Chapter 11: Direct marketing The convenience of shopping at home

An Old Idea Improved Via Technology Been around for more than 150 years (mail order) Sears, Roebuck & Company in 1886 Computers, checkout counters scan information Names of individuals are now isolated not only by age, name, education, demographics, but also by credit history, hobbies, and buying habits. Prospects are also targeted by size and type of business and exact job function

How it differs from mass advertising Whereas the goal of advertising is to build brand awareness or to create demand for a new product category, direct marketing is structured to sell now Urgency, interactiveness is the key component Way to obtain marketing information through sales Sells offers, using deadlines to produce swift responses More women order than men, year old group, followed by 45-54, annual growth more than $50,000

What companies/marketers find out The dollar value of purchases The number of purchases annually The length of customer-company relationships Information on other purchase influencers at the same address Promotions aimed at customers Rentals of customers’ names to other companies Nonresponders Sociographic and demographic information on customers

Advantages of direct marketing Pinpointing of prospects by lifestyles, demographics, purchasing patterns, etc Personalized messages in design and tone Faster sales through traditional advertising media Variety of packaging options and product sample Less competition from other media content. Only compete with messages in the mail

Computer Databases Trades with other companies, motor vehicle records, warranty card data from their own files, birth announcements, lists of college students, subscribers to selected magazines … Buy fat-free salad dressing and yogurt at the checkout, and a scanner labels you as a prospect for exercise equipment or fitness magazine.

Involves target audience Want to reinforce a jingle? Include a music chip that plays when the direct mail package is opened? Want consumers to smell, taste, or feel your product? Include a music sample. Although these techniques may be expensive to produce, they can be a bargain depending upon the audience’s size and spending power

The 3 musts for direct marketing The list: should be narrowed to prime prospects for the product or service. The message: Make it oversized. Personalized letter. Salutation in keeping with the list. Signature that looks handwritten. Use the postscript. The offer: always ask for response often in form of limited-time offer. Can offer coupons. Pre-paid business-reply envelope

The envelope Entice people to open the envelope to read the message by: Make it oversized Print a message on the front Laser-print the recipient’s name into the message Customize the shape

Hershey’s Resorts created a mailer that looked like luggage with vintage luggage labels

Tips for writing letters Use letterhead stationery Open with a salutation Use short, indented paragraphs Use the word “you” liberally Underscore key points Include a signature at the end Include a postscript (P.S.) to give an incentive to act now

tips Identify your company in the FROM line Give your reader a reason to open the message in your SUBJECT line Summarize your offer in the opening paragraph Include a link to your company’s website Include an opt-out statement