a comprehensive approach to marketing and to identifying and serving the needs of customers. Direct marketing is like advertising in a number of respects. Properly used, it can reinforce the brand values created and maintained by advertising. Like advertising it is also an above-the-line expenditure since it represents actual outlays as opposed to sacrificing profit. In both of these respects direct marketing is different from sales promotion which is a...

Communicating through direct marketing

The principal benefits of any direct marketing technique are the accuracy with which customers can be reached due to the targeting involved based on computer databases the measurable effect of direct marketing allowing the The attractions of direct marketing for many companies are that short-term sales effects are easy to quantify whereas the short-term effects of mass communications such as advertising are less easy to measure. Advertising, as was seen in the previous chapter, addresses longer-term brand values and is essentially a social phenomenon because it is public. Direct marketing by its nature, however, is essentially a private form of communication which ignores the social aspect of consumption. In 1999 Highland Distillers reviewed the promotion of its Macallen whisky brand and decided to switch its entire advertising budget into direct marketing. It built a database of 100,000 of its more frequent drinkers, at least five bottles a year, mailing them every few months with...

Direct marketing process

The general process of direct marketing involves a manufacturer, a direct marketing company, a channel and a consumer (Figure 11.3). Many direct marketing companies do not manufacture the products they sell, but of course they may. The direct marketing firm sends an advertising message, usually in the form of a direct response advertisement, to the consumer. This message is usually transmitted through the mass media, press, radio and television. It is possible, however, for the message to be sent person-to-person directly or by telephone. Direct marketing may, therefore, use any channel of communication to transmit the direct response advertising message. The consumers who decide to respond usually transmit their responses by mail or by telephone to the advertiser. If an order is placed a tracking code becomes part of the transaction to identify the specific sales message and source of the consumer's name and other details. When the direct marketing company has received the order the...

Direct marketing online marketing and SMS marketing

Direct marketing, based on mailings, telemarketing, Internet, or SMS (small messages services) coupled with toll-free numbers, is more often used for products with a low unit cost, and can efficiently replace a sales force with its lower cost. Furthermore, direct marketing relies on more sophisticated database processing techniques. Direct marketing better targets the messages for particular market segments by personalizing the relationship with the consumer.

What is Direct Marketing

Direct marketing Marketing through various advertising media that interact directly with consumers, generally calling for the consumer to make a direct response. Early direet marketers - catalogue companies, direct mailers and tele-marketers - gathered customer names and sold their goods mainly through the post and by telephone. Today, improved database technologies and new media - computers, modems, fax machines, e-mail, the Internet and online services permit more sophisticated direct marketing. Their availability and reasonable costs have greatly enlarged direct marketing opportunities.

The Growth of Direct Marketing

Direct marketing has been around since the invention of the printing press in the 15th century. Ben Franklin was a very successful direct marketer in the early 1700s, and Warren Sears and Montgomery Ward (you may have heard of these guys) were using this medium in the 1880s. The major impetus behind the growth of direct marketing may have been the development and expansion of the U.S. Postal Service, which made catalogs available to both urban and rural dwellers. Catalogs revolutionized America's buying habits consumers could now shop without ever leaving their homes. But catalogs alone do not account for the rapid growth of direct marketing. A number of factors in American society have led to the increased attractiveness of this medium for both buyer and seller Consumer credit cards. There are now over 1 billion credit cards bank, oil company, retail, and so on in circulation in the United States. This makes it feasible for consumers to purchase both low- and high-ticket items...

Direct Marketing on the Internet

Our discussion of direct marketing and the Internet will approach the topic from two perspectives the use of direct-marketing tools for communications objectives (as discussed in Chapter 14), and e-commerce. As we stated previously, many direct-marketing tools like direct mail, infomercials, and the like, have been adapted to the Internet, as you will see. At the same time, e-commerce selling directly to the consumer via the Internet has become an industry of its own. Direct Mail Direct mail on the Internet (e-mail) is essentially an electronic version of regular mail. Like regular mail it is highly targeted, relies heavily on lists, and attempts to reach consumers with specific needs through targeted messages. As we discussed earlier under personalization, consumers can opt to have specific types of email sent to them and other types not sent. For example, if you permit, The New York Times will e-mail you information about specific promotions, articles that will appear, books on...

Integrated Direct Marketing

Integrated direct marketing Direct marketing campaigns that use multiple vehicles and multiple stages Co improve response rates and profits. Although direct marketing and online marketing have boomed in recent years, many companies still relegate them to minor roles in their marketing and promotion mixes. Many direct marketers use only a 'one-shot' effort to reach and sell to a prospect, or a single vehicle in multiple stages to trigger purchases. For example, a magazine publisher might send a series of four direct-mail notices to a household to get a subscriber to renew before giving up. A more powerful approach is integrated direct marketing, which involves using multiple-vehicle, multiple-stage campaigns. Such campaigns can greatly improve response. Whereas a direct-mail piece alone might generate a 2 per cent response, adding a freephone number can raise the response rate by 50 per cent. A well-designed More elaborate integrated direct-marketing campaigns can be used. Consider the...

The Role of Direct Marketing in the IMC Program

Long the stepchild of the promotional mix, direct marketing is now becoming an important component in the integrated marketing programs of many organizations. In fact, direct-marketing activities support and are supported by other elements of the promotional mix. Combining Direct Marketing with Advertising Obviously, direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free or 900 number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort. For example, Victoria's Secret runs image ads to support its store and catalog sales. Both Marlboro and Benson & Hedges advertise their cigarettes, achieving a carryover effect of their image to their direct-response merchandise catalogs. Direct-response ads or infomercials are also referred to in retail outlet displays. Sometimes an advertisement will be sent through direct mail. CBS has tied into a...

The Benefits of Direct Marketing

Direct marketing benefits customers in many ways. First, home shopping is convenient and hassle-free. It saves time and introduces consumers to a larger selection of merchandise. They can do comparative shopping by browsing through mail catalogues and online shopping services, then order products for themselves or others. Industrial customers ean learn about available products and services without waiting for and tying up time with salespeople. The direct marketer can build a continuous relationship with each customer. For example, Nestles baby food division maintains a database of new parents and mails them six personalized packages of gifts and advice at key stages in the baby's life. Direct marketing can also be timed to reach prospects at just the right moment. And because they reach more interested consumers at the best times, direct marketing materials receive higher readership and response. Direct marketing also permits easy testing of alternative media and messages. Finally,...

The Direct Marketing Association DMA

The Direct Marketing Association is the leading global trade association of business and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. The DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, the DMA today represents more than 3,400 companies from dozens of vertical industries in the United States and 48 other nations, including half of the Fortune 100 companies, as well as nonprofit organizations.

Customer Databases arid Direct Marketing

Successful direct marketing begins with a good eustomer database. The customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demogiaphic, psycho-graphic and buying behaviour data. The database can be used to locate good potential customers, tailor products and services to the special needs of targeted consumers, and maintain long-term customer relationships. Database marketing is the process of building, maintaining and using customer databases and other databases (products, suppliers, resellers) for the purpose of contacting and transacting with customers. Forms of Direct Marketing The major forms of direct marketing include face-to-face selling, direct mail marketing, catalogue marketing, telemarketing, direct-response television (DRTV) marketing and online shopping. These forms of marketing can be used as communications tools to convey messages to target customers - as well as nonstore retail channels - to...

Defining Direct Marketing

As noted in Chapter 1, direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. In his Dictionary of Marketing Terms, Peter Bennett defines direct marketing as the total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer.2 First we must distinguish between direct marketing and direct-marketing media. As you can see in Figure 14-1, direct marketing is an aspect of total marketing that is, it involves marketing research, segmentation, evaluation, and the like, just as our planning model in Chapter 1 did....

Combining Direct Marketing with Sales Promotions How many

Times have you received a direct-mail piece notifying you of a sales promotion or event or inviting you to participate in a contest or sweepstakes Ski shops regularly mail announcements of special end-of-season sales. Airlines send out mailers or emails announcing promotional airfares. Nordstom and other retail outlets call their existing customers to notify them of special sales promotions. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions. In turn, the sales promotion event may support the direct-marketing effort. Databases are often built from the names and addresses acquired from a promotion, and direct mail and or telemarketing calls follow.

Public and Ethical Issues in Direct Marketing

Irritation Many people find the increasing number of hard-sell, direct-marketing solicitations by phone, television, and e-mail to be a nuisance. People in the direct-marketing industry are working on addressing these issues. They know that, left untended, such problems will lead to increasingly negative consumer attitudes, lower response rates, and calls for stricter government regulation. In the final analysis, most direct marketers want the same thing that consumers want honest and well-designed marketing offers targeted only to those consumers who appreciate hearing about the offer.

Combining Personal Selling and Direct Marketing

Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. The cost of a sales call and the cost associated with closing the sale are already very high and on the increase. Many marketers have reduced these costs by combining telemarketing and sales efforts (a typical telesales call costs about 11 cents for each 1 in revenue generated).17 A number of companies now offer consulting services to help organizations in the sales process including assisting in direct-marketing methods, as shown in Exhibit 18-6. In addition to telemarketing, other forms of direct marketing have been combined successfully with personal selling. Direct mail and e-mail are commonly used methods for supporting sales. For example, many companies send out lead cards to screen prospective customers. The salesperson follows up on those who express a genuine interest, saving valuable time and increasing the potential...

The Growing Use of Integrated Direct Marketing

Companies are increasingly recognizing the importance of integrating their marketing communications. Some companies are appointing a chief communications officer (CCO) to supervise specialists in advertising, sales promotion, public relations, and direct on-line marketing. The aim is to establish the right overall communication budget and the right allocation of funds to each communication tool. This movement has been variously called integrated marketing communications (IMC), integrated direct marketing (IDM), and maximarketing.3 How can direct marketing be integrated into campaign planning Imagine a marketer using a single tool in a one-shot effort to reach and sell a prospect. An example of a single-vehicle, single-stage campaign is a one-time mailing offering a cookware item. A single-vehicle, multiple-stage campaign would involve successive mailings to the same prospect. Magazine publishers, for example, send about four renewal notices to a household before giving up. A more...

Combining Direct Marketing with Public Relations As you will see

Later in this text, public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or cosponsor charities that use these and other direct-response techniques to solicit funds. Likewise, corporations and or organizations engaging in public relations activities may include toll-free numbers or website URLs in their ads or promotional materials. Direct mail has also been shown to be effective in recruiting job candidates.9

Growth of Direct Marketing and Electronic Business

Sales produced through traditional direct-marketing channels (catalogs, direct mail, and telemarketing) have been growing rapidly. Whereas U.S. retail sales grow around 3 percent annually, catalog and direct-mail sales are growing about 7 percent annually. These sales include sales to consumers (53 percent), business-to-business sales (27 percent), and fundraising by charitable institutions (20 percent). Annual catalog and direct-mail sales are estimated at over 318 billion, with per capita direct sales of 630.2 The extraordinary growth of direct marketing is the result of many factors. Market demassification has resulted in an ever-increasing number of market niches with distinct preferences. Higher costs of driving, traffic and parking headaches, lack of time, a shortage of retail sales help, and queues at checkout counters all encourage at-home shopping, as do 24-hour toll-free telephone order hotlines and Web sites. Convenient next-day delivery via Federal Express, Airborne, and...

The Growth And Benefits Of Direct Marketing

According to the Direct Marketing Association (DMA), direct marketing is defined as an interactive marketing system that uses one or more advertising media to effect a measurable response and or transaction at any location. This definition emphasizes a measurable response, typically a customer order. Thus, direct marketing is sometimes called direct-order marketing. Many direct marketers see direct marketing as playing a broader role these days, that of building a long-term relationship with the customer (direct relationship marketing).1 In building relationships, some direct marketers send out birthday cards, information materials, or small premiums to select customers in their customer base. On the service side, airlines, hotels, and other businesses are strengthening customer relationships through frequency award programs and club programs.

Components of direct marketing

Direct marketing consists of three components the development of an effective customer database direct response advertising which leads to the sale and the direct building of customer relationships to increase sales and profits. Direct marketing is an approach to marketing which is driven by a database which implies that the company knows who its customers are, and communicates with them in appropriate ways through enhanced and refined means of communications the driver is the database. It is a highly targeted approach to marketing which also implies that the company knows who are not among its customers. Customer information management is critical and two-way communication with customers may lead to high loyalty. While direct marketing makes extensive use of e-mail and other Internet services, telemarketing and direct mail are the two most popular forms of direct marketing. Telemarketing is most often used in conjunction with other direct marketing techniques where customers call a...

Direct mail mailshots

Direct mail is the production and distribution of letters to potential or past clients. The letters give details of your practice capability or services on offer. There is, however, a world of difference between the sort of junk mail that arrives on all our desks every day and a well crafted letter offering professional services addressed to the individual decision maker. The difference is often The advantages of mailshots are that they are a cheap, flexible way of addressing niche markets. At the lowest level of achievement, they can raise awareness of your services among potential clients. At best they can show you who is active in the market and who has projects in the pipe-line. If you receive a reply from potential clients stating, for example, that they have just appointed an architect or engineer to do similar work and they have no plans to employ design professionals in the foreseeable future, you can at least cross them off your target list. You have gained useful market...

Direct Marketing Actions

Once you have a list of clients, suppliers, friends and prospects in front of you, you may feel the urge to pick up the phone, send a note or visit each one to tell them more about your business. For most businesses, following that impulse would be a primitive and impractical form of direct marketing. The task of this section is to get you to refine this idea so that you can contact the people on your list to tell them about an event, action, product or service that they will welcome hearing about. 1. Sampling as a Direct Marketing Technique 3. Product Demonstrations as a Direct Marketing Technique 4. Classes as a Direct Marketing Technique 5. Follow-Up as a Direct Marketing Technique This is your chance to be your own business consultant and design your own direct marketing plan. These worksheets are very important. Use every creative technique you know of to write down your ideas. Eat chocolate if that will help, stand on your head if that works for you, have a brain-storming...

Post Cards Direct Mail

When a company has an existing database of postal addresses, direct mail may be the best way to get the email addresses of your existing customers and prospects. Again, offering an incentive always helps stimulate a greater response and is particularly effective when there is a pre-existing relationship. This helps increase the typical response rate of converting postal address recipients to email recipients. Publish a specific website address on your mailing to direct people to a landing page with the list signup form on your site.

Direct mail

If the Devil himself visited me this afternoon, and told me that I would only be allowed to use one marketing tool for the rest of my life as punishment for my evil ways - I would probably choose direct mail. What makes direct mail so great It's simply a terrific way to go directly to your prospect, get in their faces and make them one hell (pardon the pun) of a great offer they can't refuse. Better yet, you can reach thousands of people fast, and for less cost than just about any other kind of marketing tool. But wait, you say Isn't direct mail All true, all true but consider this even if 95 of everybody tosses your direct mail piece, and then only half of those end up buying, you're still going to make an incredible amount of money. With just a 2 or 3 percent converting to successful sales, direct mail will not only pay for itself, but earn you a terrific profit. Let's look at some numbers By now, I hope you're starting to see the magic of direct mail. With a mere 2 success rate,...

Local Marketing

Those favoring local marketing see national advertising as wasteful because it fails to address local needs. On the other hand, opponents argue that local marketing drives up manufacturing and marketing costs by reducing economies of scale. Moreover, logistical problems become magnified when companies try to meet varying local requirements, and a brand's overall image might be diluted if the product and message differ in different localities.

Direct marketing

Direct marketing can be an effective method of driving traffic to the web site. As mentioned earlier, a web response model can be used where the web site is the means for fulfilling the response, but a direct mail campaign is used to drive the response. Many catalogue companies will continue to use traditional direct mail to mail-out a subset of their offering, with the recipient tempted to visit the site through the fuller offering and incentives such as competitions or web-specific offers.

Direct Mail Marketing

Direct-mail marketing involves mailings of letters, ads, samples, fold-outs and other 'salespeople on wings' sent to prospects on mailing lists. The mailing lists direct-mail marketing Direct marketing through single mailings that include letters, ads, samples, fold-outs, and other 'sales-people on cozies' sent to prospects on mailing lists. Direct mail is well suited to direct, one-on-one communication. It permits high larget-market selectivity, can be personalized, is flexible and allows easy measurement of results (the firm can count the responses it gets and the value of those responses to the business). Whereas the cost per thousand people reached is higher than with mass media such as television or magazines, the people who are reached are much better prospects, since direct-mail marketers target individuals according to their personal suitability to receive particular offerings and promotions. Direct mail has proved very successful in promoting and selling books, magazine...

Few Examples of Targeted Marketing in Action

A fellow in the carpet-cleaning business told me that direct mail never paid off for him. When we investigated the area he had mailed to, we found a very high percentage of renters. Over 70 percent were tenants, not homeowners. The antidote to this direct mail failure was not fixing the literature it was simply selecting a better target. The carpet-cleaning guy spent the new few days driving the neighborhoods in various zip codes surrounding his office until he found one where the homes shouted pride of ownership.

The Three Best Ways to Target Market

First and most commonly used is geographic targeting, just like my friend in the carpet-cleaning business did. Most businesses that need their customers to come to their store or office or that need to schedule appointments and send salespeople out obviously need to restrict the geography of their marketing. They advertise only in the local newspaper or shopper, use coupon decks mailed to their own or adjacent zip codes, direct-mail to those same zips. If you're renting mailing lists, the same kind of data is available for most lists. More significantly, you can merge-purge two or more lists together to get exactly the prospective customers you want. A good list broker can help. It can be quite costly to do sophisticated merge-purges, but even so it's usually a bargain compared to the costly waste of playing blind archery with direct mail.

How to Get Favorable Media Attention and Publicity With Creative Promotions

The Home Club, a wholesale membership store, used a brochure made to look like a rock in a direct-mail campaign to solicit new members. Sticking with the rock theme, the club talked about its rock bottom prices and their location that was only a stone's throw away, and offered, as a free gift to new members, a phony rock with a well in it to hide a spare key. The mailing pulled a remarkable 7 percent response. But the promotion was so unique it was written up in Target Marketing Magazine (7 90) and mentioned on local talk radio.

The Four Ways to Increase Total Customer Value

Murray Raphael*, direct marketing expert and developer of the retail mall in Atlantic City called Gordon's Alley, says, In Gordon's Alley, we have put together a Gordon's Gold Card program. The criteria is simple did a customer spend 1,000 a year or more with us If they did, terrific. They are entitled to a Gold Card. Now, what does the Gold Card entitle them to Lots of nice things, including * Murray Raphael is the author of a wonderful little book of marketing ideas a collection of his columns from Direct Marketing Magazine. The book But Would Saks Do It is available for 10.00 plus 1.50 shipping and handling from Empire Communications, 5818 North 7th Street, 103, Phoenix, AZ 85014.

What the BBB Complaint Reports Didnt

Gross inaccuracies and false innuendoes designed to tarnish the image of direct marketing in the public eye. Someday an enterprising reponer will seriously investigate that smug, self-righteous organization and expose the self-serving (and anti-direct marketing) conclusions with which it fills the pages of its supposedly objective reports. Am I attacking the BBB You bet And it* about time somebody did, because the reports it issues on the direct marketing industry are often stupid and unfair, not to mention malicious. This humiliation evidently irritated the BBB, which since that time has never missed an opportunity to attack my company in print (along with the rest of the direct marketing industry), attempting to win by deceit what it could not achieve in court. 1. The BBB* report is based on the (supposedly huge) volume of direct-mail-generated complaints it received for the last six months of 1989. But it deliberately omits to mention the total volume of transactions involved For...


To Gary Halbert, who is largely responsible for me being in the direct marketing field, is an inspiring innovator, and a good friend. Each day, the average American consumer watches about four hours of TV and is bombarded by about 100 commercials. That same consumer hears 35 radio commercials each day, sees 202 newspaper ads each day, and receives 3 to 10 direct-mail solicitations each day. This doesn't even take into account telemarketing, newspaper inserts, magazines, etc. And some demographic groups receive even more advertising messages than others. The business customer gets the same barrage as every other consumer plus ads in trade journals and business magazines and a lot more direct mail.

Learning the Lesson

A man with zero training in marketing was running a direct-sales company, selling distributorships for his products at 5,000 each. His system was to send out a fairly expensive direct-mail package, get back inquiries, and turn those over to staff salespeople called recruiters who then phoned or visited the prospective distributors and tried to get them to attend a group meeting. As you can see, this process adds up to a sizeable investment in each prospect. And, for a while, he was literally mailing to the White Pages to everybody and anybody. He knew this was incredibly inefficient, but had no idea how to do it differently. One day, he had what Tom Peters calls a blinding flash of the obvious he noticed that a huge majority of his successful distributors had crew cuts. This was in the late sixties and crew cuts were supposedly out. But his guys with crew cuts were stubborn individualists, about forty years old, living in small towns, and working in blue-collar jobs truck drivers,...

Why Customers Lured by Ads Are Often Not Loyal

Perhaps the worst aspect of traditional advertising, one apparent to anyone who runs a retail store, is that customers who respond primarily to media ads don't usually return. The same truth has been discovered by magazines and publishing companies that rely heavily on junk mail solicitations to sell their wares. The fact is that customers recruited through scatter-gun advertising techniques such as TV spots, newspaper ads, direct mail, contests, unsolicited telephone sales and Internet freebies rarely come back. Unscrupulous Internet businesses such as DoubleClick have used the Internet to invade your privacy and sell your e-mail address to other businesses who beseige you with so-called targeted marketing based on sites you have visited and purchases you have made.

How Business And Marketing Are Changing

Store-based retailers are suffering from an oversaturation of retailing. Small retailers are succumbing to the growing power of giant retailers and category killers. Store-based retailers are facing growing competition from direct-mail firms newspaper, magazine, and TV direct-to-customer ads home shopping TV and the Internet. As a result, they are experiencing shrinking margins. In response, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations, and performances, marketing an experience rather than a product assortment.

High octane 2 Concentrate on the best customers

Let's say you are planning a direct mail campaign, and you're using the names of your captured customers for a mailing list. In the 'Old World' you might send a sales letter with discount coupon to every name on the list. Many of those names will be those of customers who are, frankly, more trouble than they are worth. But because you are blind about who's good and who's bad, you have to send to everybody and hope for the best. Well, when you have specific computer data, you can easily tell who comes in to buy the highest profit items the most often. Then, instead of losing cash on sales, you can direct very specific, targeted marketing messages at the big spenders, enticing them to come in and buy more and to hell with the cherry pickers'. The best way to do this is with direct mail. For example, let's say you have identified 300 customers who buy a lot of steaks. It's a high profit product, and now you know who likes them most. All that's left to do is concentrate steak selling...

High octane 4 Your unique selling proposition

Second, you have to work hard at letting people know that you are different. You do that by touting your USP in all your ads. You can also send direct mail to your customer base telling them clearly what your USP is. Tell customers you meet personally why you are unique, and what they won't get if they go to your competitor.

Lesson 3 the internet complements other channels

Companies have so embraced the internet that is has become the most widely used channel. While 97 percent have direct sales forces, and 56 percent use direct mail to reach their markets, we found that already 85 percent are using web-site access and or email. This rate of adoption is a testament to the adhesive powers of the internet.

Geographic Organization

A company selling in a national market often organizes its sales force (and sometimes other functions, including marketing) along geographic lines. The national sales manager may supervise four regional sales managers, who each supervise six zone managers, who in turn supervise eight district sales managers, who supervise 10 sales people. Several companies are now adding area market specialists (regional or local marketing managers) to support the sales efforts in high-volume, distinctive markets. For example, McDonald's now spends about 50 percent of its advertising budget regionally, and Anheuser-Bush has subdivided its regional markets into ethnic and demographic segments, with different ad campaigns for each.

Where else to turn for facts and figures

I ESRI Community Sourcebooks These volumes contain population, demographic, and income data as well as other consumer information for every U.S. zip code, Direct Marketing Area (DMA), and Metropolitan Statistical Area (MSA). The information is valuable as you work to forecast demand for your products, note population trends, and analyze the composition of your target market area.

Landing pages and microsites

One of the great benefits of e-mail, in common with other forms of direct marketing, is its accountability. This book presents a simple Excel spreadsheet-based model that you can use for setting objectives and comparing the effectiveness of different tests or campaigns. Figure 1.1 shows the framework used for this model. Conversion rate to action direct marketing campaigns are always aimed at achieving a response. Those that complete the landing page have responded, but we often have an additional aim, which is to convert this response into an action or a marketing outcome. Such outcomes include gaining a customer through achieving an initial sale or a repeat sale. To achieve these outcomes there will often need to be a follow-up. For example, a sales representative who has used e-mail marketing to gain a qualified lead will aim to convert the recipient into a customer. This could be achieved through follow-up e-mails combined with phone-calls and meetings.

Looking for promising leads

An investigator will also want to see if there is a specialist library nearby. Typically found in industrial and commercial areas, these are usually privately maintained (by a business or an association) and carry considerable depth of material within some specialised topic, such as advertising or direct-mail selling. A good public library may give information on specialist libraries that may be prepared to make their services available.

Information sources for statistics

The census and private sources provide statistics about consumers. Since the census provides details about where and who consumers are - specific geography by characteristics such as age, sex, ethnicity, size and nature of the living unit, type of dwelling and rental or value of dwelling unit - it has many immediate marketing applications. A firm can use local data to tailor neighbourhood promotions. A bank can make use of local data to obtain a demographic picture of the neighbourhoods surrounding its various locations. With this information, it can single out neighbourhoods most closely matching its profiles of typical purchasers of personal loans, mutual funds and other banking services. It can effectively target its advertising and direct mail efforts.

Never underestimate the intelligence of the buyer

If you want to succeed, never go down the road of deception, no matter how clever you think you're being. The public is a lot smarter than you think. So when you write your ads or direct marketing materials, don't make the mistake of thinking Barnum was right when he said a sucker's born every minute. Rather, when you write your marketing materials, think of your wife, your brother, your husband, your parents, your best friends. These are the people you're trying to reach and trying to sell. How easy is it to fool these people who are close to you Would you want to I don't think so, and even if you did, you'd be making a mistake - and I think you know that.

How Do You Get Your Children To Mow The Lawn You Bribe Them

What about direct mail Can you offer a bribe in exchange for an increased response In fact, offers of inexpensive free stuff or discounts have been shown to increase direct mail response by a whopping 342 When you boost direct mail by that amount, the pay-off is almost unbelievable

Advertising via Email

Note Some authors including Strauss et al. do not categorize E-mail in online advertising. Strauss et al. argue that by definition, direct e-mail messages, even if they contain multimedia, are considered direct marketing and not advertising. (Strauss et al., 2006 340-342) However, this polemic is out of the scope of this paper and e-mail will be further in the work referred to as a part of on-line advertising. European Commission, in its directive concerning personal data and the protection of privacy in the electronics communications sector state recommendations on how member states should act against spam. Article 13 states that The use of or electronic mail for the purposes of direct marketing may only be allowed in respect of subscribers who have given their prior consent. Among other rules, the user has to be always given the right to opt-out of the list and not receive any other unsolicited e-mail from a particular company. Moreover, it is up to national legislation, if opt-in...

Combining marketing tools multiplies their power

When you follow-up a mailing with a phone call, response rates have been shown to increase from 6 to 22 or more The results tend to be even stronger when direct mail is teamed up with print advertising. If you are targeting a specific city, area or region, try buying a series of ads for your product and let them run for a couple of weeks. Then hit the same area with direct mailing, and you'll be amazed at the results. Make sure your two or three different marketing tools have a definite connection with each other. Push the same benefit in a print ad as you do in the direct mail piece. If you call a prospect after mailing them, refer to what you told them in the mail piece, and increase the attractiveness of the offer even more.

Analyzing Business Markets Chapter 7 Zz1

The company searches for a not he r supplier, A purchasing manager senses an opportunity lo obtain lower pjfees or better quality Externally, the buyer may get now ideas at a trade show, sec an ad, or receive a call from a sales represent alive who offers a better product or a lower price. Business marketers can stimulate problem recognition by direct mail, tele market i tig, aod calling on prospects.

The Role of IMC in Branding

Brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand. It encompasses the entire spectrum of consumers' awareness, knowledge, and image of the brand as well as the company behind it. It is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it. These contacts can also result from various forms of integrated marketing communications activities used by a company, including mass-media advertising, sales promotion offers, sponsorship activities at sporting or entertainment events, websites on the Internet, and direct-mail pieces such as letters, brochures, catalogs, or videos. Consumers can also have contact with or receive information about a brand in stores at the point of sale through articles or stories they see,...

The Three Cs of Marketing Mnimums You Should Consider

Your marketing must stand out from the rest. Your clients receive hundreds of direct mail pieces each week. You are competing against hundreds of other consultants for the same consulting dollars. You need to grab potential clients' attention. How do you do that Your direct mail might send a list of ten tips to and your newsletter may be filled with time-saving ideas or suggestions for improvement.

Create a Privacy Policy

You should create a privacy policy to ensure your users are aware of your information collecting policies. Similar to your company information page, a privacy policy page is regarded as good practice in general, as well as for search-engine optimization purposes. You want to have open communication with your audience and let them know what is being done with any information collected during their time visiting your Web site. Many in the SEO community theorize that having a privacy policy page can help to show the search-engine algorithms that you are in fact a legitimate business. Organizations such as the Direct Marketing Association at have tools to assist in creating privacy policies. 1 Navigate to Direct Marketing Association's home page at

Responsibility for IMC Agency versus Client

Many ad agencies are adding more resources to offer their clients a full line of services. They are expanding their agencies' capabilities in interactive and multimedia advertising, database management, direct marketing, public relations, and sales promotion. However, many marketers still want to set the strategy for their IMC campaigns and seek specialized expertise, more quality and creativity, and greater control and cost efficiency by using multiple providers.

Value of an organizations resources

Imitating organizations may also attempt to substitute other resources for a costly-to-imitate resource possessed by an organization with a competitive advantage. If one organization, for example, has a competitive advantage because of its direct marketing skills, a competing organization may try to substitute a sophisticated CRM system. If the effects of direct marketing skills and CRM systems are the same, then these resources may be thought of as substitutes. If a substitute resource exists, and if imitating organizations do not face a cost disadvantage in obtaining them, then the competitive advantage of other organizations will only be temporary. If these resources, however, have no substitutes or if the cost of acquiring them is greater than the cost of the original resource, the competitive advantage can be sustained.

Ask what publicity can do for you

Publicity can produce extraordinary benefits for consultants who use it skillfully. In addition to establishing you as an expert, it can create leads for your practice, build your visibility in your industry, and generate business. Though not really free, publicity can be less expensive than other forms of promotion, such as advertising and direct mail.


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Monitoring Evaluation and Control

Promotional mix as separate functions. As a result, many people who work in advertising, sales promotion, direct marketing, or public relations tend to approach marketing communications problems from the perspective of their particular specialty. An advertising person may believe marketing communications objectives are best met through the use of media advertising a promotional specialist argues for a sales promotion program to motivate consumer response a public relations person advocates a PR campaign to tackle the problem. These orientations are not surprising, since each person has been trained to view marketing communications problems primarily from one perspective. In the contemporary business world, however, individuals working in marketing, advertising, and other promotional areas are expected to understand and use a variety of marketing communications tools, not just the one in which they specialize. Ad agencies no longer confine their services to the advertising area. Many...

Individual Differences in Innovativcncss

This adopter classification suggests that an innovating firm should research the characteristics of innovators and early adopters and should direct marketing efforts to them. For example, home computer innovators have been found to be middle-aged and higher in income and education than non-innovators and they tend to be opinion leaders. They also tend to be more rational, more introverted and less social. In general, innovators tend to be relatively younger, better educated and higher in income than later adopters and non-adopters. They are more receptive to unfamiliar things, rely more on their own values and judgement, and are more willing to take risks. They are less brand loyal and more likely to take advantage of special promotions such as discounts, coupons and samples.3' Manufacturers of products and brands subject to strong group influence must find out how to reaeh the opinion leaders in the relevant reference groups. Opinion leaders are people within a reference group who,...

Case study 15 21stcentury market research

Market research is coming out of the closet. Direct marketing firms have emerged to service the new phenomenon of relationship marketing - lifestyle databases underpinning the mailings of the firms to provide a direct interface between research and practice. Direct marketing company databases hold a mass of fine detail on customers' purchasing habits. Advances in computer technology have given firms the ability to combine databases to give a fuller picture of customer purchasing habits without ever having to approach a respondent with a questionnaire - the information is directly available. Researchers no longer need to reassure respondents about anonymity, either instead they offer rewards to consumers in exchange for giving personal information to the researchers. Data mining is the new catchword for market researchers. Using what used to be considered as secondary sources of information, the researchers analyse direct marketing company records to build up an in-depth picture of the...

The Promotional Mix The Tools for IMC p

Traditionally the promotional mix has included four elements advertising, sales promotion, publicity public relations, and personal selling. However, in this text we view direct marketing as well as interactive media as major promotional-mix elements that modern-day marketers use to communicate with their target markets. Each element of the promotional mix is viewed as an integrated marketing communications tool that plays a distinctive role in an IMC program. Each may take on a variety of forms. And each has certain advantages.

Interactive Internet Marketing

While the Internet is changing the ways companies design and implement their entire business and marketing strategies, it is also affecting their marketing communications programs. Thousands of companies, ranging from large multinational corporations to small local firms, have developed websites to promote their products and services, by providing current and potential customers with information, as well as to entertain and interact with consumers. Perhaps the most prevalent perspective on the Internet is that it is an advertising medium, as many marketers advertise their products and services on the websites of other companies and or organizations. Actually, the Internet is a medium that can be used to execute all the elements of the promotional mix. In addition to advertising on the Web, marketers offer sales promotion incentives such as coupons, contests, and sweepstakes online, and they use the Internet to conduct direct marketing, personal selling, and public relations activities...

Identification by market and by product

Previously, Dell followed the path of Compaq to overtake it. Started as a PC vendor, Dell sold only through direct marketing, first to consumers, then to small businesses, and finally to larger organizations. Then Dell managed to move successfully up-market by offering workstations first and then servers, storage, and networking to its corporate customers. But Dell is also expanding in other markets. First, in March 2003, Dell made the decision to challenge HP and IBM by rolling out inkjet printers. Then, in September 2003, it announced it was entering the consumer electronics market, selling MP3 players and flat-panel TVs on its popular Web site. Dell was not the first computer firm to go into this new business dominated by Asian companies, such as Sony, Samsung, and Matsushita. Gateway was the first to act in 2002 when it started marketing large-screen plasma TV monitors and took the biggest market share in the United States in less than 1 year now Gateway is also selling digital...

Why Is An Advertising Manager Needed If A Company Uses An Outside Agency

Direct-marketing agencies, sales promotion agencies, public relations firms, and interactive agencies. A marketer must decide whether to use a different specialist for each promotional function or have all of its integrated marketing communications done by an advertising agency that offers all of these services under one roof.

Pros and Cons of Integrated Services

It has been argued that the concept of integrated marketing is nothing new, particularly in smaller companies and communication agencies that have been coordinating a variety of promotional tools for years. And larger advertising agencies have been trying to gain more of their clients' promotional business for over 20 years. However, in the past, the various services were run as separate profit centers. Each was motivated to push its own expertise and pursue its own goals rather than develop truly integrated marketing programs. Moreover, the creative specialists in many agencies resisted becoming involved in sales promotion or direct marketing. They preferred to concentrate on developing magazine ads or television commercials rather than designing coupons or direct-mail pieces. Proponents of integrated marketing services contend that past problems are being solved and the various individuals in the agencies and subsidiaries are learning to work together to deliver a consistent message...

Crunch Time for Novell

Novell's moment of truth came in the form of an aggressive direct marketing campaign Microsoft launched against the company in 2001. By then, Novell was a wounded lizard in the marketplace, losing market share to Microsoft almost on a daily basis while the press and the industry questioned the company's relevance in a server world dominated by Windows NT, Linux, and the Internet.

Some Basic Terms and Concepts

The medium is the general category of available delivery systems, which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct mail, outdoor advertising, and other support media. The media vehicle is the specific carrier within a medium category. For example, Time and Newsweek are print vehicles 20 20 and 60 Minutes are broadcast vehicles. As you will see in later chapters, each vehicle has its own characteristics as well as its own relative advantages and disadvantages. Specific decisions must be made as to the value of each in delivering the message.

Gateway Searches for the Right Ad Agency

Founded in 1985, Gateway was a pioneer in the build-to-order, direct-marketing segment of the personal computer business.The company's chairman and CEO, Ted Waitt, started Gateway on his family's cattle farm in Iowa and built it into a multibillion-dollar company. The Holstein dairy cows on the Waitt farm inspired the company's distinctive and nationally recognized logo and the cow-spot patterns on its boxes. The spots serve as a constant reminder of Gateway's midwestern roots and the company's values hard work, honesty, friendliness, quality and putting people first.

Kelkoocom an example of revenue models for new intermediaries

Hagel and Rayport (1997) use 'infomediary' specifically to refer to sale of customer information, although it is sometimes used more widely to refer to sites offering detailed information about any topic. Traditional infomediaries are Experian ( and Claritas ( which provide customer data for direct marketing or credit scoring. Such companies now use the web to collect additional customer information from prize draw sites such as Email Inform ( An example of an infomediary providing detailed information about a sector, in this case e-marketing topics, is E-consultancy (

Advertising Strategies

Media may be defined as those channels through which messages concerning a product or service are transmitted to targets. The following media are available to advertisers newspapers, magazines, television, radio, outdoor advertising, transit advertising, direct mail, and the Internet.

Marketing Take Action

Your marketing plan should be fun to develop. To generate some ideas of what you can do, use this list of nouns to get your creative juices flowing business cards, letters, seminars, television, speeches, brochures, conferences, articles, clubs, postcards, network, lunch, e-mail, Internet, directories, mailings, trade show, ads, news releases, friends, past bosses, books, phone calls, associations, journals, direct mail, newsletter, stunts, greeting cards, telemarketing, logo, competitors, church, community college, parties, civic organizations, radio, newspapers, free presentation, press release, celebrations, congratulations notes, holidays, pictures, charity, rumors, awards, testimonials, audiotapes, interviews.

Renting or Buying Lists

0 With email, just like direct mail, how precisely the list is targeted to the marketer's offer is critical to the success of the email campaign. The marketer will need to test a variety of email lists in order to find the most responsive names for their offer. Recency, Frequency, and Monetary Value are important within email lists. Thus, where applicable, focus on lists of recent online buyers or registered users.

Make it a goal to develop a stronger relationship with other photographers in your market

This should feature your hook, plus an offer. You will want to make sure that you (1) give them a compelling reason to do business with you again (2) give them an offer they can't refuse and (3) give them a short deadline in which to respond to the offer (no more than two weeks from the date of the promotional mailing).

Getting Singular with One Brand Message and Tone

When you hear marketers talk about integrated marketing communications, they're talking about communications that project a single focused tone and message across all communication channels, whether transmitted via personal presentations, promotions, advertising, direct mail, online marketing, or public relations.

Special Offers and Discounts

Special offers like coupons and discounts are classic direct marketing techniques that translate extremely well to email. In order for an offer to be effective, it must provide something of real value to the recipient. Minimal discounts are not enough to get the reader's attention you have to offer something of substance. Of course, don't discount lower than your profit on the transaction. Having a time limit on discounted offers is also very important in order for the call to action to work effectively.

Setting Objectives for the IMC Program

Determining Imc Objectives

One reason so much attention is given to advertising objectives is that for many companies advertising has traditionally been the major way of communicating with target audiences. Other promotional mix elements such as sales promotion, direct marketing, and publicity are used intermittently to support and complement the advertising program. The promotional planner should determine what role various sales promotion techniques, publicity and public relations, direct marketing, and personal selling will play in the overall marketing program and how they will interact with advertising as well as with one another.

Channel Differentiation

Companies can achieve competitive advantage through the way they design their distribution channels' coverage, expertise, and performance. Caterpillar's success in the construction-equipment industry is based partly on superior channel development. Its dealers are found in more locations, are better trained, and perform more reliably than competitors' dealers. Dell Computers has also distinguished itself by developing and managing superior direct-marketing channels using telephone and Internet sales.37

ACORN and Related Classificalorv Systems

Early uses of ACORN were by local authorities to isolate areas of inner-city deprivation (the idea came from a sociologist working for local authorities), but it was soon seen to have direct marketing relevance, particularly because the database enabled postcodes to be ascribed to each ACORN type. Hence its use particularly in direct mail marketing. As a second phase to this project, Ideal Standard is looking at individual dealers. Within each dealer's catchment, specific postal areas of highest customer potential can he identified. The dealers can then use this information for direct marketing campaigns or door-to-door leaflet dis-trihutions to raise awareness of the Sottini product and inform people about their local Sottini dealership.

EMMA guidance on email marketing

In March 2002, the chair of the E-mail Marketing Association (EMMA) attacked the practice of non-members using 'permission-based' to refer not to opt-in lists, but to 'opt-out' lists where individual members on a list had failed to opt-out of such use being made of their personal details. However, at the time of writing, the UK's Direct Marketing Association (DMA) allows its members to collect and use e-mail addresses for marketing purposes on an 'opt-out' basis. This is consistent with the law provided the data is not sensitive personal data.

Writing effective sales copy

Many times, customers send letters with positive comments about your company or product. It is important to use this information for marketing purposes. Hence, you must immediately seek permission to use this testimonial in your ads, brochures, direct mail, and other promotions. The simplest way to do this is to send a release letter to the client (This should be accompanied by a photocopy of the testimonial letter, with the passages you want to reprint highlighted in yellow). I'd like to quote from your letter in the ads, brochures, direct mail, and other promotions we use to market our product with your permission, of course.

ACORN categoriesHouseholds

ACORN has been used by local authorities to isolate areas of deprivation and by marketing firms seeking to identify areas of greatest demand for their products and services. Major retailers, banks and building societies use the service for site analysis and the mix of products appropriate to each branch. It is also used to target local advertising, posters, leaflet distribution and direct mail. Researchers can also use the system to select representative samples for questionnaire surveys.

Direct Response Agencies

One of the fastest-growing areas of IMC is direct marketing, where companies communicate with consumers through telemarketing, direct mail, and other forms of direct-response advertising. As this industry has grown, numerous direct-response agencies have evolved that offer companies their specialized skills in both consumer and business markets. Figure 3-10 shows the top 10 direct-response agencies (several of which, including OgilvyOne, DraftWorldwide, and Grey Direct Marketing, are divisions or subsidiaries of large ad agencies). Direct-response agencies provide a variety of services, including database management, direct mail, research, media services, and creative and production capabilities. While direct mail is their primary weapon, many direct-response agencies are expanding their services to include such areas as infomercial production and database management. Database development and management is becoming one of the most important services provided by direct-response...

Arming your sales force with testimonials and product endorsements

Still, at the moment of purchase decision, customers need a final bit of inspiration or reinforcement that the brand's offering will deliver as promised. This is true when customers are purchasing in-person, and it's even more important when they're purchasing from Web sites or direct mailers.

The Future of Agency Compensation

As more companies adopt IMC approaches, they are reducing their reliance on traditional media advertising, and this is leading to changes in the way they compensate their agencies. For example, Procter & Gamble, which has traditionally been a heavy user of television advertising, was one of the largest major advertisers to move away from the standard 15 percent commission system. In 2000 P&G implemented a major change in its compensation structure from one based entirely on media commissions to one based entirely on sales-based incentives. One of the reasons for the change in P&G's compensation system is to encourage agencies to focus less on expensive com-missionable media such as television and magazines and make use of other IMC tools such as direct mail, event marketing, public relations, and the Internet.22 P&G joins a list of other major consumer products advertisers, such as Colgate-Palmolive, Unilever, and Campbell Soup, that have changed their systems to more closely link...

Managing the product through the life cycle

Before a product is launched the company incurs considerable costs, many of which continue after the product is available in the market. Three sets of cost arise prior to product launch marketing research, market testing and promotion costs product research, engineering and development work and the manufacturing costs of prototypes and samples, based on primitive designs which are subsequently modified and finalized. After launch, sales in a normal life cycle increase slowly at first and if expectations are realized they soon begin to take off and increase rapidly, quickly reaching a revenue-rich period of maturity from which they decline under management control. During the initial stages, advertising costs tend to be very high relative to sales. Other marketing costs also are significant during these stages. The result is that direct marketing and other organization costs continue to rise for a considerable period.

Email Marketing Insight

To future-proof, you should collect opt-in, but also record the different acceptable forms of communications to the customer (phone, fax, direct mail, e-mail), the date and time the data was collected and the form of consent given, i.e. opt-in or opt-out. The record should even reference the form of privacy statement in force at the time of registration. Some list brokers state that their lists are opt-in, when they are not. If you use such a list, you may be breaking data protection laws, have an unsatisfactory response rate and receive complaints that tarnish your brand. So, with all list brokers or vendors, you should initially ask whether the list is opt-in and find out the exact form of the opt-in, what text was used and what the source was. One list vendor in the UK has a privacy statement that states that the recipient's address was collected at a conference, via a magazine subscription or direct mail. This is not sufficiently specific. Some individuals will want to know...

Identifying the Target Audience

Indirect Advertising Examples

Marketers look for customers who have similar needs and wants and thus represent some type of market segment that can be reached with the same basic communication strategy. Very small, well-defined groups of customers are often referred to as market niches. They can usually be reached through personal-selling efforts or highly targeted media such as direct mail. The next level of audience aggregation is market segments, broader classes of buyers who have similar needs and can be reached with similar messages. As we saw in Chapter 2, there are various ways of segmenting markets and reaching the customers in these segments. As market segments get larger, marketers usually turn to broader-based media such as newspapers, magazines, and TV to reach them.

Commissions from Media

Another criticism of the commission system is that it ties agency compensation to media costs. In periods of media cost inflation, the agency is (according to the client) disproportionately rewarded. The commission system has also been criticized for encouraging agencies to ignore cost accounting systems to justify the expenses attributable to work on a particular account. Still others charge that this system tempts the agency to avoid noncommissionable media such as direct mail, sales promotions, or advertising specialties, unless they are requested by the client. The commission system has been a highly debated topic among advertisers and agencies for years. Critics of the system have argued that it provides an incentive for agencies to do the wrong thing, such as recommending mass-media advertising when other forms of communication such as direct marketing or public relations might do a better job.18 They argue that the commission system is outdated and must be changed. This does...

Organization of This Text

In Part Two we cover the promotional program situation analysis. Chapter 3 describes how firms organize for advertising and promotion and examines the role of ad agencies and other firms that provide marketing and promotional services. We discuss how ad agencies are selected, evaluated, and compensated as well as the changes occurring in the agency business. Attention is also given to other types of marketing communication organizations such as direct marketing, sales promotion, and interactive agencies as well as public relations firms. We also consider whether responsibility for integrating the various communication functions lies with the client or the agency. Chapter 4 covers the stages of the consumer decision-making process and both the internal psychological factors and the external factors that influence consumer behavior. The focus of this chapter is on how advertisers can use an understanding of buyer behavior to develop effective advertising and other forms of promotion. In...

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