Direct Marketing Test 2 Chap 5&6

Front 1

the offer

Back 1

is the VALUR PROPOSITION to the prospect or customer stating what YOU WILL GIVE to the customer in return for taking the action your marketing communication asks him or her to take
-terms under which a direct marketer PROMOTES a product or service

terms under which a specific product or service is promoted to the customer

Front 2

creating need satisfying ___ is a part of ongoing ____ that drives the

Back 2

offers
CRM
direct marketing process

offer is front end activity of crm

Front 3

edward nash

Back 3

author of dm: strategy, planning, execution

5 essential elements of dm strategy: product, offer, medium, distribution method, and creative.

Front 4

why use odd numbers in values?

Back 4

customers perceive them differently

Front 5

40 40 20 rule

Back 5

40% rely on right list
40% rely on having effective offer
20% creative mix

Front 6

lois geller

Back 6

author of response: the complete guide to profitable direct marketing

effective offers have 3 characteristics: believability, involvement, creativity

Front 7

believability

Back 7

offer must make sense to customer

not too much cheap stuff

Front 8

involvement

Back 8

must attempt to get the customer involved

avoid glaze over affect (15% off)
but if buy one get one free more exciting

Front 9

creativity

Back 9

sets your apart from others

most creative gets highest response

exclusivity

Front 10

planning the offer

Back 10

1) establish OBJECTIVE of offer
2)decide on the ATTRACTIVENESS of the offer
3) REDUCE THE RISK of the offer
4)select a CREATIVE APPEAL

Front 11

step 1: establish objectives of offer

Back 11

what offer is designed to do

should they:
continuity selling (offer continued on regular basis) aka club offers (insurance policies, magazine subscriptions)

upselling- promotion of more expensive product over the product originally discussed or purchased

cross selling- important characteristic of dm where new and relayed products (or unrelated) are offered to existing customers


includes positive or

negative option
-til forbid

Front 12

positive option

Back 12

the process whereby the customer must specifically request shipment of a product for each offer in a series

Front 13

negative option

Back 13

the shipment of the product is sent automatically unless the customer specifically request that it not be

include til forbid

Front 14

till forbid (tf)

Back 14

an offer that prearranges continuous shipments on a specified basis and are renewed automatically until the customer instructs other wise

Front 15

step 2:decide on the attractiveness of the offer

Back 15

more attractive offer, better response
-dress up with freebies
must be careful w budget constraints and objectives

Front 16

step 3: reduce the risk of the offer

Back 16

direct marketer has greater risk and traditional retail, cant see and touch product
-free trial or examination period
-money-back guarentee

magnify importance to reduce risk

Front 17

step 4: select a creative appeal

Back 17

rational or emotional
rational- logical buying motives
-needs

emotional- desires and feelings
-wants

must be direct as well
-place to click

Front 18

components of an offer

Back 18

two categories:
-those that are REQUIRED and must be present in all offers
-those that are OPTIONAL and may be included depending on strategy and costs

Front 19

required elements

Back 19

product, price, payment terms, length of commitment, risk reduction mechanisms

Front 20

optional elements

Back 20

incentives, multiple offers, and customer obligations

Front 21

8 componants of an offer

Back 21

1)product or service
2)pricing/payment terms
3)trial or examination period
4)guarentees
5)sweepstakes or contests
6)gifts and premiums
7)time limits
9) continuity

Front 22

product or service

Back 22

customize
-must SATISFY customers needs or wants
-product or service FEATURES must be understood

product features
-physical features (color)
-extended properties (gift wrapping, delivery)- basic benefits

services
-type, time, duration, location, frequency, schedule
-seasonal

Front 23

pricing/payment terms

Back 23

price skimming
price penetration strategy
price elasticity
delayed payment/installment payments
price expression in the offer, how we offer it

Front 24

price penetration

Back 24

strategy used if direct marketer wants to maximize sales volumes. this strategy sets the price at a very low level so that almost any consumer who wants to buy the product can afford to do so.

Front 25

price elasticity

Back 25

a relative change in demand for a product given the price of the product. it measures the responsiveness or sensitivity to price changes


if elastic=sensitive to price change, demand increases greatly when price is lowered

product with elastic market demand should be priced lower than item w inelastic

Front 26

price skimming

Back 26

a strategy used when the objective of the price is to generate the largest return on investment where the price must be set at the highest possible level to "skim the cream" off the top of the market and only target a select number of customers who can afford to buy the product/service

Front 27

trial or exam period

Back 27

helps overcome the RISK FACTOR of dm
-very effective
-full return privileges are vital

Front 28

guarantees

Back 28

instrumental in OVERCOMING a potential buyers RELUCTANCE to purchase an unseen product from a remote location

ex- 30 days money back guarantee
-double your money back
-LL BEAN

benjamin franklin

Front 29

sweepstakes or contests

Back 29

many designs
- perforated tear offs, die cuts
-token, stamps
-answers to questions, problems, or puzzles
-not requirement

check state and local regulations

Front 30

gifts and premiums

Back 30

-effective device for stimulating or increasing response
-can be offered for: buying, trying, inquiring
-"keepers"

Front 31

time limits

Back 31

a part of the offer often involves limited quantity as well as specified time period

key words:
hurry!
offer ends....
while supplies last

Front 32

continuity

Back 32

POSITIVE OPTION: customer must specifically request shipment for each offer in a series

NEGATIVE OPTION: the shipment is sent automatically unless the customer specifically requests that it not be
-more controversial

Front 33

offer is

Back 33

offer independent of entire dm strategy.

Front 34

5 steps to creating an offer

Back 34

1) perform marketing research
2) determine the terms of the offer
3) target the offer
4)test the offer
5)execute the offer

Front 35

perform market research

Back 35

1) analyze customer needs and wants- find out what MOTIVATES them
2)determine customer motivations
3)develop customer profiles

Front 36

motivation

Back 36

are NEEDS that compel a person to take ACTION or behave in a certain way, such as purchase a product/service

Front 37

determine the terms of the offer

Back 37

(product details)
1) a choice of sizes
2) a choice of colors
3)personalization- be made available, enhances the sale
4)product specifications- disclose dimensions
5)products accessories- what product accesories are available

Front 38

target the offer

Back 38

kemske (write on target) suggests to know four questions:

1)what am i selling?
2)whom am i selling to?
3)why am i selling this now?
4) what do i want my prospect to do?

selling power comes from knowing who you are targeting to

-positioning

Front 39

positioning

Back 39

enables marketers to understand how each CONSUMER PERCEIVES a company's product or service based on important attributes (product positioning).

perception based on strength/weakness of product/service compared to competitors

Front 40

test the offer

Back 40

1) test one feature at a time- know what variable changed cause change in consumer response
2) code your tests so you can measure results- find best results
3)keep accurate records- measure and analyze ALL results
4) analyze test results and take action- find out which test offer worked and use it again!

Front 41

execute the offer

Back 41

revise- and "roll out"
-get ready to fulfill customer orders

Front 42

popular offers

Back 42

1)free gift offers
2)other free offers
3)discount offers
4)sale offers
5)sample offers
6)time-limit offers
7)guarentee offers
8)build-up-the-sale offer- increase dollar amount - books 15$ or leather binding 25$
9)sweepstakes offer - excitement

Front 43

creative research

Back 43

the creative process in dm
-begins with research
-know the customer

followed by idea generation
-design, layout, format

-lead to copywriting
-ending with creative materials

*find out what motivates

Front 44

monetary income is not the

Back 44

only determinant of demand

Front 45

disretionary household purchases under such circumstances are dependent

Back 45

not just on ability to buy but also proneness to spend

Front 46

message objective

Back 46

COMPELLING message also depends on OBJECTIVE of message

need to distinguish between advertising that promotes brand and builds long term image and advertising that seeks immediate response or transaction

Front 47

regarding "creativity" in dm

Back 47

"its not creative unless it sells"
ROI
-immediate response and/or transaction
-measurable and accountable creativity

Front 48

copywriting and graphic techniques

Back 48

create and image of what the product can do for the customer
-sell BENEFITS in a manner that matches a customer's motivation

Front 49

the goal of copywriting:

Back 49

translate features into benefits

-"dont sell the steak, sell the sizzle!"
-translate each feature into an advantage
-convert each advantage into a benefit that is of INTEREST and IMPORTANCE to the target customer

Front 50

example of features vs benefits

Back 50

washing machine:
features: high spin speed, prodive a variety of wash temperature choices, accomodate a range of colors, include tumble dryer, compact size

compact size
advantage: compact size fits into smaller space
benefit: space saving
high spin
a: clothes dry faster
b:saves time

Front 51

writing a copy

Back 51

begins with determining idea
then creatively weaving that big idea into all aspects of elemts of creative campaigne

levinson (guerrilla creativity) refers to big idea as meme

1)determine the copy appeal
2) writing the copy
-creating the big idea
3) design and graphics

Front 52

big idea

Back 52

the idea that becomes the company's logo, slogan, or tag line.
it is the HIGHLIGHTED UNIQUE SELLING POINT OF CREATIVE EXPRESSION that is the FOCAL POINT of a whole promotional campaign

Front 53

meme

Back 53

a self explanitory symbol, using words, action, sounds, or pictures that communicate an entire idea

-lowest common denominator of an idea, a basic unit of communication
2. it can alter human behavior, and in guerrilla marketing that means motivating people to buy whatever the guerilla offers
3) it is simplicity itself, easily understandable in a matter of seconds

Front 54

how to get features to benefits

Back 54

imagination
brainstorming
technology
product design
common sense

Front 55

copy appeal

Back 55

basic underlying theme of the promotion or campaign. most copy appeals are timeless because they stem form basic human needs- what people want to gain, save, avoid, or become

Front 56

people want to gain

Back 56

confidence, appearence, time, professional advancement, enjoyment, prestige, popularity, praise, wealth

Front 57

people want to save

Back 57

time, money, memories

Front 58

people want to avoid

Back 58

criticism, pain, trouble, discomfort, embarassment, work, worry, effort emotional suffering

Front 59

people want to become

Back 59

good citizens, creative, efficient, knowledgeable, good parents, physically fit, influental over others, popular, successful recognized, authories, respected

Front 60

using traditional formulas when writing a copy

Back 60

-attention, interest, desire, action AIDA!
-keep it simple stupid (KISS)
-bob stone's 7 step formula
-picture, promise, prove, push
-star, chain, hook

Front 61

bobs 7 step formula

Back 61

1) promise benefit in headline for 1st paragraph, most important benefit
3) immediatley enlarge most important benefit
3)tell reader exactly what she will get
4) back statement with proofs and endorsements
5) tell reader what will be lost by not acting
6)rephrase your prominent benefits in closing offer
7)incite action now

Front 62

pppp

Back 62

(by hoke)

picture- get attention early in copy to create desire
promise- tell what product or service will do, describe its benfits to reader
prove- show value, back up with personal testimonials or endorsements
push- ask for the order

Front 63

star chain hook

Back 63

(by frailey)

1) get the reader;s favorable attention. do it with an opening paragraph that is bright and brisk- the star
2) follow quickly with a flow of facts, reasons, and benefits, all selected and placed in the best order to transform attention to interest and finally into desire- the chain
3)suggest action and make it easy as possible - the hook

Front 64

how to determine big idea

Back 64

how to determine
-highlighted unique selling point"
-the star of promotional campaign
-a catchy, attention getting, and easy to remember phrase or symbol
-the"mem"- self explanatory symbol usuing words, actions, sounds, or pictures, that communicate entire idea
-CONSISTENT USE of big idea or meme is the KEY to a successful creative marketing campiagn

Front 65

design graphic techniques

Back 65

layouts, illustrations, and photographs
-involvement, devices, type, paper, ink, color

Front 66

layout

Back 66

positions copy and illustrations in print media not only to gain attentions but also to direct the reader through the message in the sequence intended by the copywriter
make optimal use of type as well as white space, photographs w/ illustrations, and other graphic techniques includes shapes, sizes, holds, die cuts, and popups

Front 67

involvement devices

Back 67

devices used in direct response advertising to spur action by involving the ready; examples would be tokens, stamps, punch outs, puzzles, etc

Front 68

elements of direct response print ads

Back 68

headlines, body copy, call to action, response devices,

coupons and inserts (optional)

Front 69

most important element of any printed ad

Back 69

headline

Front 70

creating messages for specific media

Back 70

broadcast
-television
-radio

Digital video

Internet
-home page
-email
-banner ads

Front 71

television

Back 71

tv ad: time limitations (max 2 min)

need a CONCEPT - what its going to be about, objective
has STORY BOARDS - visuals
-the visual portion of a television commercial is shown through a series of illustrations
-voice overs

-steps to creating a story board
1)objectives
2)setting
3)major ideas
4)characters
5)plot
6)message

SCRIPT- audio portion
GRAPHICS-visuals, images, actors
PRODUCTION- coordination of technicians, producer, director, actors, etc

Front 72

radio

Back 72

less complex than tv ads
flexability
radio less expensive than tv
market segmentation is attainable

Front 73

digital video

Back 73

process for creating:
1)prepare story board
2)import images and video
3)determine order
4)add transactions
5)apply video clipping
6)add overlay

Front 74

internet

Back 74

get there easily
home page
outbound email
banner advertisement

Front 75

four basic home page design principles

Back 75

1) alignment
2)proximity
3) repetition
4) contrast

Front 76

creating messages for outbound email promotions

Back 76

-eye catching
-effective design contrast with the use of multiple colors
-good use of white space
-strong and multiple calls-to-action