Direct Marketing Li: 2009-11-18. Contents Chapter 3 1 Chapter 4 2.

Direct Marketing

Li: 2009-11-18

Contents

Chapter 31

Chapter 42

The process of integrated marketing

communications

Chapter 3

LEARNING OBJECTIVES

This chapter gives an overview of how the integrated marketing communications function relates to an organisation’s marketing program.

What is the 4Ps?

ProductPricePlacePromotion

Integrated marketing communicationsDefinition: IMC is a communications process that

entails the planning, creation, integration, and implementation of diverse forms of marketing communications.

The integrated marketing communications function


The marketing strategy

ProductFeatures, brand, packaging, sizes, services, quality, features, warranties and the like

ProductFeatures, brand, packaging, sizes, services, quality, features, warranties and the like

PriceAdvertised price, any discounts, credit terms, time payment and buying allowances

PriceAdvertised price, any discounts, credit terms, time payment and buying allowances

PlaceDistribution channels, locations, stock, market coverage and transportation

PlaceDistribution channels, locations, stock, market coverage and transportation

Personal sellingThe activity of informing and persuading a market in a person to person basis of a carefully tailored message for that particular person about a product, service or idea

Personal sellingThe activity of informing and persuading a market in a person to person basis of a carefully tailored message for that particular person about a product, service or idea

Integrated

Marketing

Communications

Promote

These 4Ps

Integrated

Marketing

Communications

Promote

These 4Ps

Integrated marketing communications Four base elements:

Advertising: The activities involved in presenting a paid, sponsor identified, non personal message about an organisation and/or its products, services or ideas, through any media.

Sales promotion: Activities that, through the use of incentives or call to action prompts, increase the rate of sales. These may include point of purchase displays, exhibitions, trial use, samples, discounts and premiums among many options.

Public relations/publicity: A planned effort by an organisation to positively influence any groups that may have an effect in the outcomes of the organisation. Often this includes seeking publicity. This is non paid communications to appropriate publics, which may benefit the organisation being publicised.

Direct marketing communications: An interactive system of marketing communications that uses one or more advertising media to effect a measurable response and/or transaction at any location.


Advantages and disadvantages of promotional elements


Advantages

AdvertisingLow cost per person reachedAbility to intrudeAbility to create images

Disadvantages Almost never closes a saleEasy to tune outOften ignoredDifficult to measure effect

Sales promotion

Can offer incentive and/or call to actionProvides immediate feedbackCost effective with little wastage

Mostly short term

May diminish product or brand values

Publicity Low cost Potentially great impactCredible

Lack of controlEditorial integrity may sometimes be questioned

Direct marketing

Measurable Builds strong relationshipsCost effectiveDiscreetSelectiveSpecific targeting

High cost per prospect

Takes time to build consumer franchises

Role of communications in direct marketing programs

Effective communicationFor communication to be successful thecommunicator must know:The target audience Their objectives

To achieve this end the messages must:Compatible frames of reference EffectsFriendly media

Role of communications in direct marketing programs

Communication falloutConsider these points:• People learn

--- 1 per cent through taste

--- 1.5 per cent through touch

--- 3.5 per cent through smell

--- 11 per cent through hearing

--- 83 per cent through sight

• People remember

--- 10 per cent of what they read

--- 20 per cent of what they hear

--- 30 per cent of what they see

--- 50 per cent of what they see and hear

--- 80 per cent of what they say

--- 90 per cent of what they say and do.

Good, clear communication is, therefore, vital at all points in the direct marketing cycle.

Communications objectives and their desired effects

The five communications effects definedCommunication effect Definition

Category needA buyer’s acceptance that the category (a product or service) is necessary to remove or satisfy a perceived discrepancy between the current motivational state and the desired motivational state

Brand awarenessA buyer’s ability to identify (recognize or recall) the brand, within the category, in sufficient detail to make a purchase

Brand attitude

A buyer’s evaluation of the brand with respect to its perceived ability to meet a currently relevant motivation (this evaluation is based on brand benefit beliefs and the motivation-related emotional weights of the benefits and of possible freestanding emotions)

Brand purchase intentionA buyer’s self-instruction to purchase the brand or take purchase related action (this could be a decision to buy next time the buyer is shopping for that product category, or simply to make a request for more information)

Purchase facilitation A buyer’s assurance that other marketing factors (the 4Ps) will not hinder purchase or purchase-related action


Why establish objectives?The characteristics of good communicationObjectives are that they should: Reflect the corporate and marketing objectives Be based on an understanding of audience needs

and their likely response to varying types of communication

Be specific to the desired effect from the promotional activity

Be measurable Be achievable Have realistic time frames.


The importance of setting specific objectives(The hierarchy)

Mission statementMission statement

Corporate objectivesCorporate objectives

Marketing objectivesMarketing objectives

Communications objectivesCommunications objectives

Advertising objectives

Advertising objectives

Sales promotionobjectives

Sales promotionobjectives

Personalselling

objectives

Personalselling

objectives

Directmarketing

communicationobjectives

Directmarketing

communicationobjectives

Publicityand publicrelations

objectives

Publicityand publicrelations

objectives

DAGMARVaughan’s hierarchy of communications process

Adoption

Trial

Legitimacy

Attitude

Comprehension

Awareness

Vaughan’s hierarchy of communications process

Marketing objectives versus communications objectives

Marketing objectivesSpecific outcomes:•Sales volume

•Market share

•Profits

•Return on investment (ROI)

Communication objectivesDerived from marketing objectives:•Create a need for the product or service category within an audience

•Create an awareness of a brand within the minds of an audience

•Improve the image of a brand within the minds of an aware target audience

•Stimulate desired action from a target audience

•Assure the target audience that all marketing factors such as availability,

price, warranty etc are desirable, in place and in every way an aid to purchase.

Market segmentation and its use in a promotional program

Market segmentation Market segmentation is creating homogeneous groups of

prospects, from a heterogeneous whole market, using specific variables.

Key requirements for a segmented market Measurable, accessible, responsive and substantial

Selection of a target market It is critical that the marketer knows whether their target

market is for users or non users of the product (service) category.

It is important when selecting the target audience that the marketer considers the potential leverage of the proposed communications campaign.

Market segmentation and its use in a promotional program

Common consumer segmentation variables

Demographic

Psychographic

Geographic

Behaviouristic

Common organisational segmentation variables

Geographic

Customer type

Age, gender, income, occupation, education etc

Healthy lifestyle, outgoing personality etc

Residential location or place of work region

Behaviour of target market towards the brand or organisation Buying history, such as recency of purchase, frequency of purchase and even monetary amount of average purchase in the past

Some business types are geographically concentrated

Size, type of industry, organisational structure and purchasing methods

Creative strategy in database marketing Positioning What the product is What the brand is and why they should choose this

particular brand Who it is for What needs it will fulfil for them What it is the marketer wishes the member to do about it.

Creative strategy What is said How it is said

Specific advantages in database marketing One of the major advantages of database marketing is the

security it provides for integrated marketing communications programs.

Specific advantages in database marketing

Action triggers teenage fashion cricket fans gardeners

Brand attitude strategies Type of decision : high vs. low involvement

Type of motivation: informational vs. transformational

Brand attitude strategy simplified new category user

brand loyal brand switcher

Brand attitude strategies

Choice of media

Telephone Newspapers and magazines Broadcast media: television/radio Direct mail Web page Outdoor media: billboards, transit

signs, neon On-packet couponing or messages

Sales promotion methods

Types of sales promotion activities

Contest/sweepstakes (usage)

Samples (trial)

Coupons (trial and usage)

Premiums (usage)

Refunds/rebates (trial and usage)

Consumer-oriented promotions

Bonus packs (usage)

Price-offs (trial and usage)

Event sponsorship (usage)

Trade-oriented promotionsTrade allowances (trial and usage)

Point of purchase displays (usage)

Contest and dealer incentives (usage)

Training programs (usage)

Trade shows (trial and usage)

Cooperative advertising (usage)

Summary

From this chapter, we learn to use integrated marketing communications functions to an organization involved in the marketing plan. Marketing objectives and communication goals difference. However, in the development of specific goals, needs careful consideration, it is very important for the company.

chapter 4

Copy writing and writing the direct mail package

Learning objectives

This chapter examines the main issues that are considered by direct marketers when creating copy for advertising and direct mail packages for a variety of purposes and target markets.

Introduction

This chapter reviews and considers copy writing and its importance in the communication cycle.

Copy is the written or spoken word in communications.

Direct mail offers a choice of formats that is quite extensive, it allows considerably more space and an opportunity to tell a complete story.

The communication process

Communication is the verbal and/or non verbal transmission of information between a sender and a receiver.

Basically this process requires only four elements: a message a source of the message a communication channel a receiver

The communication process

SourceSourceMessage

transmissionMessage

transmission ReceiverReceiverMessageencoded

Messagedecoded

Factor affecting communication

CommunicatorBelievability

•Authoritative•Trustworthy•Likeable•Fits preconceptions

Message•Pleasant versus unpleasant•Order of points•Does it present only positive or some negatives as well?•Conclusions drawn or left to audience

Channel

Personal•Advocate or salesperson•Expert•Social

Non personalMass versus selective mediaEncounter in store or event

AudienceSize of group•Individual•Small group•Selected target segment•General publicInvolvement level•Ready to buy•Evaluating • alternative•Aware of need•Not aware of • need

The copy platform

What is a copy platform?The copy platform is the basic message the marketer wishes to get across. It is the base of the creative execution.

Creative executionThe best way to get the message across to the target group

The copy platform

TABLE 4.1 Creative execution is based on the copy platform

Copy platform Execution

A basic message:You’ll save money

Some possible approaches:Here is a yacht you’ll be able to buy with the money you’ll saveA picture of a pile of moneyA cartoon miser counting the money savedA business person pointing out the savings

Must be done by the direct marketer

Professional copywriter comes up with a number of alternatives from which the direct marketer can choose

Creative execution is based on the copy platform

The copy platform

There are seven magic questions that can be used to analyze any market and offer guidance to the copy writer.

The copy platform: seven magic questions

1. Why do customers buy? To satisfy a basic need To receive a benefit To solve a problem

2. What do customers buy? What other brands or types they buy? Do customers buy large or small

quantities? Is the product bought and used with other

products or services? Are brands important to customers?


3. Where do customers buy? From a specialty shop From a large self-service retailer From interstate or overseas supplier

4. When do customers buy? When the old one runs out When need arises At a particular time of the year/week/day


5. How do customers buy? Straight re-buy-buy the same product deal as

before Modified re-buy-check new aspects of product

and/or deal New task-need to gather as much information as

possible to make an important decision Preferred method of ordering

6. Who buy? Demographic, psychographic and geo-demographic

profile of the target market Who are the influencers? Sources of product information Media usage patterns


7. How much is the customer willing to pay? Price level Credit terms Preferred payment method Discounts and deals Refund, return and guarantee policy

The copy platform

The copywriter face two situations

Where there is something important to say

Where there is nothing important to say

The copy platform

Where there is something important to say A unique selling proposition (USP). The perfect USP is one that is:

• Important --- will really make a difference to a customer

• Unique --- not known to be available elsewhere

• Believable --- must be probable to customers.

The copy platform

Where there is nothing important to say

Sometime you have no USP or major benefit to talk.

Example

The rules for success

KISS principle--keep it simple stupid Use a single simple message per idea

per advertisement.Be pre-emptive

Make your statements such that the competition cannot counter attack.

How to write effective copy

Think about who you’re writing to – talk to them at their level

Keep your sentences brief Remember your basic typography rules Have a beginning, a middle and an end to your copy Remember what a headline does Always get someone else to read your copy If you are using a word processor’s spell check facility Fonts and type styles can also convey a message as

much as your words or graphics Consider using drop caps and other embellishments to

break up your copy Remember the basics of effective communication

Verbosity is a sinTABLE 4.3 some commonly used unnecessary wordage

Lengthy phrases Preferred alternatives

In a number of casesAt all timesAt this point in timeon the basis ofIn a satisfactory mannerIn order that Not in a position to In the near futureWe are of the opinionIn the normal course of our procedureWith the exception ofIt is obvious that

Some/sometimeAlwaysNowDue toSatisfactorilySo CannotSoonWe believeNormallyExcept forobviously

The direct mail package


The basic mail package consists of: An outer envelope A personalized cover letter A brochure The response device (postcard or coupon)

An outer envelope often custom designed to arouse interest or curiosity. You want prospects to take it in to the house and read it-not throw it in the bin.A personalized cover letter which is tailored to sell to the particular type of person you have targeted. You might use the same brochure with a different cover letter for parents of school children and librarians.A brochure that outlines the main features of the product. This can be very elaborate with pictures, diagrams, testimonials, etc.The response device could be a postcard or coupon with a FREEPOST box address on it. Make it easy for prospects to reply by ticking a box or whatever. These days you can get more responses if you offer a variety of ways for them to respond like a FREECALL 1800 number.



Brochure1

Response device2

letter3

The envelope4


AIDCA1

PPPP2

SAR-CHAIN-HOOK3

PAPA4

Formulas for drafting copy

Action

AttentionInterest

Desire

Conviction

AIDCA

back

Formulas for drafting copy

PicturePromise

Prove

Push

PPPP

back

STAR-CHAIN-HOOK

SECOND

THIRD

FIRST

GET THE READER’S ATTENTION.

FOLLOW QUICKLY WITH A FLOW OF FACTS, REASONS, BENEFITS

SUGGEST ACTION AND MAKE IT AS EASY AS POSSIBLE.

back

PAPA

PROMISEPROMISE

AMPLIFYAMPLIFY

PROOFPROOF

ACTIONACTION

back

Mix photography with illustrations when you are selling technical products.

Use chart, diagrams and illustrations to convey key messages about your product or service.

Sometimes your word is just not good enough.

The brochure enhance the letter

1 2 3

Start your body copy with a drop capital.

The copy must tell the product story in a logical step-by-step sequence.

Always offer a money back guarantee.

The brochure enhance the letter

4 5 6

Use every technique to retain the reader’s interest and stimulate response

Ten key words Free New You Now Win Easy Introducing Today Save guarantee

The letter 7 steps

Promise a benefit in your headline or first paragraph, your most important benefit

Immediately enlarge on your most important benefit

Tell the reader specifically what they are going to get

Back up your statements with proof and endorsements

Tell the reader what will be lost by not acting

Re-phrase your prominent benefit in the closing offer

Incite action now

The rules of letter writing

Avoid semicolonsKeep the copy in the active tenseGenerally avoid humor or being too

cute.Avoid too much involvement such as

puzzles or riddles.Start with a strong opening headline

and lead paragraph.Appeal to the emotions and self-

interest.


Describe products or services adequately. State the price and offer on all package

elements unless they are being tested. If available, include testimonials. Specific are always more effective than

generalities. Follow the rule of three Odd numbers are more effective than even

numbers. Always seek a rhythm in copy Whenever someone has to re-read a sentence or

ask for clarification, change the copy


Tailor imagery and vocabulary to the market and the product.

Use headlines, subheads, boxes, even photographs.

Underlines, indents and a second color in the letter should be used for pacing and to make all the key points stand out clearly to the prospect who only skims.


Never ask a reader a question in a key headline or on the outer envelope that can be answered.

The letters in a package should be personal and look like letters.

The first paragraph of a letter should be no more than one or two lines.

At least the first page of the letter should break to the next page in midsentence.


Mention the product on page one of the letter.

Present an iron clad and absolute guarantee of satisfaction.

In concluding the letter, return to the theme that began it.

Ask the prospect for an order.A postscript (PS) to reinforce.

Application snapshot

Your first existing customer is your best prospect.

Businesses don’t write letter—people do.

When writing your letter don’t stop with the first version.

Have the signature on your letter printed in blue.

In summary, the letter should be the hero in your direct mail package.

Application snapshot

End with a reason to act now.The closing paragraphs of the sales

letter should be devoted to a call for action.

Readers must be told exactly what you want them to do and how to do it.

The ps at the end of the letter is also very important.

Never write a letter without including a PS.

The envelope

The most prestigious envelope is a C4 window face envelope.

Avoid trying to trick your audience with statements like" urgent, important, personal or confidential” when it is not.

Brand awareness

back

Direct Marketing Li: 2009-11-18. Contents Chapter 3 1 Chapter 4 2.

Documents

Transcript of Direct Marketing Li: 2009-11-18. Contents Chapter 3 1 Chapter 4 2.