Designing and Employing Print Chapter 6 Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Please Note: Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Opening Vignette Zoo’s News Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Direct Mail as a Print Medium Direct mail is catered to the individual Print media such as magazines and newspapers convey direct response advertising to groups of individuals in a “package” Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Direct Mail as a Print Medium Continues to be the dominant medium that is used for direct response advertising Advantages: selectivity & personalization; flexibility (many formats); most suitable for testing (near-perfect random sample); Disadvantage: the most expensive medium per prospect reached Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Market Segmentation of Direct Mail Databased mailing lists are often the distribution vehicle for direct mail Prospects and segments can easily be identified in an efficient manner Databases are at the heart of direct mail as a print medium Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Catalogs Vital and productive format of direct mail Today’s catalogs rely on databases to target specialized product lines to most-likely-interested market segments Catalogs are not confined to consumer products, are used in business-to-business distribution Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Syndication Mailings Syndication direct mail, usually arranged by an intermediary between the producer and the seller, involves the offering of a product to an established customer list. Common users: publishers, oil companies, bank credit cards, department stores, catalog merchandisers Syndication can provide a unusually high rate of return for nominal investment. Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Couponing Coupons convey an offer by a manufacturer or retailer that includes an incentive for purchase of a product or service in the form of specified price reduction Objective: To modify buyer behavior To induce customers or prospects to try a new product To convert occasional users to regular customers and to increase sales so as to warrant greater display of the product by the retailer Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Cooperative Mailings Provides participants opportunities to reduce mailing costs in reaching common prospects Ride-alongs: a direct marketer might include one or more non-competing offers with a catalog or individual mailing Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Example of Cooperative Mailings: ValPak Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Statement/Invoice Stuffers Bills and reminder statements mailed to customers provide an opportunity for merchandising offers of products and services Cost is relatively low Deliverability is assured Readability is high Market segmentation possible Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Package Inserts Related to stuffers, offers the advantage of arriving at a time when the recipient has just consummated a purchase Cost is same as billing inserts Large volume is potentially available Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Take-One Racks Locations: supermarkets, restaurants, drug stores, transportation terminals, or other high traffic locations Advantage is, those who voluntarily take a promotion piece from the rack are usually more than casually interested redemption rate relatively high Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Magazines as a Print Medium Market Segmentation Certain magazines are available in demographic editions describing market segments Demographic editions of magazines are directed to market segments such as women, college students, and business executives, and gardeners Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Example of Targeted Magazine: Inspirations Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Categories of Magazines General Mass - high circulation and low cost per thousand readers Women’s Service - heavy circulation and low cost per thousand readers Shelter - selected demographics and increased cost per thousand circulation Special Interest - highly selected demographics and life style definition Business - published for specific business readers Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Magazines Advantages reach mass or class audiences excellent reproduction at relatively low cost relatively long life and many readers per copy Disadvantages less space to tell a story closing dates considerable in advance of the issue date varied distribution leads to slower response Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Magazines Position Front portion is preferable Right hand page is better than a left hand page Coupons should be on the outside margin Timing Usually follows normal direct marketing cycle Strongest response in Jan-Feb & Sept-Oct Poorest response in June-July Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Newspapers as a Print Medium Market Segmentation Not as finely segmented as other mediums Opportunities through: urban Vs. rural, dailies vs. weeklies, morning vs. evening editions. Placement of direct response advertisements such as in the sports, television, comic sections can also serve to select specific types of readers Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Example of a Targeted Newspaper: Kidsville News! Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Categories of Newspaper Advertising Run-of-paper (ROP) Most are small or appear in specific mail-order sections of newspapers—a.k.a. “space ads” Preprinted inserts Typically in Sunday editions or Wed. & Thur. Preprinted by the direct response advertiser Syndicated Sunday supplements Large circulation and great deal of flexibility at relatively low cost Variation: comic section Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Newspapers Advantages short closing dates fast response wide variety of formats broad coverage Disadvantages Poor print quality Limited color Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Newspapers Position Placement according to like editorial Example: Funeral service next to the obituaries Timing Sunday editions are read more leisurely and in a family setting Morning editions more appropriate for retailers Wed. and Thur. Better for grocery ads Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall Case Study Newport News Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall