MARK2038 Data Base Marketing Strategies II

MARK2038 Data Base Marketing Strategies II

Week 2

Instructor: Santo Ligotti Email: [email protected]

Today’s Agenda

Housekeeping Review Course Outline Reminder: Assignment #1 Distribute Assignment #2 Distribute Self Study Assignment #1 Distribute Self Study Assignment #2

Lecture: Creative Strategy and Direct Mail Direct Mail section will be self study

Creative Strategy and Direct Mail

Learning Objectives

At the end of today, you should be able to:

• Creative Strategy-Understanding the creative development process

• The Art of the Creative Brief• Direct Mail packages/design/basics• Writing copy for high response

Recall: Database Marketing

Recall: The 3 Direct Marketing Variables

Creative Media

Offer

Recall: Creative Strategy

Creative: the “packaging” of the offer in terms of:1. Theme 2. Copy3. Layout

Communication Variables

CREATIVE

MEDIA

WHAT do you say?

HOW do you say it?

WHERE do you say it?

WHEN do you say it?

Successful Creative

Breaks through clutterCommunicates benefits clearlySupports image/positioningMakes it easy and compelling to respond

Has staying power

Creative Brief

Creative brief: a living document that summarizes the creative strategy of a firm.

Creative Brief

Five general components:1. Customer insight or Target Audience2. Communication objectives3. Positioning statement4. Key messages5. Corporate requirements

Customer Insight

1. Who buys?2. What do they buy?3. Where do they buy?4. When do they buy?5. How do they buy?6. What motivates them to buy?7. How much is the customer willing to

pay (e.g., competitive parity)

Target Audience

Who you are Advertising toMade up ofDemographicsPsychographic GeographicsMedia Use PatternsPurchase/ Use Patterns

Demographics

Who they are (married, job type, age, education, recreation, etc.)Example:

Our target audience will be men, ages 16 to 25. These men either are in school or beginning their first job. If they are in High School or College, many of them are working part-time, service oriented jobs. Once they have completed school, most of them enter the professional world. They are living at home or alone for the first time. Paying bills is a new thing to them. Their income varies from as little are nothing, to $30,000 a year. These men are very active, participating in extra-curricular activities (especially sports), these tendencies carry on into their later lives. As target audience=s age increases, so does their likelihood to own a car, and other material goods. Most of these young men are either dating or in some form of relationship, nothing too serious however. Few of these men are seeking marriage, but they are looking for something long lasting.

Customer Insight

Psychographics

What they think and FeelValues, Attitudes, and Lifestyles (VALS)Example: The target audience is very focused on their lives. They are at a

point where they are creating their future, and are very intent on it being enjoyable. They do well in school, but their friends are more important. They go out with them two or more times a week. These men are also concerned with their looks. They need to feel attractive to the opposite sex, and spend a lot of their time and money in that pursuit. Religion is not a big issue in their lives. Most of them were raised with some form of belief, but they don=t feel a strong commitment to it. The target audience believes that the world in at their fingertips, and in most cases it is.

Geographics

Where they liveExample:These men live in Suburban areas,

usually larger cities of 40,000 or more. These towns are spread nation wide.

Media Use Patterns

What media they expose themselves to and how oftenExample:

The television is a staple of these men. They spend a lot of time watching ESPN and other sports shows. They also tune into Jerry Springer, South Park, Seinfield, and other cereal comedies. Placing ads during these shows in early evening and night slots would be the best way to reach our target audiences through the television. Magazines and newspapers are not very big among this population group. They don=t spend a lot of time reading because they would rather be doing something active. If they do subscribe or purchase magazines they would prefer reading Men=s Health, Sports Illustrated, or other similar magazines. Placing ads in these magazines would be a good way to promote Certs Powerful Mints.

Media Use Example Con.

Many of these magazines are fitness or health oriented this product would fit in well with the content. Since these men tend to drive quite often, placing outdoor advertisements on the way into the downtown area of the city would be a good way to reach these men. Advertising on buses would be best if they were placed on the outside. The target audience may travel the same routes as the buses, but are not likely to actually ride them. If there is a form of subway, however, in that particular city advertisements around or on the trains would reach many of our older target audience members. The best form of media to use would be the radio. These men listen to alternative or rock stations. They tune in quite frequently when driving, at home, or even when they are playing sports or working out. Our target audience makes themselves available to almost all of the medias, making them easy to reach.

Purchase and Use Patterns

Where, why, and how often they will use the productWhere, why, and how often they will buy the productExample: Since impressions are important to these men, they will use

this product often. They will use it when they are on a date or out with their friends. They can use it anywhere when they are in a situations where they can=t brush their teeth but still want fresh breath. They will buy one of two boxes of Certs Powerful Mints a week. They will pick them up at grocery or convenience stores where they are displayed near the register.

Positioning Statement

A unique selling proposition (USP) helps to clearly position the brand in the consumer mind.

“When I _________________,I will ____________________

because _________________.”

(Desired Action)

(Benefit)

(Support)

USP Defined

The USP is a statement that defines your business. It explains what makes you unique and why people should buy from you. When chooses to buy from you for the first time, they’re thinking; “With 50 other companies selling the same products and services as you, why should I do business with you rather than one of your competitors”

The USP is statement that defines your business. It explains what makes you unique and why people should buy from you

Key Messages

The USP should have three qualities:1. important2. unique3. believable

This USP facilitates response in two ways:

1. Creating a need2. Competitive selling

USP ExamplesBMW-

Sheer Driving Pleasure

IKEA- Affordable Solutions for Better Living

FEDEX- When it absolutely, positively has to get there overnight

SUBWAY- Eat Fresh

Message Strategies: NO USP

When there is no USP or major benefit to highlight:Describe the product effectivelyStress superior offer or service you

providePoint out benefits of dealing with your

organization compared to others

Developing Effective Positioning

Brainstorming: A process using groups of people to identify creative solutions to complex problems.

The Brainstorming Process

1. Define the problem clearly. Form a group Select a leader: takes notes, manages

agenda and time, only allow positive comments, keeps everyone involved

2. Set quotas for ideas and time limits for each agenda item.

3. Review house rules with participants before each session.

Creative Stimulators

Creative stimulators: a system used to stimulate people to think about creative new solutions to complex problems using free association.

Creative Stimulators for DM

S SubstituteC CombineA Add or AdaptM ModifyP Put to other usesE EliminateR Reverse

S.C.A.M.P.E.R.

Substitute – replace the familiar theme/situation with another theme or perhaps an unfamiliar theme

Combine – mix in popularized concepts to emphasize benefits of our product

Add or Adapt – describe the added benefits of our product/in a new way

S.C.A.M.P.E.R.

Modify – modifying time factors in the

present offer

Put to Other Use – link with unrelated

things/situations to emphasize favourable associations

S.C.A.M.P.E.R.

Eliminate or Simplify – taking away

weight/complexity of message for appeal

Reversal – reversing the usual situation,

e.g. “man bites dog”

S.C.A.M.P.E.R.

Examples:SPOON

S.C.A.M.P.E.R.In Class Exercise:

Working in groups of 3-5, work with the assigned word and create alternate use using SCAMPERTake 20 minutes, assign a spokesperson, then present to the class

What is Direct Marketing Media?

Interactive marketing tools used to get the customer to respond to and/or stimulate a transaction directly with the advertiser (rather than through a retail setting)Use different standards to evaluate media used for acquisition vs. retention … why?

What types of Direct Marketing are you familiar with?

Types of Direct Marketing

Direct mailInternet applications: e-mail, web, viral, e-commerce, extranetTelemarketingPrint (e.g. magazine insert cards, newspapers with toll free #s)DRTV – direct response TV / radioViral marketingCatalogue

DM Media Response Rates

Medium Avg. Response Rate*Direct Mail 1 – 2%Telemarketing – outbound 10 – 20% (retention only)Newspapers 0.01 – 0.1%Magazines 0.02 – 0.5%Inserts 0.1 – 1.0%DRTV 0.01 – 0.05%DR Radio 0.005%Websites n/aEmail low – 2%

* Acquisition programs

Basics of Direct Marketing

Purpose – to get a measurable response that will produce an immediate or ultimate profitTo get that measurable response there must be an offer - a “call to action”

What are the 3 key components to producing a response? What’s the most important?

3 Keys to producing a response

List/media – accounts for 40% of successOffer (30%)Creative execution (30%)Copy (15%)Layout (15%)

Reaching the Target: The List

Internal lists The databases of an organizationAlso called house lists Includes current customers, former

customers and inquiries (i.e. prospects)


External listsRent from 3rd parties 2 main types :

compiled and response


Compiled lists Rent from list specialists prepared from telephone directory, public records

etc.

Response lists house lists of other companies e.g.: credit card holder lists, donor lists (fund-

raisers), magazine subscription lists, buyer lists, attendee/ membership/seminar lists

3 Keys to Producing a Response

The Offerthe totality of what is offered to the customer and what is expected in return for it

Includes a mix of factors that motivate the target audience to respond e.g. product/service, price, payment terms, incentives etc.

Both offers and incentives are part of the DM message

Core Product

The Benefit

Packaging

Brand Name

Design

Actual Product

Augmented Product

ServiceGuarantees

Dialogue

IncentivesLoyalty

Programs

The Multi-layered Product

Elements of Promotion: Creative Execution

Creative Execution Creative execution = copy + layout (design) Most direct response copy falls into four categories:

• Benefits - how does the product improve the customer’s life?

• Descriptive copy• Support copy• Sweeteners & facilitators - give more reasons to

take the offer (e.g. incentives, choice, making it easier to respond/pay)

The Direct Marketing AgencyThe specialist in direct marketingManages the program for the client from concept development through execution Examples: Draft Worldwide Canada OgilvyOne Worldwide Grey Direct Brann Worldwide Carlson Marketing Group Rapp Collins Worldwide

http://directories.marketingmag.ca/bigBookSearch

Direct Marketing Creative Practice

AIDA MODEL A-Awareness I-Interest D-Desire A-Action

• The simplest way for direct marketers to help in explained how we notice, internalize, and respond to advertising

• Can be used to evaluate direct media such as direct mail


Awareness: How will I get someone to notice my direct piece of mail when it lands in a pile of bills and other competitors advertisements? Outer envelope should play on curiosity, eye settles

on middle of the page Use of Headlines in the content of the letter

Interest: You need to make sure someone reads your letter past the first headline, HOW? Relevant photographs that speak to a story, and the

customer can identify with

Use of Headlines in the content of the letter


Desire: How do I get them to reach that emotional level towards my product, which will ultimately lead them to buy? Your creative should trigger and foster those feelings, so HOW? Testimonials Descriptions Tone Illustrations/Pictures

Action: The customer must be feel that they must act right away, and to minimize the effort on the part of the customer in doing so MAKE IT EASY TO RESPOND

Direct Mail: Introduction & Key Components

Direct Mail

Direct mail: a direct marketing medium that uses contracted delivery services to place a marketing message into the hands of the customer/prospect at his/her home or place of business.

Advantages of Direct Mail• Audience selectivity - targeted• High Reach• Geographic flexibility

opportunity to deliver messages to specific geographic locations

• Creative flexibility choice of creative formats, copy length, colour, inserts

(e.g. coupons, free samples)• Advertiser control (solo direct)

circulation, quality of message• Exclusivity

the only competition is other mail • Measurability – response generated

Disadvantages of Direct Mail• Low response rates

1 to 2 % industry standard• High cost per exposure• Accuracy of addresses – people always on

the move• Image and lifespan

perceived as junk mail• Time required - 3 months to execute:

3 weeks in mail 4 weeks response window 4-8 weeks post analysis

Common Formats of Direct Mail

Classic package (most popular) Outer envelope Letter Brochure Response form (with postage paid return envelope)

Post cardFolders Printed on heavier paper, often with photos,

illustrationsStatement stuffers (bounce backs) Distributed via monthly credit card statements

What factors determines the format used?

Creating Direct Mail Advertising

The Letter The most important component of the mailing

package Presents the offer and communicates the

sales method Goal of the writer: to make appeals that will

satisfy one or more wants of the potential consumer

Translate key selling points (product features) into benefits (importance to the consumer)

The Letter - Other Considerations

Versions Different versions for each major segment Different version for previous buyers

Personalization RofT: write as if you know the person fairly well

Postscript One of the most effective parts of the letter Restate a key benefit or offer added incentive

Incentives “Extras” designed to increase response rates

(e.g. discounts, free gift, sample, contest etc.)

The Letter - Other Considerations

Letter length Don’t be afraid of long copy … but say it well Short lines: RofT is 85 characters Letter should be long enough to cover the subject

adequately and short enough to retain interestAppearance Attractive, easy to read Subheadings, underscoring, indent paragraphs,

capital letters, second ink colours etc. Paragraphs: maximum 7 lines

The Other “Pieces” to the Classic Mailing Package

The Outer Envelope One job: to get itself opened Bright colours, unusual envelopes, interesting

graphics generate interest Sets tone for your mailing - must harmonize with

contentsThe Brochure Purpose - dramatize the benefits and illustrate the

features of the product or service Elements - copy, pictures Has to do a complete selling job

Lift Letter (Publisher’s Letter) “Not responding? Open this letter”

The Other “Pieces” to the Classic Mailing Package

The Order Form Final commitment to buy

Gift Slips & Other Enclosures Improve response rates by outlining incentives on a

separate slip The Reply Device Most important priority: make it easy for the

customer to respond Clear action requested, state information clearly,

restate the offer, make it clear to read and understand

Include a separate Business reply envelope/card

Common Types of Direct Mail

Addressed mailUnaddressed mailCo-op mailings

Source: Canada Post Annual Report

“Canada Post delivers an average of only two items of addressed mail and one item

of unaddressed mail daily.”

Canada Post Product Lines

LettermailAddressed AdmailDimensional Addressed AdmailBigger, product samples

GeoPost PlusUses PSYTE clusters

Business Reply Mail

In-class Exercise: Selling Points vs. Benefits

Selling Point = FeaturesA 10-minute operating cycleMeasures 18” in diameterHas a transparent plastic topHas a universal hose coupling

Benefit = Important to Consumer

Example: Maytag Portable Countertop DishwasherTranslate the following selling points into product benefits.

In-class Exercise: Selling Points vs. Benefits

Selling Point = FeaturesA 10-minute operating cycleMeasures 18” in diameterHas a transparent plastic topHas a universal hose coupling

Benefit = Important to Consumer

Time to spend on other thingsSaves valuable floor spaceKnow when wash is doneEasy to use/move – attaches & detaches in seconds

Example: Maytag Portable Countertop DishwasherTranslate the following selling points into product benefits.

The Copy Platform

Copy Platform

Great results start with great copy.

Most copy falls into four categories:1. Benefits2. Description3. Support copy4. Sweeteners and facilitators

Copy Appeals & Basic Human Wants

What is it about your offer and benefit story that is most appealing?Most people are motivated to respond for one of two reasons: To gain something; ORTo avoid losing something

What are some examples?

Writing Great Copy

Know the product Know the marketDon’t talk “up” or talk “down”Promise… then deliverMake the most important point firstCopy, heads, subs, paragraphs

relevant to the selling proposition … always.

Writing Great Copy

Be concise, but tell the story Be logical and clear with good flow

and transitions Show your enthusiasm (if this matches

the tone) Be thorough- does the copy answer all

the questions? Make sure the copy is designed to sell

(not showcase)

Eleven Guidelines to Good Copy

Know the product Know the marketTalk in language the consumer will understandMake the most important point firstMaking a promise? … then prove you can deliver on itCopy (especially headline and lead paragraph) relevant to the selling proposition?Be concise - don’t overwriteBe logical and clear - ensure flow from point to pointShow your enthusiasm - does the writer believe in what he/she is selling?Be thorough - ensure all questions are answered Ensure the copy is designed to sell (not showcase)

The Seven-Step Formula for Winning Letters

1. Promise your most important benefit in your headline or first paragraph

2. Immediately enlarge on our most important benefit

3. Tell readers specifically what they are going to get

4. Back up your statements with proof and endorsements

5. Tell readers what they might lose if they don’t act

6. Rephrase your prominent benefits in your closing offer

7. Incite action … now.

Ten Powerful Words

YOUNOW

TODAYFREENEW

WINEASY

BONUSMEMBE

RTRY

Avoid the use of:

passive tense humour semicolons lengthy

paragraphs (>7 lines)

block text (left-and-right justified)

Format considerations

Letter lengthAppearanceThe post scriptVersioningPersonalization

Great envelopes

Get the mail opened Use colour, windows, decals, odd shapes,

etc. to stand out Leave the bottom 15 mm clear are Canada Post preferred size Most prestigious envelope is C4 window

face Entice rather than reveal Avoid trying to trick your audience

Great brochures

1. Enhance the credibility of the letter2. Tell the story of your product/offer3. Include:

Headlines that communicate Charts, diagrams, pictures Detailed descriptions for technical products Testimonials to reinforce your claims Description of risk-reduction mechanisms

The response device

Don’t count on the letter alone to make the sale!

Call-to-action must be simple. Direct customer to

complete order form, mail BRE, redeem coupons, call toll-free numbers, visit a promotional web site, etc.

Case: American Heart Association

The American Heart Association needed to raise more funds for its health improvement activities at lower cost.Seven new copy approaches were

developed for a new DM campaign alternate “teaser” copy on OEResponse to each version was testedMockups follow…

Example: American Heart Association

NONPROFIT ORGNONPROFIT ORGU.S. POSTAGEU.S. POSTAGE

PAIDPAIDPermit No. 35193Permit No. 35193Los Angeles, Calif.Los Angeles, Calif.

MR. JOHN SMITH123 ANYSTREETANYTOWN, AA 00000

(control)




Use the enclosed FREE GIFT.

You may save a life!





Emergency Heart Attack Card Enclosed.





4 years ago Billy Thompson’s dad would have died…





If you have ever worried about having a heart attack…





We’d like to show you how you can help save a life. YOURS.





You hold lives in your hands… TODAY!

…and THAT’S IMPORTANT!



Questions:

• Explain the rationale for each copy approach.


The best package:6. We’d like to show you how you can

help save a life. YOURS.Good packages:4. If you have ever worried about having

a heart attack…5. 4 years ago Billy Thompson’s dad

would have died…Poor packages:1. Use the enclosed FREE GIFT.5. You hold lives in your hands… TODAY!

AND THAT’S IMPORTANT!7. No teaser copy.8. Emergency Heart Attack Card

Enclosed.

• Do you agree with the test results for the “best” package?


The best package:6. We’d like to show you how you can

help save a life. YOURS.Good packages:4. If you have ever worried about having

a heart attack…5. 4 years ago Billy Thompson’s dad

would have died…Poor packages:1. Use the enclosed FREE GIFT.5. You hold lives in your hands… TODAY!

AND THAT’S IMPORTANT!7. No teaser copy.8. Emergency Heart Attack Card

Enclosed.

• Create three more teasers that would be effective.

A Final Word …Integrated CommunicationsDirect marketing should be integrated as part of an overall campaign strategy with advertising, internet marketing, sales promotion and PRCampaigns should have the same tonality, creative direction and strategic direction

Levering the Internet for response

MARK2038 Data Base Marketing Strategies II

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