1. Direct Marketing Asia-Pacific Marketing Federation Certified Professional Marketer Copyright by Marketing Institute of Singapore

2. Organization 1. Introduction 2. Effective DM thro’ Advertising

3. Introduction Definition Any advertising activity which creates and exploits a direct relationship between you and your prospect or customer as an individual. e.g., nonstore sales via mail or telephone.

4. Types of Direct Marketing -- Mail (catalogues) -- Advertising -- Telemarketing -- Infomercials -- Teleshopping -- Internet

5. How is it different? 1. General advertising speak to people en masse, not as individuals. 2. Sales promotion is designed to achieve an immediate effect on sales. S/T and therefore does not build relationship by placing customers on database. 3. Public relations employs media controlled by others to create favorable opinion.

6. Advantages (1)Know customers better. Isolate customers as individuals. -- discover what differentiates them from others. -- develop more convincing appeals. -- more effective reach. (2)Continuity. Build continuing relationship by offering products they want. Binds customer to you for longer period.

7. (3)Measurable. Test what works and what doesn't. (4)Flexible. Timing and Costs. -- Controllable -- Able to predict future responses -- Less risky (5)Motivates action. (6)Segmentation. (7)Give customers better service.

8. Disadvantages (1)Poor Image -- junk mail. (2)Inaccurate mailing lists. (3)Unable to create mood. List Management (1)How frequent, (2)How recent, (3)How much, listed consumers have made direct-response purchases of the product category.

9. When to use DM (1)Narrowly defined tgt mkt. (2)Needs to explain the product. (3)Interested in S/T direct response.

10. Thro' Print Ads -- Same guidelines as in print advertising. Emphasize prime benefit and offer.Emphasize prime benefit and offer. Tricky, complicated openings rarely work.Tricky, complicated openings rarely work. If your brand name is well known, feature it strongly.If your brand name is well known, feature it strongly. Make coupon into mini-ads complete withMake coupon into mini-ads complete with brand name, promise, and a miniature photo of product. Effective DM thro’ Advertising

11. n Proofs and testimonials. n Get prospect to mail coupon by: "Limited edition" "Special price for promptness" n Tidy, well-organized layouts. n Give great thought to the envelope. n Include letters, personal.

12. Thro' TV Commercials --Set up problem and demonstrate how product can solve it. --Give money-back guarantee. --Include price. --Ask for the order, explicitly and urgently. --Allow at least 20 secs to give info on how to order. --Repeat phone number.

13. Tips for Direct Marketing in Asia n Keep costs low –Do homework –Go into JV with local partner –Establish brand name at retail level first n Find the favorable factors for mail order in the country –In Japan, exchange rate fluctuation & poor retail distribution channels contributed to catalog success

14. n Provide right service & staff –Staff to explain catalog shopping & know how to fill in sales forms –Bilingual sales forms –Understand what customers want n In Japan, US$ (not Japanese yen) pricing for authentic made-in-US impression