Direct Direct MarketingMarketing

Asia-Pacific Marketing FederationAsia-Pacific Marketing Federation

Certified Professional MarketerCertified Professional MarketerCopyright byCopyright by

Marketing Institute of SingaporeMarketing Institute of Singapore

OrganizationOrganization1. Introduction1. Introduction

2. Effective DM thro’ Advertising2. Effective DM thro’ Advertising

IntroductionIntroductionDefinitionDefinition

Any advertising activity which creates and Any advertising activity which creates and exploits a direct relationship between you and exploits a direct relationship between you and your prospect or customer as an individual.your prospect or customer as an individual.

e.g., nonstore sales via mail or telephone.e.g., nonstore sales via mail or telephone.

Types of Direct MarketingTypes of Direct Marketing

---- Mail (catalogues) Mail (catalogues) ---- Advertising Advertising ---- Telemarketing Telemarketing---- Infomercials Infomercials ---- Teleshopping Teleshopping---- Internet Internet

How is it different?How is it different?1. 1. General advertisingGeneral advertising speak to people en masse, speak to people en masse,

not as individuals.not as individuals.2. 2. Sales promotionSales promotion is designed to achieve an immediate is designed to achieve an immediate

effect on sales.effect on sales.S/T and therefore does not build relationship by S/T and therefore does not build relationship by placing customers on database.placing customers on database.

3. 3. Public relationsPublic relations employs media controlled by employs media controlled by others to create favorable opinion.others to create favorable opinion.

AdvantagesAdvantages(1)(1) Know customers better.Know customers better.

Isolate customers as individuals.Isolate customers as individuals.-- discover what differentiates them from others.-- discover what differentiates them from others.-- develop more convincing appeals.-- develop more convincing appeals.-- more effective reach.-- more effective reach.

(2)(2) Continuity.Continuity.Build continuing relationship by offering Build continuing relationship by offering products they want.products they want.Binds customer to you for longer period.Binds customer to you for longer period.

(3)(3) Measurable.Measurable.Test what works and what doesn't.Test what works and what doesn't.

(4)(4) Flexible.Flexible.Timing and Costs.Timing and Costs.-- Controllable-- Controllable-- Able to predict future responses-- Able to predict future responses-- Less risky-- Less risky

(5)(5) Motivates action.Motivates action.(6)(6) Segmentation.Segmentation.(7)(7) Give customers better service.Give customers better service.

DisadvantagesDisadvantages(1)(1) Poor Image -- junk mail.Poor Image -- junk mail.(2)(2) Inaccurate mailing lists.Inaccurate mailing lists.(3)(3) Unable to create mood.Unable to create mood.

List ManagementList Management(1)(1) How frequent,How frequent,(2)(2) How recent,How recent,(3)(3) How much,How much,

listed consumers have made direct-response listed consumers have made direct-response purchases of the product category.purchases of the product category.

When to use DMWhen to use DM

(1)(1) Narrowly defined tgt mkt.Narrowly defined tgt mkt.

(2)(2) Needs to explain the product.Needs to explain the product.

(3)(3) Interested in S/T direct response.Interested in S/T direct response.

Thro' Print AdsThro' Print Ads-- Same guidelines as in print advertising.-- 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 If your brand name is well known, feature it

strongly.strongly.•• Make coupon into mini-ads complete with Make coupon into mini-ads complete with

brand name, promise, and a miniature photo brand name, promise, and a miniature photo of product.of product.

Effective DM thro’ Effective DM thro’ AdvertisingAdvertising

Proofs and testimonials.Proofs and testimonials. Get prospect to mail coupon by:Get prospect to mail coupon by:

"Limited edition""Limited edition"

"Special price for promptness""Special price for promptness" Tidy, well-organized layouts.Tidy, well-organized layouts. Give great thought to the envelope.Give great thought to the envelope. Include letters, personal.Include letters, personal.

Thro' TV CommercialsThro' TV Commercials---- Set up problem and demonstrate how product Set up problem and demonstrate how product

can solve it.can solve it.---- Give money-back guarantee.Give money-back guarantee.---- Include price.Include price.---- Ask for the order, explicitly and urgently.Ask for the order, explicitly and urgently.---- Allow at least 20 secs to give info on how Allow at least 20 secs to give info on how

to order.to order.---- Repeat phone number.Repeat phone number.

Tips for Direct Marketing in Tips for Direct Marketing in AsiaAsia

Keep costs lowKeep costs low– Do homeworkDo homework– Go into JV with local partnerGo into JV with local partner– Establish brand name at retail level firstEstablish brand name at retail level first

Find the favorable factors for mail order in the Find the favorable factors for mail order in the countrycountry– In Japan, exchange rate fluctuation & poor retail In Japan, exchange rate fluctuation & poor retail

distribution channels contributed to catalog distribution channels contributed to catalog successsuccess

Provide right service & staffProvide right service & staff

– Staff to explain catalog shopping & know Staff to explain catalog shopping & know how to fill in sales formshow to fill in sales forms

– Bilingual sales formsBilingual sales forms

– Understand what customers wantUnderstand what customers want In Japan, US$ (not Japanese yen) pricing In Japan, US$ (not Japanese yen) pricing

for authentic made-in-US impressionfor authentic made-in-US impression