Professional Documents
Culture Documents
Direct Marketing
Traditional Meaning: The acquiring and retaining of customers without the use of intermediaries. The meaning now given to Direct Marketing: The distribution of products, information and promotional benefits to target consumers through interactive communication that allows response to be measured.
2
Direct Marketing
Marketing that reaches customers by communications directly addressed to the customer The process of sending promotional messages directly to individual consumers, rather than via a mass medium. Includes methods such as direct mail and telemarketing The sale of products by a producer direct to consumers with promotional efforts using direct mail, advertising, or telephone sales
Key features
The main purpose is to make: 1. A sale 2. Obtain a sales lead in highly targeted but with low cost. Direct contact with customer Use of database Relationship with customer
Channels
Direct mail (postal) (sophisticated selling) Telemarketing ( for mass coverage) Face to Face (effective selling) Online advertising Email Websites
Direct Marketers
Lands End DHL Sunsilk Gang of Girls ZAPP
11
Occurs when a seller and customers deal with each other directly
Direct-Response Advertising
Combines the characteristics of advertising with a contact element The direct-marketing process
Objectives and strategies The offer Message and media strategy The response/order Fulfillment and customer maintenance Evaluation
Database Marketing
A practice that uses databases to predict trends and monitor consumers
Four primary objectives
1. Record names of customers 2. Store and measure results of advertising 3. Store and measure purchasing performance 4. Vehicle for continuing direct communication
Companies whose primary business is selling products and services by mail or telephone Retail stores who use direct marketing as a supplement to other forms of marketing communication
Practical Tips Get attention Create a need Answer questions Provide critical information Inspire confidence, minimize risks Make the sale Use an incentive
Database Marketing
Database Marketing (DBM) and Customer Relationship Management (CRM) In order to form a learning relationship with its customers, an enterprise (firm) must be able to:
1. 2. Notice what its customers are doing Remember what it and its customers have done over time
3.
4.
How
How
Intelligence
Output
Customer Data
Data
Warehousing
Database
Marketing Decisions
Transaction Data
Techniques
Output/Application
Subscription Data
Activity Data
Prospecting
Exit Data
Customer retention
Promotions Data
Customer loyalty
Techniques
Output/Application
Subscription Data
Activity Data
Frequency, Cross-Tab Correlation Algorithms for minimizing distance traveled / maximizing sales potential
Store Location
Location data
Store Promotion
Distance Data
Geodemographic Database
Data
Zip codes
Techniques
Clusters
Output/Application
Segmentation
Demographics
Cluster Analysis
Distinct
Clusters used for
Advertising/Promotion Targeting
Purchase
Reading habits
Vacationing
Supermarket Database
Data Techniques Output/Application
Demographics
Stocking/Inventory control
Logistic regression
Aggregate Purchase Data
Advertising
Querying
Pricing/coupons
Retail Environment
Dear Miss Nayyar It gives me great pleasure to invite you to the exclusive preview of Pantaloons upto 50% off sale on Wed & Thur, 4th & 5th Jan 2012. Only our valuable greencard members can avail sale discounts on 'Exclusive Sale Preview Days'. There is an entire range of apparel for men, women and kids as well as sunglasses, watches, perfumes, cosmetics, jewellery, toys and much more. Make sure to bring your family along. Happy Shopping! Kailash Bhatia, CEO - Pantaloons
43
Mailing List
A mailing list is a collection of names and addresses used by an individual or an organization to send material to multiple recipients. The term is often extended to include the people subscribed to such a list, so the group of subscribers is referred to as "the mailing list", or simply "the list".
44
Compiled List
Consumer compiled List Consumer Lifestyle enhanced List Business Compiled List
46
OFFER
47
Offer
Offer
To attract the customer over a period of time to generate sales and to retain the customer and the launch of a new product or service. Offer mostly restricted to a particular geographic area.
Product
Cosmetic, Home Appliance, Kitchen Appliance, Real Estate, Pharma, Food & Beverage etc.
48
Medium
Radio, TV, Print , Coupons, Loyalty card, Bonus Cards, Membership Cards, Vouchers, Newspapr Clipping,
Distribution method
Newspaper (Frequent use), DRA, Pamplet, Hoarding, Online, Catalogue, Telemarketing, Push Button Strategy, Mouse Clicking
Creative strategy
49
Types of Offer
Sweepstakes Toll Free Response Guarantee Redeem Coupons Vouchers Free-Gift Offer Multi Book Offer Free Kit Offer
50
Magazines
Magazine Universe: India Advantage Timing & Frequency (CPR) Ad Size
Spectacular Unit Single Full Page Unit Small Space Unit (One Column) 56, 42, 21 Line Units, Square Card ( Two Columns by 70 lines)
51
Colors
Four Colors Two Color Black & White Placing of the Advertisement
More visibility on the Right hand pages Three Cover Ad Back of front Back Cover Inside Back Cover
52
Newspaper
Newspaper Preprints Main Newspaper v/s Newspaper Supplement (CPM) Local Newspaper Magazines Timings o Newspaper Insertion Position Factor Colour V/s Black & White
53
TV/Radio
Ratings Commercial Lengths Reach & Frequency Buying Time TV Schedules Market Performance
54
Introduction to B 2 B Marketing
Marketing
The process of planning and executing. The conception (product), pricing, promotion, and distribution of ideas, goods, and services.
Business Marketing
MARKETING OF GOODS AND SERVICES TO:
Companies Government Bodies Institutions (i.e. hospitals) Non-Profit Organizations (i.e. Rotary Club)
B2B: goods or services are sold for any use other than personal consumption Note: It is not the nature of the product; it is the reason for the transaction.
You buy a gear to fix your mountain bike. Ford buys the same gear to fix a machine. Xerox buys soft drinks for its cafeterias. You start a landscaping business and purchase a lawnmower. The Indian government buysanything.
Characteristic
Sales volume Purchase volume
B2B Market
Greater Greater
B2C Market
Smaller Smaller
Number of buyers
Size of individual buyers Location of buyers Buyer-seller relationship Nature of channel Buying influences
Fewer
Larger Concentrated Closer More direct Multiple
Many
Smaller Diffuse More Impersonal Less direct Single/Multiple
Type of negotiations
Use of reciprocity Use of leasing Key promotion method
More complex
Yes Greater Personal Selling
Simpler
No Less Advertising
DERIVED DEMAND
The demand for a companys products comes from (derived) the demand for their customers products. Most demand comes from consumers.
JOINT DEMAND
Two products are used together and demanded together Both products are consumed at the same time
For additional production (e.g., components are combined into subassemblies and become part of the finished product) For use in operations, but not part of the finished product For resale
Foundation Goods
Capital Items Typically depreciated over time
Facilitating Products
Support organizational operations Handled as overhead expenses
Accessory Equipment
Less expensive & short-lived Not considered part of fixed plant Portable tools, PCs, etc.
Services
Maintenance & Repair support Advisory support Logistical support
Commercial enterprises
Indirect channel members and facilitators OEMs (original equipment manufacturers) Users = customers
CONCEPT OF CREATIVITY
68
Ability to generate fresh, unique and appropriate ideas to solve communications problems. To be appropriate and effective the idea must be relevant to the target audience. Break through the clutter.
Good creative strategy is often central to determining the success of a product or service. Advertising campaign that is poorly conceived or executed can be a liability. An ad or commercial that is creative does not mean it will effectively communicate the intended message.
Advertising Campaigns
Integrated Integrated
Coordinated Coordinated
Creating new campaigns may be risky and many are simply tweaks on old ideas
Burger King Tries Again . . . and Again and Again and Yet Again
76 Have it your way. 77-78 America loves burgers and were Americas Burger 87 King. 78-80 Whos got the best darn burger? 80-82 Make it special. Make it Burger King. 82 Arent you hungry for Burger King now? Arent you hungry? 86-87 This is a Burger King town. The best food for fast times.
88-89 We do it like youd do it. 89-91 Sometimes you gotta break the rules. 91-92 Your way. Right away. 92-94 BK Tee Vee: I love this place!
82-83 Battle of the burgers. 83 83-85 The big switch. 85-86 Search for Herb.
Creative Strategy
Creative Execution
Message Objectives
1. Perception: create attention, awareness, interest, recognition, and recall 2. Cognitive: deliver information and understanding 3. Affective: touch emotions and create feelings 4. Persuasion: change attitudes, create conviction and preference 5. Transformation: establish brand identity and associations 6. Behavior: stimulate some form of action
12 78
The ability to generate fresh, unique and appropriate ideas that can be used as solutions to communication problems.
Its not creative unless it sells. Only artistic value and originality count.
Managers
Artists
Creative Challenges
Creative specialists face challenge of taking research, creative briefs, strategy statements, communication objectives and other input and transforming them into an advertising message. Many people follow a proven formula when creating ads, because they are safe.
Creative Personnel
Use their artistic talents to translate communication objectives into advertising campaign. Account planning: plays important role during creative strategy development by driving process from the customers point of view.
Digestion
Incubation
Illumination
Verification
Creative Process
Wallas Four-Step Approach: Preparation
Verification
Refining the idea and finding the appropriate solution
Read anything anything related to related tothe the product or product or market! market.
Talk to Listen to users what and people are talking non-users about about! the product.
Learn as much as possible about product or service, target market, competition and any other relevant research Focus groups: Give insight as to why and how consumers use a product or service What is important to them in choosing a particular brand What they like and dislike about certain products or services
Creativity Tactics Effective Brainstorming and Ideation Best when done in small groups (5-10 people)
All thoughts are fair game. Never, ever criticize anyones idea at any point. Listen and build upon others ideas. Find the good in every idea. Hold the session in a novel location. Very often the creative leap will initially seem unnatural.
12 102
12 103
12 104
12 105
4.
5. Creative strategy statement (campaign theme, appeal, execution technique) 6. Supporting information and requirements
David Ogilvy
Leo Burnett
Find the inherent drama or characteristic of the product that makes consumers buy it
Every ad must contribute to the complex symbol that is the brand image.
(Inherent drama) is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.
A Big Idea. . .
Is Bedescribable describablein inaasimple simpleword wordor orphrase phrase
Revolves around the clinching benefit(s) Revolve around the clinching benefit
Allow you to brand the advertising Allows you to brand the advertising
Creative Theme/Idea
Campaign theme Should be a strong idea Central message that will be communicated in all advertising and other promotional activities Short term in nature, done on annual basis
Positioning
Establish the brand position in the consumers mind Done for companies as well as brands
Positioning
Based on product attributes/ benefits, price/quality, use or application, type of user, problem solved
POSITIONING BY PRICE/ QUALITY Parle Bisleri Bada Bisleri, same price ad campaign. POSITIONING BY USE OR APPLICATION Surf Excel is positioned as stain remover Surf Excel hena! Also, Clinic All Clear Dare to wear Black. POSITIONING BY COMPETITOR Onida was positioned against the giants in the television industry through this strategy, ONIDA colour TV was launched with the message that all others were clones and only Onida was the leader. neighbours Envy, Owners Pride.
Benefit
Unique
Potent
Buy this product or service and you will benefit this way or enjoy this reward
Must be unique to this brand or claim; something rivals can't or don't offer
1. Low Price Wal-Marts USP statement is short, sweet and to the point. Wal-Mart Always Low Prices. Always 2. High Quality Rolex also has a short USP statement that communicates volumes. Rolex Quality Takes Time 3. Superior Service Rackspace sums up their USP statement in two words. Rackspace Fanatical Support 4. Size/Selection Amazon.coms original USP was clear and focused. Amazon.com Earths Biggest Bookstore. 5. Convenience A good example of the Convenience USP is Schwans. This company has been delivering frozen food items to customers homes for over 50 years. They have kept up with technological changes by adding the convenience of online ordering and multiple payment options. Schwans Shopping should be easy. Cooking should be fun.
6. Customization/Most Options Ping Golf Clubs-USP statement reflects their commitment to custom fitting their products to their customers needs. Ping The leaders in custom fit, custom built golf clubs. 7. Speed The FedEx USP statement explains exactly why to use their service. FedEx When It Absolutely Has To Be There Overnight. 8. Originality, First in Marketplace OilOnline.coms USP statement emphasizes their first mover status in their niche. OilOnline.com The Original Online Source for the Oil Industry. 9. Strongest Guarantee Like all well thought out USPs, the Craftsman USP statement leaves no doubt what their main advantage is. Craftsman Tools Hand tools so tough, they're guaranteed forever.